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Community Investment committee accepts substitute to reconfirm and extend tax abatement for Monroe affordable housing project
Summary
The Community Investment Committee accepted a substitute and forwarded a reconfirming resolution to preserve and extend the tax abatement for the Monroe affordable housing project, aligning the designation period with the project's financing schedule.
The Community Investment Committee accepted a substitute and forwarded substitute Bill 25‑39 reconfirming the tax abatement for the Monroe affordable housing project and extending the designation period to allow the developer to complete the project.
What the substitute does: Staff discovered clerical errors in the 2022 documents that designated the tax abatement (the earlier bill’s text used the term “reconfirming” where the original action and discussion had been a declaratory/designating resolution). The substitute corrects that language to match the council’s 2022 intent. The substitute also extends the designation period (the window in which the developer may complete qualifying work) from the three years set in 2022 to an expiration in 2028, aligning the designation with related city loan and development agreements.
Project summary and public benefits: Director Eric Glavich described the Monroe project as a four‑story, approximately 56,000‑square‑foot apartment building on the corner of Monroe and Michigan, delivering 57 units of housing. The public‑benefit package supporting the low‑income‑housing tax credit award included an estimated $17.7 million in private investment, approximately $3.6 million in Redevelopment Commission support (forgivable loan structure), a waiver of system development charges and provision of the land to the developer at minimal value. Glavich said the city estimates annual tax revenue after completion of roughly $92,000 and that during an eight‑year abatement the total estimated taxes would be about $740,000, with approximately $430,000 abated during the abatement period per earlier estimates presented to council.
Timing and financing: Developer Devereaux Peters told the committee she had recently received final due‑diligence documents from the South Bend Housing Authority and expected to submit them to Freddie Mac this week; she said she expected a commitment letter and a closing date soon. Committee members asked for confirmation that extending the designation period would preserve the developer’s ability to benefit from the previously granted abatement while financing closed.
Committee action: The committee accepted the substitute and voted to forward substitute Bill 25‑39 to the 7 p.m. full council meeting with a favorable recommendation. Roll call in the Community Investment Committee recorded: Council member Gooden Rogers—Aye; Committee member Bolden Simpson—Aye; Citizen member Kanejewski—Aye; Committee Vice Chair White—Aye; Committee Chair Warner—Aye.
Why it matters: The Monroe project is a low‑income housing project that the city supported with land, fee waivers and gap financing; the abatement was part of the application package that helped secure low‑income housing tax credits. Extending the designation period preserves the developer’s ability to complete the project under the terms originally contemplated by council and partners.
Next steps: Substitute Bill 25‑39 will appear before the Committee of the Whole/full council that evening for final consideration; staff and developer indicated financing steps were underway and that a closing date could be scheduled pending lender commitments.
