Federal Low-Income Tax Credits Program Continues to Support Affordable Housing in the Promise Zone

One of the foundational goals of the IndyEast Promise Zone is to address our community’s housing needs. Among the main concerns in housing development is affordability, especially for low-income neighbors. Along with our partners, we have been committed to our Live IndyEast goals, which include addressing barriers to decent, safe housing and maintaining affordability. An important tool that has been repeatedly utilized to assist in the creation or preservation of affordable housing is the federal Low-Income Housing Tax Credits (LIHTC) program. The LIHTC program, created in 1986, allocates tax credits to states each year based on population. The funding is then used to relieve some tax liability for developers who invest in and construct affordable housing options for low-income individuals and families. The program is then administered by state housing agencies, such as the Indiana Housing and Community Development Authority (IHCDA). In Indiana, organizations can apply to receive a portion of the state’s total LIHTC allocation for specific developments. Additionally, organizations investing in or constructing housing in Promise Zones are granted preference points on the LIHTC applications by IHCDA. LIHTC awards have been and will continue to be vital to the development of housing options that are viable for all neighbors.

 

Pictured: View of Parker Place Senior Apartments, with PR Mallory smokestack visible in the background (Photo Credit: Englewood CDC)

 

Since the Promise Zone designation in 2015, our partners and other key organizations have leveraged 10 LIHTC awards, totaling over $8.5 million, to construct, rehabilitate, and preserve affordable low-income housing. The developments in the Promise Zone that have received a LIHTC award are:

These awards have also been combined with other funding from both local and federal government programs, and have led to over $70 million in private investment. These housing developments have not only woven together funding from numerous sources, but have also fostered valuable relationships between the private, public, and non-profit organizations working on development in the IndyEast Promise Zone. Efficient collaboration across sectors is crucial to the timely completion of these developments, making these ongoing relationships extremely valuable both now and in the future. In addition to addressing housing needs in alignment with Live IndyEast goals, many of these developments have been designed to support particularly vulnerable populations. Florence Fay Senior Apartments, Parker Place Senior Apartments, Minnie Hartmann Center, and Line Lofts will all house senior neighbors, allowing them to age in place. Affordable housing can be even more difficult to find for those living on their savings or a fixed income. Another important feature of these affordable housing options is that many of them are located in key commercial and transportation corridors. The development of housing near these amenities will allow residents to easily access the resources they depend on. With multiple new housing options along the East Washington Street corridor, many residents will eventually be able to take advantage of the Blue Line, IndyGo’s next Bus Rapid Transit line. Residents in other areas will benefit from the nearby redevelopment of sites like the P.R. Mallory Campus and Sherman Park. The combination of affordable housing and access to important resources will help provide neighbors with a necessary sense of stability.

 

Pictured: Florence Fay Senior Apartments (Picture Credit: TWG Development)

 

These housing developments would not have been possible without the hard work and collaboration of many of our partners, specifically, the John Boner Neighborhood Centers, Englewood Community Development Corporation, Near East Area Renewal, TWG Development Inc., Partners in Housing, Local Initiatives Support Corporation, IHCDA, the US Department of Housing and Urban Development, and the City of Indianapolis. We remain committed to providing affordable housing options for all neighbors, and look forward to continued partnership in the future.