Intend Indiana gets $5 million in tax credits for affordable housing

A local community development nonprofit has received a large tax credit to build affordable homes. Intend Indiana recently announced $5 million in New Market Tax Credits for Indianapolis projects.

The non-profit organization is one of only four groups nationwide to receive the funds. The New Market Tax Credits are a competitive, financial tool that organizations can use to build housing for low-income families.

Historically, federal New Market Tax Credits have been used for more commercial development projects in distressed neighborhoods. More recently the tax credits are being used as a solution to increase affordable housing stock.

CEO Steven Meyer said it can make a difference.

“The tax credits really helped us expand those homeownership initiatives and reduce the costs that we are able to sell those houses for to make them even more affordable,” Meyer said.

Single-family home ownership has become harder to reach in Indianapolis. A number of factors at play include short supply, higher interest rates and more companies buying up single-family homes.

Meyer said Intend Indiana works directly with community groups to find families to help and target disinvested neighborhoods.

“Especially when we're talking about homeownership and we're working in neighborhoods we want to make sure that those homeownership opportunities are made available to folks who already have ties to the neighborhood,” Meyer said.

The project includes 22 houses in the near northwest side and Far Eastside neighborhoods, with a goal of at least 70% of the houses to be sold to African American homebuyers.

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