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Council approves up to $250,000 gap funding for Phoenix Apartments; councilor recuses on HUD matters
Summary
The council approved up to $250,000 in subordinate gap funding from the Affordable Housing Fund to Hope of Evansville for the 40-unit Phoenix Apartments acquisition, contingent on additional acquisition financing; Councilwoman Hatfield recused from HUD funding decisions because of a familial tie to a grant recipient.
The Evansville Common Council voted March 30 to provide up to $250,000 in subordinate gap funding from the Affordable Housing Fund to Hope of Evansville to assist the acquisition of the Phoenix Apartments, a 40-unit complex at 1163 Covert Avenue.
City staff explained the allocation is gap funding: Hope must secure additional acquisition financing, including federal HOME funds, before city funds are released. Staff estimated the acquisition cost at roughly $3.5–3.6 million and said the allocation by the Affordable Housing Trust Fund Board had already been approved; city council approval is required by ordinance when a grant goes to a nonprofit.
Council recorded a formal recusal by Councilwoman Kendra Hatfield on HUD-related items and explained the Department of Metropolitan Development will seek a HUD waiver where required because Hatfield has a familial tie to Advantage Development Corporation (staff said she is the daughter-in-law of the corporation’s board chairman). Public comment at the meeting was limited and supporters noted the need for rehab at the property and the local housing shortage.
After discussion, the resolution passed with six ayes and one recusal. Staff said more detailed unit-by-unit information — including the makeup of the three buildings — can be provided on request and that release of city funds will be contingent on Hope securing additional funding.
Next steps: Department of Metropolitan Development will confirm Hope’s outside financing before any city funds are disbursed and will prepare the HUD waiver materials required by federal rules.
