A City-County Council committee has recommended approving a tax break for an affordable housing project in northwest Indianapolis.
The project developer, Gary Hobbs, faced criticism from some within the Northwest Landing Neighborhood Association for how he handled a previous phase of the project.
And the council’s Metropolitan and Economic Development Committee delayed a vote on the tax break twice before recommending approval Aug. 18.
Hobbs, president of the development firm BWI, has admitted to some mistakes in the first phase of his Canal Village project. Most notably, he said, he changed the porch design without telling the community.
But Hobbs told councilors on the committee that he has completed repairs to the houses and is in the process of adding fences, which is something current residents requested.
“At the end of the day,” Hobbs said, “we do what we say we’re gonna do.”
The next phase of the Canal Village project would consist of 33 homes. The project has already been selected by the state to receive $1.2 million in tax credits annually over 10 years.
The local tax break, known as a payment in lieu of taxes, is worth an estimated $490,000 in savings over 15 years for BWI.
Megan Vukusich, director of the Department of Metropolitan Development, said the city has plans to hold Hobbs accountable.
Hobbs, for example, has to attend monthly community meetings. And the city, which currently owns 26 of the lots, can take back ownership if Hobbs doesn’t complete construction within a certain timeframe. Vukusich said that timeline is still being determined.
Hobbs said construction can start in September. The homes would be rented to people making 60% or less than the area median income, which is determined by the federal government. For a family of four in Indianapolis, that number is $66,420.
The full City-County Council is expected to vote on final approval for the tax break at its meeting Sept. 8.
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Mirror Indy reporter Tyler Fenwick covers housing and labor. Contact him at 317-766-1406 or tyler.fenwick@mirrorindy.org. Follow him on X @ty_fenwick and Bluesky @tyfenwick.bsky.social.
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