Prosperity Indiana Policy News

What is ‘The Gap’ in Affordable Homes in your County, State Legislative District, and Congressional District?

Mon, 23 Mar 2026 20:34:08 GMT

What is ‘The Gap’ in Affordable Homes in your County, State Legislative District, and Congressional District?

Every Indiana county, state legislative district, and Congressional district has a gap in affordable homes and a rate of severe housing cost burden that is concentrated at the lower end of the income spectrum, according to new data released by Prosperity Indiana and the National Low Income Housing Coalition.

See the updated 2026 ‘The Gap’ local and district data maps at Prosperity Indiana’s Housing4Hoosiers page: https://housing4hoosiers.org/the-gap-2026-maps/

The new data, released as a supplement to the Indiana 2026 edition of The Gap: A Shortage of Affordable Homes adds additional perspectives on the lack of supply of affordable rental homes and the rate of housing cost burden by county and legislative districts at the state House, Senate, and Congressional levels.

This new data provides insights into the state-level report's finding that Indiana's rate of affordable and available rental homes for the most vulnerable renter households is now tied for lowest in the Midwest and is below the national average, with only 34 affordable and available homes for every 100 extremely low income (ELI) Hoosier renter households. The state-level report also found that the rate of severe housing cost burden for ELI households is now second-highest in the Midwest at 74%.

The new county and district-level data demonstrate that Indiana’s housing shortage and affordability crisis is statewide and affects rural, suburban, and urban communities alike. In every Indiana county and state and Congressional district, the gap in affordable and available rental homes is primarily experienced by ELI households (those making below 30% of area median income) and very low-income households (those making below 50% of area median income). Those extremely- and very-low-income households are also the most likely to be severely housing cost burdened, meaning they must spend more than half of their monthly income on housing costs.

With Indiana tied for the top ‘hot spot’ for lack of affordable homes in the Midwest, many Indiana counties and legislative districts below the state average of 34 affordable and available homes per 100 ELI households are now ‘hot spots within a hot spot’ for unaffordability. For example:

In the Indiana Senate, there are no more than 55 affordable and available homes for every 100 ELI renter households in any district, and as few as 12 (District 29).

In the Indiana House there are no more than 59 affordable and available homes for every 100 ELI renter households in any district, and as few as 1 (District 39).

Among Indiana’s Congressional Districts, there are no more than 40 affordable and available homes for every 100 ELI renter households in any district, and as few as 25 (District 7).

Among all 92 Indiana Counties, there are no more than 83 affordable and available homes for every 100 ELI renter households in any county, and as few as 14 (Tippecanoe County).

The maps can also be used to find the deficit of affordable and available homes, and the rate of severe housing cost burden for ELI households at the county, Congressional, and state legislative district.

Throughout 2026, Prosperity Indiana will use the data in these maps as part of participation in the national Our Homes, Our Votes nonpartisan voter education and candidate engagement initiative. Partners are encouraged to use these maps and data when asking state and federal candidates and elected officials about their plans to address Indiana’s housing supply and affordability crisis. Prosperity Indiana staff are also available to answer questions about ‘The Gap’ and can provide members with additional analysis about the data affecting their service areas.

Data for these maps was provided by the National Low Income Housing Coalition, with maps and analysis provided by Prosperity Indiana. The source for the data is HUD’s Comprehensive Housing Affordability Strategy (CHAS) data for 2018-22, the most recent available for the geographic levels presented here.

Indiana is Now Tied for the Midwest’s Lowest Rate of Affordable and Available Homes for Vulnerable Renters

Thu, 05 Mar 2026 12:57:25 GMT

INDIANAPOLIS – Indiana’s rate of affordable and available rental homes for the most vulnerable renter households is now tied for lowest in the Midwest and is below the national average, according to a new report published by Prosperity Indiana and the National Low Income Housing Coalition (NLIHC).

The report, The Gap: A Shortage of Affordable Homes finds a national shortage of 7.2 million affordable and available rental homes for extremely low-income renter households – those with incomes at or below the poverty level or 30% of their area median income, whichever is greater - resulting in just 35 affordable and available rental homes for every 100 extremely low-income renter households nationwide. The report also reveals that there are 210,668 extremely low-income households in Indiana, and just 34 affordable and available rental homes for every 100 of these households in our state, leaving a gap of 137,138 units needed statewide. Indiana’s rate of affordable housing is now not only below the national average but is tied with Illinois for the lowest among all Midwest states. These findings come amidst ongoing attacks on federal housing resources and a lack of investments at the state level targeted at increasing housing supply for low- and moderate-income Hoosiers.

Released annually, The Gap investigates the affordability and availability of rental homes for households of different income levels nationwide and in every state and major metropolitan area. The supply of affordable rental housing for extremely low-income households remains deeply inadequate both nationally and in Indiana. As a result, 74% of extremely low-income Hoosier renters are severely housing cost-burdened, spending more than 50% of their income on housing, with little leftover for food, healthcare, and other basic necessities. Indiana’s rate of severe housing cost burden matches the U.S. average and is tied with Illinois for second highest in the Midwest, behind only Michigan.

The Gap in the supply of affordable housing in Indiana is concentrated at the lower end of the income distribution spectrum. The deficit of 137,138 rental homes for the state’s 210,668 extremely low-income renter households produces the lowest rate of affordable and available housing at only 34 affordable and available units for every 100 households. As incomes increase, so does the rate of affordable and available rental homes, with 64 units for every 100 households at or below 50% of area median income; 100 units for every 100 households those at or below 80% area median income; and 104 units for every 100 households at or below the state’s median income.

Affordability and the cost burden of rental housing in Indiana is also highly dependent on income. 74% of all extremely low-income Hoosier renter households are ‘severely cost burdened’, meaning they pay half or more of their income on housing costs, including rent and utilities. By contrast, very low-income households (those between 30-50% area median income) have a severe housing cost burden rate of 26%. Just 5% of low-income households (between 50-80% area median income), and only 1% of those between 80% and the state’s median income are severely cost burdened.

The private market, without subsidy, is unable to provide an adequate supply of housing affordable to the lowest-income renters. What extremely low-income renters can afford to pay for rent does not cover the development and operating costs of new housing, and it often is not sufficient to provide an incentive for landlords to maintain older housing. The result is a systemic shortage of affordable housing for extremely low-income renters impacting nearly every community, including those across Indiana. Subsidies are needed to produce new affordable housing, preserve existing affordable housing, or subsidize the difference between what the lowest-income renters can afford to pay and market rents.

“The findings from The Gap show that no state or major metropolitan area has an adequate supply of affordable and available homes for extremely low-income renters,” said NLIHC President and CEO Renee M. Willis, “It is a sad fact that only one in four households who qualify for housing assistance receive it. When renters are housing cost-burdened, they cannot afford to cover other basic necessities such as food, healthcare, transportation, or childcare. Congress has the solutions to increase housing affordability across the country. They must support robust housing assistance programs that can alleviate the housing crisis and ensure the wellbeing of millions of the lowest-income renters.”

Learn more about The Gap by visiting: https://nlihc.org/gap

Prosperity Indiana will release exclusive additional data and maps from ‘The Gap’ at the county, state legislative district, and Congressional district levels on Tuesday, March 17 at: https://www.prosperityindiana.org/

Prosperity Indiana 2026 Session Wrap-Up: Short session takes ‘two steps back’ on housing and economic opportunity for Hoosiers

Fri, 27 Feb 2026 19:57:29 GMT

Prosperity Indiana 2026 Session Wrap-Up: Short session takes ‘two steps back’ on housing and economic opportunity for Hoosiers

Legislature must make needed investments in 2027 budget session

Ahead of the 2026 session of the Indiana General Assembly, Prosperity Indiana sounded the alarm that Indiana has become an unaffordable state, not only for Hoosier households whose incomes have not kept up with rising housing and other basic costs, but also for the community organizations who serve them. Our 2026 Policy Agenda offered solutions to increase affordability for Hoosier households as well as to strengthen the capacity of the organizations who provide housing and economic opportunity for all Hoosiers.

Unfortunately, throughout the 2026 session, the Indiana General Assembly took too few steps to strengthen Indiana’s communities by making housing more affordable and expanding economic opportunity for low- and moderate-income Hoosiers.

PI member priority legislation largely did not advance

The General Assembly largely failed to advance legislation resulting directly from PI member priorities, including SB 205 Development of affordable housing (Sen. Shelli Yoder), which would have lowered zoning barriers for the development of housing affordable at or below 80% area median income on properties owned by religious organizations, although a similar concept was recommended for interim study through HB 1001 Housing matters (Rep. Doug Miller). SB 181 Notice of eviction (Sen. Liz Brown) was a careful measure to close a loophole and strengthen Indiana’s eviction notice laws, but did not get a committee hearing. SB 104 Landlord nexus (Sen. Fady Qaddoura) tackled the problem of unaccountable out-of-state investors by requiring large landlords to have a meaningful in-state presence, but similarly did not get a hearing. And HB 1411 Tax sale procedures (Rep. Karen Engleman) would have helped the state’s land banks preserve and redevelop blighted properties by reducing the time it takes to acquire them. But despite approval from influential appropriators, the language did not make it into legislation that passed the finish line.

Instead of these opportunities to meaningfully strengthen community economic development this session, too often the legislature ‘took one step forward’ by relying on indirect or delayed benefits at best, and in some cases, ‘took two steps back’ with legislation that threatens the most vulnerable Hoosiers, particularly SB 285 and SB 1.

Here are several key pieces across Prosperity Indiana’s issue areas that passed this session:

Affordable Housing and Community Development

HB 1001 Housing matters (Rep. Doug Miller), the House Majority’s top priority legislation, had the stated goal to “expand Indiana’s housing supply and drive down costs of home ownership" by “rolling back costly regulations that impede development”, ultimately through providing local governments with the ability to opt-out of preemptions on housing development regulations. However, even though Indiana’s largest housing gaps exist among low-income Hoosiers and communities, the final version of the bill included few targeted remedies or resources.

Prosperity Indiana Executive Director Aspen Clemons appeared on Indiana Lawmakers alongside the bill author and Fishers Mayor Scott Fadness to discuss how the bill could potentially address Indiana’s housing needs. Aspen also testified that the bill was a "necessary first step in addressing Indiana’s growing housing crisis" and called on the General Assembly to follow through on the bill’s call for a task force on PI priority ‘Yes In God’s Back Yard’ affordable housing development. PI also supported HB 1001’s creation of a new definition for Accessory Dwelling Units and makes them a permitted use in many residential areas unless local governments opt out before the end of 2026.

SB 285 Housing matters (Sen. Cyndi Carrasco) was the fifth bill over the past three sessions to include wrongheaded legislative language directly from the Cicero Institute that would require local law enforcement to fine, ticket, and jail homeless Hoosiers for sleeping outside whether housing and services are available or not. Perhaps because Indiana’s community economic development stakeholders were not included in the development of the legislation, SB 285 also ended up with confusing language that will require law enforcement to determine whether individuals meet a new definition of ‘gravely disabled’ mental illness, and if not, are required to proceed with a new Class C misdemeanor pathway. And while a late amendment provides individuals with a defense in court against the misdemeanor charge if no services exist, that will only come after arrest and being held in jail. PI estimated that if Indiana follows the example of Kentucky, which passed a similar law in 2024, 14,000 bed nights in jails throughout Indiana will annually be required to be filled with homeless Hoosiers instead of true threats to public safety. The bill also included no new housing, services, or resources to address homelessness.

Unfortunately, unlike in previous sessions when the legislature rejected this dangerous legislation four times, this year the legislation narrowly passed the threshold of Constitutional majority in the House and the Senate before heading to Governor Braun’s signature.

Asset-Building and Consumer Protections

In a positive outcome, HB 1116 Virtual currency kiosks (Rep. Wendy McNamara), which would bar these ATM-like machines that have become the vehicle for rampant fraud, passed with strong bipartisan majorities. However, bills to mitigate the worst harms of medical debt had mixed outcomes. The bills that would have provided the most robust protections for patients died after passing through one chamber or did not receive hearings at all. HB 1271 Payment of health claims (Rep. Julie McGuire) did ultimately pass and will require hospitals to disclose information about payment assistance programs and make reasonable efforts to inform patients about those plans before pursuing collections. Much work remains to be done.

SB 1 Human services matters (Sen. Chris Garten) however, which will create new barriers and obstacles to stabilizing benefits like SNAP and Medicaid, headed to the Governor’s desk for signature. This will make it more difficult and costly for Indiana’s most financially vulnerable households to remain fed and access healthcare.

Investments in housing and economic opportunity needed in next budget session

With so many missed opportunities this session to increase housing affordability and strengthen economic opportunities for Hoosiers and the community organizations who serve them, there is an even more urgent need for Indiana’s policymakers to be laser-focused on shaping policies and investments in the 2027 state budget session to address those issues. With the 2026 session as a lesson, lawmakers must resolve to include Hoosiers and community stakeholders in the process of creating legislation, or else risk additional laws that increase inefficiencies, waste resources, and harm the very Hoosiers they represent. Indiana’s non-profits and community economic development sector must also proactively reach out to build relationships and educate lawmakers about the housing and economic needs they experience, and then hold lawmakers accountable for implementing solutions.

Hoosier Housing Needs Coalition Urges Hoosiers to Keep Fighting SB285 as it Moves to the House

Thu, 29 Jan 2026 20:58:09 GMT

INDIANAPOLIS, IN – Yesterday, SB 285 ‘Housing Matters’, authored by Sen. Cyndi Carrasco (District 36, Indianapolis) passed the Indiana Senate 29-19, and the bill now moves to the House with Rep. Doug Miller (District 48, Elkhart) serving as its sponsor. The Hoosier Housing Needs Coalition is united in their disappointment and frustration in this development, as the Coalition has consistently opposed similar legislation that will exacerbate burdens on local service providers, hospitals, and jails, and create a new pathway for vulnerable Hoosiers to enter the justice system with a Class C misdemeanor.

This is the third year the Hoosier Housing Coalition has mobilized its partners to oppose legislation that makes it a potential criminal offense for someone to sleep in public spaces, which is broadly identified with a Texas-based think tank, the Cicero Institute. The author of the bill has been explicit in her support of programs that connect people to housing and resources and says this bill “creates a moment” for that work to begin. The bill, however, provides no support or funding for service providers or even county governments which operate local jails, creating a surge in demand under an unfunded mandate.

Service providers express concern that the premise of SB285 ignores the realities and complexities of building the trust required to connect people without shelter to services.

With SB285 moving on to Indiana’s House of Representatives, the Hoosier Housing Needs Coalition will continue advocating against this legislation and the harm it would cause Hoosiers experiencing homelessness. The Coalition encourages members of the public to contact their Representatives and urge them to oppose any version of SB 285 that retains the Class C misdemeanor.

Quotes from Leaders of the Hoosier Housing Needs Coalition

“I agree with lawmakers that more needs to be done to address unsheltered homelessness in Indiana, but the data shows clearly that fines and penalties are not the answer, and it’s not what people want for their communities. What reduces homelessness is accessible, affordable housing and services that connect people to those resources, and this bill doesn’t provide any support for either. What SB 285 does provide is new pathway for vulnerable people to enter overcrowded jails.”

- Aspen Clemons, Executive Director of Prosperity Indiana

“SB 285 will harm survivors of domestic violence who are attempting to flee unsafe situations by criminalizing sleeping in public spaces. Rather than advancing meaningful solutions to homelessness or investing in critical services and supports, the legislature has chosen to respond with fines and criminalization. This approach will not make our communities safer. It will force survivors to remain in dangerous homes and undermine efforts to help them achieve safety and stability.”

- Laura Berry, Executive Director of Indiana Coalition Against Domestic Violence

“This legislation punishes people for being unhoused and fails to fund diversion, housing or services that would actually keep people off the streets. This approach wastes public dollars and harms our communities as well as the individuals who so desperately need safe, stable housing.”

- Mary Morgan, Executive Director of Heading Home in Bloomington

“Indiana United Ways remains committed to preventing homelessness and working with organizations to provide safe and affordable housing. Rather than incentives for housing, mental health, and substance use disorder programs, which our communities desperately need, SB 285 penalizes individuals experiencing homelessness and would require our organizations to shift resources from keeping Hoosiers off the streets to cover fines and meet court requirements under this bill.”

