WCDC Looks To Improve Downtown Housing
July 28, 2016 at 4:25 p.m.
After 16 years of focusing on businesses in the downtown, Warsaw Community Development Corp. is turning some of its attention to housing.
Entering into the low-income housing sector, WCDC director Trish Brown said, will bolster some of the marginal property inside the business district and provide a new source of funding for the agency.
The first move in that direction came with the WCDC's purchase of a six-unit apartment building south of the city police station on High Street last year. Renovations will begin this spring.
The project, which could be the first of several, is being arranged through the Indiana Housing Finance Authority and will serve low- to very low-income households, Brown said.
"If you don't have houses and you don't have people living around the district, basically you're removing customers from the area," Brown said.
"We don't want the area around the central business district to fall into economic decline," she said.
The building has been on the market for nearly 10 years, and much of the renovation will entail bringing it up to code.
Mortgages from two local banks were acquired to buy the property, and renovations will be covered with portions of a $200,000 grant from the state.
Other portions of the grant will be used to pay for consulting, taxes and an operating reserve in case of emergencies.
Also, part of the grant is a $24,000 developer fee, which Brown said will be used for other projects.
Until now, the agency has depended mostly on membership fees from downtown retailers for its budget. Occasionally, its operating balance has run short and required dipping into a reserve fund, Brown said.
"By looking for other ways to impact the community like the housing development, it helps free up some of our operating capital."
Some of the new available money could be used for training, advertising and a proposed three-year strategic plan, Brown said.
The change in direction is one of the directives by the Indiana Main Street organization, and the WCDC is one of the first in the state to move ahead, Brown said.
Inclusion in the program required the WCDC's certification through the state housing finance authority.
The Warsaw Housing Authority is also seeking the same status, and certification could come this month, said Catharine Walker, executive director of the agency.
Walker said she isn't familiar with details of the WCDC's plan, but isn't bothered by it.
WHA serves nearly 400 individuals and won't be affected by the WCDC program, she said.
"My stance is, affordable housing is needed in the downtown area. If they're going to take this program on in their agency, great," Walker said.
Mayor Ernie Wiggins said he supports the WCDC effort as long as it doesn't overlap with the WHA. He said he also suggested Brown limit it to the immediate downtown area.
"Anything that's going to enhance the downtown and the housing opportunities is a good idea," Wiggins said.
Brown said she doesn't consider it a conflict with the WHA because she doesn't believe the WHA is involved in housing development.
"We look forward to working with the housing authority," Brown said.
The property owner at 221 S. High St. sought to sell the property for nearly a decade. Bill Dickerson, a former Warsaw man who lives in Reno, Nev., said offers to buy the property in the past were unacceptable.
Sale to the WCDC was below the appraised level and Dickerson included a $10,000 payback as an inducement.
Part of the reason behind the sale, Dickerson said, was to help the community.
Renovations to the building will begin in April and will be done without displacing tenants, Brown said.
Under state guidelines, if residents are displaced, the agency overseeing the project is required to cover the relocation costs and assist with portions of the rent for up to five years. Brown said she wants to avoid that type of scenario.
If the High Street project is successful, Brown said she will talk with the WCDC board about doing similar projects with other houses in or near the business district.
Coincidentally, Brown lives on High Street in a historical home she and her husband, David, renovated nearly two years ago on their own.
Brown said she realizes the proximity to the housing project might raise a few eyebrows.
"I can see where people would say that, but the central business district is my backyard, and if I can't make things better in my own backyard, I don't have any business ... I have a lot of talent to make things better in my own backyard - why not use it?" Brown said. [[In-content Ad]]
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After 16 years of focusing on businesses in the downtown, Warsaw Community Development Corp. is turning some of its attention to housing.
Entering into the low-income housing sector, WCDC director Trish Brown said, will bolster some of the marginal property inside the business district and provide a new source of funding for the agency.
The first move in that direction came with the WCDC's purchase of a six-unit apartment building south of the city police station on High Street last year. Renovations will begin this spring.
The project, which could be the first of several, is being arranged through the Indiana Housing Finance Authority and will serve low- to very low-income households, Brown said.
"If you don't have houses and you don't have people living around the district, basically you're removing customers from the area," Brown said.
"We don't want the area around the central business district to fall into economic decline," she said.
The building has been on the market for nearly 10 years, and much of the renovation will entail bringing it up to code.
Mortgages from two local banks were acquired to buy the property, and renovations will be covered with portions of a $200,000 grant from the state.
Other portions of the grant will be used to pay for consulting, taxes and an operating reserve in case of emergencies.
Also, part of the grant is a $24,000 developer fee, which Brown said will be used for other projects.
Until now, the agency has depended mostly on membership fees from downtown retailers for its budget. Occasionally, its operating balance has run short and required dipping into a reserve fund, Brown said.
"By looking for other ways to impact the community like the housing development, it helps free up some of our operating capital."
Some of the new available money could be used for training, advertising and a proposed three-year strategic plan, Brown said.
The change in direction is one of the directives by the Indiana Main Street organization, and the WCDC is one of the first in the state to move ahead, Brown said.
Inclusion in the program required the WCDC's certification through the state housing finance authority.
The Warsaw Housing Authority is also seeking the same status, and certification could come this month, said Catharine Walker, executive director of the agency.
Walker said she isn't familiar with details of the WCDC's plan, but isn't bothered by it.
WHA serves nearly 400 individuals and won't be affected by the WCDC program, she said.
"My stance is, affordable housing is needed in the downtown area. If they're going to take this program on in their agency, great," Walker said.
Mayor Ernie Wiggins said he supports the WCDC effort as long as it doesn't overlap with the WHA. He said he also suggested Brown limit it to the immediate downtown area.
"Anything that's going to enhance the downtown and the housing opportunities is a good idea," Wiggins said.
Brown said she doesn't consider it a conflict with the WHA because she doesn't believe the WHA is involved in housing development.
"We look forward to working with the housing authority," Brown said.
The property owner at 221 S. High St. sought to sell the property for nearly a decade. Bill Dickerson, a former Warsaw man who lives in Reno, Nev., said offers to buy the property in the past were unacceptable.
Sale to the WCDC was below the appraised level and Dickerson included a $10,000 payback as an inducement.
Part of the reason behind the sale, Dickerson said, was to help the community.
Renovations to the building will begin in April and will be done without displacing tenants, Brown said.
Under state guidelines, if residents are displaced, the agency overseeing the project is required to cover the relocation costs and assist with portions of the rent for up to five years. Brown said she wants to avoid that type of scenario.
If the High Street project is successful, Brown said she will talk with the WCDC board about doing similar projects with other houses in or near the business district.
Coincidentally, Brown lives on High Street in a historical home she and her husband, David, renovated nearly two years ago on their own.
Brown said she realizes the proximity to the housing project might raise a few eyebrows.
"I can see where people would say that, but the central business district is my backyard, and if I can't make things better in my own backyard, I don't have any business ... I have a lot of talent to make things better in my own backyard - why not use it?" Brown said. [[In-content Ad]]