Indianapolis Nonprofit Breaks Ground on City's First Tiny Home Village for Homeless Residents

The chronically homeless population in Indianapolis grew 204% in five years, from 132 individuals in 2020 to 401 in 2025, while existing city programs left that specific group largely unaddressed. Sanctuary Indy marked a direct response to that trend when it broke ground March 26 on Circle City Village, the city's first tiny home village for the chronically homeless, built on the 1200 block of South Lynhurst Drive near West Washington Street on the city's west side.

"Indianapolis' existing programs have not been effective for our chronically homeless neighbors," said Michelle Shelburne, Sanctuary Indy's founder and executive director. "Circle City Village will address that gap."

Phase I calls for six tiny homes for individuals and couples, with 24/7 on-site staff support. Ten residents from Sanctuary Indy's current care roster have already been selected to move in once final funding is secured. Construction started in the days following the ceremony and is expected to wrap up by summer.

The first phase carries an estimated $1 million price tag. About two-thirds of that budget is already covered by donations, leaving roughly $300,000 still needed. A donor recently pledged to match contributions up to $350,000, money earmarked for home construction and infrastructure costs including sidewalks and utilities.

Shelburne said she drew directly from site visits to similar communities in Austin, Texas and Springfield, Missouri. "It brings me a lot of peace to know that these very vulnerable individuals in our city are going to be taken care of and loved," she said.

Circle City Village sits adjacent to Lynhurst Baptist Church, whose pastor Ben Wakefield set the tone at the ceremony. "The ground that you're standing on has been covered in prayer," he told the crowd. Rabbi Dr. Aaron Spiegel, executive director of the Greater Indianapolis Multifaith Alliance, echoed that spirit: "While there's no single solution to ending homelessness, it starts with compassion and humility, and this is exactly where Sanctuary Indy has invested its energy."

Among those present were future residents. Barb G., who experienced homelessness herself, will live in the village as a missional, a resident serving as mentor to incoming neighbors. She described what she's looking forward to: "Finally having a home, being able to cook meals, just being able to sit out on the porch and drink coffee and having time with the neighbors that we've already met."

Matthew Plummer attended with his partner Hannah Collins and their two dogs, crouched in the grass off to the side. He had no official role, but Sanctuary Indy made sure he was part of the day. Phase II, which has no firm timeline yet, will expand the site to include 10 two- and three-bedroom duplexes for families, a community center for social activities and private provider meetings, and a community garden.

After the shovels went into the ground, future resident Beverly walked up to Plummer. "Right there," she said, nodding toward the shovels, "we'll have a place to live." "All of us," Plummer said. "We'll be neighbors.