- Brian Lohsl, Public Policy & Advocacy Strategist of Indiana United Ways

Prosperity Indiana releases 2026 Policy Agenda focusing on Indiana’s affordability crisis; invites network to join regional legislator meetings

Wed, 05 Nov 2025 12:00:16 GMT

Prosperity Indiana, the statewide association for community economic development, has released its 2026 Policy Agenda, focused on recommendations to address the state’s affordability crisis, and invites members of its statewide network to discuss potential solutions at their upcoming Policy & Pizza regional legislator meeting series.

The new policy agenda, titled Strengthening Indiana’s Communities and Supporting Those Who Serve Hoosiers, reflects the results of Prosperity Indiana’s survey of over 200 organizational members as ratified by the association’s Policy Committee and Board of Directors. The 2026 agenda addresses issues of affordable housing, community development resources, asset-building, and consumer protection issues, as well as urgent & emerging priorities that cross all policy areas.

A common theme among members’ policy survey responses is the growing reality that Indiana has become an unaffordable state, not only for Hoosier households whose incomes have not kept up with housing and other basic costs, but also for the community organizations who serve them and have been subject to state and federal cuts and rising administrative costs.

Over the past year, more than two-thirds of PI Policy Survey respondents report that budget and policy changes at the federal and state levels have significantly or moderately decreased the ability of their organization to serve Hoosiers and their community (0% say policy changes have increased their ability to serve). As a result of policy changes, more than 40% of respondents have: eliminated programs or services; eliminated staff positions or are not filling roles; or have reduced the scope of clients they can serve – or are considering doing so.

At the same time, Prosperity Indiana’s most recent research finds that 14 of the state’s 20 largest occupations no longer pay an income sufficient to meet the state’s housing wage of $22.18 per hour necessary to afford a modest two-bedroom home, up from 9 of the top 20 occupations just three years ago.

As a result, PI’s 2026 Policy Agenda focuses on solutions to increase affordability for Hoosier households as well as to strengthen the capacity of the organizations who provide housing and economic opportunity for all Hoosiers. Our members’ priorities range from increasing the supply of safe, affordable housing, to combatting wealth loss through homeowner repair, to reducing the benefits cliff for vulnerable families. Newly trending priorities for 2026 include increasing resources for organizations who serve their communities while defending those organizations from attacks and cuts.

To introduce the 2026 agenda and discuss issues of housing and economic opportunity with local policymakers, Prosperity Indiana invites its network and members of the public to its ‘Policy & Pizza’ regional legislator meeting series. Registration and additional information can be found in the links below.

November 5, Fort Wayne

November 10, Indianapolis

November 13, Elkhart

December 3, Evansville

December 12, Lafayette

View the 2026 Policy Agenda here.

How the Housing Crisis Hurts Indiana’s Essential Workforce

Thu, 04 Sep 2025 16:02:31 GMT

Indiana’s housing crisis is squeezing out the very people who keep our communities running. Home health aides, retail clerks, restaurant cooks, and janitors—many of them women and people of color—are earning too little to afford a modest two-bedroom apartment. In fact, 14 of Indiana’s 20 most common occupations fall short of the Housing Wage of $22.18/hour. These jobs represent over 800,000 Hoosiers—more than a fifth of the entire workforce. When essential workers can’t afford to live where they work, communities face rising turnover, declining services, and deepening inequality. Solving this crisis starts with valuing essential labor—and ensuring those who serve Indiana can afford to stay here.

"Out of Reach" is an annual report co-released by NLIHC and Prosperity Indiana. Read the full release at housing4hoosiers.org/2025/07/17/out-of-reach

Why Indiana's Housing Crisis is a Wage Crisis

Mon, 18 Aug 2025 16:16:38 GMT

Indiana’s housing crisis isn’t just about rising rents—it’s about paychecks that haven’t kept up. For thousands of Hoosiers, full-time work no longer guarantees housing stability. According to the Out of Reach – Indiana 2025 report, a full-time worker in Indiana must earn $22.18/hour to afford a modest two-bedroom apartment at fair market rent. But the average Hoosier renter earns just $18.05/hour. That $4.13 wage gap adds up to over $8,500 in lost annual earning power—money that could be used for food, childcare, medical bills, or simply keeping the lights on.

This disconnect between income and housing costs has grown into a structural issue. The Fair Market Rent for a two-bedroom apartment in Indiana is now $1,153/month. Yet, based on the state’s average renter wage, the “affordable” rent should be no more than $939/month. That means the typical renter must either spend more than the recommended 30% of their income on housing—or make sacrifices elsewhere to bridge the difference. These trade-offs often include essentials like prescriptions, groceries, transportation, or utilities, leading to increased housing instability and greater vulnerability to eviction.

And it’s not just about averages. For renters at the lowest end of the income spectrum—those earning 30% or less of the Area Median Income—the situation is even more dire. For them, affordable rent is just $722/month, a full $431 short of what it costs to rent a modest two-bedroom. This affordability crisis affects seniors, caregivers, low-wage workers, people with disabilities, and others who are often left out of mainstream housing markets altogether.

Unlike other states in the Midwest that have raised wages or invested in renter support, Indiana lags behind. The Out of Reach report shows Indiana has the lowest renter income in the region—$3,708 less than the Midwest average—and yet renters here still face regionally average housing costs. In short, Hoosiers get no discount on rent, but plenty of financial risk.

It’s time to recognize that housing affordability cannot be addressed without addressing wages. Hoosiers deserve a fair shot at stability, and that starts with fair pay. The housing crisis won’t be solved by rental subsidies or new construction alone—it requires raising incomes so that hard-working people can afford a place to live.

"Out of Reach" is an annual report co-released by NLIHC and Prosperity Indiana. Read the full release at housing4hoosiers.org/2025/07/17/out-of-reach

Nearly 700 Sign Letter Urging Governor Braun to Create Commission on Housing Safety, Stability, and Affordability

Fri, 13 Jun 2025 14:02:43 GMT

INDIANAPOLIS, IN – Prosperity Indiana and the Hoosier Housing Needs Coalition delivered a letter signed by nearly 700 Hoosier organizations and individuals urging Governor Mike Braun to create and convene a Commission on Housing Safety, Stability, and Affordability to address Indiana’s worsening housing crisis.

665 unique Indiana organizations and individuals, ranging from housing providers, developers, and investors; to homelessness prevention specialists, community service organizations, churches and faith-based groups; to Hoosiers from rural, urban, and suburban communities, joined together to sign the letter urging Governor Braun to issue an executive order creating a Commission to act on the state’s shortage of safe, stable, and affordable homes.

The letter calls on Governor Braun to leverage his unique leadership background to convene the stakeholders necessary to more effectively align available public and private resources to produce better housing outcomes for Hoosiers. The letter acknowledges incremental steps taken by the state to address housing but also notes the declining rates of homeownership, worsening affordability, and lack of housing supply particularly for low-income families and vulnerable Hoosiers.

The letter cites a “patchwork” of codes for health and safety standards related to rental housing and the failure to adequately enforce these codes as jeopardizing the health and even lives of Hoosiers. For example, in January of 2024, six children died in a deadly fire in a South Bend rental home that was reported to have failed a safety code inspection for dangerous wiring but was allowed to be rented again before proper repairs were confirmed to have been made.

The proposed Commission, whose structure is inspired by the successful Indiana Commission on Improving the Status of Children, would address the state’s unresolved housing issues and promote solutions in several concrete ways:

Bring together representatives of state administrative agencies, courts, local governments, and legislators, along with stakeholders and residents who are tackling the housing health and safety crisis on the ground;

Align existing housing resources and initiatives at the state and local levels, potentially saving taxpayers millions of dollars;

Clarify the jurisdiction of code enforcement regarding health and safety;

Coordinate administrative and court-based rules that can protect Hoosiers and expand the housing supply for communities with the greatest need; and

Provide a united voice to recommend new legislation when necessary.

The letter to the governor concludes “We urge you to appoint and convene a Commission on Housing Safety, Stability, and Affordability, which will serve as a legacy of your administration’s efforts to elevate the public health, safety, and economic well-being of Hoosiers, their communities, and Indiana.”

View the letter to Gov. Braun here.

General Assembly Recap: Housing and Economic Opportunity in Indiana Needs Serious Work Following 2025 Budget Session

Fri, 25 Apr 2025 19:05:30 GMT

Amid growing national challenges for community economic development and a late-breaking $2.4B state budget shortfall at home that resulted in painful state cuts, Prosperity Indiana was able to secure significant progress on key legislation for our network during the 2025 session of the Indiana General Assembly. Not only was PI able to see Member Priority Legislation cross the finish line to become law, but with the help of our network and coalition partners we were able to defeat dangerous legislation and set up long-term progress on key CED priorities. However, with worrying fiscal concerns looming large, Indiana needs to commence significant work to align available resources to reinforce our critical community economic development infrastructure.

Prosperity Indiana organizes our Annual Policy Agenda across three issue areas: Housing Affordability; Community Development Resources; and Asset Building & Consumer Protections. To expand our advocacy efforts on behalf of our statewide Member network, PI convenes or co-leads three coalitions: the Hoosier Housing Needs Coalition, the Indiana Assets & Opportunity Network, and Hoosiers for Responsible Lending.

Here are key outcomes of the 2025 session of the Indiana General Assembly across those areas.

Affordable Housing

Prosperity Indiana and our partners in the Hoosier Housing Needs Coalition secured two key housing victories this session: the passage of SB 142 Eviction issues and the defeat of Criminalization of Homelessness in three different bills. However, the sector saw significant losses in budget cuts (detailed under the ‘resources’ section below).

PI Member Priority Bill SB 142 Eviction issues, authored by Senator Liz Brown (R-Fort Wayne) will make Indiana’s eviction sealing program more automatic and effective. The program, which began in 2022 following PI & HHNC advocacy and which has already sealed over 30,000 eviction cases, seals eviction records when a case is found in the tenant’s favor or when an agreement is reached between the parties. SB 142 will mandate that qualifying eviction cases be sealed when they are heard in court, which will reduce the chances that the record will create a ‘Scarlet E’ that will damage tenants’ housing stability for a significant percentage of the 9% of Hoosier renters who have an eviction filed against them every year.

PI and HHNC members also prioritized supporting Housing First and successfully defeated the criminalization of homelessness this session. Last summer, PI created a Housing First toolkit and training series to prepare partners to educate policymakers about threats from the out-of-state special interests from the Cicero Institute seeking to force local law enforcement to fine and jail vulnerable Hoosiers for sleeping in public, and to strip public funding for proven homelessness strategies for use in constructing punitive homelessness detention camps. That preparation came in handy when Cicero-sponsored legislation appeared first in HB 1662 (Rep. Michelle Davis R-Greenwood), then when that failed SB 197 (Sen. Aaron Freeman R-Indianapolis), then when that failed, HB 1014 (Rep. Alex Zimmerman R-North Vernon). But with the help of thousands of PI and HHNC calls and messages and key support from legislators including Sen. Ron Alting (R-Lafayette), all Cicero efforts to criminalize homelessness were defeated in the 2025 session. However, experience from other states shows that Cicero will be back again soon. To avoid the misguided path of criminalization, Indiana policymakers must instead invest in short- and long-term solutions to increase the supply of safe, affordable housing and proven services for Hoosiers experiencing homelessness.

In addition, for yet another session, none of the bipartisan legislation to enforce Indiana’s habitability standards received a committee hearing. To highlight how Indiana’s refusal to enforce housing health and safety standards artificially decreases housing supply, in March, PI and HHNC partners held a press conference to release The Gap-Indiana 2025 report showing the state now has one of the lowest rates of affordable and available housing for vulnerable renters in the Midwest.

Community Development Resources

Indiana’s legislative session was rocked on April 16 with a revenue forecast to the State Budget Committee showing a $2.4 billion deficit and a gloomy economic outlook report citing tariffs, federal job layoffs, stock market declines, and weakened consumer spending. To mitigate the shortfall, legislators returned April 22 with a final budget agreement that cut an average 5% from state agencies and programs, entirely eliminated others, and scuttled several new proposals.

Unfortunately for Indiana’s community economic development sector, those budget cuts included axing the entirety of Indiana’s $1 million annual appropriation for Housing First programs that had previously been awarded to nonprofits on a competitive basis. In addition, the state’s Individual Development Account program was reduced from $609,945 to $579,448 annually. And unfortunately, a new proposed Home Repair Matching Grant Program that aligned with one of our PI Member Priorities, was in the Senate version of the budget at $250,000 annually, but was cut from the final bill.

However, the final budget did include $25 million for Housing Infrastructure Assistance Revolving Fund from HB 1005 (Rep. Doug Miller R-Elkhart) that legislators have previously acknowledged is meant to subsidize the development of market-rate housing. In light of the cuts to other housing programs, the need is even greater for Indiana to find a way to align available resources to increase the supply and stability of housing for low- and moderate-income Hoosiers.

Asset-Building and Consumer Protections

This session, Prosperity Indiana advocated for two policies to help right-size Indiana’s upside-down state tax system: Newborn Tax Credits and a Low-Income Property Tax Circuit Breaker.

The Newborn Tax Credits in SB 497 (Sen. Greg Walker R-Columbus) saw a great deal of success and momentum, especially for a brand-new proposal. The bill called for replacing the state’s current Dependent Child Exemption Deduction (which provides only $45 in tax relief) with a $500 refundable tax credit to the family of every newborn or adopted child, below 720% of the poverty line. The bill passed the Senate Tax & Fiscal Policy Committee and the full Senate unanimously, but was not heard in the House. Despite that, PI and A&O members had very positive discussions with legislators, setting the proposal up for future sessions.

And while property taxes dominated much of the public discussion during the session, the final legislation did not do much for the low- and moderate-income households and the organizations who serve them. Prosperity Indiana testified in support of including in SB 1 (Sen. Travis Holdman R-Markle) a Low Income Property Tax Circuit Breaker that applies to both homeowners and renters, modeled on Michigan’s Homestead Property Tax Credit. The proposal received support from lawmakers. However, the final bill included no such credit, leaves renters out, and provides no targeted relief to low-income households who bear the highest property tax burden as a share of their income.

On the consumer protections front, Prosperity Indiana and our Hoosiers for Responsible Lending partners were able to hold the line on the expansion of predatory payday lending and make significant improvements on the legislature sanctioning concerning new loan-like product. HB 1174 Charges for supervised loans (Rep. Jake Teshka R-North Liberty) would have created new loan products with excessive fees and interest, from small, short-term loans likely to lead to cycles of reborrowing to large, long-term debt traps like auto loans with unconscionable interest rates. The bill passed the House by a single vote, but with the help of letters from PI and HRL partners, it was pulled from the committee schedule in the Senate and died. HB 1125 Earned wage access services (Rep. Teshka) sanctions Earned Wage Access products that act like loans but are marketed as services. The bill, while still concerning, was improved greatly and passed following testimony from PI and HRL co-chair the Indiana Community Action Poverty Institute to install guardrails for the product, including: fee limits; default $0 tipping; no sharing data with payday lenders; limits on advertising; and maintaining a strong 'free' option.

With the 2025 session of the Indiana General Assembly now behind us, Prosperity Indiana will continue to advocate at the state and federal administrative level and with Congress to advance our Members’ priorities to rebuild housing and economic opportunity for all Hoosiers.

Housing Coalition Applauds Indiana General Assembly for Rejecting Criminalization of Homelessness for Third and Final Time this Session

Fri, 25 Apr 2025 03:55:53 GMT

INDIANAPOLIS, IN – Following the conclusion of Indiana’s legislative session, the Hoosier Housing Needs Coalition applauds the Indiana General Assembly for rejecting for the third and final time the efforts of out-of-state special interests to criminalize homelessness in Indiana.

The most recent rejection occurred just a day before the close of the 2025 session of the Indiana General Assembly, when the criminalization of homelessness language that had been inserted behind closed doors the previous day was removed from the Conference Committee Report for HB 1014 (Rep. Alex Zimmerman, District 67). Previously, a broader version of the criminalization language was introduced in HB 1662 (Rep. Michelle Davis, District 54), which failed when the bill was not called down for a final House vote by the February 20 deadline in the first half of the session. Later, an abbreviated version of the criminalization language was inserted via a House committee amendment into SB 197 (Sen. Aaron Freeman, District 32) without an opportunity for public testimony. That language was then removed in Conference Committee on April 17 following thousands of calls and messages from HHNC members and partners.

