HOUSING

Strategy 3:

Redevelop underutilized non-residential properties to create new housing opportunities.

About The Objectives

Historically, many manufacturing and other industrial businesses were developed in close proximity to municipal centers and neighborhoods. The residents of these nearby neighborhoods comprised a majority of the workforce for such businesses. However, shifts in manufacturing industries have resulted in vacant buildings and sites across the IND15RPC region. While some may be able to be reused for small-scale industrial operations, most will not be redeveloped for significant manufacturing use. These sites are generally served with adequate utilities and as mentioned, are near existing neighborhoods. They represent unique opportunities to capture new housing development on sites that will otherwise remain vacant indefinitely.

Despite being served with sewer and water utilities as well as other municipal services and amenities, the cost to redevelop and repurpose these buildings and sites can be even more expensive than new construction. At a minimum, municipalities must remove regulatory barriers to redevelopment where possible. This means ensuring the zoning ordinance is not prohibiting what would otherwise be a benefit to the community; it does not mean reducing environmental regulations in place to protect public health on sites that may be contaminated. Additionally, grants, tax credits, and local incentives can be used to reduce the increased development costs associated with redevelopment in general.

Adaptive Reuse

Adaptive reuse refers to the redevelopment of an existing building or buildings for a purpose other than what the building(s) were originally designed and intended for. There are often many challenges when adapting vacant and outdated buildings for new life. These challenges include illsuited development regulations, outdated infrastructure, and potential environmental contamination (brownfields). Furthermore, many modern development regulations favor the development of greenfield properties where there are few constraints and land is readily available. To encourage redevelopment, local governments often use incentives to promote reuse and rehabilitation.

Some benefits of adaptive reuse from commercial or industrial uses to residential use include:

• Aesthetically improving underutilized and blighted areas and helping catalyze additional revitalization efforts.

• Improving tax revenues in built-out areas of a municipality already served by public utilities.

• Increasing density and providing affordable housing to meet growing community needs.

• Directing development to already urbanized areas, therefore preserving agricultural lands on the fringe of the city.

• Promoting densities that are more supportive of walkable environments.

• Returning buildings that can no longer serve their desired function to a new purpose.

Development Incentives

As mentioned above, the challenges inherent to the redevelopment and the reuse of vacant structures and properties can lead to substantial cost increases when compared to new development on a greenfield site. The cost of development may be higher because of the need for demolition, replacement of outdated infrastructure, compliance with current building codes, or remediation of past environmental contamination. Additionally, many development regulations are written to address greenfield development where there are fewer constraints. Consequently, municipalities should explore how to use incentives to overcome these financial barriers and realize more redevelopment of underutilized properties.

These incentives may come in many forms and should be determined on a case-bycase basis between municipal departments, elected and appointed officials, and the property owner or developer. Potential incentives may include:

• City-led infrastructure and amenity upgrades.

• Reduced permit and utility connection fees.

• Fast track or streamlined permitting.

• Reduced development requirements for standards such as lot size, setback, or parking.

• Tax abatement.

• Density bonuses.

Objective Priority Actions

A. Promote adaptive reuse of commercial and industrial properties for residential use and conversion or construction of upper floor residences in downtowns.

1. Work with owners of vacant and underutilized parcels and buildings to prepare the sites for redevelopment. This may include building maintenance, demolition, environmental remediation, and marketing or broker services.

2. Encourage municipal investment in public infrastructure and services to targeted infill sites or areas to proactively support private investment in these areas.

3. Consider redevelopment commission purchase and potential transfer to a non-profit for key sites that can act as a catalyst to broader housing gains and community revitalization.

B. Consider using incentives, such as reduced tap/ connection fees, reduced or waived permit fees, and tax abatement, to realize housing development and redevelopment.

1. Develop and maintain a list of potential infill and redevelopment sites.

2. Evaluate potential city incentives to better promote infill and redevelopment.

3. Review and amend zoning and subdivision ordinances to remove barriers to infill and redevelopment and better incorporate flexibility in standards.

Partners

• Auditor

• Banks/Financial Institutions

• Building Department

• Building Materials Suppliers

• Businesses and Industries

• Center for Disease Control and Prevention (CDC)

• Chambers of Commerce

• Community Foundations

• Community Housing Development Corporations

• Elected and Appointed Officials

• Engineering Department

• Federal Housing Administration (FHA) First Home Buyer Program

• Habitat for Humanity

• Health Department

• Indiana 15 Regional Planning Commission (IND15RPC) Board of Directors

• Indiana 15 Regional Planning Commission (IND15RPC) Staff

• Indiana Brownfields

• Indiana Department of Environmental Management (IDEM)

• Indiana Economic Development Administration (EDA)

• Indiana Economic Development Corporation (IEDC)

• Indiana Finance Authority (IFA)

• Indiana Housing and Community Development Authority (IHCDA)

• Indiana Office of Community and Rural Affairs (OCRA)

• Local Builders Associations

• Local Economic Development Corporations (LEDOs)

• Local Government

• Local Redevelopment Commissions

• Main Street Organizations

• Non-Profits and Not-for-Profit Organizations

• Planning Department

• Realtors

• Redevelopment Commissions (RDCs)

• Safety/Building Inspectors

• Sewer and Water Boards

• Sheriff Sale

• Surveyors

• TRI-CAP

• United States Department of Agriculture (USDA)

• United States Environmental Protection Agency (EPA)

Target Audience

• Builders

• Developers

• Property Owners

• Property Management Companies

• Renters