HomeMy WebLinkAbout6C2 Appropriation for 2026 (466 Works Loan) - SignedSouth Bend
Redevelopment Commission
215 S. Dr. Martin Luther King, Jr. Blvd., Room 301, South Bend, Indiana
Redevelopment Commission Agenda Item
DAT E : 1/5/2025
FROM: Joseph Molnar,
Assistant Director of Growth & Opportunity
SUBJECT: 2026 Appropriation for 466 Works Loan
Funding Source* (circle) River West; River East; South Side; Douglas Road; West Washington; RDC General; Riv. East Res.
* Funds are subject to the City Controller's determination of availability; if funds are unavailable, as solely determined by the City Controller,
then the authorization of the expenditure of such funds shall be void and of no effect.
PURPOSE OF REQUEST: Appropriation of $1,160,000 in funding for the EDC statute forgivable loan to
466 Works to build new housing on the south side
SPECIFICS:
466 Works is building 30 homes on the south side. The City is funding a portion of the construction costs
through a $3.5 million EDC statute forgivable loan financed by TIF revenues. Per Section 2.2B of the
Funding and Reimbursement Agreement between the City and the Redevelopment Commission,
approved in June 2024, the Commission will consider annual appropriations to reimburse the City for
draws on the loan to finance a portion of construction costs for the project. The annual appropriations will
not exceed $116,000 per house expected to be built in the ensuing year and will not exceed $3,500,000
total over three years.
To date, five (5) homes have been completed and sold to new homeowners and eleven (11) are currently
under construction. The project is on pace to complete all 30 homes by the end of 2027.
The City is requesting appropriation of $1.16 million for construction of an additional 10 homes in 2026.
The specific funding for each house will not be dispersed to 466Works until proof of contract is provided
throughout the year.
Staff recommends approval.
______________ ___________Pres/V-Pres
ATTEST: __________ ________Secretary
Date: _____________ _______
APPROVED Not Approved
SOUTH BEND REDEVELOPMENT COMMISSION
January 8, 2026