Local, state and federal officials today joined investment and development partners to celebrate the ground breaking of Flagstone Village –the newest affordable housing development in Hammond, Indiana.
Flagstone Village is being developed by Homestead Enterprise Housing (HEH), which was also the developer for each of the previous four phases. HEH is the non-profit instrumentality of Hammond Housing Authority (“HHA”), using a HUD-promoted method for providing good housing in communities throughout the US. Partners in the project include: City of Hammond, Indiana Housing and Community Development Agency (IHCDA), The Richman Group Affordable Housing Corp., and Citibank Community Development;
The development was partially financed by equity raised from the Low Income Housing Tax Credit Program administered by IHCDA. A key element of the $15.2 million project is the use of an allocation of Low-Income Housing Tax Credits (LIHTC) by Indiana Housing and Community Development Authority (IHCDA). This federal program provides a dollar-for-dollar reduction in income taxes for developers of affordable housing in exchange for providing below-market rents for at least 15 years. The tax credits are then sold to investors, who provide equity to the project. A second key financing components is a $3.63 million mixed-finance loan being provided by HHA.
As with each of the prior four developments, Flagstone Village will provide needed affordable housing. Flagstone Village is private (not public) housing, open to households of a broad-range of incomes. Many units have special subsidy arrangements, ensuring affordability to low-income individuals and families.
Flagstone Village is the fifth and final phase of new affordable housing at the 40-acre site in Hammond’s South Side. Flagstone Village will have 76 units, all 1 and 2 BR. There will be four types of new one- and two-story attractive structures. A Community Center, dramatically set back from the 173rd Street and Columbia Avenue corner, will be the “Jewel in the Crown”, serving all five properties at the site.