Commission approves $500,000 forgivable loan for 42‑unit Sterling Avenue affordable housing project

Elkhart — The Redevelopment Commission voted Feb. 10 to appropriate $500,000 from consolidated South TIF funds as a forgivable loan to Advantix Development Corporation to support a 42‑unit affordable housing project on Sterling Avenue.

Mike Hubert, director of development services, said Advantix received low‑income housing tax credits in 2023 and proposed seven townhome buildings with units targeted to households earning 30%–80% of area median income. Hubert said the project represents roughly $14 million in private investment and would be a lease‑to‑own model in which qualifying families could eventually own the homes.

Staff explained that an existing electric utility easement reduced space available for above‑ground stormwater retention; Advantix proposed an underground detention system that would avoid fenced above‑ground ponds but add an estimated $500,000 to the project. The commission opened and closed the required public hearing with no speakers and approved resolutions to authorize use of consolidated South Elkhart TIF revenues and to appropriate the $500,000 to the forgivable loan. Hubert said the loan is intended to be forgiven upon issuance of the certificate of occupancy.

Greg Conrad of Habitat for Humanity, who later spoke on a separate CDBG item, praised housing partnerships at the meeting but did not speak on the Advantix request.

What happens next: Staff will execute the loan appropriation and monitor project milestones; forgiveness is conditioned on project completion and issuance of a certificate of occupancy as stated by staff at the meeting.