Indiana awards $557M for low-income housing in ‘historic’ investment

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The Indiana Housing and Community Development Authority directed $557 million Thursday to dozens of affordable housing projects in what the agency says is the largest single investment approval in its history.

The investments come from multiple funding streams, including federal tax credits, tax-exempt bonds and IHCDA loans used as gap financing. Together, the projects are expected to result in nearly 2,500 new housing units in the state.

More than $190 million was awarded to 17 developments as a part of the 2024 Low-Income Housing Tax Credit program, which provides incentives to private developers for construction of new or rehabilitation of existing affordable housing units.

The awards bring a total 872 affordable units to communities like Bloomington, Elkhart, Indianapolis, Kokomo, Lafayette, South Bend and Terre Haute. An additional $22.8 million in Low-Income Housing Tax Credit support using the state’s 2023 General Set-Aside was awarded to two developers that qualified as minority businesses.

An additional 10 developments were funded through other means, including $118 million in 4% tax credits, $145 million in tax-exempt bonds, and $59 million in Affordable and Workforce Housing Tax Credits.

“IHCDA is proud of the fact that this series of awards is not only large in scope, but impacts communities across the entire state,” IHCDA Executive Director Jacob Sipe said in a news release. “Large cities and small towns alike will benefit from this partnership between the public sector and private developers. The tax credits awarded today will provide financing for affordable housing developments to create and preserve units that will remain affordable for at least 30 years.”

A full list of projects funded by the 2024 Low-Income Housing Tax Credit program can be found here.

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