INDIANAPOLIS – The Indiana Housing and Community Development Authority (IHCDA) announced today plans for the Moving Forward Rural Development (RD) program. Using the Moving Forward model developed in 2015, IHCDA in partnership with Energy Systems Network (ESN) will take on the challenge to preserve a minimum of 30 USDA Rural Development (RD) properties at risk of losing their affordability by 2020.
“The purpose of Moving Forward Rural Development is to invite developers to create and implement long-term strategies to overcome challenges,” said Lt. Governor Suzanne Crouch, who serves as board chair of IHCDA. “Specifically, we believe the issues currently facing rural communities can be addressed by preserving housing that increases quality of life while decreasing the cost of living for low to moderate income individuals and families.”
There are 472 USDA RD properties located in Indiana that represent 12,838 units. Many of these units target Indiana’s elderly population. As these properties mature and leave the program, their affordability goes away and it jeopardizes our most vulnerable population’s ability to maintain housing that is safe, decent, and affordable and located in our rural communities.
The Moving Forward Program, launched in 2015 by IHCDA and Energy Systems Network (ESN), is designed to create affordable housing that increases quality of life while decreasing the cost of living for low to moderate income individuals and families. To date, four teams have participated in the program with housing developments planned or currently underway in Bloomington, Fort Wayne, Lafayette and Indianapolis.
“We are excited to begin the next iteration of Moving Forward,” said Jacob Sipe, Executive Director of IHCDA. “Previously, this program has been used primarily for new construction. However, just as important as creating new affordable housing is to preserve our existing affordable housing stock.”
Along with this announcement, a Request for Qualifications (RFQ) for the Moving Forward RD Program has been released. It can be accessed on the Moving Forward webpage here. Requests to this RFQ are due by June 11, 2018.
Once the three development teams are selected, they will participate in a series of workshops and meetings in which IHCDA, ESN and other assembled subject matter experts create their plans to bundle at least 10 properties into one multifamily portfolio. Each developer will be eligible to receive a combined amount of up to approximately 10%* of the 2019 credit cap, a $1 million soft loan, up to $25 million in multifamily bonds and approximately $10 million in 4% credits.
Click here for more information about the Moving Forward RD Program.
*Per the 2018-19 Qualified Allocation Plan (QAP), IHCDA will reserve 10% of its RHTC for the IHCDA General Set-aside. Under this set-aside, IHCDA reserves credits for developments that further the Authority’s mission, goals, initiatives, and priorities irrespective of the ranking by evaluation factors. The QAP states that the Authority will exercise its sole discretion in the allocation of the IHCDA General Set-aside.