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A council committee on Monday unanimously recommended approval of $1.6 million in tax-increment financing bonds for a homeownership-focused development on a former industrial site in the Martindale-Brightwood area.
Arnold Place, a $13.2 million complex of 33 town houses, is being developed by the Indianapolis Neighborhood Housing Partnership. The three-bedroom, two-bathroom units would provide homeownership opportunities just below market-rate.
At least 51% of the units will be priced at 80% of Indianapolis’ area median income. For a one-person household in a town house worth $350,000, a buyer would pay $113,000 after subsidies, said Jeff Hasser, director of housing strategy for INHP. INHP offers down payment assistance and a loan program that allows the buyer to pay just $7,000 at closing.
The estimated cost of the development increased $1.2 million from a 2023 estimate of $12 million. Hasser cited rising interest rates and an increase in the number of units originally proposed to the city’s Department of Metropolitan Development. The initial proposal included 22 units.
The full council will vote on whether to accept the committee’s recommendation and approve the TIF funding on Feb. 3.
The development sits directly beside Harvest Christian Fellowship Church off Winthrop Avenue. Colonial Baking Co. used the plot for warehouse storage, truck loading and truck repair from the mid-1950s through the 1990s. Industrial use contaminated the ground until the city received a grant for environmental remediation in 2019.
Builders have nearly completed the first phase of the development, which includes 20 town houses. Hasser said it will be complete by April.
Hasser said INHP is working to fill an $800,000 gap for Phase 2, which would include the remaining 13 units.
The development has also received $1.15 million in New Market Tax Credits from the federal government, $1.85 million from the city’s COVID funds and a $500,000 Indianapolis African American Quality of Life Initiative grant.
INHP expects proceeds from the homes’ sales will total about $7.3 million.
The development is part of the Reagan Park housing tax-increment financing district, or HOTIF. The Reagan Park HOTIF dedicates some of the property tax revenue coming from the neighborhood to a fund for the creation and preservation of affordable housing and for residential infrastructure.
The HOTIF includes 89 parcels. It follows the neighborhood’s borders of College Avenue to the west, 25th Street to the north, the Monon Trail to the east and 22nd Street to the south.
INHP partnered with Indianapolis-based developer Onyx+East to design and build the project.
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That is quite a discount, $350000 townhouse sold for $113000. How do I get in on that deal.
Well Rhea, if you make less than
$57650 a year as a single person household, $65,850 in a 2 person household, they you should contact INHP and get in the pipeline. inhp.org