KNIGHTSTOWN — A Fort Wayne developer considering a $4.7 million investment to provide housing for income-eligible persons has received the town council’s verbal agreement to consider tax abatement for the project at some point in the future as well as the council’s preliminary blessing to continue exploring options to move the project forward.
Danelle Biberstine of Keller Development recently appeared before the council and said her company was interested in constructing 25 homes on the city’s northeast side, just off Adams Street, that would be available for sale via a lease-purchase agreement.
“For the first 15 years the properties would be like a rental; however, they would have to sign a purchase agreement, a purchase option, with the intent to actually buy the property,” Biberstine said.
Interested and income-qualifying persons would live in the homes and pay rent, somewhere in the $450 to $500 per month range, the first 15 years. They would then be able to purchase the home for roughly 40 percent of its market value through a more traditional mortgage.
This proposed project is being done in partnership with DSI, which provides a variety of developmental services. During the early stages of the rental phase, those involved would be required to take classes on home ownership, finances and home maintenance.
“Our goals are to help them increase their income so they can better sustain themselves,” Biberstine said. “If they don’t attend the classes and we warn them three times then they have to move out. We want people who are interested in purchasing them. If they aren’t willing to put in the effort to purchase it then they can’t live there.”
The homes would be either three or four bedroom units with attached two-car garages and would range in size from 1,300 to 1,800 square feet. They would be designed and constructed in such a way as to be compatible with the appearance of existing homes in the area, Biberstine said. The development would also include a community building available to all residents for a variety of purposes.
During the nearly 40 minutes Biberstine and the council discussed this matter, council members had several questions for Biberstine which she appeared to answer to their satisfaction.
Biberstine eventually arrived at her central point.
“To help us with this project we would try to get tax abatement,” Biberstine said, adding that the abatement would be over 10 years and on a graduated scale. “The tax credits we’re seeking for this are very dependent on local government support, so if you guys are on board with this we’ll continue to pursue (it) and look into things further. ... If you’re not willing to think about it or if it’s not something you guys want we don’t want to waste the community’s time on it.”
Council member Roger Hammer confirmed that Biberstine wasn’t asking for tax abatement at this time, only seeking a consensus among the council that they would consider granting an abatement request in the future.
Council president Sarah Ward, after polling the council for thoughts, told Biberstine the council would consider an abatement request in the future should one be forthcoming and thanked the developer for her interest in Knightstown.
Completion of this project is contingent on Keller receiving low income housing assistance from the federal government. Biberstine said if funding is secured she expects it will take approximately two years to complete the development.