The Bloomington Common Council voted unanimously on Wednesday evening to preliminarily approve a Bloomington-based firm to issue up to $30 million in tax-exempt bonds. This will fund an affordable housing project in the Crestmont community of northwest Bloomington.
The Bloomington Housing Authority owns a low-income housing unit located at 1007 N. Summit St. It was first built in 1965 and includes 196 units, which range from studio units to five bedroom units.
A new renovation project aims to address building code requirements, modernization and energy efficiency standards. The interiors of the units will also be improved.
“This is a good project,” City Council President Jim Sims said. “I think it's a good community benefit with us trying to work with some of the women and minority-owned businesses in our community.”
This is only a preliminary approval from the council. The BHA will likely return to a city council meeting in the future after negotiating bond terms and receiving tax credit approval from the Indiana Housing and Community Development Authority. Then, the state’s Economic Development Commission will render a project report, hold a public hearing and approve the ordinance authorizing the bonds, according to project officials.
“We're adding dishwashers in family size units and in-unit washers and dryers,” BHA Executive Director Amber Skoby said.
New air conditioning units, high-efficiency furnaces, windows and roofs are all part of the project. One bedroom units will be added as a part of the renovation, Skoby said, temporarily displacing some residents for no more than 60 to 90 days.
“Tenants will be relocating on site,” Skoby said. “All of their moving and relocation costs are covered by the Housing Authority.”
The BHA will also renovate the community building in the Crestmont neighborhood, almost doubling its size. Skoby said it will allow the community to host more events.
The City of Bloomington is allowing the BHA’s development partner to access the $30 million at a tax-exempt rate. The BHA’s development partner, who will issue the bonds, will release the city of all financial obligations and be responsible for all payments to those who purchase the bond. No costs will be paid by the city from taxpayer dollars, according to documents presented to the council.
