Apartment projects in Ligonier and Kendallville get tax credits to move forward
February 27, 2016
Apartment projects in Ligonier and Kendallville get tax credits to move forward
Two proposed apartment complex projects in Ligonier and Kendallville were awarded state tax credits and loans Thursday, allowing developers to move forward with their plans.
Herman & Kittle Properties wants to construct a new 54-unit complex at 200 Water St. in Ligonier, on the former Wirk Garment site close to the Elkhart River.
In Kendallville, Woda Group is seeking to build a 38-unit senior housing complex at 301 E. Wayne St., where the vacant Puritan Ice Cream building now sits.
The two projects were among 18 developments in the state awarded a total of $14.3 million in Rental Housing Tax Credit allocations by the Indiana Housing and Community Development Authority. Lt. Gov. Sue Ellspermann’s office announced the recipients Thursday.
Indianapolis-based Herman & Kittle Properties received a tax credit of $725,000 and a $500,000 loan through the IHCDA’s development fund for its $7.3 million Riverside Villa Apartments project in Ligonier.
The apartment complex would have 24 efficiency and 30 one-bedroom units.
Woda Group, based in Westerville, Ohio, was awarded a $539,930 tax credit and a $375,000 loan through the IHCDA’s Home Investment Partnerships Program for its $5.9 million Atz Place senior housing project that would have 24 one-bedroom and 14 two-bedroom units.
After attempts at renovating the former Wirk Garment building proved to be unsuccessful, Ligonier used a grant to demolish the structure in 2014.
Development of the Riverside Villa Apartments was contingent on the project getting the tax credit.
“This is major for Ligonier, not only for the need of housing, but what it will do for the tax base and the improvement in that area,” Mayor Patty Fisel said Thursday. “The more assessed value we have, the lower (the tax rate) goes.”
Likewise, Woda Group needed the tax credit in order to develop Atz Place in Kendallville. The company had applied in 2014 for the Rental Housing Tax Credit but was declined.
“This is just going to be a great addition to the community,” said Kendallville Mayor Suzanne Handshoe, adding the project complements recent efforts to remove eyesore houses in the city and the redevelopment of the Dalton and Kendallville foundry sites.
“I look at this as another opportunity to turn something not so attractive into something purposeful,” she said.
The Ligonier and Kendallville projects are intended to provide affordable housing to local residents who earn less than the area median income. The Atz Place apartment complex is being developed for tenants 55 and older.
