The city of South Bend wants to give more help to an affordable housing developer that’s encountered some unforeseen project costs on the south side.
Indianapolis-based affordable housing developer KCG Development wants to build a 50-unit complex southeast of Main and Bowman streets. That’s where you’ve seen a long-broken McDonald’s sign standing on a vacant lot.
The company cleared a major hurdle in November when the state awarded the project competitive low-income housing tax credits. The city then in March committed a million dollars to the $13 million project.
But on Thursday the city administration will ask the redevelopment commission to help some more. It says KCG has found “buried building materials and unsuitable soils” from prior use of the lot. In addition to the $1 million it’s giving KCG, the city would loan the developer another $700,000. KCG would commit to spending two million more, bringing their investment up to $15 million.
The redevelopment commission has approved similar loans for the Diamond View and Monreaux affordable housing projects downtown.
