The Little Crow Lofts project in Warsaw is getting over $1 million in funding and rental housing credits from the state.
Lt. Gov. Sue Ellspermann announced late Thursday morning that the state was awarding more than $14.3 million in rental housing tax credits to 18 multi-family housing developments throughout Indiana. Project activities include new construction, rehabilitation, conversion of existing structures and the preservation of historic buildings funded through the Internal Revenue Service Section 42 Rental Housing Tax Credit program.
The Little Crow project, 201 S. Detroit St., Warsaw, will receive $638,569 in Rental Housing Tax Credits and $500,000 from the Development Fund.
“Rental Housing Tax Credits are one of the most important tools we have to encourage the production of affordable housing,” Ellspermann is quoted as saying in the release. She chairs the Indiana Housing and Community Development Authority. “The 18 new projects will contribute greatly to the overall development and stabilization efforts of these communities.”
IHCDA administers and manages the federal credits, which provide incentives for private developers to further the affordable housing choices available throughout Indiana. The 2016 RHTC allocation totaling $14.3 million will fund over 800 housing units, the release states.
Fifty applications were received in November, requesting just under $42.4 million in federal rental housing tax credits and $16.1 million in supplemental IHCDA funding.
A summary of the Little Crow project provided by the state indicates the funds will be used for conversion of the current structure into another use. Once completed, the information states the building will contain seven one-bedroom apartments and 35 two-bedrooms.
The applicant is Commonwealth Development Corporation of America, of Wisconsin.
Total projected costs are $8,421,262.
“It’s an affordable housing project,” City Planner Jeremy Skinner said in a telephone interview Thursday. “Little Crow will be turned into affordable housing. I think there will be small office space on the first floor.”
He said the state award is an incentive so with Commonwealth receiving the funds, they will move forward with the project.
As part of Commonwealth’s application for the funds and credits, Skinner said the city has to be an active supporter of the project. The city sent in letters of support, and Little Crow was on its list of projects to address. The Market Street project also indirectly supported the Little Crow conversion project, he said.
“We’re pretty excited they got this funding,” Skinner said. “It’s been on our list. Downtown housing has been a priority on our list, so we’re pretty excited they got it.”
The Little Crow building has been vacant since 2012. Little Crow Foods was sold to Gilster-Mary Lee, Chester, Ill.
Little Crow Foods was established in 1903 and made such products as CoCo Wheats and Miracle Maize. On Dec. 10, 2012, the Kosciusko County Community Foundation accepted the gift of the Little Crows Food property from the Denny Fuller family.
In October, the Warsaw Plan Commission approved recommending changes to the city’s comprehensive plan to the city council to help the developer in securing the grant as well as future affordable housing grant applicants.
