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Council committees move forward with two major affordable‑housing projects: Western Avenue Transformation and Beacon Heights rehabilitation
Summary
The Community Investment committee voted to forward a PILOT ordinance and related items for the Western Avenue Transformation District Phase 1A (156 units; 48 units targeted at <=50% AMI) and approved forms for a forgivable loan and PILOT for Beacon Heights rehabilitation (approx. $47M project), both subject to closing conditions and documentation.
The South Bend Community Investment Committee on June 22 advanced two major affordable‑housing proposals to the full council: the Western Avenue Transformation District Phase 1A and a comprehensive rehabilitation of the Beacon Heights apartments.
Western Avenue Transformation District (Phase 1A) Deputy Director Joe Molnar presented Phase 1A, a mixed‑income development immediately west of 4 Winds Field. Phase 1A proposes 156 units across multiple buildings, with 48 units required to be affordable to households at or below 50% of area median income (AMI), 75 units supported by project‑based vouchers administered by the Housing Authority of South Bend, and additional unrestricted units. Financing sources described include LIHTC, a $10,000,000 HUD Section 108 loan awarded to the city in May 2026, the Lilly Endowment award via the Community Foundation of St. Joseph County, private equity, and other local partners. Molnar said the total Phase 1A cost is roughly $59,000,000 and that pilot revenues would be directed to the city's affordable‑housing fund under state law.
"Phase 1A is 156 total units; 48 of those must be affordable under households making under 50% AMI," Molnar said. Housing authority representatives and the housing authority executive director Marsha Parham Green confirmed that former residents of demolished public housing parcels (Rabbi Shulman and Monroe Circle) will have priority for project‑based vouchers and that the authority maintains relocation and contact records to inform outreach.
Beacon Heights rehabilitation (Bills 36‑26 & 37‑26) Deputy Director Molnar and L+M Development Partners described the planned rehab of the 174‑unit Beacon Heights complex: a full renovation of interiors and exteriors, community‑space expansions, addition of ADA units, and enhanced on‑site services. The total renovation cost was estimated at approximately $47,000,000. Committee materials proposed a $1,250,000 forgivable loan from River West redevelopment TIF funds, conditional on the developer's closing and documentation of private investment and the completed rehabilitation. The committee approved forwarding the PILOT and forgivable‑loan forms with a favorable recommendation, with one recorded abstention on each vote.
Committee discussion emphasized safeguards: loans would be disbursed only on documented closing and investment; the forgivable loan would be forgiven only after proof of completed rehabs; LIHTC and HUD financing would add compliance and inspection requirements; and staff stressed there would be no displacement during renovation and no rent increases beyond existing protections. L+M representatives said they would preserve tenant protections tied to LIHTC and HUD funding.
Both items were advanced to the Committee of the Whole; committee members asked for continued outreach to former residents and for documentation showing resident‑priority processes and engineering/implementation schedules.
