INDIANAPOLIS – In December 2019, the Board of Directors for the Indiana Housing and Community Development Authority (IHCDA) approved funding to Biggs Development, Justus Property Management & Greystone Affordable Development and Woda Cooper as part of the Moving Forward Rural Development (RD) program. With the combined investment of over $88 million by IHCDA and USDA Rural Development (RD), the three developers will rehabilitate 34 properties and preserve 773 units of affordable housing in rural communities.
Editor’s Note: IHCDA says Logansport Apartments, 1749 Commerce Court, Logansport, received funding for 24 units.
“The purpose of Moving Forward Rural Development is to create and implement long-term strategies to overcome challenges,” said Lt. Governor Suzanne Crouch, who serves as board chair of IHCDA. “Through innovative financing and support we are ensuring that much needed affordable housing is preserved across our state and available for years to come.”
On April 27, 2018, IHCDA released a Request for Qualifications (RFQ) announcing that they would take on the challenge of preserving a minimum of 30 USDA RD properties at risk of losing their affordability. In August of 2018, Biggs Development, Justice Property Management & Greystone Affordable Development and Woda Cooper Companies were selected to participate in the Moving Forward RD program.
Since their selection, each development team has worked closely with IHCDA, USDA, Energy Systems Network (ESN) and other subject matter experts to develop their plans. After an intensive two-day workshop, the teams continued to collaborate with IHCDA, USDA and ESN using a systems approach focused on building communities that set new standards for efficiency, affordability and transportation in affordable housing programs.
“As USDA Rural Development properties reach the end of their affordability periods, we risk losing much needed affordable housing,” said Jacob Sipe, Executive Director of IHCDA. “In addition to rehabilitating 34 properties and ensuring over 700 units of affordable housing are still available, we have developed a strategy to preserve additional RD properties in the future.”
An innovative combination of over $68 million in 4% and 9% low-income housing tax credits* and multifamily bonds were awarded to the developers. Additionally, IHCDA awarded funding to three nonprofit organizations (one identified by each developer) to create a Rural Revolving Loan Funds with $1 million each that will be loaned into the developments. Once repaid, the funds will be recycled back into rural communities to create and preserve affordable housing. Additional funding for the projects will be provided by USDA.
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.
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.
SOURCE: News release from Indiana Housing and Community Development Authority