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Not wanting to rest on its laurels, The Warsaw Community Development Corporation began discussion of a major, new development to bring more affordable housing close to downtown.
Instead of a single multi-family dwelling like the recently completed Comstock House, 220 South High Street, the WCDC board is considering a project that will result in 13 new 3-bedroom homes to provide moderate-income housing in what has become a distressed area.
The proposed project, with an $897,000 price tag, entails acquiring the properties on both sides of the 500-600 block of east Center and on the north side of Market Street in the same block.
"The housing committee has decided to recommend we become involved to a limited extent," said board member Rick Snodgrass. "We would purchase the properties and pay for the demolitions, then turn the lots over to a developer."
The funding sources the WCDC proposes to use includes a $500,000 grant from the Indiana Housing Finance Authority's Community Housing Development Organization (CHDO) Fund, $269,000 grant from the Department of Commerce's Community Focus Fund, and $65,000 in down payment assistance from the Federal Home Loan Bank.
The required local participation for the grant funds would include $50,000 for the construction of a storm water detention pond at Richardson-Dubois Park and other park upgrades. The city would also donate the lots it currently has tax lien on within the boundaries of the proposed development.
According to WCDC executive director Trish Brown, the homes would be in the range of $70,000 to $80,000.
Board president Bob Sanders said while the project is worthy of consideration, he wants to be sure the grant funds requested wouldn't be awarded at the expense of the Warsaw Housing Authority.
"With the funds available through the IHFA, are we going after funds the Warsaw Housing Authority would have gotten otherwise?" he asked.
Brown said the state's CHDO fund has had funds remaining at the end of each budget year, so other local housing organizations wouldn't be negatively impacted by the project.
"The state of Indiana has never exhausted all of its CHDO funds, so no, we wouldn't be cutting anyone else's throat," she said.
The board approved moving forward with the grant application process, while continuing to formalize sources of local funding.
