Indianapolis Affordable Apartments Start Construction

The 227-unit community will provide housing for households earning 50 to 60 percent of the area median income.

Updated on Oct. 21, 2026 in Commercial

Bold vector editorial illustration of architectural models, steel beams, and wood framing elements, symbolizing the construction of affordable housing developments. — The Central at Old Southside, a 227-unit affordable apartment complex, has officially begun construction in Indianapolis with $71 million in financing. AI Illustration. Upload story photo >

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Construction is underway on the Central at Old Southside apartment community in Indianapolis, a $71 million development featuring 227 residential units. The project, which targets residents earning 50 to 60 percent of the area median income, is supported by various financing partners and a 15-year tax incentive program.

Why it matters

The development represents a significant addition to the local affordable housing inventory, utilizing complex public-private financing to maintain lower rents for qualifying households. This project underscores the use of long-term tax structures to enable multi-family construction in urban areas.

The $71 million housing community includes $53 million in construction financing and $33.5 million in bond issuances. It targets households earning between 50 and 60 percent of the area median income across 227 units.

The players

The Annex Group

A developer managing a $1.1 billion U.S. portfolio of residential projects.

Bank of America

A financial institution providing construction financing and low-income housing tax credit equity.

Indiana Housing and Community Development Authority

A state agency that provides soft funding and bond issuance for affordable housing developments.

Merchants Capital

A lender that provides mortgage financing products including Freddie Mac-backed loans.

Impact Housing Indiana Corp.

A social services organization providing resident support programs.

The details

The project is funded through a combination of LIHTC equity, Freddie Mac financing, and soft funding from the Indiana Housing and Community Development Authority. To maintain affordability, the City of Indianapolis enrolled the property in a 15-year Payment in Lieu of Taxes program, which manages the local tax burden to keep units accessible to targeted income brackets. Residents will also have access to on-site professional development services.

Construction began in October 2026.
The local committee reviewed 21 affordable housing proposals in June 2026.

Money Landscape

This development follows the national trend of leveraging the federal Low-Income Housing Tax Credit program to facilitate new construction. It sits within the broader city efforts to expand affordable options for middle-to-lower income earners.

Low-to-moderate income households in Indianapolis should monitor for future leasing announcements as the project nears completion. Eligibility is restricted to those earning 50 to 60 percent of the area median income, so interested parties should review current income documentation.

The takeaway

Large-scale affordable housing projects rely on layered financing to remain viable for specific income groups. Residents seeking future housing should maintain records of household income to meet the specific eligibility requirements for these tax-incentivized communities.