HomeMy WebLinkAboutDCI Beacon Heights Beacon Renovation Project FILED,. ►• ~ JUN 2 3 2026 Bianca Tirado City Clerk, South Bend, IN
• Existing Affordable Housing Complex • Built mid-1940s • Approximately 174 housing units • One of SB largest affordable housing complexes • Complex has not had significant overhaul since construction • Units in need of full renovation • New affordable units are needed, preservation and improvement of ~xisting affordable liousing is just as important • Community spaces -roads, parking lots, community room -also in need of investment f,;\, City of South Bend ~,!';;/}-Community Investment
• L +M Development has entered into an agreement to purchase the property • National affordable housing developer -founded 1984 -extensive experience rehabbing existing affordable housing projects • Acquired, Built, Preserved over 57k housing units • Established Beacon Apartments Preservation LLC • L +M applied for and received 4% LIHTC through State of Indiana -• IHCDA rental income protections • Habitability standards • Eviction protection • New oversight currently not on property • Federal HUD Affiliated • Rental income protections 30 years :~~\ City of South Bend i,.,;i . .t" Community Investment
LIHTC Projects Awarded-South Bend City Limits • 10! Awards since 2022 (0 previous 10+ years) • Advantix Development • SB Thrive • Monreaux • Diamond View • Birge & Held • KCG Development • Tri Day •WATD • LaSalle Park Homes • Beacon Heights Apartments • Combination of local partnership and outside resources l~\; City of South Bend '\:y.11 Community Investment
• Planned redevelopment: • $47M total project costs • Renovate all existing housing units • Exterior improvements to units • Improve living conditions for residents • New playground • Upgraded community building • Add gym, computer room, library • Paving internal roads/parking lot • Renovation in place • No displacement of existing residents • No increase in rent, same rent protections that exist currently F;;\ City of South Bend ~,.·:"'/ Community Investment
• Planned redevelopment: • $47M total project costs • Added security cameras • Part Time Private Security Patrols • Increased property management staff over existing numbers • Social Services Provided on Site • Ensure long-term affordability 11s,•~\ City of South Bend ~'>-:i"cr'!'" Community Investment
• July 31, 2026 -Projected Closing • August 2026 -Begin ownership, initial construction • December 2027 -Estimated completion of renovations r~~lr City of S~uth Bend ,,•:~/ Communzty Investment
• $1.25M Forgivable loan • Dispersed upon closing on land/financing • Forgiven upon documented conclusion of private commitments, proof of investment and unit renovations • $47M Private Commitments • Renovation of all 174 Units t~\ City of South Bend '"~:~/,~~ Community Investment
• PILOT • 30-year agreement in-lieu of taxes Year 1 $ 2,000 Year 16 $ 81,)50 Year 2 $ 2,060 '{ear 17 $ ~3.585 • Payment's will be placed in Year 3 $ 2.122 Year 18 $ X6.()9" account support affordable housing Year 4 $ 2,186 Year 19 $ 88,670 • As established by Council Year 5 $ 2.252 Year 20 $ 91.336 Year 6 $ 2.320 Year 21 $ 94,076 Year 7 $ 2,390 Year 22 $ 96.898 Year X $ 2A62 Year 23 $ 99.X05 • Private Commitments Year 9 $ 2.536 Year 24 $ 102.79<) • Renovation of all 174 Units Year 10 $ 2,612 Year 25 $ 105.88"' Year 11 $ 70.000 Year 26 $ I 09,05~ • 60% AMI All Units for 30 years Year 12 $ 72,100 Year 27 $ I12,33 l Year 13 $ 74.263 Year 28 $ 115,701 • Compliance with HUD standards Year 14 $ 76,491 Year 29 $ 119.17" Year 15 $ 78,786 Year 30 $ 122,74 ,iC~,,.. City of South Bend :,. !:'El 'h:,'i,/ Community Investment
• PILOT -No further steps if Council approves Bill No. 36-26 • Forgivable Loan • RDC approved first resolution authorizing process on 6/11 • Authorized $1.25M of River West TIF funds upon fuli approval • EDC approved Resolution on 6/18 including • Project Report • Form of Financing and Loan Agreement • Form of Funding and Reimbursement Agreement • Form of Common Council Loan Ordinance • Council Action Today • Bill No 37-26 • Subject to: Developer Agreement & Final Resolution approved by RDC 7-9 ~\ City of South Bend \~~/ Community Investment
• Significant needed investment into Beacon Heights Apartments • Leveraging City resources to get outside funding invested into maintaining affordable housing • Updated housing and overall improvements to campus • Through the Forgivable Loan, PILOT, and LIHTC award the City gains new tools to monitor property conditions at Beacon Heights that currently do not exist and support an ongoing, accountable relationship with the new ownership. 5~~~ City of South Bend ~<1"'"/ Community Investment
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