All three versions of the criminalization of homelessness language were backed by the Cicero Institute, an out-of-state special interest group responsible for pushing cookie-cutter legislation state to state with the same inflexible, misguided approach to homelessness. The binding feature of all three of Indiana’s criminalization bills was the requirement for local law enforcement to enforce a new Class C Misdemeanor to jail and fine vulnerable Hoosiers up to 60 days and $500 for sleeping outside in public, whether adequate housing or services are available or not. The broader version of the cookie-cutter legislation (like that found in HB 1662) also strips state and local funding for proven solutions to homelessness in order to create punitive forced homeless encampments. This wrong-headed criminalization approach has led to dehumanizing and dangerous outcomes in states like Kentucky that have passed this cookie-cutter legislation, including this past December when a pregnant Louisville woman was detained for ‘street camping’ while in labor.

The Hoosier Housing Needs Coalition thanks Indiana’s legislative leaders for three times rejecting this cruel and counterproductive path. The Coalition also thanks its 2,500-strong membership, partners, and regular Hoosiers for tirelessly reaching out to their state legislators to urge them to make the correct decision three times this session. And the Coalition gives special thanks to representatives of other stakeholder communities, including the Indiana Sheriffs Association, Helping Veterans and Families (HVAF), and the Indiana Association of Counties, for their public testimony and opposition to the criminalization of homelessness legislation.

After rejecting the wrong path of the criminalization of homelessness, the General Assembly now has the critical opportunity to address the underlying factors contributing to Indiana’s housing stability crisis, primarily the shortage of safe and affordable housing and resources for proven homelessness services. This opportunity comes as the General Assembly passed SB 142 (Sen. Liz Brown, District 15), which will helpfully expand the state’s eviction sealing program, but also passed a State Budget that zeros out the previous $1 million annual appropriation for Housing First, the successful approach to addressing homelessness.

Members of the Hoosier Housing Needs Coalition’s Steering Committee added these statements:

“Hoosiers we serve have told us in no uncertain terms - in surveys conducted across all 92 counties, through our advisory council, and through the Community Action Agencies - that housing is the top community need right now,” wrote Dr. Lauren Murfree, Policy Analyst for the Indiana Community Action Poverty Institute. “Too many Hoosiers are just a paycheck away from becoming homeless, and the efforts to add criminal penalties for experiencing homelessness that were attempted this session would have pushed those already homeless further into poverty. As one Hoosier shared, the mental and financial toll of Indiana’s housing crisis was, “costing [her] financially and mentally going from motel to motel not being able to save.” Criminal penalties would do nothing to address her needs or our housing crisis. We applaud the assembly for rejecting these efforts and hope future legislation will move the needle on our affordable housing crisis and job precarity, thereby preventing homelessness.”

“The attention paid to the housing crisis in Indiana this session is appreciated by Indiana United Ways,” wrote Brian Lohsl, Impact & Public Policy Strategist for Indiana United Ways. “The streamlined eviction sealing process passed in SB 142 will benefit Hoosier ALICE families (Asset Limited, Income Constrained, Employed) in their quest to find safe, stable, habitable housing. IUW further applauds the Indiana General Assembly for not advancing legislation that would have criminalized homelessness in certain situations. We understand the budget constraints the IGA had to manage this session, but with the increased understanding and urgency of the housing and homelessness crisis, it is unfortunate to see the Housing First funding removed from the final budget. United Ways throughout Indiana are committed to continuing to come to the table to find common sense solutions to the complex issues facing our communities. Updated ALICE information will be coming this summer to help guide elected officials when considering legislation that would affect the most vulnerable of their constituents as we know these issues will be considered in future sessions.”

“On any given night in Indiana, over 500 survivors of domestic violence are fleeing their homes in search of safety,” wrote Laura Berry, Executive Director of the Indiana Coalition Against Domestic Violence. “Domestic violence is a leading cause of homelessness in our state and the lack of safe and affordable housing results in survivors sleeping in their cars and on the street. Survivors should not have to choose between violence in their home or the risk of being arrested for seeking safety. The Indiana Coalition Against Domestic Violence applauds the Indiana General Assembly for not passing legislation that would criminalize homelessness.”

“Thank you to Indiana’s legislative leaders and members of the General Assembly for the hat trick of rejecting the out-of-state special interests pushing the criminalization of homelessness in Indiana three times during a single legislative session,” wrote Andrew Bradley, Senior Director of Policy and Strategy for Prosperity Indiana. “In these times of economic volatility, the most vulnerable Hoosiers and the community organizations who serve them can sleep a little better knowing their elected officials chose not to force local law enforcement to fine and jail people just for not being able to afford a place to lay their heads. Indiana must once and for all shake loose the wrong-headed approach of the Cicero Institute, which creates a road on which all paths inevitably lead back to charging homeless Hoosiers with Class C Misdemeanors and triggering an overload of our local jails, courts, and hospitals. Indiana policymakers should now take this critical opportunity to pursue short- and long-term solutions to the underlying cause of Indiana’s housing crisis: a shortage of safe, affordable homes that is among the worst in the Midwest.”

###

About the Hoosier Housing Needs Coalition:

Hoosier Housing Needs Coalition (HHNC) was formed by members of Indiana’s housing security advocacy community in April 2020 to support advocacy and education related to housing and homelessness prevention. HHNC convenes partners from across Indiana to advocate for immediate, medium- and long-term housing stability policy solutions and conduct education and research to achieve federal, state, and local policies.

Prosperity Indiana applauds removal of Criminalization of Homelessness language, urges Hoosiers to remain vigilant

Thu, 17 Apr 2025 23:54:31 GMT

INDIANAPOLIS, IN – Prosperity Indiana applauds Chairman Aaron Freeman (R-Indianapolis) and the members of the Conference Committee for SB 197 for removing from the bill language that would criminalize homelessness in Indiana. However, Prosperity Indiana urges Hoosiers to remain vigilant and warns that the proponents of this dangerous language are actively seeking a new legislative home in the final week of the session of the Indiana General Assembly.

Following thousands of calls and messages to the General Assembly from Prosperity Indiana and the Hoosier Housing Needs Coalition's 'Zombie Legislation Action Alert', Chairman Freeman said during the Conference Committee hearing that this was the issue he had heard about the most this session. And while the Committee stripped the criminalization language from the bill. Senator Ron Alting (R-Lafayette) (who had previously pledged to remove the language) made an impassioned speech urging Hoosiers and his fellow legislators to beware of efforts to bring this legislation back in the final days of the session.

This 'zombie' legislative language has now failed in HB 1662 and SB 197, and has never been allowed public testimony in any bill that is still alive. This legislation makes being too poor to afford housing a Class C Misdemeanor punishable by up to 60 days in jail and a $500 fine. This is not only cruel, it will further increase the barriers to housing for those in need by involving them in the judicial system. The zombie legislation is opposed by law enforcement, including the Indiana Sheriff's Association; veterans' groups, including Helping Veterans and Families (HVAF); and many housing and homelessness organizations, including Prosperity Indiana and the Hoosier Housing Needs Coalition.

"It was a relief to see the criminalization of homelessness language removed from SB 197, although we know the work isn't done because that language could still reappear in another bill," said Andrew Bradley, Senior Director of Policy and Strategy for Prosperity Indiana. "Members of the housing, law enforcement, veterans', and faith communities agree: the criminalization of homelessness debate should be over for the 2025 session. Bringing back this zombie language would be bad process, as has this issue never been allowed public testimony in the Senate, or in any bill that's still alive. But more importantly, it's bad policy to create a new Class C Misdemeanor and force local law enforcement to jail Hoosiers up to 60 days and fine them $500 for not being able to afford a place to lay their head, without any promise of services or housing on the other side."

Prosperity Indiana and the Hoosier Housing Needs Coalition will continue to monitor bills moving through the session and advocate that NO BILL BECOME LAW that includes the Criminalization of Homelessness language. We urge all Hoosiers to reach out to their House and Senate lawmakers with our ZOMBIE BILL ACTION ALERT.

###

About Prosperity Indiana

The Indiana Association for Community Economic Development d/b/a Prosperity Indiana builds a better future for our communities by providing advocacy, leveraging resources, and engaging an empowered network of members to create inclusive opportunities that build assets and improve lives. Since its founding in 1986, Prosperity Indiana’s network has grown to nearly 200 organizations, representing thousands of practitioners statewide from the public, private, and nonprofit sectors.

Hoosier Housing Needs Coalition Decries Criminalization Amendment Added to SB 197 as “the Wrong Path for Homelessness in Indiana”

Tue, 08 Apr 2025 10:31:37 GMT

INDIANAPOLIS, IN – The Hoosier Housing Needs Coalition expresses extreme disappointment and alarm over language added to SB 197 at the very last minute, which would charge people experiencing homelessness with a Class C Misdemeanor merely for sleeping outside. This language was amended into the bill during a committee hearing without public notice or the opportunity for public testimony or input. The Coalition urges lawmakers to quickly remove this Class C Misdemeanor from SB 197 and to abandon any future efforts to criminalize homelessness.

During the final meeting of the House Judiciary Committee on April 7, the committee added Amendment #6 (titled ‘Use of public land’) to a bill on an unrelated and not germane topic, the Unsafe building law. The bill was then passed out of committee by a 7-3 vote with no opportunity for public testimony.

SB 197 now “[m]akes it a Class C misdemeanor for a person to use public property of the state or a political subdivision for purposes of sleeping or camping”, whether there is housing and services available or not. A Class C Misdemeanor carries a maximum penalty of up to 60 days in jail and a $500 fine.

Furthermore, the bill puts the burden of enforcing this new crime on local law enforcement who are already experiencing staffing shortages and jail overcrowding. The bill would also place an undue burden on smaller and more rural counties, as nearly half of all counties reported to the Indiana Housing and Community Development Authority in 2024 that they have insufficient resources to serve unhoused people.

The Hoosier Housing Needs Coalition firmly believes that criminalization of homelessness is the wrong path to respond to homelessness in Indiana. It does harm and in cities that have implemented making sleeping outside a crime and further exacerbates the homelessness issue. This approach ties the hands of local jurisdictions to do what they need to do to effectively address unsheltered homelessness. Failing to allow public testimony on this bill rejects the Hoosier value of transparency, and this issue is not germane to the bill to which it was inserted. Bottom line: our counties need the resources to help those experiencing homelessness, and this amendment places undue burden on local law enforcement, jails, and hospitals that are not equipped to play the role of homelessness experts in this misguided approach. Instead, we should rely on street outreach professionals, clinicians, and those working every day to effectively serve those experiencing homelessness.

"We have been at the table and more than willing to work with legislators to offer common sense solutions to effectively address unsheltered homelessness,” said Dr. Chelsea Haring-Cozzi, Executive Director of CHIP and a HHNC Steering Committee member. “Criminalization is not a common-sense solution - it diverts critical resources away from services and housing and only prolongs someone's homelessness. There is no evidence that it has worked anywhere else and an abundance of evidence that housing with robust services does. Strong and safe communities start with stable housing. Let's make the smart and right decisions for our most vulnerable neighbors. Fines and jail are not the right nor smart solution."

"The 'housing wage' needed to afford to a modest home is rising much faster than the average renter's wages, pricing too many Hoosier families out of housing and into homelessness," said Andrew Bradley, Senior Director of Policy and Strategy for Prosperity Indiana and a HHNC Steering Committee member. "Criminalizing homelessness not only adds a criminal record to the Hoosiers whose jobs no longer pay the rent, but it also puts the burden of enforcement on local law enforcement while draining community services. Lawmakers must remove the Class C Misdemeanor from SB 197 and instead focus on strategies to align funding and resources to restore the supply and affordability of housing in Indiana."

The Hoosier Housing Needs Coalition calls on lawmakers to remove the Class C Misdemeanor from SB 197 and to avoid the path of the criminalization of homelessness in any future legislation. The Coalition remains committed to continuing the necessary work of ending homelessness and stands ready to assist in policy efforts to that end, but this is not the answer.

###

About the Hoosier Housing Needs Coalition:

Hoosier Housing Needs Coalition (HHNC) was formed by members of Indiana’s housing security advocacy community in April 2020 to support advocacy and education related to housing and homelessness prevention. HHNC convenes partners from across Indiana to advocate for immediate, medium- and long-term housing stability policy solutions and conduct education and research to achieve federal, state, and local policies.

The Gap Indiana: Hoosier Renters Face a Dire Shortage of Affordable Homes and High Cost Burdens Amid Unprecedented Attacks on Housing Assistance

Thu, 13 Mar 2025 14:00:00 GMT

Hoosier Renters Face a Dire Shortage of Affordable Homes and High Cost Burdens Amid Unprecedented Attacks on Housing Assistance

INDIANAPOLIS, IN – In 2025 Indiana has a gap of 137,427 affordable and available homes that are needed for the state’s 220,399 extremely low-income (ELI) households. Indiana's rate of fewer than 38 rental homes available for every 100 of the most vulnerable Hoosier households is below average for the Midwest and among all U.S. states. In addition, more than 74% of Indiana’s ELI renter households spend half or more of their incomes on housing costs. This rate of severe housing cost burden is the 3rd-highest rate in the Midwest and 10th-highest among all U.S. states.

These are findings from a new report produced by Prosperity Indiana and the National Low Income Housing Coalition (NLIHC). The report also finds a national shortage of 7.1 million affordable and available rental homes for extremely low-income renter households – those with incomes at or below the poverty level or 30% of their area median income, whichever is greater - resulting in just 35 affordable and available rental homes for every 100 extremely low-income renter households nationwide. The report and findings from The Gap: A Shortage of Affordable Homes come amid unprecedented attacks on federal housing assistance programs and the agencies that administer them.

Read the full report on Housing4Hoosiers.org/2025/03/13/Gap-Report-2025/ or by clicking here.

Prosperity Indiana Applauds State House of Representatives for Killing Homelessness Criminalization Bill, Warns It’s Not Over Yet

Fri, 21 Feb 2025 12:35:36 GMT

FOR IMMEDIATE RELEASE

CONTACT: Hale Crumley | Policy Manager | hcrumley@prosperityindiana.org

INDIANAPOLIS, IN – On February 20, Representative Michelle Davis’s (District 58) House Bill 1662 ‘State and Local Policies on Homelessness’ was called down to the House floor for third reading and was passed on by the bill author. Because that day was the third reading deadline, House Bill 1662 is now technically a dead bill. This is cause for cautious celebration amongst the hundreds of Prosperity Indiana members and Hoosier Housing Needs Coalition partners who have consistently and overwhelmingly risen up in opposition to this bill, which would have criminalized the act of being homeless in public.

“When a bill is scheduled for a vote but gets passed on, it’s often because the bill does not have the support needed to move forward in the legislative process. We believe this language was right to not pass the House of Representatives because it is extreme, illogical, and even counterproductive to solving homelessness,” says Hale Crumley, Policy Manager with Prosperity Indiana. “Prosperity Indiana is extremely grateful to our members and partners for making their thoughts known to their state legislators through testimony, calls, and messages, and we are similarly grateful to the members of the House for listening to Hoosier experts instead of out-of-state thinktanks.”

While House Bill 1662 is no longer in play as a standalone bill, it is likely that the lobbyists fighting for the legislation will work to find another bill that the language can be inserted into via an amendment. This is a relatively common practice at the Indiana General Assembly, hence the saying, “It’s not over until Sine Die,” referring to the final adjournment of the legislative session which will take place in late April.

Nonetheless, the defeat of House Bill 1662 in the House is a meaningful victory for the advocates who worked closely on it. Dr. Chelsea Haring-Cozzi, Executive Director of the Coalition for Homelessness Intervention and Prevention adds, “Today was an important step in our collective work to focus on real solutions to unsheltered homelessness. We are so proud of how the community showed up to advocate for our neighbors experiencing homelessness and demanded we do better. We stand together with the Hoosier Housing Needs Coalition and stand firm in our belief and in the evidence that housing and services is how we end homelessness. Fining and jailing vulnerable people for systemic failures is never the solution.”

The House and the Senate will be taking the week of February 24 – 28 off to rest, recuperate, and reassess where things lay now that an important bill deadline has passed. During this time, many policymakers will return to their home districts across the state where practitioners and citizens will have the chance to continue to apply pressure so that the homelessness criminalization legislative language stays dead. Check here to find nearby opportunities to engage with your legislators.

