Marion County hears update on 2022 nonprofit tax-lien properties planned for affordable housing

The Marion County Commissioners on July 15 heard updates from nonprofit developers about properties acquired in the 2022 nonprofit tax-lien sale that the groups plan to rehabilitate or redevelop as affordable housing.

Jeff Hasser, Director of Housing Strategy at the Indianapolis Neighborhood Housing Partnership, told commissioners the nonprofit received two parcels from the sale: 520 North Grama Street and a property listed as 2128 North Delaware Street that has since been split into 2126 and 2128. Hasser said the Grama Street property shows exterior wear and interior water damage and unstable floorboards, and that lead-based paint on exterior siding will require replacement using a lead-safe contractor.

Hasser said recent contractor bids put construction costs for the Grama Street property at about $287,000, with a total project cost near $330,000. He said the sale price for that property was set at $225,000 based on a plans-and-specs appraisal required for Community Development Block Grant (CDBG)–funded properties; remaining project costs are expected to be covered by the city’s CDBG award. "We have to use a lead safe contractor in order to make sure it's disposed of properly," Hasser said.

The Delaware Street property, Hasser said, is large and will be subdivided into a duplex to reduce per-unit cost. Each side is expected to be roughly 2,000 square feet after finish, with four bedrooms and three-and-a-half baths; Hasser said the project will go through historic review and city architectural approval because it sits in the Heron-Morton area. Construction estimates for that project were roughly in the same contractor-bid range as the other parcel; Hasser said INHP is pursuing additional funding from the Federal Home Loan Bank of Indianapolis to help provide garages and reduce costs for buyers.

Hasser reviewed the timeline for the INHP properties: deeds transferred in March 2024; INHP applied for CDBG funds Oct. 7, 2024 and received an award letter in January 2025; the parcels are undergoing the city’s HUD-required environmental review and historic review; permits are in hand and builders are lined up. He said the group had hoped a city contract would let construction start in July 2025 but that Department of Metropolitan Development (DMD) scheduling could push the start date. Hasser said INHP is targeting March 2026 completion and May 2026 sales, with the Delaware units likely to move faster because they require less demolition.

Hasser described budget safeguards: a contractor fixed-price contract where possible and a contingency in project budgets (he estimated roughly 5–10%), and said INHP could use its developer fee if unforeseen costs exceed contingency. "We build in a contingency," he said. "If those additional funds don't come through, we also will dip into our developer fee." He also described INHP’s “first look” process: households who have participated in INHP home-buyer education and counseling are given a first opportunity to view and submit offers on INHP homes before public listing.

County staff presented slides from Martindale Brightwood Community Development Corporation (MBCDC) for three parcels MBCDC received from the 2022 sale: parcel 1051665 (2749 Station Street), parcel 1070594 (2873 Stewart Street) and parcel 80193804500 (Hillside area near Caroline Avenue). Staff summarized MBCDC’s budgets: for 2749 Station Street staff read a slide listing demolition and disposal costs, $75,000 for rehab of the existing unit, $2,000 for landscaping, $6,000 for appliances, $10,000 contractor fees/overhead and a $15,000 developer fee for a total $118,000. The slide listed a planned sale price on that slide as "$1.25" (as read from the materials provided to the commissioners). For the proposed new-construction parcels on Stewart Street and Hillside, staff said MBCDC plans to apply for HOME funds in fall 2025, build between March 2026 and January 2027 and list on MLS in February 2027; the slides show contractor budgets, developer fees and an expected ultimate sales price listed on the slide as "$1.75." The county presenter did not elaborate on the slide price notation beyond reading the materials.

Why it matters: the projects use county- and city-linked grant funding and nonprofit development to add homes aimed at low- and moderate-income households and to return tax-delinquent lots to productive use in Indianapolis neighborhoods.

Hasser invited commissioners to visit the properties before and after rehabilitation and said INHP will hold a ribbon-cutting when homes are complete. "We have the builder ready. As soon as DMD gives us the green light, we are going to be moving forward," he said.