Meeting Arcadia’s Housing Needs: Water Utility Expansion and the Funding Journey
The Town of Arcadia in northern Hamilton County, Indiana, is embarking on a transformative journey to expand and upgrade its water utility treatment plant and distribution system. This ambitious project is driven by a rapid surge in demand for workforce housing, with the Langdon Crossing development, led by Clayton Property Group (Arbor Homes), and is poised to deliver over 260 new, moderately priced single-family homes to the area. However, the success of this housing initiative hinges on the town’s ability to provide reliable water service to these new residences. Without the planned expansion and upgrades, the development simply cannot reach its full potential.
Arcadia’s efforts build on a foundation of recent investments. In 2022, the town secured $15 million in grants and loans from the Indiana Finance Authority’s State Revolving Fund (SRF) and Hamilton County, which was used to modernize its water and wastewater utilities. These improvements positioned Arcadia to attract housing developers and respond to local economic growth. Yet, as the community continues to expand, new funding challenges have emerged. The costs of constructing essential infrastructure, such as a new water treatment plant or expansion of one, and distribution system improvements, are substantial, and traditional grant opportunities are increasingly competitive and limited.
To address these challenges, Arcadia pursued, and was recently awarded, a Residential Infrastructure Funding (RIF) loan. Managed by the Indiana Finance Authority, RIF provides low-interest loans to Indiana communities for infrastructure projects that support residential development. The program prioritizes towns with housing-friendly zoning and demonstrated needs, based on local job growth, dedicating 70% of its funding to communities with fewer than 50,000 residents. RIF loans are designed to reduce costs and remove barriers that often slow down development, but they do not cover planning, design, or engineering expenses. Instead, funds are reserved for the construction of essential infrastructure, including water and wastewater systems.
Securing a RIF loan is no small feat. The application process requires readiness to proceed with construction and letters of support from area employers and developers. Despite these hurdles, Arcadia’s commitment to expanding its water utility is unwavering. By leveraging innovative funding sources like RIF, the town aims to ensure that new housing developments have the necessary infrastructure to thrive, thereby supporting local families, employers, and the broader community for years to come.
The project will be partially funded by the RIF loan, a newly created tax increment financing (TIF) district, and a monetary contribution from the school corporation.
To learn more about creatively financing an infrastructure project, or how Commonwealth Engineers might be able to assist, please contact Maureen Hayden or Andrew Cochrane.