Towne and Terrace buildings will finally come down on the Far Eastside

A troubled housing complex on the Far Eastside will finally be razed. The city of Indianapolis is moving forward with a push to acquire properties and relocate residents at Towne and Terrace.

The complex was built in the 1960s, and at the time offered luxury middle-class housing in a thriving neighborhood. The decades that followed in the Far Eastside led to neighborhood disinvestment, and the housing complex fell into disrepair and fostered crime. 

“This will be welcome news for anyone familiar with the health and safety issues that have burdened this property for decades – from abandoned and dilapidated units, to an uncaring HOA, to the drug dealing and deadly violence that came in their wake,” said Mayor Joe Hogsett in a statement. 

Many of the more than 250 units are dilapidated and unsafe. The city has been trying to help, the complex puts a strain on law enforcement and legal resources, but it was hampered for years by the homeowners association. 

Last year, an agreement allowed the city to sit on the HOA board and start the process of acquiring more units. It now owns 106 of the units. This week, the city went ahead with the demolition of one vacant building. That kicks off the first phase of an acquisition and relocation project allowed under a federal housing law.

The complex, which is near the intersection of 42nd Street and Post Road, has multiple owners. Some owners occupy the apartments.  A number of the Towne and Terrace owners have multiple units and renters.

The city still needs to acquire 152 units and negotiate with over 100 different owners. City leaders recently told residents about the plans to demolish all the buildings.

A similarly troubled apartment complex next door, Oaktree Apartments, was torn down in 2019 after years of legal battles with owners.

At a briefing this week, Aryn Schounce with the Department of Metropolitan Development said they have worked for months to “knock on every door” and reach all residents and owners. Two community workers are dedicated to the effort and have been communicating with residents to help understand household needs.

Appraisals are set to start in May.  Owners will be made a fair market offer on properties. The city has set aside more than $5 million in federal relief funds for the effort.

Tenants and owners who occupy the units will be able to work with the city to find new, similarly-priced housing and receive compensation for other expenses. Officials say they will use eminent domain if necessary to acquire properties from any negligent property owners.

The city aims to acquire all the properties by the end of next year, but demolition could reach into 2025.

Plans for future redevelopment will come next for the Far Eastside neighborhood.

Contact WFYI city government and policy reporter Jill Sheridan at jsheridan@wfyi.org. Follow on Twitter: @JillASheridan.