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Commission approves Lyndhurst rezoning for microcommunity by Sanctuary Indy after heated public comments

October 15, 2025 | Indianapolis City, Marion County, Indiana


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Commission approves Lyndhurst rezoning for microcommunity by Sanctuary Indy after heated public comments
The Metropolitan Development Commission approved 2025ZON113 on Oct. 15, a rezoning petition by Lyndhurst Baptist Church and Sanctuary Indy to change the DP site plan at 1318 South Lyndhurst Drive to a phased microcommunity for people experiencing homelessness. The petition passed by ballot, 8 yes, 0 no.

What the approval allows: under the modified DP, the site will proceed in two phases: an initial phase of six small (tiny) homes with an on-site missional staff member, and a later phase of duplexes (two-family dwellings) and a community center. As presented at the hearing, the overall unit count will decline from a previous approval of 18 tiny homes to a combination that results in 16 units (six small homes plus duplexes in phase 2). The project also retains a planned community center, storm shelter and laundry facility.

Petitioners and services: Kevin Lawrence, attorney with Lewis Wagner & Trimble, presented on behalf of Lyndhurst Baptist Church and Sanctuary Indy. Michelle Shelburne, founder and executive director of Sanctuary Indy, said Sanctuary will provide on-site case management, a property manager and supportive services; she described the project as “permanent supportive housing” and emphasized safety and long-term tenancy. “Safety and sustainability is at the highest priority for me,” Shelburne said, and she described plans for a property manager and supportive services.

Community concerns and petitioner responses: Several neighbors spoke in opposition, citing concerns about crime, property values, traffic, utility and maintenance arrangements, and the proximity of new units to existing backyards and preschool facilities. Remonstrators asked about on-site security, funding for ongoing maintenance, and who would be eligible to live there. Sanctuary representatives said the master plan includes perimeter fencing, lighting, video security and 24/7 on-site staff; Erica Schneider, Sanctuary’s advancement director, confirmed funding is currently “mostly privately funded” for phase 1 and that Sanctuary will pursue grants such as HOME and other sources for phase 2.

Household tenure and rent policy: Sanctuary described phase-1 tiny homes as permanently available to selected residents; Wayne Township offered to cover rents for the phase-1 units. For the duplexes in phase 2, Sanctuary said the project intends to use HUD vouchers (where applicable), which typically limit rent to 30% of tenant income; staff said those duplexes are intended for families and long-term supportive housing.

Staff and timeline: Kathleen (DMD staff) told the commission the change is a typology alteration from the previously approved DP and that staff supports the rezoning. Petitioners said phase 1 is funded and construction could begin Dec. 4, with an overall completion horizon near 2027.

Vote and next steps: After petitions, remonstrator statements and staff recommendations, commissioners cast ballots; the petition was approved with eight yes votes. Sanctuary representatives said they will proceed with permitting, finalize security and management plans and seek grant funding for phase 2.

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Scribe from Workplace AI
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