The early stages of construction are underway, and it will make the most of limited space, putting 21 new homes on just two and a half acres.
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A candidate for Clarksville's Town Council died on election day while campaigning for office.
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The Town of Clarksville made the announcement on Tuesday evening.
If the $27,500 goal is reached, it will be matched by the Indiana Housing and Community Development Authority.
Rose Will Monroe was made famous during World War II as the original "Rosie the Riveter" when employed as a riveter building B24 Bombers.
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Clarksville has officially become part of the Lewis and Clark National Historic Trail. The announcement was made during a special ceremony at the Falls of the Ohio Interpretive Center.