Indiana Makes Historic Affordable Housing Investment, $557M

Indiana Makes Historic Affordable Housing Investment, $557M

Lt. Gov. Suzanne Crouch and the Indiana Housing and Community Development Authority (IHCDA) Board of Directors announced recipients of the 2024 Low-Income Housing Tax Credit (LIHTC) program, which uses federal tax credits to incentivize private developers to fund the construction, acquisition, and rehabilitation of affordable housing communities throughout Indiana. The board also announced funding for 2023 tax-exempt bonds and the 2023 General Set-Aside.

Over $190 million in 9% LIHTC was awarded to 17 developments to create or preserve 872 affordable units that will serve individuals, families, seniors, individuals with disabilities and individuals experiencing homelessness. An additional $22.8 million in 9% LIHTC was awarded for two developments created by XBE developers (developers qualifying as a Minority Business Enterprise, Women Business Enterprise, Veteran-Owned Small Business or Service-Disabled Veteran-Owned Small Business) as part of IHCDA’s 2023 General Set-Aside. The General Set-Aside is a portion of the 9% LIHTC used for a special initiative outside the normal funding round – in this case, the XBE developer initiative.

IHCDA also approved over $118 million in 4% tax credits, $145 million in tax-exempt bonds, and $59 million in Affordable and Workforce Housing Tax Credits (AWHTC) for 10 additional developments.

The tax credits and bonds awarded, along with IHCDA loans as gap financing, collectively worth $557 million for 2,429 units, represent the largest single investment approval in IHCDA’s history.

“These awards are a major investment in our state’s housing infrastructure,” said Lt. Gov. Crouch, Indiana’s Secretary of Agriculture and Rural Development. “The proposed developments will help meet the need to house our workforce and will bring thousands of affordable housing units to communities across Indiana.”

IHCDA received 35 LIHTC applications requesting 2024 9% LIHTC under the 2023-2024 Qualified Allocation Plan (QAP), 25 tax-exempt bond and AWHTC applications, and 2 applications under the General Set-Aside. The QAP, which is unique to each participating state, details selection criteria and application requirements for the LIHTC program, Multifamily Bonds, HOME funds, Development Fund and the Housing Trust Fund in conjunction with tax credits. It also contains all deadlines, application fees, restrictions, standards and requirements.

“IHCDA is proud of the fact that this series of awards is not only large in scope, but impacts communities across the entire state,” said Jacob Sipe, Executive Director of IHCDA. “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.”

IHCDA incentivizes developments that will be in proximity and accessible to desirable facilities tailored to the need of the tenants, including access to services, retail, healthcare, and transit. IHCDA prioritizes developments that will be in communities with nearby access to employment, access to post-secondary education and access to primary care.

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