NEW ALBANY, Ind. (WDRB) -- Both the former Beechwood Neighborhood and Riverview Tower in southern Indiana are now vacant lots with only rubble remaining.

The two former low-income housing properties in New Albany have been demolished over the past several months, clearing the way for new development on both properties. 

In a few weeks, the former barracks-style Beechwood Neighborhood, which sits on Beechwood Avenue off Charlestown Road, will be completely ready for the start of construction on a new affordable housing project. The Riverview Tower site will soon be clear for a potential buyer.

The $2.4 million Beechwood project will feature a three-story senior facility, dozens of affordable, single-family homes and duplexes, and 10 open lots for future homes to be built.

Residents will pay a maximum of 30% of their income for rent.

In a little more than a year, a mixed-income neighborhood will replace what was once public housing.

"It's really, truly what we're trying to accomplish, which is people from different economic backgrounds living together and not having any economic differences," said New Albany Housing Authority Director David Duggins.

As for the Riverview Tower, the housing authority will begin issuing Request for Proposals (RFPs) to find a buyer of the property on Scribner Drive and West Elm Street off Interstate 64 in downtown New Albany. It's expected to bring more than $1 million, which is required to be used for affordable housing developments elsewhere.

"I'm sure that it could be a lot of different things," Duggins said. "I would think possibly a retail development with a hotel. Something of that nature seems to fit right there."

Despite what looks like hundreds of low-income housing options that are now gone, no one has been displaced thanks to years of planning for these exact projects.

Duggins said the housing authority has worked closely with city officials to relocate dozens of families through vouchers to other public housing. Those families will be eligible to move into the new development at Beechwood once complete.

The Beechwood development could be finished in as soon as 18 months. Construction by a new owner at the Riverview Tower site is likely to begin by the end of the year.

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