“No matter where you are in Indiana, House Bill 1662 would have affected your community and the most vulnerable people in it. The official bill may be dead for now, but we all need to remain alert until the end of the legislative session,” summarizes Jennifer Layton, President and CEO of Lafayette Transitional Housing Center.

###

About Prosperity Indiana

About the Hoosier Housing Needs Coalition

The Hoosier Housing Needs Coalition (HHNC) was formed by members of Indiana’s housing security advocacy community in April 2020 to support advocacy and education related to housing and homelessness prevention. HHNC convenes partners from across Indiana to advocate for housing stability & affordability, tenant protections, and housing equity.

Prosperity Indiana Unveils 2025 Policy Agenda

Wed, 08 Jan 2025 15:10:00 GMT

Rebuilding Housing and Economic Opportunity for all Hoosiers

INDIANAPOLIS, Ind. January 8, 2025 — Prosperity Indiana, a leading advocate for affordable housing and community development, announced its 2025 Policy Agenda, designed to address the pressing challenges facing Hoosiers in the areas of housing attainability and economic opportunity. As Indiana reaches a crossroads, the state faces a distinct disadvantage compared to many Midwest neighbors, with declining housing stock, limited economic opportunities, and increasing disparities. The 2025 Policy Agenda provides a strategic and comprehensive approach to rebuild housing stability and foster equitable economic development across the state.

With only 34 affordable and available homes for every 100 extremely low-income renter households – the second-lowest rate in the Midwest – and an 11% increase in homelessness, the need for action is urgent. Homeownership rates have declined, particularly among Black Hoosier households, and rising eviction rates have led to growing housing instability. Additionally, the state's economic mobility is decreasing, as more of Indiana's largest occupations no longer meet the wage needed to afford a modest two-bedroom home. The 2025 Policy Agenda outlines critical steps to address these issues at the state, federal, and local levels.

Urgent & Emerging Policy Priorities

Increase the supply, access, and habitability of affordable housing in rental and sales, and act to combat growing signs of housing instability among current renters and homeowners.
Reverse state preemptions that reduce local options on policies such as tenant protections, source of income protections, inclusionary zoning, affordable housing development, and revenue for struggling communities.
Defend against attacks on diversity, equity, inclusion, and justice that reduce barriers to homeownership, wealth building, and policies that support environmental, social, and governance progress.
Support policies that increase wealth-building (i.e. the Child Tax Credit and Individual Development Accounts) and decrease wealth-stripping (i.e. through predatory lending, medical debt, and junk fees) for individuals and communities.
Advocate for increased investments for Community Economic Development organizations and equitable tax policies in federal and state budgets in 2025.
Keep Hoosiers stably housed in order to reverse increasing rates of homelessness and housing instability, and increase investments in proven solutions including Housing First.

Affordable Housing Priorities

Support the rehabilitation and preservation of Indiana’s current stock of affordable housing through owner-occupied rehabilitation and the expansion of low-income housing tax credits.
Increase the supply of affordable housing for the communities and populations most in need, including by protecting the housing stock from purchase and neglect by out-of-state corporate investors.
Address the increasing costs of producing affordable and accessible housing, including rising construction and insurance costs.
Strengthen tenant protections for Hoosiers, including through expansion of abilities to enforce housing health and safety standards efficiently and timely.
Work to end housing discrimination and ‘NIMBYism’, promote more inclusive communities, and create new pathways to achieve and sustain homeownership including through improved fair housing and inclusionary zoning standards.

Community Development Resources

Expand funding and access for homeowner repair programs for seniors, families with disabilities, and long-time residents to combat displacement and loss of wealth-building.
Increase the scope and availability of tax credit resources to expand affordable housing for low-income households and make it easier for community economic development organizations, including smaller and non-profit entities, to qualify and participate.
Support the introduction of new community development resources for Indiana, such as a CDFI fund, New Market Tax Credit, or Community Investment Tax Credit to provide flexible capital for impactful community development efforts.
Reduce Indiana’s disproportionate property tax burden on low-income households and on non-profit community economic development organizations.
Enhance opportunities and reduce barriers impacting community land trust programs to permanently preserve affordability and create homeownership opportunities for lower-income families.
Reform Indiana’s tax sale process and increase resources for land banks to address vacant, abandoned, and deteriorated properties while protecting homeowner equity.

Asset Building and Consumer Protections

Support policies that increase equitable wealth-building (i.e. Child Tax Credits and Child Savings Accounts, and down payment assistance).
Reduce the ‘cliff effect’ that occurs when public assistance benefits are suddenly and unexpectedly reduced or eliminated.
Establish a maximum 36% APR rate cap for payday loans at the state and federal levels.
Promote healthy communities and protect families from the damages of medical debt, including by strengthening consumer protections, expanding enrollment for Medicaid, and/or requiring hospitals to adopt robust Financial Assistance Policies.
Encourage robust state and federal consumer protection rules and regulations, including through the Consumer Financial Protection Bureau's consumer education, rules, enforcement, and compliance.

Prosperity Indiana urges policymakers at all levels to consider these critical priorities as they shape legislation and initiatives for the benefit of Hoosier communities. For more information on Prosperity Indiana's 2025 Policy Agenda, visit ProsperityIndiana.org/Policy-Priorities or contact Senior Director of Policy & Strategy Andrew Bradley.

###

About Prosperity Indiana

Prosperity Indiana is a not-for-profit 501(c)3 organization formed in 1986 as the Indiana Association for Community Economic Development. PI is a network of approximately 200 organizations and individual members committed to advancing community economic development through our values of eliminating barriers, ensuring everyone has better opportunities to pursue the American Dream and prosperity for all.

Visit the Prosperity Indiana website and follow @ProsperityInd on Twitter.

Candidates Answer Prosperity Indiana’s 2024 Housing and Economic Opportunity Election Questionnaire

Wed, 16 Oct 2024 13:35:25 GMT

INDIANAPOLIS, IN – Candidates for Indiana Governor, U.S. Senate, and U.S. House of Representatives have detailed their plans to address Indiana’s most challenging housing and economic opportunity issues in their answers to Prosperity Indiana’s 2024 Housing and Economic Opportunity Election Questionnaire.

Prosperity Indiana, the only statewide network for Indiana’s community economic development organizations, released the questionnaire as part of the association’s ‘Our Homes, Our Votes Indiana 2024’ nonpartisan voter education and candidate engagement campaign. The content of the questionnaire was adapted from the national Our Homes, Our Votes campaign's candidate engagement resources, in consultation with the Prosperity Indiana Policy Committee and the steering committees of the Hoosier Housing Needs Coalition and the Indiana Assets & Opportunity Network. All candidates for Indiana Governor, U.S. Senator and U.S. House seats were contacted and invited to provide their answers to questions addressing issues of housing stability and affordability, pathways to achieving and sustaining homeownership, and equitable economic opportunity policies. At least two candidates for each level of office (Governor, Senator, and U.S. House) provided answers, including responses from four of Indiana’s nine Congressional districts. Responses reflect answers from Republican, Democratic, Libertarian, and independent candidates. All candidates’ responses are presented below in full.

In addition to the questionnaire responses below, the Republican, Democratic, and Libertarian candidates for Indiana Governor responded to questions about housing affordability and homeownership inspired by ‘Housing Hoosiers’, the policy brief written by Prosperity Indiana for the Indiana University Public Policy Institute’s 2024 Gubernatorial Candidates Forum series.

Indiana Governor

Mike Braun – see responses

Jennifer G. McCormick – see responses

Donald Rainwater – did not respond

Christopher Ryan Stried – see responses

U.S. Senate

Antonio Xavier Alvarez – did not respond

Jim Banks – did not respond

Phillip D. Beachy (Phil) – did not respond

Andrew Horning – see responses

Valerie McCray – see responses

U.S. House of Representatives

District 1

Dakotah Miskus – did not respond

Frank J. Mrvan – did not respond

Randy Niemeyer – did not respond

District 2

Lori A. Camp – see responses

William E. Henry – did not respond

Michael John Hubbard – did not respond

Rudy Yakym – did not respond

District 3

Kiley M. Adolph – did not respond

Jared Lancaster – did not respond

Marlin A. Stutzman – did not respond

District 4

Jim Baird – did not respond

Ashley Groff – did not respond

Derrick Holder – did not respond

District 5

Deborah A Pickett – did not respond

Lauri Shillings – did not respond

Robby Slaughter – see responses

Victoria Spartz – did not respond

District 6

James Michael Sceniak – did not respond

Jefferson Shreve – did not respond

Cynthia (Cinde) Wirth – did not respond

District 7

André Carson – did not respond

Rusty Johnson – see responses

John P. Schmitz – did not respond

District 8

K. Richard Fitzlaff – did not respond

Erik Hurt – did not respond

Mark Messmer – did not respond

District 9

Russell (Russ) Brooksbank – did not respond

Erin Houchin – did not respond

Timothy (Tim) Peck – did not respond

###

About Prosperity Indiana

Prosperity Indiana Informing Indiana Governor’s Race on Housing, Property Tax Issues

Tue, 01 Oct 2024 20:35:58 GMT

Prosperity Indiana Informing Indiana Governor’s Race on Housing, Property Tax Issues

INDIANAPOLIS, IN – As part of its ongoing Our Homes, Our Votes initiative, Prosperity Indiana and partners have contributed to voter education and candidate engagement in the race for Indiana Governor. This includes a PI-authored report on ‘Housing Hoosiers’ for the Indiana University Public Policy Institute’s Gubernatorial Candidates Forum, and a ‘Hoosier Property Taxes 101’ event co-hosted with the Indiana Fiscal Policy Institute that included analysis from state and national experts on the candidates’ property tax Ireform proposals.

Image: Indiana University Public Policy Institute

From the Indiana University Public Policy Institute’s news release: “[The report ‘Housing Hoosiers’] authored by Prosperity Indiana, explores housing in Indiana and provides policy recommendations for improving housing security by addressing housing availability, state housing laws, housing instability, and homelessness.

Indiana has a deficit of nearly 140,000 affordable and available rental homes. There are 34 units available for every 100 of the lowest-income households—the second-lowest rate in the Midwest.

More than 90% of Hoosier households with yearly incomes of more than $150,000 are homeowners, while less than 40% of Hoosier households earning less than $20,000 annually own their homes.

Hoosiers working full time would need to earn, on average, $22.07/hour to afford a modest two-bedroom apartment, up $3.07 from 2023. But, in Indiana, the average renter makes only $17.92/hour, which increased just six cents from 2023.”

The report is part of PPI’s Decision 2024: Your Voices, Your Future project, and helped inform their Indiana Gubernatorial Candidates Forum meant to help voters learn where each candidate stands on our most important issues without distractions that come with debates.

Hear the candidates for Governor answer questions inspired by PI’s report, including on issues of affordable renting and homeownership. Watch the full Forum here and see coverage of candidates’ housing answers from Indiana Public Media.

Image: Indiana Fiscal Policy Institute

In addition, PI co-hosted the event Hoosier Property Taxes 101 - A Historical Perspective and Conversation About Where We Go From Here with the Indiana Fiscal Policy Institute and hosted by the Indiana Farm Bureau. Legislators, advocates, and community members in attendance learned how Indiana's tax policy compares to other states and how proposed property tax reform policies will impact Hoosier taxpayers and local government services in the future. Panel experts from Purdue University, the Institute on Taxation and Economic Policy, and the Indiana Association of REALTORS discussed original research and provided their analysis on the property tax proposals of the candidates for Indiana Governor.

Find the discussion slides, reports, and other event resources on IFPI’s publications page, and see coverage from the event from the Indiana Capital Chronicle and Indiana Public Broadcasting News.

Prosperity Indiana releases new housing affordability data for legislative districts as part of Our Homes, Our Votes 2024 nonpartisan voter education and candidate engagement campaign

Tue, 24 Sep 2024 13:49:39 GMT

INDIANAPOLIS, IN – To help members and partners elevate issues of housing and economic opportunity in the 2024 election, Prosperity Indiana has released a set of new voter education and candidate engagement tools. These tools include new data on Indiana’s housing affordability crisis made available for the first time at the state House and Senate district level. These resources are part of Prosperity Indiana’s partnership with the National Low Income Housing Coalition’s Our Homes, Our Votes 2024 campaign.

Our Homes, Our Votes is a nonpartisan campaign to register, educate, and mobilize low-income renters and affordable housing advocates to vote. Renters, especially low-income renters, are underrepresented among voters. To build the political will for housing solutions, it is critical that organizations that work directly with low-income renters--including nonprofits, housing providers, and tenant associations--mobilize renters and other low-income people to vote. Prosperity Indiana is Indiana’s Our Homes, Our Votes affiliate organization.

The Our Homes, Our Votes resources below are meant to aid Indiana’s community economic development organizations, coalition partners, and other community members in voter registration, education, and candidate engagement. A pair of webinars and related slides from September 2024 provide an overview of the resources available. In addition, Prosperity Indiana has sent a questionnaire on housing and economic opportunity issues to all candidates for office running for Indiana Governor and U.S. House and Senate seats, and will publish the results at ProsperityIndiana.org in mid-October.

Webinars

Nonpartisan Voter Registration: A How-To for IN Nonprofits Slide decks: League of Women Voters, Prosperity Indiana

Nonpartisan Candidate Engagement: A How-To for IN Nonprofits Slide deck: National Low Income Housing Coalition and Prosperity Indiana

Data Resources

NEW The Gap-Indiana 2024 State Legislative District Maps

The Gap-Indiana 2024 state report

Indiana Congressional District Housing Profiles

Out of Reach-Indiana 2024

Who Pays?-Indiana 2024

Tools & Materials

Prosperity Indiana Our Homes, Our Votes Candidate Questionnaire

Our Homes, Our Votes national campaign resources

Federal Voter Registration Form: English, Haitian Creole, Spanish

2024 Election Calendar Brochure

2024 Election Checklist

2024 Election Info Brochure

Craft Your Message Worksheet

###

About Prosperity Indiana

Prosperity Indiana & HHNC Release Housing First Toolkit to Fight the Criminalization of Homelessness

Thu, 11 Jul 2024 14:45:25 GMT

Prosperity Indiana and the Hoosier Housing Needs Coalition are excited to announce the launch of a brand new resource in our ongoing efforts to address homelessness in Indiana. Policy Manager Hale Crumley has developed a comprehensive toolkit aimed at equipping advocates and partners with the necessary tools and knowledge to tackle an emerging and pressing issue: policies that make it even harder to be homeless than it already is.

At the heart of this toolkit is a training series that focuses on the housing first approach—a proven solution to homelessness—and the challenges it faces, including those posed by out-of-state organizations like the Cicero Institute. Originally conducted live, these training sessions are now accessible on YouTube, offering a flexible learning option to complement the toolkit. We've also created an abbreviated version of the toolkit to serve as an informational packet you can give directly to legislators when advocating.

Prosperity Indiana’s goal with this initiative is to empower Hoosier advocates to engage constructively with state and local policymakers on these topics. By arming ourselves with a deep understanding of the proven housing first approach, we aim to steer clear of policies that criminalize homelessness and instead foster environments that prioritize supportive and sustainable solutions.

To access this resource and join us in advocating for change, view the toolkit here. Together, we can make a difference in ending homelessness and building a more inclusive Indiana.

View the Toolkit here.

Supreme Court Rules the Constitution Does Not Protect Homeless Hoosiers

Fri, 28 Jun 2024 14:05:43 GMT

INDIANAPOLIS, IN – In a disappointing ruling, the U.S. Supreme Court today ruled that arresting or fining homeless individuals for sleeping outside when they have nowhere else to go does not violate the Constitution. This ruling sets a dangerous precedent for the thousands of Hoosiers experiencing homelessness in our state and for all the families who are just one missed paycheck away from homelessness.

“CHIP is deeply saddened and angered by the Supreme Court ruling that it is ok to arrest or fine people experiencing homelessness for sleeping outside when there is no alternative,” said Dr. Chelsea Haring-Cozzi, the Executive Director of CHIP, the Coalition for Homelessness Intervention & Prevention, and a Prosperity Indiana member. “This sets a dangerous precedent and will only worsen homelessness in cities across the country. Homelessness is not a criminal issue and should not be addressed as such. We call on our local and state officials to focus on housing solutions and to not be swayed by this ruling. We must do the smart and right thing here in Indiana for our most vulnerable Hoosiers,” said Haring-Cozzi.

