Committee backs $2.84 million to build supportive housing and pay down Section 108 loans

The Metropolitan Economic Development Committee on Jan. 30 recommended that the City-County Council approve a fiscal ordinance totaling $2,840,000 to fund a permanent supportive housing project and to pay down outstanding Section 108 loans.

Lucas Anderson, CFO/COO for the Department of Metropolitan Development, told the committee the ordinance has two parts: a $1,340,000 appropriation from the housing trust sub fund to contribute to a 16-unit, two-story permanent supportive housing building at 233 Lynn Street (a partnership with Horizon House and Englewood Development Corporation) and a $1,500,000 contribution from the revenue bonds fund to pay down Section 108 loans tied to infrastructure work at the former Central State site and along South Meridian Street. Anderson said the total project cost is estimated at $4.8 million.

"This is a very fiscally responsible action," Anderson said, adding the revenue-bonds paydown will reduce long-term interest payments. Deputy Director Jenny Fultz said the majority of the remainder of project financing comes from an IH/CDA home grant from the federal government (about $2.5 million) and a development loan fund; she said the project is not a Low-Income Housing Tax Credit (LIHTC) deal and staff will follow up by email with additional financing details.

Councilors asked whether the development would align with the Streets to Home master-lease approach; staff said the project will coordinate with the Streets to Home effort through the coordinated entry system but is not a direct Streets to Home unit pool. Councilor Andy Nielsen asked how the housing trust sub fund is financed; Anderson said it receives a portion of Marion County recorder transaction fees (as stipulated by state statute) and pilot revenues approved by council. Anderson said an estimated $2,600,000 will remain in the housing trust sub fund after this request and that DMD's annual appropriation from the fund is roughly $1,300,000 (about $720,000 available to allocate in 2026 through the advisory committee process).

A roll-call vote recommended the council "do pass" the fiscal ordinance with a 15-0 tally. Staff said they will follow up with clarifications about Horizon House's recent acquisition by Goodwill and additional financing details.

The committee's recommendation advances the ordinance to the full City-County Council for final consideration.