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Affordable Housing in Indianapolis: Three Decades of LIHTC Development
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CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
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Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
Indianapolis, the capital of Indiana, has a substantial inventory of Low-Income Housing Tax Credit (LIHTC) funded affordable housing. The city, known for the Indianapolis 500, demonstrates commitment to housing its lower-income residents.
The LIHTC program has funded 14,220 total units in Indianapolis, with 11,600 designated as low-income units. Based on the city's 2022 population of 876,564 and an estimated housing inventory of 335,848 units, LIHTC-funded affordable housing represents approximately 4.2% of the city's total housing stock.
Indianapolis has received $68,329,108 in project tax credits through the LIHTC program. With approximately 256 projects, this translates to an average of $266,910 in federal funding per project. The average federal funding per unit is $4,805. Indianapolis holds 15.91% of Indiana's total LIHTC funding, indicating its significant role in the state's affordable housing efforts.
The city's LIHTC-funded housing inventory spans several decades. The earliest recorded projects date back to 1987, including Eastside Equity Fund I and Emerson Village Apartments. The most recent projects were completed in 2020, such as Blue Mozingo and The Union At Thomas Gregg, demonstrating over three decades of affordable housing development in Indianapolis.
The 1990s saw a surge in LIHTC-funded projects, with numerous developments completed throughout the decade. Notable projects from this era include Christian Place Apartments (1994), Creekside Square Apartments (1995), and Hunter's Ridge (1997).
Indianapolis's LIHTC-funded housing stock offers a diverse range of unit types. The inventory includes 383 efficiencies, 4,054 one-bedroom units, 5,524 two-bedroom units, 2,333 three-bedroom units, and 401 four-bedroom units. This distribution caters to various household sizes and needs within the low-income population.
One notable project is Northampton Village, completed in 2005, which specifically targets individuals with special needs. This type of targeted housing is crucial for addressing the unique requirements of vulnerable populations.
Over the past decade, Indianapolis has experienced steady population growth, increasing from 838,425 in 2013 to 876,564 in 2022. Concurrently, the median income has risen from $41,361 in 2013 to $61,501 in 2022. This economic growth may have influenced the need for and development of affordable housing in the city.
Racial demographics have remained relatively stable, with a slight decrease in the white population (from 57% in 2013 to 51% in 2022) and small increases in Asian, Hispanic, and multiracial populations. This diversity underscores the importance of providing affordable housing options that cater to various communities within the city.
In summary, Indianapolis has leveraged the LIHTC program to create a substantial affordable housing inventory over the past three decades. While the current LIHTC-funded units represent a small portion of the city's estimated housing stock, they play a crucial role in providing affordable options for low-income residents. The city's demographic trends, including population growth and increasing median income, suggest an ongoing need for affordable housing initiatives to ensure housing accessibility for all residents.