This decision makes it easier to jail or fine homeless people for sleeping outside, which will exacerbate homelessness. Communities must now work even harder to focus on housing and other proven solutions to homelessness, despite the ruling. It is critical to understand that punitive measures like jails and fines only worsen the situation.

“The increase of Hoosiers experiencing homelessness is directly correlated with the rising cost to afford rent, which takes $22.07 per hour in 2024, up $3 in just the past year. At the same time, the supply of affordable and available rental housing has declined in Indiana to only 34 affordable and available units for every 100 extremely low income households, the second lowest rate in the Midwest,” said Andrew Bradley, Senior Director of Policy and Strategy at Prosperity Indiana.

“In light of the Supreme Courts’s decision in Johnson v. Grants Pass, it’s clear that Indiana’s state and local policymakers must not respond to the increase in housing cost and the decrease in supply by punishing and criminalizing vulnerable Hoosiers experiencing homelessness. Instead, Indiana’s elected officials must work together to increase the supply of safe, affordable housing, preserve the housing stock we already have, and invest in local practitioners of the proven Housing First model to permanently reduce homelessness,” said Bradley.

Despite this setback, Prosperity Indiana and its members remain committed to supporting all Hoosiers amidst our worsening housing crisis.

###

About Prosperity Indiana

Affordable Housing is Now Out of Reach for Two-Thirds of Indiana's Top Occupations, Wages Stagnant for Hoosier Renters in 2024

Thu, 27 Jun 2024 13:00:01 GMT

INDIANAPOLIS, IN – To afford a modest, two-bedroom apartment at fair market rent in Indiana, full-time Hoosier workers need to earn $22.07 per hour. This is Indiana’s “2024 Housing Wage” according to Out of Reach, a report published jointly today by the National Low Income Housing Coalition (NLIHC) and Prosperity Indiana.

Released annually, Out of Reach illuminates the gulf between wages and what people need to earn to afford their rent. The report reveals that affordable rental homes are out of reach for millions of low-wage workers and other families. The report’s “Housing Wage” is an estimate of the hourly wage full-time workers must earn to afford a rental home at fair market rent without spending more than 30% of their incomes. According to this year’s report, the national 2024 Housing Wage is $32.11 per hour for a modest two-bedroom rental home and $26.74 for a modest one-bedroom rental home.

“The new Out of Reach 2024 report finds that Indiana’s 2024 Housing Wage of $22.07 needed to afford a two-bedroom rental unit is an increase of $3.07 per hour above the 2023 Housing Wage. However, the average Hoosier renter’s wage of $17.92 per hour in 2024 increased by only $0.06 over the past year,” said Aspen Clemons, Executive Director at Prosperity Indiana. “To address Indiana’s growing housing affordability crisis, state and local policymakers must bridge the growing gap between rents and incomes by using all available policy tools,” said Clemons.

“For the first time in recent history, less than a third of Indiana’s Top 20 largest occupations pay wages sufficient to meet the state’s Housing Wage,” said Andrew Bradley, Senior Director of Policy and Strategy at Prosperity Indiana. “Only a quarter of Hoosiers working in the state’s most popular occupations earn enough on average to afford rent. This is not helping Hoosiers get ahead. With the cost of housing increasingly out of reach for Indiana families, we need coordinated efforts by our federal, state, and local policymakers to raise wages and increase the supply of safe, stable, and affordable housing for all Hoosiers,” said Bradley.

While the Housing Wage needed to afford a two-bedroom unit rose by 16% from 2023 to 2024, Indiana’s average renter wage increased by only $0.07 or 0.3% during the same period. The two-bedroom Housing Wage is higher than the average renter wage in 88 of Indiana’s 92 counties, 25 of 26 metro areas, and in the state’s combined nonmetro areas.

Download the Out of Reach-Indiana state and local data page.

Download Indiana’s Congressional District Housing Profiles.

The Housing Wage in Indiana has worsened, taking Indiana from the 43rd-least affordable state in the nation in 2021 to the 34^th- least affordable in 2024. Among Midwest states, Hoosier renter wages remain persistently behind the average of the region. In 2023, the estimated average Hoosier renter wage of $17.92 was $0.78 an hour lower than the $18.70 average renter wage across all 12 Midwest states. The typical Hoosier renter working full time now makes $1,622 less each year than their average Midwest counterpart, or nearly 1.5 times the cost of a month’s rent for a two-bedroom rental at the fair market rent of $1,148.

Out of Reach 2024 also finds that 14 of the Indiana’s 20 most common occupations now pay median wages that are less than what a full-time worker needs to afford a modest two-bedroom rental home at the state’s average fair market rent, up from 10 occupations in 2023. The top occupations paying less than Indiana’s Housing Wage employ 843,720 working Hoosiers (up from 652,210 in 2023), 76% of the total employed in the state’s 20 largest occupations (up from 57% in 2023), and more than a fifth of the state’s total workforce. These poorly paid occupations are frequently held by women, Black and brown Hoosiers, and others making up Indiana’s extremely low-income renter households. For example, the median hourly wage for the vital work performed by home health and personal care aides in Indiana is $14.79 – almost 8 dollars less than the full-time wage of $22.07 needed to afford a two-bedroom rental home at the fair market rent.

Out of Reach 2024 also reveals that Hoosiers working at the minimum wage must work longer hours each week to afford housing than the average U.S. minimum wage worker. When factoring in higher state and county-level minimum wages, the typical minimum-wage worker in the U.S. must work 113 hours per week (2.8 full-time jobs) to afford a two-bedroom rental home at fair market rent, or 95 hours per week (2.4 full-time jobs) to afford a one-bedroom rental home at the fair market rent. By contrast, Indiana sets the state’s minimum wage at the federal floor of $7.25 per hour – a wage that has remained unchanged since 2009 – and preempts local governments from raising wage standards above this floor. Working at the minimum wage of $7.25 in Indiana a wage earner must now work 122 hours per week (3 full-time jobs) to afford a two-bedroom apartment and work 101 hours (2.5 full-time jobs) per week to afford a one-bedroom apartment. This means Hoosiers making minimum wage must work 468 hours more per year than the typical American worker in order to afford housing.

With the cost of rent growing further out of reach for those with the lowest incomes, and absent an adequate housing safety net, it is no surprise that homelessness has been on the rise. Existing research shows a strong connection between housing costs and homelessness in the U.S. The annual Point-In-Time count conducted by the U.S. Department of Housing and Urban Development found that approximately 653,000 people were experiencing homelessness in January 2023 – the highest number that has ever been recorded through the count and a 12% rise over the previous year. In Indiana, the 2023 Point in Time Count conducted by the Indiana Balance of State (BOS) Continuum of Care (CoC), encompassing all counties in Indiana except Marion County, counted 4,398 Hoosiers experiencing homelessness in 3,363 households across all counties except Marion County. In addition, CHIP counted 1,619 individuals experiencing homelessness in their 2023 Indianapolis Point in Time Count. Out of Reach 2024 sheds light on one of the primary causes of increasing homelessness by uncovering the extreme discrepancies between wages and rents.

The report points to a number of federal policy prescriptions to address the affordable housing and homelessness crisis, including two authored by Indiana Senator Todd Young. Congress must prioritize long-term housing solutions, such as Housing Choice Vouchers (HCVs), that address the gap between incomes and rents documented in the report. The “Ending Homelessness Act of 2023,” for example, would ensure rental assistance vouchers are universally available to all eligible households in need of assistance. Congress must also invest in solutions to expand and preserve the supply of affordable housing by passing the “Housing Crisis Response Act of 2023” and reduce the power imbalance between landlords and tenants by enacting federal renter protections.

Senator Young’s bipartisan “Family Stability and Opportunity Vouchers Act of 2023” would create 250,000 new housing vouchers targeted to low-income families with young children and provide mobility counseling services to help families find housing options in neighborhoods of their choice. And Senator Young’s soon-to-be-reintroduced “Eviction Crisis Act” would build on the success of Indiana’s Emergency Rental Assistance program and establish a permanent national housing stabilization fund for renters facing temporary financial setbacks. Prosperity Indiana has joined 75 organizations in a letter encouraging Senator Young to work with his colleagues on the Senate Banking Committee to advance these bills as part of a bipartisan housing legislation package currently under consideration by the Committee.

Prosperity Indiana and the Hoosier Housing Needs Coalition also delivered a letter with the signatures of nearly 500 Indiana organizations and individuals urging Governor Eric Holcomb to create and convene a Commission on Housing Safety, Stability, and Affordability to bring together state agencies, courts, local governments, and other stakeholders to align funding and advance policy solutions. The Indiana General Assembly should also invest in incentives to develop new housing affordable to low-income renters, preserve the state’s existing housing stock, and undo preemption of local governments’ ability to strengthen housing standards and increase fair and affordable housing options.

“Housing is a basic human need and should be regarded an unconditional human right,” said NLIHC President and CEO Diane Yentel. “This year’s Out of Reach report shows that despite rising wages, cooling inflation, and low unemployment, low-wage workers and other renters continue to struggle with the high cost of rent. Addressing the challenge requires long-term federal investments in affordable housing. As evidenced during the COVID-19 pandemic, federal policies and resources play a pivotal role in establishing a robust housing safety net, preventing evictions and homelessness, and mitigating housing instability among renters with the lowest incomes. Likewise, federal renter protections are needed to ensure decent, safe, and accessible living conditions for tenants around the country.”

For additional information, and to download the report, visit: http://www.nlihc.org/oor

###

About Prosperity Indiana

About NLIHC

Nearly 500 Sign Letter Urging Govenor Holcomb to Create Commission on Housing Safety, Stability, and Affordability

Mon, 10 Jun 2024 13:05:01 GMT

INDIANAPOLIS, IN – On June 10, Prosperity Indiana and the Hoosier Housing Needs Coalition delivered a letter signed by nearly 500 Hoosier organizations and individuals urging Governor Eric Holcomb to create and convene a Commission on Housing Safety, Stability, and Affordability to address Indiana’s worsening housing crisis.

485 unique Indiana organizations and individuals, ranging from housing providers, developers, and investors; to homelessness prevention specialists, community service organizations, and churches and faith-based groups; to ordinary Hoosiers from rural, urban, and suburban communities spanning 41 Indiana counties, joined together to sign the letter urging Governor Holcomb to issue an executive order creating a Commission to act on the state’s shortage of safe, stable, and affordable homes.

The letter acknowledges key steps taken by the Holcomb Administration, including the creation of the READI program and the state’s first Emergency Rental Assistance program, as having had a positive impact on the state’s housing supply. But the letter notes declining rates of homeownership and worsening rates of affordable and available housing for the most vulnerable Hoosiers as damaging to the state’s public health and economic outcomes.

The letter cites a “patchwork” of codes for health and safety standards related to rental housing and the failure to adequately enforce these codes as jeopardizing the health and even lives of Hoosiers. For example, in January of 2024, six children died in a deadly fire in a South Bend rental home that was reported to have failed a safety code inspection for dangerous wiring but was nonetheless allowed to be rented again before proper repairs were confirmed to have been made.

Bring together representatives of state administrative agencies, courts, local governments, and legislators, along with stakeholders and residents who ate tackling the housing health and safety crisis on the ground, so they can work together instead of in silos;
Align existing housing resources and initiatives at the state and local levels, potentially saving taxpayers millions of dollars;
Clarify the jurisdiction of code enforcement regarding health and safety;
Coordinate administrative and court-based rules that can protect Hoosiers and expand the housing supply for communities with the greatest need for healthy housing without the need for legislation; and
Provide a united voice to recommend new legislation when necessary.

The letter to the Governor concludes “We urge you to appoint and convene a Commission on Housing Safety, Stability, and Affordability, which will serve as a legacy of your administration’s efforts to elevate the public health, safety, and economic well-being of Hoosiers, their communities, and Indiana.”

###

About Prosperity Indiana

About the Hoosier Housing Needs Coalition

Hoosier Housing Needs Coalition (HHNC) was formed by members of Indiana’s housing security advocacy community in April 2020 to support advocacy and education related to housing and homelessness prevention. HHNC convenes partners from across Indiana to advocate for immediate, medium- and long-term housing stability policy solutions and conduct education and research to achieve federal, state, and local policies.

SCOTUS Protects the CFPB, Consumer Protector for Hoosiers and Americans

Thu, 16 May 2024 20:02:02 GMT

INDIANAPOLIS, IN - Today, the Supreme Court in a 7 to 2 decision declared that the funding method used to fund the Consumer Financial Protection Bureau (CFPB) is indeed constitutional. This decision means that the CFPB can continue its work in protecting and supporting consumer rights.

The Supreme Court has upheld the constitutionality of funding of the Consumer Financial Protection Bureau through the Federal Reserve, allowing a vital agency to continue its work in holding Wall Street and predatory lenders accountable to consumers, and promoting economic and racial justice. The lawsuit was originally filed by the Community Financial Services Association, a lobby group for payday lenders, after the CFPB restricted their capacity to continue withdrawing funds from consumers after two failed attempts.

“The continuation of the CFPB is crucial to consumer protections nationwide, making today’s ruling a victory that we at the Institute celebrate. The CFPB does vital work in supporting Hoosiers of all economic status to ensure that they are treated fairly. Recent CFPB regulations targeting credit card late fees and overdraft fees are particularly important for low-income Hoosiers, for whom such charges are a financial drain,” said Zia Saylor, Research Associate at the Indiana Community Action Poverty Institute, Co-Chair of Hoosiers for Responsible Lending.

Handling an average of 3,000 consumer cases per day in addition to larger bank enforcement and research output, the CFPB has returned over $17.5 billion since inception to the pockets of Americans who have been exploited within the financial market. This ruling, allowing the continuation of its operation, will only increase the financial benefit to Hoosiers and Americans nationwide. For example, the CFPB recently awarded and distributed $45,832,242 in damages to 18,871 consumers in Indiana that were harmed by predatory organizations LendUp Loans LLC and Think Finance.

Hoosiers for Responsible Lending (HRL) was created by a network of policy advocates working to empower communities regarding responsible lending and informed borrowing, and they celebrate the Supreme Court’s ruling that will allow the CFPB to continue its great work supporting and protecting Hoosiers. “Today’s U.S. Supreme Court decision is critical to ensuring that the CFPB remains able to protect and support Indiana’s most vulnerable consumers. Prosperity Indiana applauds this decision and the work of the CFPB to keep Hoosier communities and local economies thriving” states Aspen Clemons, Executive Director of Prosperity Indiana, Co-Chair of Hoosiers for Responsible Lending.

HRL has a Steering Committee of diverse organizations that work to create a fair, transparent credit marketplace that benefits consumers, lenders, and the Hoosier economy. HRL Steering Committee members also act as thought leaders to the 2,000+ members of this statewide coalition. Some additional comments on the Supreme Court ruling from these Steering Committee members are included below.

"This is a relief and great news for consumers and advocates across the nation!" - Mark Russell, Director of Advocacy with the Indianapolis Urban League (Indianapolis, Indiana)

“Predatory lending affects lower-income people disproportionately and it’s definitely a target for us to try to stop. We appreciate the CFPB’s valuable partnership in that and are glad to hear that Hoosiers won’t lose their protection because of a misguided lawsuit.” - Steve Hoffman, President and CEO of Brightpoint (Fort Wayne, Indiana)

“This is very good news for the people that we work with every day. The CFPB helps ensure that all consumers have access to fair and equitable lending. We’re so glad this is now behind them, and they can continue their work.” - Marie Morse, Executive Director of HomesteadCS (Lafayette, Indiana)

###

About Hoosiers for Responsible Lending

Hoosiers for Responsible Lending was created by a network of advocates working to empower Hoosiers who have been affected by any form of predatory lending. HRL raises awareness of predatory practices across Indiana in order to hold lenders accountable and create attainable pathways to wealth building for all Hoosiers. The coalition includes veterans organizations, faith communities, consumer groups, and social service providers who recognize both the benefits of equitable, responsible lending and the damages of predatory lending. Hoosiers for Responsible Lending is Co-Chaired by Prosperity Indiana and the Indiana Community Action Poverty Institute.

