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Monroe County looks to build housing development with COVID relief dollars

By Lucas González

Posted September 21, 2023

Aerial view of downtown Bloomington. (Adobe Stock)

Monroe County has plans to build a new income-restricted housing development with 40 to 60 homes funded by federal COVID-19 relief dollars.

County Attorney Jeff Cockerill said the project is still in its early stages. Several details have yet to be worked out, including where the development will be built.

The county has identified a handful of potential sites but has yet to decide on one, according to Cockerill.

“There are different concerns with each property,” Cockerill said. “The further away we get from the city, the less expensive land is. However, we want to build affordable housing — and so, transportation issues are there.”

Cockerill said the county plans to make the homes available only to those who earn less than 80 percent of the median area income, which was $53,166 in Monroe County in 2021.

Whichever site the county selects, Cockerill said it should be accessible via public transportation. For that reason, a location close to Bloomington city limits would be beneficial.

“It’s not necessarily that it is preferable that it’s closer to city limits, although it benefits the transportation issue,” Cockerill said. “I’m not in a position to say what’s the deal breaker on how far (out) it can be.”

Cockerill discussed the project with members of the county’s Redevelopment Commission at a Monday meeting. There was some discussion around using the county-owned former Thomson site on Bloomington’s southwest site, but the county also is considering using that land for a new jail.

Cockerill said the county plans to fund the land purchase and project infrastructure with dollars from the American Rescue Plan Act (ARPA), or the federal COVID-19 stimulus program.

Under federal guidelines, the county must identify how it plans to use its remaining ARPA funds by the end of 2024 and spend it by 2026. The county has about $26 million left to spend.

The project could cost about $3.5 million or more, depending on where the county decides to build, according to Cockerill.

“One of the things I’m seeing as we explore properties is that the further away (it is), the cheaper it is,” Cockerill said. “There’s another round of conversations that need to happen as to whether that means we’re serving the population we want to serve.”

The county also is considering establishing a special taxing district to allow property taxes collected from developments on the property. That’s where the Redevelopment Commission comes in, as it oversees projects in the county’s Tax Increment Finance (TIF) districts.

“It essentially is looking at an area and providing improvements to the area,” Cockerill said. “Those improvements then increase the assessed value of property in that area. Then, that increase in assessed value is captured into a TIF district to either pay off the initial infrastructure or kind of perpetuate that assessed value growth.”

Cockerill said the county hopes to break ground by the end of 2024 and build the first home in 2025.