On Monday evening, the South Bend Common Council voted to not approve the site that was originally suggested for the project, as questions circulated regarding possible contamination at the West Washington location.

The problem now, is that the city could lose out on more than $2 million in state and federal funding that hinged on the approval.

South Bend Director of Communications Mark Bode said that the mayors administration is concerned that the decision could interrupt their progress on the project, and that in the coming days they will reassess options and discuss a way forward.

The plan hopes to create 22 permanent housing units.

The full statement from Mark Bode:

“The administration is concerned that tonight’s decision could interrupt South Bend’s progress on homelessness strategy. Permanent supportive housing is a proven, long-term solution. In the coming days we will reassess our options and discuss a way forward with Council and community leaders as we continue working to support our most vulnerable residents and our neighborhoods.”