Raising Awareness

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Raising Awareness State Support of Affordable
Housing Needs
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Our Goal

• Build interest, support, and involvement in
  advocacy efforts for affordable housing.

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Why do we care?

• Indiana leads the nation in foreclosure.
• 33 organizations or programs serving the homeless
  have closed over the last three years
• Every state around us has made a long term
  investment in affordable housing but Indiana has
  yet to make an initial down payment in making
  sure every Hoosier has a home.

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Affordable housing matters!

• To nonprofits The path to self-sufficiency.
• To the public sector For healthy communities and
  a stable workforce.
• To the for-profit sector Affordable housing is
  critical to the local community.

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Why realtors care

• Realtors work closely with community members and
  know first-hand how hard-working families run
  into trouble finding and keeping their Indiana
  home.

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The Indiana Affordable Housing and Community
Development Fund

• Report Overview

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Background Purpose of the Development Fund

• History
• Established in 1989
• Formerly Low-Income Housing Trust Fund
• Supports wide range of affordable housing
  activities for low-income households
• Legislation did not include revenue source

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Recent Changes

• 2006 legislation
• Broadened the scope of the Fund
• Changed name to reflect broader scope
• Updated the makeup of the Advisory Committee

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The Development Fund Advisory Committee

• Did not meet after 1992
• Reconstituted in 2005
• Charged with developing revenue and programmatic
  recommendations
• Committees report released June 2006

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Advisory Committee Members

• Chair Fred Hash, Great Lakes Capital Fund
• Charles Boyle, Mental Health Policy/Planning,
  Indiana FSSA
• Larry Gautsche, LaCasa of Goshen
• Jamie-Joe Harris, Bedford Urban Enterprise
  Association
• Jack McCombs, Prodigy Realtors
• Darlene Mezetta, Mezetta Construction
• Beverly Mukes-Gaither, Fifth Third Bank
• Cortne ONeill, Housing Community Services,
  Indiana FSSA
• Steve Proctor, CAP of Western Indiana
• Caroline Shook, Housing Opportunities, Inc.
• Zohrob Tazian, Tazian Enterprises
• Hillary Tebo, Walls Homes
• George Tikijian, Tikijian Associates
• Alice Weathers, CAP of Evansville and Vanderburgh
  County

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The Impact of the Development Fund

• Executed 19M in loans, 1.5M in grants
• Enabled the development of more than 1,400 units
  of affordable housing.
• Every 1 in Development Fund monies has leveraged
  5 in other funds.
• Generated 1,600 new jobs, 52 million in new
  wages, and 83 million in income for other
  industries.

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Development Fund Report Key Trends in Housing
Need

• Homelessness and the need for appropriate housing
  
• Rising rent burdens
• Foreclosure
• Growing senior population
• Homeownershipemerging markets
• The Fund will be flexible enough to address all
  of these issues.

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Why does this matter?

• Stable housing strong workforce
• Montgomery County The most substantial barrier
  to economic development was an inadequate local
  housing market.
• Stable housing benefits for youth
• Children who change schools three times before
  8th grade are 250 more likely to drop out.
• Stable housing asset preservation
• A single foreclosure can cost 43K to 58K for
  the homeowner, banks, government and neighbors.

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Determining Housing Need

• The report seeks to
• Determine the number of additional units of
  affordable housing needed
• Estimate the associated costs
• Identify existing funding sources
• Quantify the funding gap that could be filled by
  the Development Fund

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Determining Housing Need Methodology

• Identified number of units needed, by housing
  type
• Multiplied by typical per-unit costs for each
  housing type
• Assumed a 30-year payment schedule
• Subtracted existing funding

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Determining Housing Need Methodology

• Estimated the percentage of private and
  philanthropic funds that would be leveraged
• The bottom line new public funds of 41 million
  per year needed

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Identifying Options for Revenue Streams

• Advisory Committee considered 24 options
• Criteria
• Impact and effectiveness
• Relevancy and germaneness
• Shared responsibility
• Legislature will make ultimate decision

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Revenue Recommendations

• Allow the Development Fund to accept investments
• Surcharge on document processing fees
• Sales tax revenues from building materials
• Surcharge on local government bonds
• Issuance of bonds
• IHCDA funding

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Programmatic Recommendations

• Broad program categories, including
• Bricks-and-mortar/rental assistance
• Supportive services
• Operating support
• Creative/innovative projects
• Public input on priorities
• Supportive/gap financing
• Further research

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Next Steps

• Recommendations must be further considered
• Committee will continue to provide input on the
  Development Fund
• Application process
• Recommendations on funding applications

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What can you do?

• Learn more about the issues!
• Talk to your friends and neighbors!
• Get involved in Our Indiana Home!
• Talk to your legislator!
• Write a letter to the editor!

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For More Information

• Download the report at www.indianahousing.org
• Visit www.ourindianahome.org
• For questions or input, contact
• Amy Merritt or Ellie Lindhjem, IACED (317)
  920-2300
• Fred Hash, Advisory Committee Chair (317)
  423-8880