Community questions new affordable housing project following a previous controversial project

The need for affordable housing, especially for families, continues to be a top issue in Indianapolis. But a new proposed housing project that would create 33 units received scrutiny from the community at a recent meeting.

The Canal Village III project is being led by local developer BWI. It would create affordable housing units for families on the near northwest side using funding tools supported by the city including payment in lieu of taxes, or PILOT funding and low-income housing tax credits.

BWI President Gary Hobbs said they will set aside 20 percent of the units for families with someone with an intellectual disability. Hobbs said they will also provide free wi-fi and they have plans to include a wide range of services.

"We're also partnering with Flanner House on discounted daycare services, employment, workforce readiness programs, financial literacy, life skill development, home ownership readiness. So we want them to be prepared for full time ownership,” Hobbs said.

But numerous community members spoke out against the project at a recent meeting of the Indianapolis Metropolitan and Economic Development committee. They specifically talked about a previous BWI housing project called Canal Village I that did not live up to expectations. They pointed to subpar construction, the loss of a tree canopy and failure to upkeep property.

President of the Northwest Landing Neighborhood Association Maunah Wadud said the neighborhood is looking for protections before this project moves forward.

“We would like to know what the city or the Metropolitan Development Committee proposes to protect the neighborhood against the previous issues that arose with Canal Village I and the maintenance of these properties, which has not been up to the standards of which the neighborhood would like,” she said.

Flanner House Executive Director Brandon Cosby said they are working with BWI but this time they have planned safeguards to ensure the developer is held accountable for actions.

"That is literally what we have pushed and demanded of BWI through this Canal Village project,” Cosby said, “the urgency in which this neighborhood needs affordable housing can not be overstated.”

The new project offers the chance for families to become homeowners and the funding structure locks in affordability for a longer time. But Cosby said the nonprofit will maintain control over $1 million in funding that BWI still needs.

“The financing deal is locked in a trust that we control that will not be released until there is verifiable evidence that he has honored the commitments and the promises that were made to the residents of the near northwest area,” Cosby said.

The committee pushed a vote on the proposal to next month.

Contact WFYI Managing City Editor Jill Sheridan at jsheridan@wfyi.org.