Bloomington Housing Authority is preparing to spend roughly $81 million to buy five apartment complexes totaling 924 units, a deal that would more than triple the agency's residential footprint in one move. The purchase targets aging, market-rate housing that officials worry is otherwise headed for demolition and replacement with luxury student housing near Indiana University.
The properties up for acquisition are Basswood Apartments on South Basswood Circle, Kingston Manor Apartments on East Longview Avenue, Northcrest Apartments on North Woodburn Avenue, Woodland Springs Apartments on South Leonard Springs Road, and Summit Pointe Apartments on East Summit View Place, according to Indiana Public Media. The five complexes are scattered across distinct neighborhoods rather than clustered in one part of the city, giving the deal a citywide reach. Entities affiliated with Hometown Property Group are identified as current owners of the properties, according to Citizen Portal.
To pay for the purchase and planned repairs, BHA plans to issue up to $100 million in revenue bonds. The bonds would be repaid from property revenues rather than local tax dollars.
The Bloomington Housing Authority's move represents a pivot toward preserving what's often called naturally occurring workforce housing in a college town where market pressure routinely pushes older apartment stock toward luxury student redevelopment. BHA Executive Director Nathan Ferreira said in August that older, market-rate apartments in Bloomington are increasingly targeted by private developers looking to buy, demolish, and replace them with upscale student housing because of their proximity to Indiana University. Ferreira is BHA's executive director, according to the Bloomington Housing Authority.
What Changes, and What Doesn't, for Current Tenants
For current tenants in the roughly 924 units, BHA plans to maintain current rents after the sale closes, with no rent increase expected in the first year. The agency has also said it will not convert any of the units into federally subsidized low-income housing for at least five years, a phased approach meant to prevent sudden tenant displacement during the ownership transition.
Eligibility for the acquired units going forward will fall under BHA's workforce housing framework, capped at households earning 150 percent or less of the Area Median Income — which works out to $104,000 for a single-person household in Bloomington this year.
A Portfolio That Dwarfs BHA's Current Holdings
Before this deal, BHA's owned property portfolio consisted of just 320 low-income units spread across three communities — Walnut Woods, Reverend Butler, and Crestmont — which transitioned from traditional public housing through HUD's Rental Assistance Demonstration program. Adding 924 units from the Hometown Group portfolio would push BHA's direct housing control past 1,200 units, more than tripling its existing footprint.
BHA also works alongside a nonprofit subsidiary, Summit Hill Community Development Corporation, created in 2019 to manage community land trusts and develop long-term affordable housing projects in Bloomington, according to the agency. That organization partners with municipal agencies and other nonprofits to secure permanent affordable housing, giving BHA a broader development arm beyond direct property ownership.
The deal is expected to close in late October, and questions remain about whether the final purchase price will match the preliminary $81 million figure reported by The Herald-Times. Also unresolved is how existing tenants will respond to the ownership change.
