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HUD subsidy rollback forces budget cut for UNI house at 1008 Bauer; commissioners approve amended agreement

Hammond Redevelopment Commission · July 29, 2026
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Summary

United Neighborhoods Inc.'s three-bedroom house project at 1008 Bauer must reduce its subsidy from $338,419 to $327,292 after HUD reverted subsidy limits; the HRC approved a first-amendment to reflect the $11,001.27 reduction.

The commission approved a 1st amendment to the development agreement between the Hammond Redevelopment Commission and United Neighborhoods Inc. (UNI) for a new three-bedroom home at 1008 Bauer Street after HUD advised the city to revert to 2024 subsidy limits.

Staff said the project budget had been set at $338,419 using HUD 2025 subsidy guidance, but in March 2026 HUD notified the city it would not finalize those 2025 limits, requiring a reversion to the 2024 subsidy limit for a three-bedroom home of $327,292. "So Andrea had to go back and adjust her budget," staff said. Andrea Lewis, UNI's executive director, said the team plans to reduce contingency and estimated "about 9,000 left in contingency" before absorbing the $11,001.27 cut. Commissioners voted 5–0 to approve the amendment.

Staff and the applicant said they will monitor costs and the contingency as construction progresses. No change to the project's location or unit count was recorded in the meeting discussion.