(INDIANAPOLIS) – Last week, the Board of Directors for the Indiana Housing and Community Development Authority (IHCDA) approved $500,000 each for Affordable Housing & Community Development Corporation and LaCasa, Inc. to help address Indiana’s workforce housing shortage. Working with modular home builders, the two not-for-profit organizations will construct modular, single-family homes on Blight Elimination Program (BEP)* lots in Marion and Elkhart, respectively.
“Across the state, there is a shortage of affordable, workforce housing,” said Indiana Lt. Governor Suzanne Crouch, who serves as board chair of IHCDA. “This funding will allow for the construction of modular single-family homes built by Indiana-based manufacturers. To ensure this is done strategically, the respondents are using Blight Elimination Program lots and working with a broad spectrum of local and state partners.”
With the funding, Affordable Housing & Community Development Corporation will construct homes in Marion working with the City of Marion, Elite Homebuilders, and RE/MAX Realty.
LaCasa, Inc. will use this funding to construct homes in Elkhart working with the City of Elkhart, Next Modular & Heckmann Homes and Kern and Kern Realty.
“Hoosiers have an internal solution for the workforce housing crises,” Ron Breymier, Executive Director of the Indiana Manufactured Housing Association. “Indiana has 7 factories producing attractive, quality constructed, affordable modular homes. The cost of modular homes is between 20% and 30% less per square foot than site-built homes. A key advantage to the homeowner is modular homes are built in an indoor, quality controlled environment using the very same building materials as site-built. An added advantage is the home can be move-in ready in a matter of a few weeks as opposed to several months to construct site-built.”
Using a revolving housing fund, proceeds from the sales of these newly constructed modular, single-family homes will go to support additional single-family construction targeting homeowners earning 140% or less of the Area Median Income (AMI).
“The revolving housing fund gives us the ability to support the new construction of workforce housing both now and for years to come,” said Jacob Sipe, Executive Director of IHCDA. “In addition to funding, we look forward to supporting the respondents in their efforts to identify potential homebuyers.”
To ensure responsible homeownership, the selected respondents are required to identify potential home buyers that will satisfy IHCDA’s underwriting review. Through this process, they will be offered homeownership education and counseling.
*In 2014, IHCDA made $75 million available through the Hardest Hit Fund (HHF) to establish the nation’s first statewide BEP to reduce foreclosures and stabilize property values. Funding was awarded to more than 40 communities who have together demolished more than 2,500 vacant and blighted homes to date.