2024 Indiana General Assembly session short on focus on Community Economic Development; sets up ‘monumental’ budget session in 2025

Tue, 26 Mar 2024 14:20:06 GMT

A shorter-than-usual 2024 session of the Indiana General Assembly yielded too little progress to grade the legislature a success in delivering for the community economic development sector and the most vulnerable Hoosiers they serve. However, clues from this session will help Prosperity Indiana members and partners prepare for what legislative leaders are already calling a “monumental” budget session in 2025.

As the year began, Prosperity Indiana wrote: “Even during a 'short session' when the Indiana General Assembly typically doesn't consider legislation that would affect the state budget, lawmakers have chances in 2024 to improve long-term housing stability and attainability and consumer protections that are critical to Hoosiers' well-being and economic opportunities”. But despite a member-driven policy agenda that translated into bipartisan priority legislation carefully selected to be able to pass during a shortened non-budget session, the General Assembly did not choose to focus on these tangible solutions to strengthen Indiana’s communities and improve Hoosiers’ lives.

Here are several notable legislative outcomes from across Prosperity Indiana’s key issues of affordable housing, community development resources, and asset-building and consumer protections, and what they mean for the future.

Affordable Housing: Despite legislation with a Republican lead author who had solicited input from housing advocates, industry representatives, and community stakeholders, and despite a broad set of bipartisan coauthors, for the third year in a row critical tenant protection legislation failed to gain a full committee hearing in the Indiana General Assembly. SB 277, with author Sen. Greg Walker (R-Columbus) and co-author Sen. Fady Qaddoura (D-Indianapolis) would have remedied the fact that Indiana is one of only six states without effective public and private enforcement of housing health and safety standards.

The legislature’s failure to act to address the root causes of a state housing crisis that has now put Indiana near the bottom of the Midwest in rates of affordable and available housing and severe housing cost burden, and worse than the national average. This lack of progress has resulted in severe health damage and danger for thousands of Hoosier families, tragically including for six children who died in a South Bend fire after their house was reportedly allowed to be re-rented after failing electrical inspection. In light of this unaddressed crisis, following the session’s end Prosperity Indiana and the Hoosier Housing Needs Coalition issued a call and sign-on effort to urge Governor Holcomb to appoint an inter-agency, inter-branch ‘Commission on Housing Safety, Stability, and Affordability’ to advance solutions. The Governor has signaled “Message Received” although the Commission has yet to be created as of this writing.

Although the General Assembly took no meaningful steps to lower costs and increase housing standards for low- and middle-income Hoosiers this session, they did pass two bills that will protect homeowners by curbing deceptive real estate practices. HEA 1068 Unlicensed real estate solicitors authored by Rep. Ed Clere (R-New Albany) will increase disclosure requirements for unlicensed real estate solicitations and allow a short window to cancel transactions resulting from such solicitations. HEA 1222 Residential real estate service agreements, authored by Rep. Craig Haggard (R-Mooresville) and will protect homeowners from unfair real estate fee agreements in property records. Prosperity Indiana testified in support of both bills.

Another housing bill that did not pass should serve as a warning to Hoosiers working to end homelessness in our communities. HB 1413State and local policies on homelessness bore telltale similarities to cookie-cutter legislation pushed by national interest groups that would have criminalized homelessness and forced Indiana to abandon proven Housing First homelessness prevention services and funds. Prosperity Indiana applauded author Rep. Michelle Davis (R-Greenwood) for taking the time to talk with coalition members and Indiana’s community service providers who successfully use the evidence-based Housing First approach every day, and for choosing to withdraw the bill from consideration. However, with efforts to criminalize homelessness continuing at the federal, state, and local levels, Prosperity Indiana members must continue to educate lawmakers about why #HousingFirstWorks.

Community Development Resources: Prosperity Indiana members worked with legislative champions to create a trio of bills to provide communities with resources to create and maintain affordable housing and services. However, again due to shortened committee calendars, the bills were not granted a hearing and allowed an up-or-down vote. These included HB 1212 Land banks authored by Rep. Elizabeth Rowray (R-Muncie) and Rep. Sue Errington (D-Muncie), which would have provided community land banks with the ability to acquire vacant, abandoned, and deteriorating properties that remain unsold at county tax sales, and with administrative tools and options for financial resources to strengthen land bank operations. Likewise, HB 1029 authored by Rep. Maureen Bauer (D-South Bend) and SB 207 both titled ‘Assessment of community land trust property’ would have addressed the issue that housing created by Community Land Trusts meant to be kept at affordable prices is assessed for property taxes at market rates.

While these bills did not advance, Prosperity Indiana was proud to support Sen. Vaneta Becker (R-Evansville) and IHCDA in the agency-sponsored bill SEA 260 Neighborhood and individual development incentives. The bill modernizes the administration of and procedure for claiming the neighborhood assistance tax credit and the individual development account tax credit. Most relevant for Prosperity Indiana members, the bill shortens the time it takes for low-income participants in the successful Individual Development Account program to access matched savings once they reach their savings and financial counseling goals.

Asset-Building and Consumer Protections: On one hand, the Indiana General Assembly avoided protracted efforts to expand predatory subprime and payday lending that in previous sessions has taken much time and effort by Prosperity Indiana members and partners in Hoosiers for Responsible Lending to defeat. On the other hand, the legislature did not pass two measures that would have meaningfully strengthened consumer protections for Hoosiers. HB 1171 Small loan finance charges authored by Rep. Carey Hamilton (D-Indianapolis) would have capped payday loans at 36% APR, the same limit the federal government provides for active duty servicemembers. SB 200 Nonprofit loan center loans for state employees was the brainchild of Sen. Spencer Deery (R-West Lafayette) stemming from conversations with Prosperity Indiana members and staff and would have extended the benefits of Community Loan Center payday loan alternatives to state employees. While SB 200 passed the Senate by a wide bipartisan 41-8 margin, the bill was not granted a hearing by the House Financial Institutions Committee.

Despite not having time for productive bills like HB 1171 and SB 202, the legislature did find time to pass two bills that further tip accountability away from financial institutions and will weaken consumer protections. These include HB 1284 authored by Rep. Kyle Pierce (R-Anderson), which increases institutions’ capacity to change account terms with little notice and SB 188 Actions on deposit accounts, authored by Sen. Scott Baldwin (R-Noblesville), which limits consumer recourse against false and mistaken fees or other bank errors.

While no bills proposing major changes to the state’s tax system advanced this session, the ongoing State and Local Tax Review Task Force has signaled it is mulling such changes for 2025, including eliminating Indiana’s individual income tax. Prosperity Indiana presented to the Task Force in January and called on the General Assembly to “do no harm” Hoosiers and their communities. The presentation included new data co-released in part by Prosperity Indiana and the Indiana Assets & Opportunity Network showing that Indiana already taxes low-income residents at the 2^nd-highest rate in the Midwest and 5^th-highest in the nation. Eliminating revenue sources without replacement threatens to further imbalance tax burdens on the most vulnerable Hoosiers and threatens resources and services that community economic development organizations provide.

Preparing for a “monumental” session in 2025: The potential for tax system changes is just part of what legislative leaders are already calling a “monumental” budget session in 2025, with major implications for affordable housing, community development resources, and asset-building and consumer protection policies. And of course, between them is a set of state and federal elections that will determine which policymakers will be in office and making these decisions.

So, in the remainder of this year, how can community economic development stakeholders make their voices heard and be prepared for a momentous 2025? First, every stakeholder should be sure their Prosperity Indiana membership is current so that our network has a united voice to remove barriers, bridge gaps, and create positive change for Hoosier communities. Second, be sure to join and share events and information from our coalitions the Hoosier Housing Needs Coalition, the Indiana Assets & Opportunity Network, and Hoosiers for Responsible Lending to amplify advocacy on these critical issues. And third, be sure every member of your network is registered to vote following the latest requirements, because stronger Indiana communities are built with ballots every bit as much as they are with bricks and drywall.

Extremely Low-Income Hoosiers Face a Staggering Shortage of Affordable Homes; Indiana’s Rate of Supply and Cost Burden is Now Worse Than the National Average

Thu, 14 Mar 2024 14:00:00 GMT

INDIANAPOLIS, IN - A new report by Prosperity Indiana and the National Low Income Housing Coalition (NLIHC) finds that amid a staggering acceleration in the shortage of affordable housing, Indiana’s rates of affordable housing supply and severe housing cost burden for extremely low-income renters are some of the worst in the Midwest, and now worse than the national average, contrary to the common claim that Indiana is an affordable place to live.

The report, The Gap: A Shortage of Affordable Homes finds a national shortage of 7.3 million affordable and available rental homes for extremely low-income renter households – those with incomes at or below the poverty level or 30% of their area median income (AMI), whichever is greater – resulting in just 33.89 (rounded to 34) affordable and available rental homes for every 100 extremely low-income renter households nationwide.

The Gap: A Shortage of Affordable Homes also reveals that there are 209,710 extremely low-income households in Indiana (an increase of 10,660 since the 2023 report) but only 70,392 affordable and available rental homes available to them (a loss of 7,862 units). This leaves a gap of 139,318 affordable and available units (18,522 more missing units than in 2023) or only 33.57 (rounding up to 34) rental homes for every 100 extremely low-income households in the state.

View map here.

Analysis of The Gap data by Prosperity Indiana finds that, at approximately 34 units available for every 100 households in need, affordable and available rental homes for Extremely Low Income (ELI) households is not only now below the 2024 national average, but is a lower rate of attainable housing than states such as New York, Hawaii, or Massachusetts. Indiana’s rate of affordable and available housing for the most vulnerable renter households is also second-lowest in the Midwest, with only Nebraska being worse off at 32.50.

Released annually, The Gap investigates the severe shortage of affordable rental homes available to extremely low-income families and individuals nationwide as well as in every state and metro area. While rents have stabilized since the pandemic in most markets – and even declined to a small degree in some markets – the supply of affordable rental housing for extremely low-income households remains deeply inadequate nationwide, including in Indiana. As a consequence, about 76% of extremely low-income Hoosier renters are severely housing cost-burdened, meaning that they spend more than 50% of their income on housing with little left over for food, healthcare, and other basic necessities.

Prosperity Indiana’s analysis of The Gap data finds that at 75.65%, Indiana’s rate of severe housing cost burden for ELI renter households is not only higher than the national average (73.71%) but is 10^th-highest among all 50 states. Indiana’s rate of severe housing cost burden is also the highest among any Midwest state.

Aspen Clemons, Executive Director at Prosperity Indiana shares that “The proportion of older Hoosiers making up the state's ELI population has increased from 21% to 28% in two years, signaling that aging Hoosiers are becoming increasingly more vulnerable”. She continues, “In Indiana, 62% of Black households are renters and 23% are extremely low-income renters. 45% of Latino households are renters and 10% are extremely low-income renters. These disparities are the product of historical and ongoing injustices that have systematically disadvantaged Black and brown Hoosiers, often preventing them from owning a home and significantly limiting their ability to build wealth”.

View chart here.

The report confirms what Indiana’s housing advocates have been saying for years: the state’s largest housing gaps and cost burdens are borne by the lowest-income Hoosier renters who make up some of the most vulnerable populations in the state. At 33%, the greatest proportion of ELI renter households are in the workforce, along with older Hoosiers at 28% (increasing from 26% in 2023 and 21% in 2022), disabled Hoosiers at 22%, students at 6%, caregivers at 4%, and other households at 7%.

Of the plurality of Indiana’s ELI households who are in the labor force, over two-thirds of these Hoosiers are working more than part-time hours, with the greatest proportion (40%) working 40 hours or more per week and another 31% working between 20 and 39 hours per week. Another 15% work fewer than 20 hours per week and the remaining 14% are in the labor force but are jobless, looking for a job, and available for work. In summary, the largest segment of Indiana’s poorest renter households actively participates in the state’s labor force, with most working at more than part time status.

The report also reveals that national and state rental markets provide an adequate supply of housing for middle-income renters but that neither the nation’s nor Indiana’s rental market provides enough homes for extremely low-income renters. Even in housing markets with shortages of affordable and available homes for middle-income renters, the cumulative shortage is largely attributable to the significant unmet housing needs of people with the lowest incomes, who must occupy higher-priced homes in the private market that would otherwise be available to higher-income renters.

View chart here.

The Gap finds that the rate of affordable and available rental housing has decreased among all income levels – not just ELI households - in Indiana since last year, but the largest losses are concentrated at the bottom of the income spectrum. With a deficit of 139,318 units, Indiana’s widest housing gap is by far among Hoosiers earning below 30% AMI. When considered cumulatively along with those ELI households, the state’s Very Low Income households (those earning between 0-50% AMI) experience a smaller but still substantial gap of 102,853 affordable and available units. This equals a rate of 70 units for every 100 households earning below half of AMI statewide (down from 76 in 2023).

However, The Gap data finds that at or below 80% Area Median Income, a population known as Low Income (LI), there is an absolute surplus of 3,735 affordable and available rental units in Indiana (down from 16,336 in 2023), equaling a rate of 101 units for every 100 of these LI households (down from 103 in 2023). And above the statewide median income there is an absolute surplus of 15, 711 affordable and available units (down from 39,223 in 2023), equaling a rate of 103 affordable and available units for ever 100 of these median income households (down from 105 in 2023).

View chart here.

The burden of Indiana’s gap in affordable and available rental housing is disproportionately shouldered by Black and brown Hoosier households, as these households are more likely to be renters. They are also twice or more as likely as white households to be extremely low-income renters. For example, 62% of Black households are renters and 23% are extremely low-income renters. 45% of Latino households are renters and 10% are extremely low-income renters. By contrast, 24% of white households are renters and 6% are extremely low-income renters. These disparities are the product of historical and ongoing injustices that have systematically disadvantaged Hoosiers of color, often preventing them from owning a home and significantly limiting wealth accumulation. These disparities also mean that Indiana’s policy choices to not adequately target resources for developing, preserving, and enforcing the habitability standards of homes affordable for those at the lowest incomes disproportionately puts the health and economic burdens of substandard housing on Black and brown Hoosier renter households.

View chart here.

Though Indiana is commonly thought of as an affordable place to live when it comes to the availability and cost of housing, this reputation does not bear out for the lowest-income Hoosiers who face housing shortages and high rates of housing cost burden. And while the Midwest is typically more affordable than heavily populated coastal areas, Indiana performs near the bottom of the region. In 2024, Indiana has the second-lowest rate of affordable and available housing for ELI households at 33.57% and far below the average of 39.63% for states in the region.

View table here.

Indiana’s rate of 75.65% of ELI households who experience severe housing cost burdens in 2024 is the highest of any Midwest state and above the regional average of 69.72%. Because severe housing cost burden is itself an indicator of housing instability, this means that more than three quarters of the most vulnerable Hoosier renter households are currently at risk of eviction and homelessness, along with the long-term health and economic damage these things bring.

View table here.

Additional data provided for The Gap 2024 Indiana state report using American Community Survey data finds that the gap in affordable and available housing and rates of severe housing cost burden are statewide and affect rural, urban, and suburban counties alike. Only one county (Union) shows an outlier data result with a small surplus of 25 units. All other Indiana counties show a deficit of affordable and available rental homes for ELI households, ranging from a gap of 40 in Crawford and LaGrange Counties to 37,420 in Marion County. 26 Indiana counties have rates of affordable and available rental homes per 100 ELI households that are below the national average. And 18 counties have rates of severe housing cost burden for ELI households above the national average.

Find ‘the Gap’ of affordable and available rental homes for ELI households in all 92 Indiana counties at this link.

View map here.

“The findings from The Gap 2024 Indiana state report echo what Prosperity Indiana’s members and coalition partners have been seeing in the field, that Indiana is no longer an affordable place to live for the most vulnerable members of our communities,” said Andrew Bradley, Policy Director for Prosperity Indiana and NLIHC Board Member. “It is alarming to see Indiana’s rate of affordable housing and severe cost burden become worse than the national average and at or near worst in the Midwest. These findings should serve as a wake-up call to Indiana’s policymakers to not let the decline of the state’s housing supply, and the health and economic effects of that decline, serve as their legacy. Indiana’s elected officials should use this moment to work with Hoosiers at the front lines of the state’s housing safety, stability, and affordability crisis to dedicate resources to develop, preserve, and enforce the habitability standards of housing so that it is attainable for all Hoosiers,” Bradley said.

