HomeMy WebLinkAbout26-10 Resolution Establishing a Local Fund Pursuant to Indiana Code Section 5-20-5-15.5 O�T}fRf,
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CITY OF SOUTH BEND
z COVMUNITY INVESTMENT186.5
March 18, 2026
Filed in Clerk's Office
Council Member Troy Warner
Chairperson, Community Investment Committee Mar 18, 2026
South Bend Common Council
South Bend City Hall, 3rd Floor Bianca l'radii
South Bend, Indiana 46601 City Clerk South Bend, IN
RE: Resolution: Establishment of the Affordable Housing Fund
Dear Council Member Warner,
Please find the enclosed Resolution of the South Bend Common Council establishing a local
Affordable Housing Fund pursuant to Indiana Code § 5-20-5-15.5. The purpose of this Fund is
to expand the City's ability to support the development, rehabilitation, and financing of
affordable housing for South Bend residents whose incomes fall at or below eighty percent
(80%)of the county's median income, as allowed under Indiana Code § 5-20-5-15.5(c).
The creation of this Fund is in line with the Common Council's consideration of an ordinance
requiring Heritage Trails South Bend, LP to make payments in lieu of taxes (PILOT Payments).
In accordance with Indiana Code § 5-20-5-15.5, these PILOT Payments if the Heritage Trails
ordinance is approved, and any future PILOT revenue received, will be deposited directly into
the Affordable Housing Fund to support these statutory purposes.
The Department of Community Investment is designated to administer the Fund, maintain
required records, and notify the Indiana Housing and Community Development Authority of its
creation, as detailed in the Resolution. The City Controller will invest Fund assets and monitor
receipts consistent with state law and standard public financial practices.
City staff will present this Resolution to the Community Investment Committee for consideration
at your next regularly scheduled meeting.
If you or other Council members have questions or need additional information, please feel free
to contact me at(574) 245-6022.
Sincerely,
hl olnar
Deputy Director, Department of Community Investment
EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT
South Bend City Hall,Suite 500 215 S Martin Luther King Jr.Blvd. South Bend.IN 46801 p 574.235.9371 www.southbendin goy
Filed in Clerk's Office
Mar 18, 2026
BILL NO. 26-10 Bianca Cirado
City Clerk, South Bend, IN
RESOLUTION NO.
A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF
SOUTH BEND, INDIANA ESTABLISHING A LOCAL FUND PURSUANT TO
INDIANA CODE SECTION 5-20-5-15.5
WHEREAS, Indiana Code § 5-20-5-15.5 allows the governing body of a city, town, or
county to establish an affordable housing fund consisting of,among other things,payments in lieu
of taxes deposited in the fund under Indiana Code § 36-1-8-14.3, for certain purposes outlined in
Indiana Code § 5-20-5-15.5(c), to be administered by a department, a division, or an agency
designated by the governing body; and
WHEREAS,the City of South Bend,Indiana(the"City")desires to establish an affordable
housing fund(as defined herein,the"Fund")to be administered by the Department of Community
Investment of the City(the "Department") for those purposes outlined in Indiana Code § 5-20-5-
15.5(c); and
WHEREAS, on March 23, 2026, the Common Council of the City (the "Common
Council") adopted an ordinance pursuant to Indiana Code § 36-1-8-14.3(e) (the "Ordinance"),
requiring Heritage Trails South Bend,LP,to make payments in lieu of property taxes(the"PILOT
Payments") payable for certain property in the City, all as further described in the Ordinance; and
WHEREAS, in accordance with Indiana Code § 5-20-5-15.5, such PILOT Payments will
be deposited into the Fund, together with any other future payments in lieu of taxes received by
the City pursuant to Indiana Code § 36-1-8-14.3; and
WHEREAS, the Common Council, as the governing body of the City, now desires to
establish the Fund in accordance with Indiana Code § 5-20-5-15.5;
NOW,THEREFORE,BE IT RESOLVED by the Common Council of the City of South
Bend, Indiana,as follows:
SECTION 1. Establishment of the Fund. The Common Council hereby establishes Fund
Number 213 as an affordable housing fund pursuant to Indiana Code § 5-20-5-15.5 (the "Fund"),
to be designated as a local, non-reverting fund. The Fund shall consist of the following: (i)
payments in lieu of taxes deposited in the Fund under Indiana Code § 36-1-8-14.3; (ii) gifts and
grants to the Fund; (iii) investment income earned on the Fund's assets; (iv) money deposited in
the Fund under Indiana Code § 36-2-7-10; and (v) other funds from sources approved pursuant to
Indiana Code § 5-20-5-15.5(b)(5).
SECTION 2. Purpose. The Fund shall serve as a local,non-reverting fund which supports
the purposes described in Indiana Code § 5-20-5-15.5(c), to: (i) provide financial assistance to
those individuals and families whose income is at or below eighty percent (80%) of the county's
median income for individuals and families,respectively, to enable those individuals and families
to purchase or lease residential units within the City; (ii)pay expenses of administering the Fund;
(iii) make grants, loans, and loan guarantees for the development, rehabilitation, or financing of
affordable housing for individuals and families whose income is at or below eighty percent(80%)
of the county's median income for individuals and families, respectively, including the elderly,
persons with disabilities, and homeless individuals and families; and (iv) provide technical
assistance to nonprofit developers of affordable housing.
SECTION 3. Administration of the Fund. The Common Council hereby designates the
Department to administer the Fund. The Department is hereby authorized and directed, on behalf
of the Common Council, to notify the Indiana Housing and Community Development Authority
of the creation of the Fund. The Controller of the City (the "Controller") shall keep records and
monitor activities of all receipts into the Fund. The Controller shall invest the money in the Fund
not currently needed to meet the obligations of the Fund in the same manner as other public funds
may be invested.
SECTION 4. Effectiveness. This Resolution shall be of full force and effect from and
upon its adoption, and in accordance with Indiana law.
PASSED, by the Common Council of the City of South Bend, Indiana, this 23rd day of
March,2026.
Canneth J. Lee, Council President
South Bend Common Council
Attest:
Bianca L. Tirado,City Clerk
Office of the City Clerk
Presented by me, the undersigned Clerk of the City of South Bend, to the Mayor of the
City of South Bend, Indiana on the day of , 2026, at o'clock .m.
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Bianca L. Tirado,City Clerk
Office of the City Clerk
Approved and signed by me on the day of , 2026, at o'clock
.m.
James Mueller, Mayor
City of South Bend, Indiana
DMS 50805738
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