Efforts to build new housing in Terre Haute continued Wednesday with groundbreaking for a new, income-based apartment complex on vacant property along North Fourth Street.
River Valley Apartments, part of the Thrive West Central Homes for the Future program, will consist of four units providing a total of 40 apartments just north of downtown Terre Haute near Union Hospital.
The apartments will have about 1,000 square feet, with two bedrooms and two bathrooms.
The $12.5 million development will include a separate community building offering residents a computer station, laundry room, gym, management offices and onsite storage. It also will include a playground for children.
The Thrive West Central Homes for the Future Program is a pilot initiative for homebuilders and developers to incentivize them to build housing in west central Indiana.
It uses state READI grant funding and ARPA federal funding from both the city of Terre Haute and Vigo County. The program provides funding for infrastructure to spur private development.
The developer is New Directions Housing Corp. based in the Chicago area; Rodger Brown is the president.
“We hope to break ground in the next couple of weeks,” with the project taking about a year to complete, Brown said.
He praised local government officials and Thrive West Central for their assistance in the project, the housing corporation’s first in Indiana.
“We’ve had such a good experience in Terre Haute, we hope to be able to find another development to do for your community,” Brown said.
Other speakers included Jon Ford, president of the Wabash River Regional Development Authority, and Mayor Brandon Sakbun.
“We’re going to turn this into something that will produce great quality housing for folks, but also help the community and city of Terre Haute with its need for housing,” Ford said.
Thrive’s Homes for the Future contributed infrastructure funding, and the project will also benefit from federal tax credits.
“This is a great project and we really appreciate the investment of outside folks in our community,” Ford said.
According to Sakbun, a housing study shows the community is behind in all types of housing, and the Homes for the Future project is incentivizing a wide range of housing development to meet various income levels.
Several ribbon-cuttings or groundbreakings have taken place in recent weeks.
“You have seen a mix of these projects, and we are incredibly happy to kick off this income-based housing project today, adding 40 units right in the heart of Terre Haute,” Sakbun said.
Brown, of New Directions, anticipates rents will be in the range of $400 to perhaps $1,000 per month, although those rents have not yet been set. It will be based on income and family size.
After construction begins, a sign will be up with information on the property management firm and contact information for those who want to lease.
While income-based housing sometimes can carry a negative connotation, in the past decade or so, “Developers have really made an effort to make it much nicer housing,” Brown said.
River Valley Apartments “will be built like market rate housing, but the rents are lower,” he said.
The groundbreaking took place at 1325 North Fourth Street, and the development will be built on both sides of the street. Keymark is the contractor for the project.
Part of it will be built on property that formerly housed Rea Elementary School, which closed in 1979. That property is now vacant.
“We are changing the landscape of Vigo County and we are so excited about that,” said Julie Hart, Thrive West Central director of housing.
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