“Even with a strong economy and stabilizing rents, homelessness has increased to its highest level ever recorded, and millions of the lowest-income and most marginalized households are at risk,” said NLIHC President and CEO Diane Yentel. “We know what works to end housing insecurity and homelessness – what we lack is the political will to invest in these solutions at the scale needed. More than ever, Congress should act quickly to enact bold legislation to ensure rental assistance is universally available, build and preserve homes affordable to people with the lowest incomes, create tools to prevent eviction and homelessness, and strengthen renter protections to keep renters stably housed.”

Learn more about The Gap by visiting: https://nlihc.org/gap

In Light of Lack of Legislative Progress, the Hoosier Housing Needs Coalition Calls for Creation of Commission on Housing Affordability & Stability

Thu, 08 Feb 2024 18:00:00 GMT

In Light of Lack of Legislative Progress, the Hoosier Housing Needs Coalition Calls for Creation of Commission on Housing Affordability & Stability

INDIANAPOLIS, IN – Following the failure of several bipartisan pieces of legislation that would have improved enforcement of habitability standards in Indiana, and in light of other legislation that would have undermined successful approaches to reducing homelessness, the Hoosier Housing Needs Coalition is calling on Indiana Governor Eric Holcomb to appoint a Commission on Housing Affordability and Stability to advance practical solutions to these critical challenges.

Despite bipartisan legislation introduced in each of the last three sessions that would strengthen habitability standards and address Indiana’s short supply of safe, stable, affordable, and accessible housing, no such legislation has been moved out of committee in three years running. And even though the legislature’s Housing Task Force included a recommendation in their 2022 final report to “Support addressing substandard housing”, the General Assembly has not made significant progress to remedy Indiana’s lack of enforcement of housing health and safety laws.

In fact, Indiana is one of only six states that does not enforce housing health and safety laws, which contributes to the state having a rate of affordable and available rental housing that is below the Midwest average for the most vulnerable residents, a rate of severe housing cost burden that is higher than the Midwest average, and has one of the highest eviction filing rates in the nation.

This session, SB 277, authored by Sen. Greg Walker (R-Columbus) and Sen. Fady Qaddoura (D-Indianapolis) and co-authored by Sen. Ron Alting (R-Lafayette), Sen. Vaneta Becker (R-Evansville), Sen. Rick Niemeyer (R-Lowell), and Sen. Shelli Yoder (D-Bloomington) would have defined for the first time in Indiana essential services that landlords must maintain under existing laws, including electricity, gas, heat, water, and locking doors and windows. The bill would have provided courts and local governments with mechanisms to deal with landlords who fail to maintain those essential services for tenants who have fulfilled their own lease requirements and are current on rent, including the ability to put those properties into receivership. Importantly, SB 277 would also have enabled judges to allow tenants to put rent into an escrow account with the court clerk, to be released to the landlord when the judge is satisfied the essential services have been restored. But despite the wide bipartisan support for these common-sense solutions, and although the bill authors solicited input from major housing industry stakeholders as well as HHNC and other housing stability advocates, Senate Local Government Committee’s Chairman Senator Jim Buck did not allow SB 277 to be heard.

Also this session, SB 243, authored by Sen. Andrea Hunley (D-Indianapolis) and Sen. Greg Walker (R-Columbus) would have provided Marion County with the jurisdiction needed to continue to pursue violations of health codes after a tenant has left a rental unit. HHNC members testified encouraging the Senate Judiciary Committee to move the bill forward so that it could be expanded to apply statewide and strengthened to ensure units that fail inspection can’t be re-rented until the health and safety issues have been rectified. However, disagreements on the committee about the scope and necessity of the bill resulted in a 5-5 vote that prevented SB 243 from moving forward in the legislative process.

And notwithstanding the dozens of meetings with members of these committees, in addition to hundreds of calls and messages from HHNC members from all over the state to their legislators, neither SB 277 nor SB 243 will advance into the second half of the legislative session. The lack of progress on critical habitability enforcement legislation reveals that the General Assembly still does not understand the depth of Indiana’s housing stability and affordability crisis.

While HHNC is frustrated by the failure of the General Assembly to advance tenant protection legislation, the Coalition is thankful that a bill that would have undermined critical resources to address homelessness died without a hearing in the first half of the session. HB 1413 bore telltale similarities to cookie-cutter legislation pushed by national interest groups that would force the state to abandon proven Housing First homelessness prevention services and funds. The bill would also have required a redirection of state resources away from proven strategies and funneled those funds into homeless encampments and punitive interventions that offer no guarantee of services or pathways to permanent housing. The bill also would have punished local governments who did not likewise criminalize homelessness.

HHNC applauds HB 1413’s author Rep. Michelle Davis (R-Greenwood) for recognizing the fundamentally flawed and financially irresponsible assumptions of the out-of-state groups pushing this legislation, and for asking that the bill not be given a hearing. We thank Rep. Davis for taking the time to talk with HHNC members and Indiana’s community service providers who successfully use the evidence-based Housing First approach every day, and for her willingness to continue to collaborate with these stakeholders who are working to provide long-term solutions for all Hoosiers to have safe, stable places to live. At a time when many Hoosiers struggle to find affordable housing, the last thing communities need is out-of-touch model legislation that would waste state funding on strategies that push more vulnerable Hoosiers off the road to long-term housing stability. Instead, Indiana should increase the state’s Housing First appropriation and provide tenants with access to housing assistance, and voluntary, flexible, and responsive community support services to maximize self-sufficiency.

To create more pathways to achieve and sustain homeownership and stable housing, the Hoosier Housing Needs Coalition included in our 2024 policy priorities a call for Governor Holcomb to appoint a commission to identify solutions for the state’s housing and homelessness issues that remain unaddressed by the General Assembly. A ‘Commission on Housing Affordability and Stability’ modeled in structure after the successful Commission on Improving the Status of Children would include expert participants who can represent the communities who work most closely with the state’s housing issues and break the stalemate of the General Assembly. By including not only state legislators, officers, agencies, and courts but also necessary voices from local government, community service providers, housing providers, and residents who bear the greatest brunt of the state’s housing affordability and stability crisis, the Commission will be well-positioned to leverage existing resources, advance practical solutions that do not require legislation, and provide recommendations for necessary changes at the administrative, legislative, and judicial levels of state and local government.

Stable and affordable housing is a necessary foundation from which to promote health, attract investment, and build a prosperous state for all Hoosiers to live in. Faced with the state’s growing shortage of safe, stable, affordable, and accessible housing without legislative solutions for years on end, the Hoosier Housing Needs Coalition urges Governor Holcomb to appoint a Commission on Housing Affordability and Stability without delay.

###

Staffed by Prosperity Indiana, HHNC convenes partners from across Indiana to provide education and advocacy to achieve equitable federal, state, and local policies for housing stability and affordability solutions. HHNC also has a guiding body called the Steering Committee. Members of the HHNC Steering Committee are leaders in the Indiana housing advocacy and education space.

Visit HHNC online at https://www.prosperityindiana.org/HHNC

CONTACT: Andrew Bradley | (317) 222-1221 x403| abradley@prosperityindiana.org

PI Testimony to State and Local Tax Review Task Force of the Indiana General Assembly

Wed, 10 Jan 2024 23:58:08 GMT

On January 10, 2024, Andrew Bradley, Policy Director at Prosperity Indiana, testified before the State and Local Tax Review Task Force of the Indiana General Assembly. During his presentation, Bradley highlighted Prosperity Indiana's tax policy priorities.

He also shared the insights from the Indiana edition of the 'Who Pays?' 2024 report, a collaborative effort with Prosperity Indiana by ITEP.

Review the presentation content here:

Prosperity Indiana written testimony for the State & Local Tax Review Task Force January 10, 2024

Prosperity Indiana presentation to the State & Local Tax Review Task Force January 10, 2024

Indiana's Tax System Exacerbates Inequality, In-Depth National Study Finds

Tue, 09 Jan 2024 10:00:00 GMT

Proposal to Eliminate Income Tax Would Worsen Regressivity

INDIANAPOLIS, Ind. January 9, 2024 — Indiana’s tax system is upside-down, with the wealthy paying a far lesser share of their income to tax than low- and middle-income families. And eliminating the state income tax would widen this disparity. That’s according to the latest edition of the Institute on Taxation and Economic Policy’s Who Pays?, the only distributional analysis of tax systems in all 50 states and the District of Columbia, co-released for Indiana by Prosperity Indiana, the Indiana Community Action Poverty Institute, the Indiana Assets & Opportunity Network, and the Indiana Coalition for Human Services.

This regressivity in Indiana’s tax code is largely driven by heavy reliance on sales, excise, and property taxes that put a disproportionately large burden on low- and middle-income Hoosiers, combined with a flat income tax structure and relatively few tax credits to lessen the lopsided effect on the lowest-earning households. Lawmakers could help fix this imbalance by:

strengthening Indiana’s existing Earned Income Tax Credit;
introducing features to lessen the burden on the most vulnerable households, including a Child Tax Credit and a property tax ‘circuit breaker’ credit for low-income taxpayers; and
reversing previous policies (and avoid future choices) that have made Indiana’s state and local tax system the 14^th-most regressive in the nation and 3^rd-most regressive in the Midwest.

“This new edition of ‘Who Pays?’ comes at a key moment when Indiana policymakers are considering sweeping changes to the state’s tax system,” said Andrew Bradley, Policy Director for Prosperity Indiana and Board President of the Indiana Coalition for Human Services. “The state partners who have co-released this report share a similar vision of an Indiana where all Hoosiers have equitable access to economic and social opportunity and work every day to empower Hoosiers striving to reach their full potential. All state partners have included improving the equity of Indiana’s tax system in their 2024 policy agendas. Unfortunately, ‘Who Pays?’ makes it clear that Indiana’s current tax system acts as a barrier to economic opportunity for the low- and middle-income Hoosiers who bear the brunt of Indiana’s tax code, which is the 3rd-most regressive in the Midwest, and puts the 2nd-highest tax burden on the lowest earners in the region,” Bradley said. “To reverse Indiana’s regressive path, policymakers should:

first, do no harm by avoiding new regressive features or limits on ability to raise state and local revenue needed for community economic development and essential human services;
consult with those who work closest with the Hoosiers most burdened by the current upside-down state and local tax structure (such as the state partners co-releasing this report); and finally,
act to address regressive tax features identified in ‘Who Pays?’ (i.e. Indiana’s lack of a Child Tax Credit and property tax circuit breaker for low-income taxpayers) and re-imagine how Indiana’s tax and budget structure can work together to unlock the potential of all Hoosiers by fully funding needed services.”

"Everyone should contribute their fair share to ensure that we can invest in things like driveable roads, quality schools, and effective police and fire services – the things we need to prosper. When those who make the most pay the least, our tax code contributes to the financial hardships that hold Hoosiers back and shortchanges our potential to build thriving communities,” said Erin Macey, PhD, Director of the Indiana Community Action Poverty Institute and Co-Chair of the Indiana Assets and Opportunity Network. “Let’s close loopholes and make our tax code more just so we can all have the quality of life we deserve.”

The report’s key findings for Indiana:

The lowest-income 20 percent of taxpayers face a state and local tax rate that is 115 percent higher than the top 1 percent of households. The average effective state and local tax rate is 13.3 percent for the lowest-income 20 percent of individuals and families, 10.4 percent for the middle 20 percent, and 6.2 percent for the top 1 percent.
Indiana has the 14th most regressive tax system in the nation, and 3^rd most-regressive in the Midwest.
Indiana has the 5th-highest effective tax rate paid by the lowest-income 20 percent of earners, and 2nd highest in the Midwest.
Indiana is one of 42 states that tax the top 1 percent less than every other income group, and one of 35 states that tax their poorest residents at a higher rate than any other group.
Eliminating the state income tax would exacerbate this inequity, making the state drop to the 9^th most regressive. Under this scenario, the lowest-income 20 percent of taxpayers would face a state and local tax rate that is 213 percent higher than the top 1 percent of households.

Nationally, tax systems in 44 states exacerbate inequality by making incomes more unequal after collecting state and local taxes, while systems in six states plus D.C. reduce inequality, the report finds. On average across the country, the lowest-income 20 percent of taxpayers face a state and local tax rate nearly 60 percent higher than the top 1 percent of households. The nationwide average effective state and local tax rate is 11.3 percent for the lowest-income 20 percent of individuals and families, 10.5 percent for the middle 20 percent, and 7.2 percent for the top 1 percent.

“When you ask people what they think a fair tax code looks like, almost nobody says we should have the richest pay the least. And yet when we look around the country, the vast majority of states have tax systems that do just that,” says Carl Davis, ITEP’s Research Director. “There’s an alarming gap here between what the public wants and what state lawmakers have delivered.”

Nationwide, recent policy changes have exacerbated or lessened regressivity in state tax systems, depending on the choices made by lawmakers.

Many states with tax codes that already increase inequality have doubled down on regressive tax policies in recent years. Arkansas, Idaho, Iowa, Kentucky, Nebraska, and West Virginia, for instance, have taken steps to deeply cut taxes on more affluent households and wealthy corporations.

On the other hand, many of the states with tax codes that reduce inequality, or at least do less than average to widen inequality, have made strides toward more progressive tax policies in recent years. Massachusetts, Minnesota, New Jersey, New Mexico, New York, and the District of Columbia, for instance, have taken steps both to raise taxes on more affluent households and lower them for low- and moderate-income families.

“We’ve seen a lot of states shift their tax systems to become even more regressive in recent years by enacting deep tax cuts for the wealthiest. But we know it doesn’t have to be like this. There is a clear path forward for flipping upside-down tax systems and we’ve seen a handful of states come pretty close to pulling it off,” said Aidan Davis, ITEP’s State Policy Director. “The regressive state tax laws we see today are a policy choice, and it’s clear there are better choices available to lawmakers.”

###

About the report:

Who Pays? is the only distributional analysis of tax systems in all 50 states and the District of Columbia. The comprehensive 7th edition of the report assesses the progressivity and regressivity of state tax systems by measuring effective state and local tax rates paid by all income groups. No two state tax systems are the same; this report provides detailed analyses of the features of every state tax code. It includes state-by-state profiles that provide baseline data to help lawmakers and the public understand how current tax policies affect taxpayers at all income levels. Over 99 percent of all state and local taxes, measured by their revenue contribution, are included in the analysis.

About ITEP:

ITEP is a non-profit, non-partisan tax policy organization. We conduct rigorous analyses of tax and economic proposals and provide data-driven recommendations on how to shape equitable and sustainable tax systems. ITEP’s expertise and data uniquely enhance federal, state, and local policy debates by revealing how taxes affect people at various levels of income and wealth, and people of different races and ethnicities. Visit the ITEP website at https://itep.org/.

About State Groups:

Prosperity Indiana is a not-for-profit 501(c)3 organization formed in 1986 as the Indiana Association for Community Economic Development. PI is a network of approximately 200 organizations and individual members committed to advancing community economic development through our values of eliminating barriers, ensuring everyone has better opportunities to pursue the American Dream and prosperity for all. Visit the Prosperity Indiana website at www.prosperityindiana.org and follow @ProsperityInd on Twitter.

The Indiana Community Action Poverty Institute is a program of the Indiana Community Action Association. Indiana’s 22 Community Action Agencies provide over 70 programs & services help Hoosiers throughout Indiana achieve and maintain financial well-being.

The Indiana Assets & Opportunity Network (A&O) connects and provides learning opportunities to practitioners and advocates committed to asset building. It is co-governed by Prosperity Indiana and the Indiana Community Action Poverty Institute and has a Steering Committee of diverse organizations that support an economy that works for all Hoosiers. Members of the A&O Steering Committee are leaders in the Indiana asset-building space. Visit the A&O website at www.indianaopportunity.net.

The Indiana Coalition for Human Services (ICHS) is a nonpartisan coalition of advocacy and human service organizations that engages, educates and mobilizes decision-makers, its stakeholders and the public on fact-based, equitable public policies resulting in quality outcomes for all Hoosiers. Collectively, we are Indiana’s trusted expert on fact-based, equitable public policies that empower Hoosiers striving to reach their full potential. Visit the ICHS website at https://ichsonline.net/.

