Circle City Village: A New Model for Addressing Chronic Homelessness in Indianapolis
Indianapolis took a significant step towards addressing its growing chronic homelessness crisis on Thursday, March 26, 2026, with the groundbreaking of Circle City Village, a micro-community designed to provide supportive housing. Located in the 1200 block of South Lynhurst Drive, near West Washington Street, the project represents a collaborative effort between Sanctuary Indy and Lynhurst Baptist Church.
The Growing Crisis of Chronic Homelessness
According to Michelle Shelburne, founder of Sanctuary Indy, the number of chronically homeless individuals in Indianapolis has surged by 204% in the last five years. This alarming increase highlights the limitations of existing programs, which have largely been ineffective in addressing the needs of this particularly vulnerable population. The U.S. Department of Housing and Urban Development defines chronic homelessness as experiencing continuous homelessness for over a year, coupled with a diagnosed disability.
What is Circle City Village?
Circle City Village is a community-first model aiming to disrupt the cycle of homelessness by providing high-quality, safe homes and comprehensive support services. Phase One of the project will consist of six tiny homes, designed to accommodate individuals and couples. Ten residents have already been selected to live in these homes, with 24/7 staff support available on-site. The estimated cost for Phase One is $1 million, with approximately two-thirds of the funding already secured through donations.
Beyond Tiny Homes: A Vision for Community
The vision for Circle City Village extends beyond Phase One. Plans are underway for Phase Two, which will include five duplexes to house 10 families, along with a community center and a community garden. This expansion underscores the project’s commitment to fostering a sense of belonging and providing opportunities for residents to build sustainable lives.
Inspired by Successes Elsewhere
Sanctuary Indy drew inspiration from successful supportive housing programs in Austin, Texas, and Springfield, Missouri, adapting proven strategies to meet the specific needs of the Indianapolis community. Pastor Ben Wakefield of Lynhurst Baptist Church emphasized the collaborative spirit driving the project, stating, “Here’s what it looks like when God begins building. He brings not just materials together, but he brings community together.”
A Resident’s Perspective
Barb G, a future resident of Circle City Village, shared her excitement about the opportunity to have a stable home and become a mentor to others in the community. She expressed anticipation for the simple joys of home life, such as cooking meals and enjoying coffee on the porch with neighbors.
Financial Impact of Addressing Homelessness
Sanctuary Indy highlights the economic benefits of addressing chronic homelessness. According to a 2016 report, the estimated annual cost of supporting a chronically homeless person in Indianapolis is $20,571. By providing stable housing and support services, Circle City Village aims to reduce these costs and improve the overall well-being of the community.
How to Support Circle City Village
Individuals and organizations interested in supporting Circle City Village can contribute through financial donations or volunteer opportunities. Sponsorship levels for a full house are $65,000, with half-house sponsorships available for $32,500. Donations can be made online or by check, mailed to PO Box 30382, Indianapolis, IN 46230. For more information, contact Erica Schneider at [email protected].
Frequently Asked Questions
- What is “chronic homelessness”? It refers to individuals who have been experiencing homelessness for more than one year and have a diagnosed physical, mental, or developmental disability.
- How many people will Phase One of Circle City Village house? Phase One will provide housing for six individuals or couples.
- Where is Circle City Village located? It is located in the 1200 block of South Lynhurst Drive, Indianapolis, near West Washington Street.
- How can I donate to Sanctuary Indy? Donations can be made online or by check, mailed to PO Box 30382, Indianapolis, IN 46230.
Learn more about Sanctuary Indy’s Community First Model here.
