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Committee backs PILOT for Capital Station senior affordable housing rehab
Summary
The committee approved a PILOT under IC 36-3-2-12 to help United Church Homes complete a roughly $7 million rehabilitation of Capital Station Apartments (49 units), preserving Section 8 protections and keeping resident rents stable under HUD rules.
The Metropolitan and Economic Development Committee voted Nov. 17 to approve a payment-in-lieu-of-taxes (PILOT) pilot for Capital Station Apartments, a 49-unit senior affordable property at 7828 Madison Avenue proposed by United Church Homes.
Ashley Miller of the Department of Metropolitan Development introduced the item; Kevin Deacon, vice president of affordable housing preservation for United Church Homes, described the project and financing. Deacon said United Church Homes has owned and operated Capital Station since its original construction in 1996; recent financing caused a fractional for-profit investor interest that eliminated full tax-exempt status and necessitated a PILOT request to preserve financial feasibility.
Deacon said the rehabilitation includes more than $7 million of improvements (roughly $130,000 per unit) to modernize and preserve the property for another two decades. He emphasized that resident rent portions will not increase as a result of the HUD Section 8 Housing Assistance Payment contract; HUD approved a rent increase that affects the federal portion of the rent, not tenants' share. Deacon said the average resident currently earns about 33% of area median income and many residents are on fixed incomes.
Councilor Kevin Cahill (sponsor and district representative) and other councilors voiced support; Reverend Dr. T.D. Robinson offered public comment in support, citing positive experience with United Church Homes. The committee approved the PILOT by voice vote.
Next steps: developer and city staff will finalize PILOT documentation; United Church Homes said it would absorb pilot denial costs if needed but noted denial would affect operating income and program services.
