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HoTIF, which stands for Housing Tax Increment Financing, is a way of funding investments in a neighborhood by creating a specific taxing district, in this case for housing efforts.
Jill Sheridan / WFYIImprovements could be coming to the historic Norwood neighborhood in Indianapolis.This week, the Indianapolis City-County Council’s Metropolitan Development Committee unanimously passed a proposal for a new HoTIF in the near southeast side neighborhood.
HoTIF, which stands for Housing Tax Increment Financing, is a way of funding investments in a neighborhood by creating a specific taxing district, in this case for housing efforts. Similar to a TIF district, the funding model sets up an area that captures future tax dollars.
The Department of Metropolitan Development, has been considering plans for this HoTIF since 2022. It estimates that it would raise about $400,000 per year for improving the Norwood neighborhood. That money could be used for projects including owner-occupied home repair, building new affordable housing or updating a neighborhood’s public park.
Councilor Brienne Delaney said community involvement has been key to improved investment.
“I am so happy to hear that the city has continued to work towards bringing assets to your neighborhood,” Delaney said.
Norwood is a historically significant area. Veterans of Indiana’s only black regiment of soldiers in the Civil War founded the neighborhood in 1872. Around 30 families still live on the land their ancestors purchased 150 years ago.
Today, the neighborhood consists of many aging single-family homes. The DMD said the area is a relatively low-income area, and homeowners may not be able to afford repairs. The HoTIF could help provide the funding necessary for projects.
There are also numerous vacant parcels of land that DMD said offer the opportunity for additional development in the neighborhood. If a business does invest in the neighborhood, one percent of taxes will go into the HoTIF fund and be invested in affordable housing in the neighborhood.
Before the HoTIF can go into effect it needs to be approved by the full City-County Council at its next meeting, on November 4.
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