While the housing supply has struggled to keep pace with job growth and rising construction costs have added pressure, there is hope for progress. Through collaborative efforts, innovative programs, and a deep understanding of Indiana’s communities, the state positions itself as a leader in affordable housing and community development. TACKLING HOUSING AFFORDABILITY The Indiana Housing and Community Development Authority (IHCDA) is the state’s housing finance agency, but its scope extends far beyond financing. “We are the housing finance agency for Indiana,” Sipe explains. “Every state has a housing finance agency, but what sets us apart is the diversity of our programs and how we approach housing challenges.” At the heart of IHCDA’s efforts are three major programs. First, the single-family mortgage product provides down payment assistance for first-time homebuyers, helping to make homeownership more accessible. Second, the Low-Income Housing Tax Credit (LIHTC) program, Section 42, is the state’s most powerful tool for creating affordable rental housing. “It’s a critical program for us,” Sipe says.“It allows us to create affordable housing at a scale that would not be possible without it.” Lastly, IHCDA manages the bond program for multifamily housing, which helps finance larger-scale developments across the state. In addition to these core programs, IHCDA runs several anti-poverty initiatives in collaboration with community action agencies. These programs aim to address homelessness and provide housing stability for vulnerable populations. “We’re working hard to prevent and end homelessness in Indiana,” Sipe notes.“Our agency is diverse, and we’re involved in everything from financing new developments to working with community organizations on poverty reduction.” RISING CONSTRUCTION COSTS Despite its many programs, IHCDA faces significant challenges. Sipe explains that one of the biggest hurdles is the rising construction cost.“Construction costs have escalated significantly, making it harder for us to create and preserve affordable housing,” he says. “It’s a challenge not just for us as a state but for our builders and developers, too.” The increasing cost of building materials, labor, and other expenses has made it more challenging to develop new housing units, particularly in high demand. Rising interest rates have compounded this, making borrowing more expensive for developers and homebuyers. “Higher interest rates are putting 29 CIVIL AND MUNICIPAL VOLUME 05, ISSUE 10 INDIANA HOUSING AND COMMUNITY DEVELOPMENT AUTHORITY
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