48-Unit Affordable Housing Complex to Revitalize Downtown Elkhart

Photo byWSBT photo

In a move that promises to reshape downtown Elkhart while addressing a critical need for affordable housing, the City Council has unanimously approved a plan to fund a new 48-unit apartment complex. The development, located in the 500 block of East Street where a long-abandoned wheelchair factory currently stands, signals a broader push to make housing more accessible in the community.

The City Council’s 9-0 vote on Monday secured an $850,000 forgivable loan from the Economic Development Income Tax (EDIT) fund. These funds will be dedicated to demolishing the old factory and preparing the site for construction. "This money will go toward the demolition of the former wheelchair factory as well as laying the groundwork for future development," explained Aaron Mishler, City of Elkhart 1st District Councilor. This redevelopment is a key piece of the city’s long-term plan to meet the growing demand for affordable housing.

Of the 48 units, half will be designated as income-based apartments, with rent prices ranging from $350 to $800 per month, while the remaining units will rent for $800 to $1,250. Eligibility for these units will be determined strictly by income levels, ensuring that they serve those most in need.

Mishler acknowledged that the rising cost of construction, exacerbated by inflation, often drives up rental prices. However, with this project receiving both state and federal tax credits, it will remain affordable for at least 15 years. "By leveraging these tax credits, we're able to keep costs down, ensuring this model of affordable housing can be replicated both locally and nationally," Mishler said.

Some residents have raised concerns about prioritizing new construction over making existing housing more affordable. However, Mishler pointed out that Indiana law prohibits local governments from enacting rent control measures. "While we can’t directly regulate rent, we can collaborate with developers to lower construction costs. By making development more affordable, we ensure that savings are passed down to renters," he added.

Though there is no set timeline for the project’s completion, Mishler remains optimistic, hoping the complex will be finished within the next few years. As the city looks to the future, this project represents a pivotal step toward making Elkhart a place where all residents can thrive.