Indy’s First Tiny Home Village Breaks Ground for Homeless
INDIANAPOLIS — In a move to combat the city’s surging chronic homelessness crisis, the nonprofit Sanctuary Indy officially broke ground today on Circle City Village.
This permanent supportive housing micro-community, located on the city’s westside adjacent to Lynhurst Baptist Church, marks a shift toward specialized, relationship-based care for Indianapolis’ most vulnerable residents.
While overall homelessness rates in Indianapolis have remained relatively flat, the population of chronically homeless individuals—those homeless for over a year with a diagnosed disability—has exploded.
2020: 132 individuals
2025: 401 individuals
Increase: 204% in just five years
“Indianapolis’ existing programs… have not been effective for our chronically homeless neighbors,” said Michelle Shelburne, Sanctuary Indy founder and executive director. “Circle City Village will address that gap.”
The project is designed to provide more than just a roof; it offers a structured environment modeled after successful “tiny home” villages in Austin, TX, and Springfield, MO.
Phase I: The Foundation
Six tiny homes for individuals and couples.
24/7 staff support to assist with complex needs.
Goal: Once the final funding is secured, 10 individuals currently in Sanctuary Indy’s care will move in.
Phase II: The Community
10 duplexes (two- and three-bedroom) for families.
Community Center for social activities and private provider meetings.
Community Garden to foster shared responsibility and nutrition.=
Unlike traditional shelters, Circle City Village utilizes a Missional Mentor who lives on-site. This mentor acts as a first responder to crises, helps de-escalate conflicts, and walks alongside residents as they navigate the difficult journey of rebuilding their lives.
“Relationship-based, intensive supportive housing… gives them a chance to thrive.” — Sanctuary Indy
Inspired by the 2020 census that identified 132 chronically homeless individuals, Sanctuary Indy has set a bold target: 132 homes by 2030. The organization has already secured a 5.1-acre site on the city’s far eastside for its next project and envisions several more sites across the city in the coming years.
How You Can Help: The $350,000 Match
The total cost for Phase I is $1 million. With $650,000 already raised, the project is entering its final stretch. A generous donor has pledged to match every dollar donated, up to $350,000, effectively doubling the impact of every contribution. Ready to get involved? Visit https://sanctuaryindy.org to donate or learn more about the mission to end chronic homelessness in Indianapolis.
