ELKHART, Ind. -- The City of Elkhart announced the City Council has unanimously approved the creation of the Boulder Run Tax Increment Finance District, a proposal aimed at addressing the city's housing needs.

City officials say through a partnership with a private developer, the new project will build 86 new single-family homes, priced between $300,000 and $400,000.

“Elkhart, like many communities has a need for housing for all income levels. From the developments in the river district, to 515 East, Boulder Run, and the Flats at Pinecreek, we are addressing those needs,” said Mayor Rod Roberson. “All of these developments fall in line with our larger investment strategy under the ASPIRE initiative. Tomorrow's Elkhart. Starting Today.”

Officials say this initiative comes in response to a new housing analysis which revealed an annual shortfall of 368 single-family detached homes in Elkhart over the next five years.

To support this housing development, city officials say they're leveraging TIF to help fund critical infrastructure improvements, including streets, sewers, and water systems.

The developer estimates these improvements will cost approximately $7.1 million.

Through the TIF mechanism, city officials say the project is expected to generate around $3.1 million. They add this will reduce the cost per lot by about $40,000.