The City of South Bend has announced a partnership with L+M Development Partners to renovate the Beacon Heights Apartments complex.

The project calls for a multi-million-dollar rehabilitation of all existing housing units at the property. City officials said the work will be completed while residents remain in their homes, avoiding displacement during construction.

Under the agreement, L+M Development Partners will renovate all apartments, seek Low-Income Housing Tax Credits to help maintain affordability, and retain ownership of the property for at least 15 years.

The city will provide a $1.25 million loan to support the project. The loan could be forgiven if the development is completed and investment requirements are met. The agreement also includes a long-term Payment in Lieu of Taxes, or PILOT, arrangement to help support the project.

City officials said the agreement includes performance requirements, including compliance reporting, minimum investment levels and financial protections for public funds.

Construction is expected to begin by the end of the summer. The project is scheduled for completion by June 30, 2030.