Brad Davis | The Republic The property shown is the prospective site for the Flats on 14th, a new affordable housing complex proposal.
Columbus City Council members approved a pair of ordinances that move forward what will be a 110-unit affordable housing development on 14th street.
TWG Development’s Flats on 14th project will be located on three parcels of property previously owned by Columbus Pallet Corp. at 1520 14th St., across the street from Central Park Place.
The project, which is expected to cost $29.1 million, was made possible after TWG was awarded 4% federal low-income tax credits (LIHTC) along with affordable and workforce state tax credits (AWHTC) in a competitive process in the fall.
TWG’s application to the Indiana Housing & Community Development Authority (IHCDA) for the tax credits was bolstered through a payment in lieu of taxes (PILOT) agreement where TWG will claim tax savings towards their total development costs. It’s the first time the city has used an agreement like it, according to community development, made possible after a statute allowing for it went into effect in 2021.
The council on Tuesday night officially approved an ordinance on second reading authorizing the PILOT agreement, which they indicated they would do in July, as well as the second reading of an ordinance establishing a restricted affordable housing fund, required by state statute as part of the PILOT agreement. Ordinances must be passed on two readings to be officially approved. The votes on both were 9-0, the same tally during the first reading.
The four-story development is planned to have 35 one-bedroom units, 50 two-bedroom units, and 25 three-bedroom units, all reserved for those making 60% of area median income (AMI). This means that one-bedrooms would be for those earning up $39,360, two-bedrooms for those earning up to $44,940 and three-bedrooms for those making up to $50,580, city officials said previously. The development would also have an onsite, licensed daycare center.
Under the terms of the PILOT, TWG is required to make a $33,000 payment that will go into the affordable housing fund starting in 2027. That amount will increase 3% annually and will be paid across 15 years. The total amount to be paid will be $613,764 over that period of time.
The money in the affordable housing fund can only be used for specific purposes, outlined by the law. After the 15 years are over, TWG could come back and ask for another PILOT agreement or the money in the fund would go back to the original tax base, according to the developer.
Half of the money in the fund would go towards the production, rehabilitation or purchase of housing units for very low income households. The other half would go a nonprofit, public housing authority, unit of government, or a private development entity as determined by the advisory board.
Things the fund can be used for specifically includes providing financial assistance to individuals who make 80% of AMI or less for rent and to pay expenses associated with administering the fund.
In addition, the fund can be used to provide grants for the development, rehabilitation or financing of affordable housing for those whose income is at or below 80% AMI “including the elderly, persons with disabilities and homeless individuals and families.”
As part of the affordable housing fund, it’s required that an 11-member housing fund advisory committee be created that would implement spending the funds. Decisions the board would make about spending would still be subject to final approval by the Columbus City Council.
That board would be made up of representatives for the interest of low income families, owners of subsidized multi-family communities and financial institutions. Six of the positions would be appointed by the mayor, with the rest appointed by the council. The five other members “must be nominated to the legislative body after a general call for nominations from township trustees, community development corporations, neighborhood associations, community-based organizations, and other social services agencies,” according to Indiana Code. The board likely wouldn’t convene until there’s a few payments in the fund, meaning that may not happen until 2030 or 2031, according to community development.
During the first reading, council members Chris Bartels, R-District 1 and Kent Anderson, R-District 5 said they weren’t properly informed of some of the specifics of what the agreement would mean from the administration and asked if there were a way to back out and find another avenue to support it like a tax abatement.
Administration officials and the developer said finding another way to support the project this late could put the tax credit award and project itself in jeopardy. Anderson and Bartels emphasized they were supportive of the project and more affordable housing, but believed the accompanying agreement adds “another layer of bureaucracy” in the form of the 11-member advisory committee that would oversee the fund. There was no further discussion on this on Tuesday and members quickly approved both.
Flats on 14th isn’t the first affordable housing project to be planned at the 3.36-acre site.
In 2015, Ohio-based Jonesboro Investments Corp. had plans to build a three-story, 54-unit building for senior housing there.
Apartments in the senior housing complex would have been rented to those age 55 and older under income restrictions for affordable housing, but the tax credits were not ultimately awarded from the IHCDA.
In 2020, Jonesboro, along with Thrive Alliance’s Housing Partnerships Inc. (HPI), tried another time to get the senior, affordable housing facility off the ground. But again, the tax credits were not awarded.
Jonesboro was responsible for the Gateway Apartments on the former Golden Foundry site, built in 2016 and managed by Thrive Alliance.
Jonesboro representatives said in 2015 it took three separate tries to receive tax credits to build Gateway.
