Affordable housing committee approves $105,500 predevelopment grant for Reed Street site

The Evansville City Affordable Housing Trust Fund Advisory Committee voted to approve a $105,500 grant to Echo to cover predevelopment expenses for a proposed affordable housing development on the 400 block of Reed Street.

Echo representative Eric Chipmier told the committee the group has acquired all 10 lots along the block and is seeking money for Phase I environmental work, a market study and conceptual plans. "We are requesting a $105,500 grant for predevelopment expenses for a proposed development on the 400 Block Of Reed Street," Chipmier said. He said demolition of two houses will be required before an environmental assessment can be completed and noted a surprise contamination cleanup on a nearby site earlier this year that cost about $50,000 on a separate project.

Chipmier said the predevelopment funding would be used to create the required studies and designs that applicants must submit when pursuing Low-Income Housing Tax Credits and other federal funding. "We're looking at a request for $105,000 to do pre development work that could potentially leverage dollars 8 or $9,000,000 in federal funding to build 30 plus units," he said. He said the project team hopes to pursue 9% tax credits and other gap financing such as national housing trust fund dollars and possibly TIF or city HOME funds depending on availability.

Committee members asked about surrounding uses and environmental concerns. Chipmier described the northwest corner of the block as an auto repair site (formerly a gas station) and said the southwest corner contains an apartment building owned by Warren Properties; the project team said it prefers adaptive reuse of the historic Gilbert Sanatorium building if acquisition and financing allow. Echo said it intends the Reed Street project to be the first phase of a broader block redevelopment and that a mixed-income approach (including units up to 120% AMI) is the preferred outcome if financing permits.

After discussion the committee approved the grant. The motion was recorded as made by Ted O'Connell and seconded by Ruth Pensker; the committee voted in favor by voice vote with no member recorded as opposed or abstaining.

The committee and Echo staff discussed timing and next steps. Chipmier said if predevelopment work can be completed before the July QAP deadline, Echo would apply in the current round; otherwise it would wait for a later round. Committee members and staff noted that specific funding sources mentioned (city CDBG, TIF, national housing trust fund, Low-Income Housing Tax Credits) have separate eligibility and timing constraints and that the Trust Fund would be used as gap or first-in funding to position the project for federal financing.

Ending: Committee members congratulated Echo on assembling the parcels and encouraged the developer to return with the market study and environmental reports when ready. The committee chair confirmed the approval and said staff will follow up on availability in the current trust fund balance before executing the grant.