SOUTH BEND — Near Northwest Neighborhood, Inc. has expressed interest in six vacant lots on Scott Street currently owned by the city’s Redevelopment Commission to build at least 11 income-based housing unit by 2029.
The Near Northwest Neighborhood is a local community development corporation focused on the northwest side of the city, Deputy Director of Community Investment Joseph Molnar said, and has been a long-term city partner through the building and rehabbing of homes for years.
In the past, Molnar said, the corporation focused more on rehabbing blighted or vacant homes. But with less rehabs to do, it’s transitioning to new, income-based housing builds to ensure affordability stays in the Near Northwest.
Kathy Schuth, executive director of the Near Northwest Neighborhood, said the block was built roughly around the 1890s, and the parcels of land have been vacant for up to 20 years. The plan, according to Schuth, is to build both detached and townhouse homes to create more opportunities for homeownership.
The neighborhood corporation is applying for a Federal Home Loan Bank of Indianapolis Affordable Housing Program Grant to finance the builds, and the sale of the six lots will be contingent upon whether the organization receives the grant. The Near Northwest Neighborhood plans to apply for 1st Source Bank Foundation grants as well.
“If they were not successful, then the agreement would be nullified, and the city would still retain the lots” Molnar said. “We will not transfer ownership of lots unless they received that loan.”
If the grant is received, the Redevelopment Commission will sell the land to the organization for $1,000 by December 31, 2027. The overall project will be a $3 million investment, Molnar said.
Extending the project to a potential 2029 completion will allow for the Near Northwest Neighborhood to apply for the Affordable Housing Program Grant in 2026 and 2027, Molnar said. With a starting date within 12 months of the closing and 36 months to complete final construction, the hope is that the grant will be awarded in November to allow the organization to start construction in 2027.
“The fact that we can partner with the city of South Bend on receiving the land actually gives us some additional good scoring for the application,” Schuth said. “We appreciate the city’s flexibility in that if we are unsuccessful in our first round, we certainly would be going again next year for a second round looking to improve the results of that.”
Email South Bend Tribune business reporter Jessica Velez at jvelez@usatodayco.com.
This article originally appeared on South Bend Tribune: New housing coming to Near Northwest Neighborhood if grant received
Reporting by Jessica Velez, South Bend Tribune / South Bend Tribune
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