Indiana receives $3 million allocation from the Housing Trust Fund
INDIANAPOLIS – The U.S. Department of Housing and Urban Development (HUD) announced recently that the Indiana Housing and Community Development Authority (IHCDA) will receive a $3 million allocation from the Housing Trust Fund (HTF). HUD announced last month that the total 2016 HTF funding is $174 million.
Pursuant to the HTF Interim Rule, state allocations are determined by a formula based on four factors:
- A state's relative shortage of rental housing available nationwide to extremely low-income (ELI) families (persons with incomes at 30 percent of area median income (AMI) or less);
- A state's relative shortage of rental housing available nationwide to very low-income (VLI) families (persons with incomes at 50 percent of AMI or less);
- A state's relative number of ELI renter households living in substandard, overcrowded, or unaffordable units in that state; and
- A state's relative number of VLI renter households living in substandard, overcrowded, or unaffordable units in that state. In addition, construction costs in each state are factored into the formula.
To be eligible to receive HTF funds, Indiana (like other states) must prepare and submit their HTF allocation plans by August 16, 2016. HUD is expected to release additional HTF guidance in the coming weeks, including a sample allocation plan and guidance on per unit development subsidies.
Congress authorized the HTF with the stated purpose of: (1) Increasing and preserving the supply of rental housing for extremely low-income families with incomes between 0 and 30 percent of area median income and very low-income families with incomes between 30 and 50 percent of area median income, including homeless families, and (2) increasing homeownership for extremely low-income and very low-income families.