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The Vacant to Vibrant program uses ARP funds. (Jill Sheridan/WFYI)
Indianapolis is using a chunk of its American Rescue Plan dollars to increase the city’s affordable housing options.
Indianapolis, like other municipalities, continues to struggle to provide enough affordable housing units, especially for very low income residents. The city’s Department of Metropolitan Development has plugged in federal relief funding to help improve the problem.
Deputy Mayor of Economic Development Scarlett Andrews said the city is spending about $20 million dollars of ARP money on the efforts.
“Gives us flexibility to be creative and how we finance things that typically we couldn't contribute to, but also to make our dollars go further. Make sure we're closing gaps on projects that maybe wouldn't get underway without some additional funding,” Andrews said.
Inflation and rising construction costs have influenced project progress. The city says about 500 units with ARP backing are in the pipeline. A majority of those are affordable rentals, but there is some opportunity for homebuyers too. Those projects include the Colonial Bakery project on the Monon and the Vacant to Vibrant initiative.
City leaders recently joined a groundbreaking at the Plaza at Central Greens, which provides 122 low-income units for people making 60 percent of the area median income. The city provided $3 million in relief funding for that project.
DMD has other funding mechanisms in place to increase affordable housing. It uses TIF districts and other tax incentives to help increase units. Andrews said it will take a combination of methods to reach housing goals.
“Our efforts now are to leverage local state and federal funding and tools to implement our strategy to increase the availability of quality and affordable housing,” she said. “American Rescue plan funds are a big part of that.”
Indianapolis was allocated nearly $420 million in ARP funding.
Contact WFYI city government and policy reporter Jill Sheridan at jsheridan@wfyi.org. Follow on Twitter: @JillASheridan.
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