Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Housing topic
No spam. Unsubscribe anytime.
Redevelopment commission approves $564,500 reimbursement for Paradise Community Homes land purchase
Summary
The Valparaiso Redevelopment Commission unanimously approved a grant‑application reimbursement of $564,500 to Paradise Community Homes to help pay off a $764,500 land purchase from Valparaiso University; the nonprofit says the parcel will support roughly 31–33 attainable homes and sell a portion of lots at market rate to fund infrastructure.
The Valparaiso Redevelopment Commission unanimously approved a grant‑application reimbursement for Paradise Community Homes on Feb. 12, authorizing staff to finalize a grant agreement and return signatures before funds are disbursed.
Paradise Community Homes asked the commission to reimburse $564,500 of a $764,500 purchase of university‑owned property. Bill, president and CEO of Paradise Community Homes, said the organization put $200,000 down and needs the RDC reimbursement to pay off the remaining note to Valparaiso University.
"We made them an offer of $764,500. We were able to put $200,000 down, and so we owe a balance right now of $564,500," Bill said.
Why it matters: Bill said the property will be developed into a mixed neighborhood with an estimated 31–33 units priced below $300,000 (the RDC guideline cap for attainable housing) alongside roughly eight to nine market‑rate lots. Paradise Community Homes plans to sell lots at market rate to generate funds for infrastructure improvements — water, sidewalks, curbs and stormwater work — that otherwise raise costs for attainable units.
Commissioners questioned whether selling market‑rate lots conflicted with the RDC's $300,000 cap for grant‑eligible units. Bill and staff said Paradise is not asking for full reimbursement of the purchase price and that, across the entire development, a large majority of units are expected to meet the attainable threshold.
"When you look at the total number of units that will be created on‑site, that will be below $300,000 — I think it's 31 to 33 units," George (staff) said, noting the commission's program is intended to be flexible in early uses.
Paradise also described affordability controls. Bill said the nonprofit uses shared‑appreciation provisions and a right of first refusal if owners seek to sell; initial residency/work requirements were reduced from three years to one year and may be further relaxed in the future.
On disbursement method, commissioners flagged the grant application form showing 'lump‑sum reimbursement after project completion.' Bill agreed that land acquisition required an upfront reimbursement option; staff said they would correct the application language and the final grant will be subject to attorney review and the standard grant agreement.
The commission moved and seconded approval of the grant application. The motion passed by voice vote with unanimous consent; staff will return a finalized grant agreement for signatures before any payment.
What comes next: Bill said Paradise Community Homes will continue fundraising and pursue additional parcels and engineering work; he asked to return to the commission when construction is ready to begin. The commission asked staff to carry the standard legal and grant‑agreement review before disbursement.
