Through the Downtown Development Fund (DDF), the Elkhart Redevelopment Commission will provide incentives for the re-use of vacant buildings in the downtown area by offering reimbursement for a portion of the rehabilitation costs. The Program will provide incentives for the creation of targeted new commercial and market-rate residential projects in existing downtown buildings. The program is part of the Commission’s overall goal to increase private investment within the downtown. Eligible projects must be located within the Downtown Elkhart Commercial Historic District (A map of the area can be seen at right). Funding of this program is subject to appropriation by the Common Council.

Program Structure:
The Elkhart Redevelopment Commission will reimburse approved applicants for a portion of the total construction costs associated with rehabilitating vacant buildings to support targeted new commercial (prepared food, entertainment, specialty retail) and residential projects, based on the following formulas:

Commercial Projects
Reimbursement for 25% of the total rehabilitation costs up to a maximum of $50,000.

Market-Rate Residential Projects Reimbursement for 35% of the total rehabilitation costs up to a maximum of $25,000 per unit, not to exceed a total of $100,000.

Projects combining both residential and commercial uses can qualify for up to a combined maximum of $100,000 in assistance. For mixed-income residential projects, reimbursement will be only for market-rate units.

The assistance provided by the Commission will be in the form of a forgivable loan, with a term of 5 years. The Commission will secure the loan by filing a judgment note to the property for the full loan amount, which will be forgiven at 20% per year over the term of the loan. If the property is sold or the title is transferred, the outstanding portion of the loan will be due and payable to the Commission.

Rehabilitation must be completed within one year of the date on which the application is approved by the Redevelopment Commission in order to qualify for reimbursement.

Eligibility
For eligibility requirements and complete information, please download the guidelines and application form at right.