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The Indianapolis City-County Council on Monday delayed a vote on a proposed far-east-side senior housing development after housing advocates brought forth concerns over whether the developer previously kept tenants in problem-plagued properties.
Councilors plan to take a closer look at a proposal after criticism was made against the developer, Kittle Property Group Inc. The Indianapolis-based company has been accused of mismanaging three west-side apartment properties—allegations that it denies.
Kittle Property Group is requesting a 30-year PILOT, or payment in lieu of taxes, agreement with the city to develop the 208-unit Sunspring senior apartment complex at 11517 E. 38th St. If the council approves the proposal, Kittle would not pay taxes on the nearly $53 million development. Instead, the company would make an annual payment in 2027 starting at $47,340 and increasing 3% every year for the length of the 30-year agreement.
The proposal was eligible for a final vote from the council Monday, but was not on the agenda.
Councilor La Keisha Jackson, the sponsor of the proposal, said she paused when community advocates approached her “expressing concerns about the living conditions of properties managed by Kittle Property.”
“Additional time is needed to thoroughly look into these concerns and ensure the appropriate actions are taken before we move forward with a new project,” Jackson said.
Concerns were brought up in September, when members of the Indiana Tenant Association filed more than 70 complaints to the Indiana Attorney General’s Office. The complaints were related to three properties managed by Kittle: The Reserve at White River, Lynhurst Park Apartments and Lafayette Landing. Tenant concerns ranged from broken elevators to black mold.
Dee Ross, founder of the Indiana Tenant Association, spoke to Jackson and other councilors. He said the organization represents 3,000 tenants and has been receiving complaints against Kittle for a few years.
“It was alarming to see that [Kittle] had the audacity to try to build new ones and target and exploit more low-income residents in our communities,” Ross said.
Kittle Property Group, formerly known as Herman & Kittle Properties, owns or manages more than 145 properties in 18 states.
Caroline Kimmel, development director for Kittle, said staff in the company’s property management and development divisions met with city development officials and council staff last week.
In a statement to IBJ, she disputed claims made by Ross and the Indiana Tenant Association.
The Indiana Attorney General’s Office dismissed most of last fall’s claims, Kimmel said, because they weren’t filed by tenants themselves.
“All complaints that were valid were immediately addressed or steps were taken immediately,” Kimmel wrote. The company also invited the Indiana Attorney General’s Office to inspect the three properties.
The Indiana Attorney General’s Office has not responded to a request for comment.
Kimmel said the Indiana Housing and Community Development Authority conducted inspections last fall and had no critical findings.
In a separate statement, Kittle said it made more than $6.5 million in improvements to its portfolio of properties in 2023 alone and is “committed to the ongoing investment and capital improvements into the future.”
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Who wants to bet that their $6.5 million in “improvements” were actually just fixes for code violations? Slumlords shouldn’t even be allowed to operate. They certainly shouldn’t be receiving tax subsidies.