AFFORDABLE HOUSING: Kokomo Cottage Community

Fortune Companies, Inc., knows a little bit about rebuilding downtown Kokomo. Over the past 40 years, the company has left its mark on nearly 65 percent of the buildings occupying the City’s center.

This year, those efforts continue in a reformative way, as Fortune has launched a residential in-fill project that will provide dozens of single-family homes and duplexes at a price that may be more affordable than much of the new housing under construction in the past decade.

Fortune has acquired many of the properties located between Washington and Webster streets and Jefferson and Monroe streets on the northwest corner of the downtown district. The plan, developer Brandon Pitcher explained, is to develop as many as 30 duplexes and single-family homes.

“The goal here is affordability and attainability,” said Pitcher. “We’re working with three or four different local banks to offer first-time home buyers and make it possible for people who would like to buy a new home a reality.”  The units will be approximately 1,000 square feet, similar to many homes in Kokomo that were built in the 1950s and ‘60s, Brandon said. And the prices are expected to run below $180,000.

They will not include garages, similar to houses from that time. The size of the homes is important, given the much larger, more expensive offerings currently being constructed in other parts of the city.  “New homes that are 2,500 square feet, well, that’s a half-million-dollar house today, right?” said Pitcher. “Who can afford that? It’s not right. So, we need to find some way to create a model that will benefit the next generation of our community. This is one way of doing that. ‘

“This type of housing will hopefully be able to build equity in a market that doesn’t really provide many opportunities for that.” But this is just the beginning, Pitcher said.”  Plans are already in the works to replicate in-fill developments like these in various areas across the city. The growth will happen carefully and in consideration of the existing characteristics of each neighborhood. “We’re not moving anybody out; we’re not gentrifying anybody,” said Pitcher.

Pitcher explained that the goal for all the units is for them to be purchased, but he acknowledged that some may be handled on a rent-to-own basis. In those instances, the banks that have partnered with Fortune will take an active role. “Let’s say you have bad credit, but you’re working on it,” said Pitcher. “You’ll be able go to the bank, and if you pay your rent on time for a year, and take financial literacy classes the banks will offer, then, hopefully, they will give you a mortgage on that property.  It’s a different model to reach people who can’t just go right into the bank and get the loan.”

Pitcher stressed that all of the units will be offered at market price. No subsidized housing will be included in the development. “The goal is to make it as affordable as possible, but not subsidized,” he said. Projects like these take considerable planning, and Fortune wanted to ensure that its efforts bear fruit.

To support that goal, Fortune recruited Diana Brenner, an award-winning Indianapolis architect, to lead the design of the new neighborhoods. Brenner, who sold her Indianapolis architecture firm before joining Fortune, said the company wanted an architect “who knew how to run a business.” “Fortune has a vision for what they want,” Brenner said. “I’m helping with the technical details and making sure the homes can be built. Fortune has completed many types of projects, and so have I. I’ve worked on nearly every project type except prisons and assisted living. This felt like a good fit because these are the kinds of projects that interest me. I want to see things grow and create things, so I’m excited about it. I think it’s a good fit so far.” Brenner has won 60 awards for her design work and has extensive experience in affordable housing.

That resume made her an easy choice for Fortune. “It made sense to partner with somebody like Diana to take our model and share that.” said Pitcher. “She’ll take what we’ve learned from the development world and construction and real estate and spread that to other clients and other people that could benefit from her experience. She provides an opportunity for us to grow into an area that we haven’t done as often.”

Construction already has started on some of the properties, and Pitcher explained that activity will increase this spring. The hope is to have the first homes ready for purchase by fall. It will take two years to complete the entire development, representing a $10-$12 million investment in the neighborhood bordering downtown Kokomo, a great amenity for Kokomo’s working and middle-class residents.