A real estate investment firm wants to bring 153 single-family rental homes south of CR 650N and east of CR 700W in Hancock County.
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HANCOCK COUNTY — Talks are deepening between a real estate investment firm and government officials over a rental home community currently proposed for the county, but that may become part of McCordsville.
The development would fill “a critical void” for housing in the area, according to the company behind the proposal. Concerns remain, however, among officials and residents living near the site.
Hartman Capital, a real estate investment firm in Champaign, Illinois is pursuing the project on over 68 acres south of CR 650N and east of CR 700W. Called Meridian Homes, the development would consist of 153 lots for single-family houses, all of which would be rentals.
Scott Kunkel of Hartman Capital told the Hancock County Area Plan Commission late last month that home sizes would average around 1,800 square feet and all would come with attached two-car garages. He added there’d be a combination of one- and two-story homes with three to four bedrooms for monthly rents around $2,000.
Services provided to tenants would include mowing, irrigation, snow removal and appliance repair. A property management office would be onsite as well.
Hartman Capital is partnering with builder Lennar Homes on the endeavor.
Kunkel described build-for-rent communities as a newer concept that got its start in the country’s southwest and southeast. As far as he knows, Meridian Homes would be the first in the Indianapolis metropolitan market.
“But it’s a really important component to add to the housing stock for a community because it fills a critical void for residents in your community,” he told county plan commission members.
Kunkel added such communities are attractive to people who have outgrown living in traditional multi-family housing like apartments, including young families with a desire for more space and a yard but unable to yet afford a house yet.
Another group ideal for rental home communities, he continued, includes people used to the single-family home lifestyle who want to continue with it, but don’t want to keep up with property maintenance and yard work.
The land for Meridian Homes has a residential zoning designation through the county that would accommodate the proposal. Hartman Capital sought approval of a primary plat for the development, but the plan commission continued it to its Aug. 23 meeting to give the county’s technical committee time to review the plat, as it was recently revised. The meeting will start at 6:30 p.m. in the Hancock County Annex, 111 American Legion Place, Greenfield.
Renee Oldham, a plan commission member, asked Kunkel to bring information on what the homes would look like and what materials would be used.
Oldham, who serves as executive director of the Mt. Vernon Education Foundation, also expressed concerns over rental homes drawing transient families and the resulting strain on school systems.
“Rental housing is definitely something that’s on the radar as a negative for our community,” she said.
Bill Spalding, a member of the plan commission and board of commissioners, was skeptical toward Kunkel’s selling point of rental homes being attractive to residents looking to get out of an apartment but not yet able to afford a house.
“I do struggle when they come in with affordable housing, and the rent’s $2,000,” Spalding said. “How do you save money to provide to get a house?”
The plan commission has shown resistance toward single-family rental homes in the past, and even briefly considered restricting them in future neighborhoods last year before taking a different approach.
The site proposed for Meridian Homes borders McCordsville on its west, north and east sides. Kunkel gave a similar presentation to McCordsville leaders a year ago, but was met with concerns over transient residents, vehicle parking and enforcing upkeep.
Hartman Capital did not initially realize that the land is in Hancock County’s planning jurisdiction, Kunkel said. He first pitched the proposal to the county board of commissioners last December.
McCordsville has since reached out to open up the subject of annexation, which Kunkel said Hartman Capital is happy to entertain with the town.
Ryan Crum, assistant town manager — planning and development for McCordsville, told the Daily Reporter that while town officials did not welcome the idea last year, they were prompted to approach Hartman Capital about annexing after realizing the firm’s commitment to the project.
“We see some benefits to having it in our corporate limits,” Crum said, adding that having a municipality surround most of an unincorporated neighborhood is not efficient for government services.
Several residents who live near the area eyed for Meridian Homes spoke out in opposition at the county plan commission meeting, raising concerns that it would draw people who don’t care about their neighborhood as much as homeowners and who are more prone to crime. Some also said they feel it was inappropriate of Hartman Capital to attempt the project through the county after already hearing of McCordsville’s lack of interest last year.
“We’re not, and I think most of the community around here is not against development of this area,” said David Demaree. “What we are against is an out-of-town rental for this area.”
It’s not the only rental home community being considered in Hancock County. American Homes 4 Rent, a public real estate investment trust based in Calabasas, California, is proposing 81 single-family lots for rental housing at the southwest corner of Interstate 70 and Blue Road. At its meeting on July 11, the Greenfield Advisory Plan Commission is slated to consider zoning for the site, should Greenfield City Council annex it into the city.
