Gov. Eric Holcomb helped break ground Tuesday on the first project of READI 2.0, the second phase of the state’s regional economic development initiative.

The project that will use some of READI 2.0’s $500 million in state funding is a housing development in Kokomo.

The READI program gives public money to regions, rather than individual communities. Those regions decide how to use the funding most effectively when combined with private sector investments — and housing has been a major focus.

Holcomb said that collaboration is the linchpin to the program’s success.

“I’m hopeful that there is round three and round four and this becomes part of our Indiana approach to solving problems,” Holcomb said. “Because there’s always going to be needs and we can get there faster and go further when we do it together.”

READ MORE: State awards $500 million for READI 2.0, aims to generate $11 billion in investment statewide

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Dave Van Baalen is a private developer leading the housing project in Kokomo. He said the state, local and private collaboration makes it possible to keep the housing affordable.

“So, if you can’t control those costs and drive those costs down, the end result, the rent cost would be so high that no one can afford to live there,” Van Baalen said.

READI 2.0 projects will roll out over the next few years.

Brandon is our Statehouse bureau chief. Contact him at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.