Sen. Jim Banks, R-Indiana, introduced a bipartisan bill to build homes in abandoned or run-down buildings, and Northwest Indiana mayors support what it would do for their communities.
“As mayor of Hammond, I’ve seen firsthand the challenges that abandoned malls, factories, and warehouses pose to our neighborhoods — draining local resources and holding back economic growth,” Mayor Tom McDermott said in a statement. “Revitalizing Hammond is key to improving our community, rebuilding our tax base, and giving working people a chance to live where they work.”
On July 24, Banks introduced the Revitalizing Empty Structures Into Desirable Environments — or RESIDE — Act with Sen. Mark Warner, D-Virginia. The bill would use funding from the Home Investment Partnerships Program, starting in 2026, for a four-year pilot program to help turn abandoned or run-down structures into housing, according to a Monday news release.
The bill includes no new spending and will support single-family and multi-family homes.
“Owning a home is such a big part of the American dream,” Banks said in a news release. “But with prices so high, especially for young people, we have to get serious about building more homes. This bill is a commonsense way to revitalize our communities and give more families a real chance to buy a home.”
Various Indiana leaders voiced support for the bill, including Valparaiso Mayor Jon Costas.
“Transforming blighted properties into sustainable living spaces is critical to infuse new life in communities and invite further investment from the private sector,” Costas said in Banks’ release. “Senator Banks’ RESIDE Act is an effective tool to accomplish that goal in areas that need it most.”
Portage Mayor Austin Bonta also expressed his support for the RESIDE Act, saying it can be a breath of fresh air for communities with a proud industrial heritage.
“As the land that was for a time called the ‘Rust Belt’ has transformed (into our country’s) ‘Opportunity Belt,’ this program creates an important tool for bringing necessary housing to enhance the rejuvenation of our manufacturing base,” Bonta said in the news release.
Gary has about 13,000 abandoned buildings, and the RESIDE Act could provide the city with funding to convert those properties into homes. Blight elimination has been one of Mayor Eddie Melton’s focuses.
As state senator, Melton created Senate Bill 434, which established the blighted property demolition fund and allows the city to receive $6 million from the state of Indiana for blight elimination. The city had to match those funds, with half coming from the American Rescue Plan Act funds and $3 million from the Hard Rock casino.
Last year, Gary demolished about 40 structures in its Aetna neighborhood, Melton previously said.
Through the program, communities can receive housing grants between $1 million and $10 million, which would be in addition to existing Home Investment Partnerships Program — or HOME — funding.
HOME is part of the U.S. Department of Housing and Urban Development Exchange, and the program provides formula grants to states and localities to fund building, buying or rehabilitating affordable housing for rent or homeownership, or providing direct rental assistance to low-income people, according to HUD’s website.
For the RESIDE program, only cities, counties and states already part of the HOME program can apply. The program could help buy abandoned buildings at market price, site clean-up and preparation, weatherization and energy efficiency upgrades, construction, and repairs including plumbing, HVAC and sewer, according to Banks’ release.
mwilkins@chicagotribune.com
