Funding plan incentivizes homebuilders

In an effort to squeeze more housing availability out of existing space, Wayne County economic leaders are requesting at least $500,000 to accelerate the completion of housing subdivisions. 

At its Oct. 7 meeting, Economic Development of Wayne County’s board approved spending $500,000 from its Consolidated Economic Development Income Tax fund, and the parameters of the Housing Accelerator Program. 

County commissioners approved those expenditures Oct. 9, and they must now go before Wayne County Council. 

The county’s Hoosier Enduring Legacy Program also has $1,139,000 designated for housing infrastructure, with the majority — $1,060,000 — designated from the county’s American Rescue Plan Act dollars.

Commissioner Jeff Plasterer said the county’s commitments would “piggyback” on this program. Because ARPA funds must be under contract by the end of the year, Plasterer said it’s likely the ARPA money will be diverted to a radio tower project that’s exceeding cost expectations, then Wayne County’s EDIT dollars would fund the infrastructure program.

For-profit, cooperatives, public entities and nonprofit developers of platted but unfinished subdivisions could apply for a maximum of $250,000 toward infrastructure such as streets, sidewalks, utilities, stormwater systems or broadband. Awards aren’t to exceed 10% of the total project’s market value. 

Preference would be given to communities needing residential housing and projects adding at least 10 housing units. Developers must have 5+ years of experience.   

This request stemmed from developers seeking funds during a call for project ideas through the Hoosier Enduring Legacy Program. Upon further review, EDC learned about 20 subdivisions across the county weren’t finished. 

A committee will score applications on several criteria, such as proposals’ timelines and thoroughness, housing type and quality, impact on community and environment, and Americans with Disabilities Act amenities. EDC recently commissioned a housing study that shows what types are in high demand. 

Application deadlines aren’t set because more funding could be coming. EDC is hopeful that additional government units will contribute to make more projects possible. 

Commissioner Brad Dwenger said it’s important to learn from developers why they’re not already building in Wayne County when he sees developers building like crazy in other communities.

Wayne County has some lots ready for builds that aren’t being developed, Dwenger said.

The EDC could fund housing in communities that share half their EDIT income for EDC’s operations, but any county funding could benefit unincorporated areas. The county earmarked $800,000 for market-rate housing infrastructure in unincorporated areas, but Plasterer said the county must analyze whether those locations make the most sense.

“I think it’s critical,” Plasterer said. “Housing’s going to be a driving decision-maker in whether we’re able to slow down the loss of population that’s been going on for 40 years now.”

Before the vote, EDC had about $6.4 million consolidated EDIT cash on hand, about $4.6 million of which was obligated for other projects. 

EDC President Valerie Shaffer said housing was found to be a critical item in strategic planning because it relates to talent attraction and retention. She said EDC has done its due diligence to know the demand, and now they need to take the next step to address the issue. 

Sarah Mitchell, the EDC’s economic development manager, is coordinating a HELP project that tears down blighted houses throughout the county. Shaffer said that effort works hand-in-hand with the infrastructure program.

“We’ve got to eliminate the whole inadequate housing as well as replacing it with modern homes that people desire,” Shaffer said during her presentation to commissioners. “I think it’s important that we keep our eye on both ends of the spectrum.” 

Jim King, EDC board secretary and Cambridge City town council member, said it’s important for the EDC to invest in quality of life such as housing, education and infrastructure for the county’s growth, beyond attracting individual businesses.