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Carmel-based developer, Sullivan Development, plans to build hundreds of affordable housing units in Indianapolis. The projects will total over $70 million and add more than 270 low-income apartment units by 2027, mostly along the 38th Street corridor south of the Indiana State Fairgrounds. The city council approved a local tax break worth $3.2 million to support the new housing.

    The developer was also awarded $29 million in federal low-income housing tax credits, which will help reduce building costs and keep rents affordable for low-income tenants. City leaders say the new supply is needed due to rising average rents, up 40% since 2019, with an average monthly rent price of over $1,250.

    The units are set aside for households earning 60% or less of the area median income, meaning a single person can qualify if they earn up to about $46,000 and a four-person household can earn around $66,000. The largest development, Monon 35, will add 200 units near the Monon Trail, with rent prices ranging from about $1,200 for a one-bedroom unit to roughly $1,600 for a three-bedroom unit.

    The project's rent prices were questioned by a city councilor, but the developer explained that they are tied to "Fair Market Rents" determined annually by the Department of Housing and Urban Development. Construction on Monon 35 is set to begin this fall and finish by mid-2027.

    In addition to Monon 35, Sullivan Development plans to build 40 new low-income units near the intersection of 38th Street and College Avenue, as well as a 34-unit complex on a vacant lot near 22nd Street and College Avenue. The rents for these units will be similar to those at Monon 35, with access to an in-house food pantry and financial courses to help residents save money and eventually move into market-rate housing or buy a home.