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New Albany moves forward with ARP funding to help redevelop Beechwood neighborhood

A rendering of the Beechwood neighborhood from the City of New Albany.
City of New Albany
New Albany officials have transferred $2.4 million in American Rescue Plan funds to the city's housing authority to go toward redevelopment of the Beechwood neighborhood.

New Albany officials have moved forward with partial funding for replacing the city’s oldest public housing complex, with plans to redevelop the neighborhood into mixed-income residences.

The New Albany Board of Public Works and Safety transferred $2.4 million in American Rescue Plan funds this week to the city’s Housing Authority. This use of the money was approved in 2021 by the Redevelopment Commission, which oversees ARP spending.

The money will be used to redevelop the Beechwood neighborhood. The plans include razing the barracks-style structures, which the city said were built by the federal government during World War II, and replacing them with mixed-income residences.

This will include 83 new units — 53 single-family homes and duplexes and 30 senior-preferred apartments. There will also be 12 lots dedicated to construction of market-rate homes.

LPM News previously reported the project is expected to cost between $25 and $26 million and is part of citywide plans to deconcentrate public housing. The city confirmed Thursday the project cost is still estimated at $25 million.

“Housing defines a community,” Mayor Jeff Gahan said in a news release. “We have worked for years to improve housing across all sectors and economic levels. I am proud to see the sweeping improvements for the Beechwood neighborhood and the revitalized energy it will bring to our city and our residents.”

The city said in the release that there have been “little to no improvements since” the Beechwood complex was built in the 1940s.

The older buildings have already been razed, and construction on the new units is expected to start in spring.

This story has been updated.

Coverage of Southern Indiana is funded, in part, by Samtec, Inc. and the Hazel & Walter T. Bales Foundation.

Aprile Rickert is LPM's Southern Indiana reporter. Email Aprile at arickert@lpm.org.

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