$20 million state grant approved for Indy's first low-barrier shelter

A $20 million dollar state grant has been approved for Indianapolis’s first low-barrier shelter.

The funding was identified at the end of the last legislative session and will help create a one stop shop for people experiencing homelessness. The project will offer supportive services alongside a low-barrier shelter — giving people a place to stay while they find more permanent housing.

The Indiana Housing and Community Development Authority gave final approval for the funds recently. The city has allocated $12 million for the project. A new downtown Economic Enhancement District will help fund operations at the hub.

The city has adopted a number of new housing first efforts in recent years, including a new master leasing program, and added permanent housing units.

In a statement, Indianapolis Mayor Joe Hogsett said the hub is a key piece of the housing puzzle.

“An innovative shelter that centers Housing First principles puts Indianapolis on the same track as other cities, like Milwaukee and Houston, who have made significant strides in addressing chronic, street homelessness and placing individuals and families into permanent, supportive housing,” Hogsett said.

Some advocates have said even more funding should be directed towards Housing First efforts instead of investing in a shelter.

The city identified two potential partners to help run the center. Horizon House would handle daily operations and provide housing navigation services. Aspire Indiana Health would run the low-barrier shelter. 

For years the city has relied on Wheeler Mission as its main shelter for unhoused people. That shelter presents obstacles to entry for some, including a lack of accommodations for couples or people with pets, and limited family shelter options.

A near east side location has been identified for the housing hub. It is scheduled to open in late 2026.

An annual count of the number of people experiencing homelessness in Indianapolis was up slightly this year compared to last year.

Contact WFYI city government and policy reporter Jill Sheridan at jsheridan@wfyi.org.

CORRECTION: A previous version of this story said the city had identified partners to help run the shelter.  While it has identified these partners, negotiations have not been finalized.