City of Bloomington Shifts Strategy for Hopewell, Charts New Course Toward More Feasible, Community-Centered Housing

At a special session on Monday, June 30, the City of Bloomington Redevelopment Commission voted to reject the proposals submitted in response to its recent Request for Proposals (RFP) for Hopewell South and move forward in a new direction for the project.

Hopewell, located on the site of the former IU Health Bloomington hospital, is one of the few housing developments in which the City is directly involved. The decision to reject the current bids reflects the City’s commitment to ensuring that this development delivers housing that meets Bloomington’s needs, results in an outstanding new neighborhood, and remains financially viable for both builders and future residents. While the original framework was shaped during a different economic climate, today’s construction environment—marked by higher costs, interest rates, and material and labor constraints—requires a more flexible, realistic path forward. 

Public input gathered through Housing and Neighborhood Development’s (HAND) Consolidated Plan outreach further emphasized the need for a wider range of attainable housing. Residents expressed concern that too much recent development has focused on high-priced rental housing, primarily serving students, rather than the diverse mix of homes needed by working families, first-time buyers, and long-term residents. This new direction reflects both those priorities and the market realities we face today.

“Getting this right matters,” said Mayor Kerry Thomson. “The original plan attempted to check every box without reconciling the financial and regulatory realities of building housing. But our goal was never to follow a checklist—it’s to deliver real, attainable housing that serves our community. My administration is committed to building a neighborhood Bloomington can be proud of—a place that reflects our values, fits the character of our city, and provides real options for the people who live and work here and people who want to live and work here. That takes focus, flexibility, and a willingness to adapt when the data tells us something isn’t working.”

Through participation in the Mayors’ Institute on City Design Just City Fellowship, Mayor Thomson, HAND Director Anna Killion-Hanson, and Planning and Transportation Director David Hittle connected with Flintlock LAB—a firm known nationally for helping cities implement community-first housing solutions. Flintlock’s proposal reimagines Hopewell as a place for various housing types and incomes, grounded in Bloomington’s character and incremental, inclusive growth.

Key elements of this new approach include:

• Developing a catalog of 10+ pre-approved home designs to streamline permitting and reduce costs
• Enabling participation by local builders and vendors to broaden access and keep investments local
• Establishing a legal framework that supports a mix of permanently affordable and market-rate homes
• Conducting developer training and public engagement to inform the planning process

“This is a decision to deliver something better,” Thomson continues. “Hopewell should look and feel like Bloomington. We’re finally on a path to make that happen.”

With Bloomington ranked as the most housing cost-burdened metro area in Indiana, the City is prioritizing diverse housing stock to meet a broad range of needs and income levels. While specific unit types and pricing are still under development, this proposal is expected to improve market access and support long-term community goals.

“People often say we should ‘just build affordable housing,’ but that overlooks the real barriers developers face today,” said Anna Killion-Hanson, Director of Housing and Neighborhood Development. “High costs, limited land, and a complicated regulatory environment make it incredibly challenging to build the kind of housing we all want to see. What makes Hopewell different is that the City is in the lead to set the framework. At the end of the day, the City’s role is to help create homes of all shapes and sizes, for all people.”

Flintlock LAB will begin working with the City to refine the plan, engage with the public, and lay logistical groundwork. While specific price points and designs are still in development, the emphasis remains on community character, market impact, and long-term attainability.