Most cities need more affordable housing, and Evansville is no different.
According to the most recent city Housing Needs Assessment, a high share — nearly 45-percent of cost-burdened renter households in Evansville, “are paying a disproportionately high share of their income toward housing costs, likely due to a lack of affordable rental housing.”
This makes tax credits from the Indiana Housing and Community Development Authority (IHCDA) important for making affordable housing a viable business venture.
Gratus Development built and owns Cedar Trace — an Evansville apartment complex system with one to four-bedrooms.
Danielle Welsch Massey, development director at Gratus, said these tax credits make affordable housing sustainable long-term as a business.
“So 100-percent of the units that we have developed are all affordable or workforce housing,” she said. “Without 9-percent tax credits, these projects really wouldn't be able to happen.”
Cedar Trace Apartments will receive $1.3 million annually for 10 years, or nine-percent of the overall project cost.
Welsch Massey said they’ll use the credits on a rehabilitation project.
“We're going to be putting in some new flooring; there's new appliances, new HVAC systems, cabinetry,” she said. “We'll also be doing some exterior upgrades and repairs, so landscaping, some facade work, exterior decking, so getting those repaired or replaced as needed as well.”
These buildings were constructed in 2009. Gratus only builds affordable housing and workforce housing.
Other IHCDA projects are in Martinsville, Bluffton and Rochester and include new construction, rehabilitation and adaptive re-use.
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