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Empty units will not be filled at Relato housing development

By Donnie Burgess

Posted February 6, 2025

Map view of the Relato workforce housing development

Map view of the Relato workforce housing development (Courtesy, Bloomington City Council Agenda Packet)

The Relato workforce housing development in Bloomington will not fill over two dozen empty units.

The Bloomington City Council voted 5 to 4 Wednesday night to allow Bloomington SPCW JV, LLC, which owns the Relato located at 105 North Pete Ellis Drive, to pay $1,040,000 to the city’s Housing Development Fund instead of filling its empty units.

Read more: Indiana would add more money to fund aimed at reducing housing costs

Developers said they’ve struggled to find tenants who meet Area Median Income (AMI) requirements.

The AMI is the middle point of a certain area's income and is calculated each year by the US Department of Housing and Urban Development. The AMI numbers are then used by local governments to set income limits for affordable housing programs. 

The property originally required potential renters to meet 100 to 120-percent of the AMI but found little success in filling its 52 available units. Through cooperation with the city’s Housing and Neighborhood Development (HAND) program, developers brought the AMI requirement down to 80-percent but still struggled to fill units.

By December of 2024, only 25 of the 52 units were leased. According to the developers, 17 of those 25 tenants fall below the 80-percent AMI requirement and needed the assistance of HAND to successfully lease a unit.

Read more: Bloomington council hears 2025 budgets for HAND and Bloomington Housing Authority

Councilmember Hopi Stosberg voted against the payment. She said the developers made the problem worse with inconsistent advertising to potential renters.

“I feel like a yes vote on this is also just a capitulation to developers that you can just come in and you can sell us whatever you want to sell us and then they’re going to build something different,” said Stosberg.

Councilmember Isabel Piedmont-Smith voted yes, saying the city benefits by keeping those units and can use the extra money to address other housing needs.

“So, in a way, we’re getting more than we could’ve hoped to get in the first place under our old rules,” said Piedmont-Smith.

Current tenants will be allowed to sign a new lease, if they choose.

This is the vote breakdown from Wednesday night’s council meeting:

  • Hopi Stosberg – No
  • Isabel Piedmont-Smith – Yes
  • Courtney Daily – Yes
  • Sydney Zulich – Yes
  • Kate Rosenbarger – No
  • Isak Asare – Yes
  • Andy Ruff – Yes
  • Dave Rollo – No
  • Matt Flaherty – No

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