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Gary board approves $400,000 forgivable loan to Habitat for Humanity to build four homes
Summary
The Board of Public Works and Safety approved a $400,000 forgivable loan from HOME Investment Partnerships funds to Habitat for Humanity Northwest Indiana to construct four single-family homes in Jefferson for low- and moderate-income families; the vote was 5–0.
The City of Gary Board of Public Works and Safety approved an agreement on June 3 that provides a $400,000 forgivable loan to Habitat for Humanity Northwest Indiana to build four single-family homes for low- and moderate-income families in the Jefferson neighborhood.
Charles Carter, identified in the meeting as a staff manager and donor engagement manager for Habitat for Humanity, told the board Habitat builds in partnership with volunteers and keeps costs low so it can offer 0% interest mortgages to partner families. Carter said recent new-construction costs run "somewhere around $180,000 to complete the entire project," and that the city’s $400,000 forgivable loan covers part of the estimated total cost across the four homes. "We build to accommodate the family," Carter said, describing typical three-bed, two-bath plans.
Board members clarified that the city loan is structured as a forgivable loan secured with a lien; city counsel and board staff explained the lien will remain in place for the period specified in the agreement and be released by the law department and the board after the occupancy and time conditions are met. A representative said the lien period in the documents is 15 years.
President S called the roll on the motion to approve the agreement; the vote was five yes, zero no. The board also noted the signature sheet contained a correction (the controller listing was incorrect) that staff would fix for the official record.
Why it matters: The funding is drawn from HOME Investment Partnerships funds and aims to deliver permanently affordable ownership opportunities in Gary. Habitat said the homes will be sold to qualifying low- and moderate-income families and that additional Habitat funds and volunteer labor will cover the remaining build costs.
Next steps: Staff will finalize the legal paperwork and record the lien per the agreement terms, and Habitat expects to proceed with construction in the project area identified as Jefferson.
