Finally some finite information for former Winona site (Indianapolis, Fishers: section 8, real estate)

[msamhunter]

Illinois Place apartments planned for former Winona site | 2012-06-13 | Indianapolis Business Journal | IBJ.com

[GregHenry]

Yet another Indy project that feeds heavily on public money. Does anyone ever want to build anything in Indy for the simple reward of profiting from their own labors?

[Broadrippleguy]

Originally Posted by GregHenry

Yet another Indy project that feeds heavily on public money. Does anyone ever want to build anything in Indy for the simple reward of profiting from their own labors?

-1 for trolling...........

[Toxic Toast]

Originally Posted by GregHenry

Yet another Indy project that feeds heavily on public money. Does anyone ever want to build anything in Indy for the simple reward of profiting from their own labors?

The only reference to the funding of the site from the article is this:

which includes affordable housing tax credits and state-issued tax exempt bonds.

That doesn't sound like something that is feeding heavily on public money, though if you have more specifics on the funding of the project I'd love to see it.

[Marc Allen 242]

Frankly, that area of town needs a major facelift anyway. Ultimately, if built correctly and managed under the auspices of a community planning project this could be a good thing for that neighborhood. It certainly won't hurt real estate values in the immediate areas.

[sweetana3]

These apartments will be similiar to the ones being built on 10th, 16th, on Mass Ave. and on Ft. Wayne. They are greatl additions to our neighborhoods in style and should help surrounding areas. Now if we could only do something about the concrete apartment monstrosities downtown.

It really is amazing the amount of money both tax leveraged and private that is being invested in new and renovating apartments downtown. I cannot comment about around town but we are seeing a great improvement downtown.

[indy_317]

Originally Posted by Toxic Toast

The only reference to the funding of the site from the article is this:

which includes affordable housing tax credits and state-issued tax exempt bonds.

That doesn't sound like something that is feeding heavily on public money, though if you have more specifics on the funding of the project I'd love to see it.

To get "affordable housing tax credits," it sounds like Section 8 voucher rentals. It will either be for single mothers (maybe a father here and there) or older people who lost all their savings due to poor health and healthcare costs. Either way, these properties rely upon a large portion of the rent, their income, to be a US Treasury check. I've heard of examples where Section 8 covers the entire amount of rent. I don't know if there are any guidelines on how much a renter must pay, if anything. I also don't know what % of Section 8 rental units is needed to be approved for the credits. I don't see just offering a cheap apartment and getting tax credits. Depending upon the type of renters will determine how well this project will do. Hopefully they enforce the rules and make all the occupants keep things nice and clean, minimal crime, no live-in boyfriends/girlfriends that have a high turn over, etc..

[sweetana3]

I do not think they rely completely on Section 8. Your income/assets will need to be below a set level to qualify but you do not have to have the voucher. Some of the developments are just a % affordable like 1010 Central to qualify for building density, etc.

Here was what was reported for the 16th Street apartments (a big chunk of the unfinished units burned to the ground yesterday.) " Park will total 155 rental units when all three phases are complete in 2012. More than 85 units will be public and Section 8 housing while the balance will be set aside as affordable housing for low-income families and individuals." Since they were built on the site of prior public housing, it is reasonable.

[bertrandandjules]

Affordable Housing Tax Credits doesn't automatically equate to Section 8, or vice versa. Quite a bit of the time, they are completely different entities. A building originally intended as market rate could eventually go Section 8 if the owner decides to take the easy way out and not fix up his/her property--that's why so many apartment complexes in Indy from the 1960s and 70s are in such rough shape now. (And, in another 20 years, apartment complexes from the 1980s and 90s in Fishers/Brownsburg/Greenwood will probably be much the same way.)

Affordable Housing Tax Credits usually involve new construction or complete restoration, and is simply a way of mitigating the construction costs against the anticipated rental rates for lower income households, which are well below market rate. Even in a somewhat downtrodden area like the old Winona site, the rental rates necessary for a developer to break even would be too high for low-income families, and the neighborhood is probably still too risky to attract much of a market rate clientele. So affordable housing is the only realistic option, with these tax credits proving a critical gap financing link that makes the project feasible. You can call it a subsidy if you like, since the government is subsidizing by not collecting certain portions of the tax if the developer (and then the property manager) plays by the rules. Frankly, I think these projects are less likely to go out of control with crime because, unlike Section 8 (where the government essentially artificially induces market rate conditions in sub-market real estate through subsidies) these would not be a remotely lucrative deal for the developer unless he/she abides by certain conditions that are usually pretty strict in terms of tenant selection.

I'm a lot more optimistic for a project like this than I am for the future of apartments at, say, 46th and Post.

[mobyhead]

It's bittersweet in some ways. I worked at Winona in the early 90's. Neat people to work with.