Media Contact: Andrew Bradley, Policy Director at Prosperity Indiana, abradley@prosperityindiana.org | Jon Whiten at ITEP, jon@itep.org

Prosperity Indiana Unveils 2024 Policy Agenda

Mon, 08 Jan 2024 19:01:29 GMT

Strengthening Housing Attainability and Economic Opportunity for all Hoosiers and their Communities

INDIANAPOLIS, Ind. January 8, 2024 — Prosperity Indiana, a leading advocate for affordable housing and community development, announced its 2024 Policy Agenda, aimed at addressing the pressing challenges facing Hoosiers in the realms of housing attainability and economic opportunity. The agenda outlines a strategic and comprehensive approach to tackle issues such as the inadequate supply and increased cost of housing, equitable pathways to homeownership, and economic opportunity for vulnerable Hoosiers.

According to Prosperity Indiana members, safe, fair, affordable housing and economic opportunities are becoming increasingly unreachable for many Hoosiers. The 2024 Policy Agenda addresses these concerns at federal, state, and local levels, emphasizing the importance of diversity, equity, inclusion, and justice in all policy initiatives.

“Prosperity Indiana’s 2024 public policy agenda reflects the urgent needs of our members, Indiana’s community economic development sector, and the millions of Hoosiers it serves daily. It outlines critical policy solutions to address Indiana’s growing housing crisis that simply cannot wait,” said Prosperity Indiana Executive Director Aspen Clemons.

Urgent & Emerging Policy Priorities

Increase the supply, access, and habitability of affordable housing, including options to afford, preserve, and rehabilitate homes.
Counter increasing costs for vulnerable Hoosiers through policies that promote wealth-building and mitigate wealth-stripping (e.g., through predatory lending) for individuals and the community as a whole.
Address attacks on diversity, equity, inclusion, & justice policies impacting community economic development initiatives such as: reducing barriers to homeownership, wealth building, mortgage assistance; as well as providing support to organizations combating barriers to inclusive education, reproductive options, quality health care, and similar efforts.
State preemption reducing local options on policies such as tenant protections, source of income protections, taxes and revenue, etcetera.
Prevent efforts to make regressive changes to Indiana's tax code that would increase the burden on the most vulnerable Hoosiers and the CED organizations who serve them.

Community Development Resource Policy Priorities

Increase the scope and availability of tax credit resources to expand affordable housing for low-income households and make it easier for community economic development organizations, including smaller and non-profit entities, to qualify and participate.
Enhance opportunities and reduce barriers impacting community land trust programs to permanently preserve affordability and create homeownership opportunities for lower-income families.
Facilitate the ability of local communities to fund and administer land banking efforts and address the burdens of blight and abandoned property.
Increase policy opportunities for PI members to participate in and share economic development resources and programs.

Asset-Building & Consumer Protection Policy Priorities

Establish a maximum 36% rate cap for payday loans at the state and federal levels and support policies that promote alternatives to predatory lending products.
Protect families from the health and social effects of medical debt, including strengthening consumer protections, expanding enrollment for Medicaid, and/or requiring hospitals to adopt robust Financial Assistance Policies.
Support policies that increase equitable wealth-building (i.e. Child Tax Credits and Child Savings Accounts).
Institute policy safeguards against 'wealth-stripping' factors, such as predatory rent-to-own contracts and increased rates and fees for small-dollar loans, while increased rates and fees for small-dollar loans, while increasing 'wealth-building' factors through increased lender data transparency and reporting requirements.
Safeguard against regressive changes to state, federal, or local tax policies that would result in increased burdens on low-income Hoosiers and the organizations who serve them, or that would reduce local revenue options.
Promote robust state and federal consumer protection rules and regulations, including through the Consumer Financial Protection Bureau's consumer education, rules, enforcement, and compliance.

Affordable Housing Policy Priorities

Increase the supply of affordable housing for the communities and populations most in need, using targeted tax credits.
Increase the preservation of affordable housing (i.e. through owner-occupied rehab, extending the duration of affordable tax credits, and re-capitalizing affordable housing properties whose affordability periods are expiring).
Work to end housing discrimination, promote inclusive communities, and create new pathways to achieve and sustain homeownership including through improved fair housing and inclusionary zoning standards.
Strengthen tenant protections for Hoosiers (i.e. through court-based rent escrow policies and increased enforcement of habitability standards).

"Even during a 'short session' when the Indiana General Assembly typically doesn't consider legislation that would affect the state budget, lawmakers have chances in 2024 to improve long-term housing stability and attainability and consumer protections that are critical to Hoosiers' well-being and economic opportunities," said Prosperity Indiana Policy Director Andrew Bradley. "Prosperity Indiana's 2024 policy agenda provides policymakers at the federal, state, and local levels with a menu of choices to reduce racial and economic disparities and promote thriving, equitable communities for all Hoosiers."

Prosperity Indiana urges policymakers at all levels to consider these critical priorities as they shape legislation and initiatives for the benefit of Hoosier communities. For more information on Prosperity Indiana's 2024 Policy Agenda, visit ProsperityIndiana.org/Advocacy or contact Policy Director Andrew Bradley.

###

About Prosperity Indiana

Visit the Prosperity Indiana website and follow @ProsperityInd on Twitter.

"It feels like we are being set up to fail" - Affordable Housing is Out of Reach in Indiana for Low-Wage Hoosiers

Wed, 14 Jun 2023 14:00:00 GMT

FOR IMMEDIATE RELEASE

June 14, 2023

Contact: Andrew Bradley | (317) 222-1221 x403 | abradley@prosperityindiana.org

"It feels like we are being set up to fail" - Affordable Housing is Out of Reach in Indiana for Low-Wage Hoosiers

by Erica Boswell and Andrew Bradley

Full-time Hoosier workers need to earn $19.00 per hour to afford a modest, two-bedroom apartment at fair market rent. This is Indiana’s 2023 “Housing Wage,” according to a report published today by the National Low Income Housing Coalition (NLIHC) and Prosperity Indiana. The report finds that inflated rent in Indiana has fueled the increase in the state’s Housing Wage needed to afford housing costs, erasing any gains in Hoosier renters’ wages which remain persistently far below the Midwest average.

Released annually, the Out of Reach report calls attention to the gulf between wages and what people need to earn to afford their rents. The report shows that affordable rental homes are out of reach for millions of low-wage workers and other families. The report’s “Housing Wage” is an estimate of the hourly wage full time workers must earn to afford a rental home at fair market rent without spending more than 30% of their incomes. Nationally, the 2023 Housing Wage is $28.58 per hour for a modest two-bedroom rental home and $23.67 for a modest one-bedroom rental home.

While the Housing Wage varies by state and metropolitan area, low-wage workers everywhere – including in all 92 Indiana counties - struggle to afford their housing. “Indiana has twin crises of a shortage of affordable homes and too few good-paying jobs to afford them. This is a symptom of a lack of economic opportunity which prevents too many Hoosiers from achieving their true potential and leaves Indiana behind the curve of the Midwest,” said Andrew Bradley, policy director for Prosperity Indiana and board member of NLIHC.

“The new Out of Reach 2023 report finds that while the Housing Wage needed to afford a modest two-bedroom home in Indiana increased by 12% over the past year, the average Hoosier renter’s wage increased by only 7.5%. The report also finds that 10 of Indiana’s top 20 largest occupations now don’t pay the state’s Housing Wage, up from nine just a year ago. This double squeeze of low pay and out-of-reach housing disproportionately harms Black and brown Hoosiers, families with children, and the state’s most vulnerable populations in urban, rural, and suburban communities alike.”

“To break out of this cycle of jobs that pay too little for housing that costs too much, Indiana needs to articulate a community development and economic development policy strategy that boosts the pay and quality of Indiana’s current jobs, builds pathways to better careers statewide, and increases the supply, access, and habitability standards for affordable housing in the places Hoosiers live,” Bradley said.

Even before the pandemic, low-income renters were facing a housing crisis, with rents increasing much more quickly than wages and federal assistance programs remaining underfunded. With the arrival of the pandemic, widespread job and wage losses followed by skyrocketing rents exacerbated the situation, putting new pressures on renters throughout the country. Though rent inflation has moderated in most markets and is now at pre-pandemic or even lower levels, rents remain too high for low-wage workers and other low-income renters. At the same time, pandemic-era benefit programs – like emergency rental assistance (ERA), additional allocations from the Supplemental Nutrition Assistance Program (SNAP), and childcare tax benefits – have ended. In consequence, the lowest-income renters are facing high rents without the support of those safety net programs that kept them stably housed during the pandemic, with the result that eviction filings are returning to or surpassing pre-pandemic levels in some communities.

Affordable Housing is Out of Reach in all 92 Counties while Indiana Remains Behind Midwest in Renter Wages

The new Out of Reach report finds that increases in rent have occurred in all parts of Indiana, but wages have not increased to keep up with housing costs or average wages in the Midwest. While the Housing Wage needed to afford a two-bedroom unit rose from $16.97 in 2022 to $19.00 in 2023, representing a 12% increase, Indiana’s average renter wage increased only 7.5%, from $16.61 in 2022 to $17.86 in 2023. The median renter wage in Indiana has consistently trailed the state’s Housing Wage in recent years, suggesting that policy efforts to date have been inadequate to fulfill the demand for affordable housing that remains out of reach for Hoosiers.

Throughout Indiana, a renter needs to earn on average $15.88 to $21.62 per hour, depending on their county of residence, to afford a modest two-bedroom rental home without spending more than 30% of their income on housing costs.

Click here to download the Indiana State Pages from Out of Reach 2023 which includes a state overview as well as county- and metro-level info for the FY23 Housing Wage, Housing Costs, Area Median Income, and Renter data.

Despite a reputation of being a low-cost state, the Housing Wage in Indiana has worsened from 43rd-least affordable in the nation in 2021 to 38th in 2023. Among Midwest states, Hoosier renter wages remain persistently behind the average of the region. In 2023, the mean Hoosier renter wage of $17.86 is now $0.91 an hour lower than the $18.77 mean renter wage across all 12 Midwest states. This means the typical Hoosier renter working full time makes $1,893 less each year than their average Midwest counterpart. Policies that fill that wage discrepancy for Hoosiers would pay nearly 2 months of the state’s fair-market rent for a two-bedroom unit at $988/month.

The report also finds that in 2023, 10 of Indiana’s top 20 largest occupations pay a lower median wage than a full-time Hoosier worker needs for the state’s Housing Wage for a modest two-bedroom apartment at the state’s fair market rent. By contrast, just a year ago only 9 of the state’s top 20 occupations fell short of Indiana’s Housing Wage. These 10 occupations paying less than Indiana’s Housing Wage account for nearly 625,000 working Hoosiers, 57% of the total employed in the state’s 20 largest occupations, and more than a fifth of the state’s workforce. These occupations are frequently held by women, Hoosiers of color, and others making up Indiana’s extremely low-income renter households. Concentrating policy solutions on these key large occupations could unlock affordable housing and economic opportunities for hundreds of thousands of Hoosier households.

The increased cost of housing is also causing inflation in the number of hours Hoosiers working minimum wage must work to afford rent. The federal minimum wage has remained at $7.25 an hour, and $2.13 an hour for tipped jobs, without an increase since 2009, and Indiana has chosen to remain tied to that national wage floor. In no Indiana county or metro area can a minimum-wage renter working a 40-hour workweek afford even a modest studio rental unit at the average fair market rent. Working at the minimum wage of $7.25 in Indiana, a Hoosier wage earner must have 2.2 full-time jobs over work 86 hours per week to afford a modest one-bedroom apartment (up from 1.9 jobs over 76 hours in 2022); or work 2.6 full-time jobs over 105 hours per week to afford a two-bedroom apartment (up from 2.3 jobs and 94 hours in 2022. The hours necessary to work at the minimum wage to afford housing in most Indiana communities are higher than the hours necessary in many Midwest states and even some of the nation’s largest metro areas. But many Hoosiers making higher than minimum wage have seen the rising number of hours required per week to afford housing, taking time away from raising families and eroding quality of life without greater net compensation.

The Gulf Between Housing Costs and Wages – Voices of Hoosiers

Prosperity Indiana, its members, and partners in the Hoosier Housing Needs Coalition hear daily from Hoosiers caught in the gulf between increasing housing costs and stagnant wages that too often leads to eviction and homelessness. Here are some of the voices of those partners and the low-income tenants they serve:

Laurin Embry, Director of the Indiana Tenant Association and the Indianapolis Tenants Rights Union writes: “As a case manager it is becoming more common that I find myself working with families that have been torn apart by DCS due to the parents inability to afford housing. I am currently working with a couple whose children were removed due to the family experiencing homelessness. As a condition to regain custody of their children my clients are forced to pay several non-refundable housing application fees in an effort to secure housing; however many applications were denied with no explanation. Indiana's affordable housing crisis, lack of tenant protections and low wages make securing affordable housing a near impossible task. Those fortunate enough to afford housing now may later find themselves unable to maintain their housing if their rent is increased when it's time to renew their lease.” An unhoused Indianapolis resident told Embry "It feels like we are being set up to fail."

Joe from New Albany told his story to Will Stauffer, a Community Organizer with Hoosier Action: “I have two adult children, one is a son aged 30, who has a part-time job as a lifeguard at the YMCA and spends the rest of his time swimming for his health and as a masters swimmer nationally ranked. He and my daughter, aged 24, a student at IUS are living at home. Both would like to move out of the house, but the rental properties available are too expensive for them to afford. I do love my kids, and my wife and I might be labeled as “helicopter parents,” but that is not what keeps them at home—the high cost of rent keeps them at home. We need to do better for our citizens. I can’t imagine someone their age not having parents to live with as a backup plan. What are they doing for housing?"

Jean from Indianapolis used Prosperity Indiana’s Court Watcher’s Toolkit and witnessed this tenant family’s experience in the courtroom:

“Housing is a human right,” said NLIHC President and CEO Diane Yentel. “Stable, affordable homes are a prerequisite for basic well-being, and no person should face the danger of losing their home. But, as the Out of Reach report shows, too many low-income renters now face worsening housing instability, as wages stagnate, housing costs rise, and pandemic-era safety net programs close down. Addressing the country’s long-term housing affordability crisis requires bridging the gap between rents and incomes through comprehensive federal legislation and adequate funding by Congress for our country’s vital affordable housing and homelessness programs.”

For additional information, and to download the report, visit: http://www.nlihc.org/oor

Special thanks to Laurin Embry of the Indiana Tenant Association and Indianapolis Tenants Rights Union, and Will Stauffer of Hoosier Action for coordinating quotes from Hoosier tenants.

###

ABOUT PROSPERITY INDIANA

ABOUT THE NATIONAL LOW INCOME HOUSING COALITION

The National Low Income Housing Coalition is dedicated to achieving racially and socially equitable public policy that ensures people with the lowest incomes have quality homes that are accessible and affordable in the communities of their choice. NLIHC educates, organizes, and advocates to ensure decent, affordable housing for everyone. For more information about NLIHC, please visit www.nlihc.org.

2023 IGA Session Wrap-Up: Long-term goals achieved for Asset-Building, incremental progress for Affordable Housing and Community Development

Fri, 05 May 2023 17:33:06 GMT

The 2023 session of the Indiana General Assembly resulted in achieving several priorities from Prosperity Indiana’s policy agenda, including a pair of long-term asset-building goals. But while it had been dubbed the "housing session" in advance by legislators, and even as millions of dollars for housing and economic development were included in the final budget, it will take ongoing effort by Indiana’s community economic development sector to ensure those resources are targeted to the communities with the greatest needs. And despite hundreds of Hoosier tenants, housing providers, and community partners urging legislation to strengthen the state’s woeful habitability standards, they made only the most incremental of progress that will need to be built upon.

Throughout the session, PI staff and members advocated for the affordable housing, community development resources, and asset building and consumer protection priorities on our 2023 policy agenda ‘Increasing Housing Affordability and Financial Resiliency for Stronger Hoosier Families and Communities’. A post-pandemic record number of supporters attended the PI Statehouse Day on February 2 following our Advocacy 101, 102, and 103 series, and many more Hoosier Housing Needs Coalition partners came out for the second annual Housing Advocacy Day later that month. In addition, PI members and coalition partners sent over 1,000 messages to elected officials throughout the session, urging them to advance our agenda items. Their support made all the difference to pass critical improvements, stop damaging legislation, and raise the profile of key community economic development priorities. Here are outcomes of the bills we followed closely this session whose implementation will most impact the community economic development sector.

Affordable Housing

Even before it started, some legislators dubbed 2023 as the “housing session” due to expected momentum for affordable housing legislation from last fall’s Housing Task Force. PI was represented on that Task Force through the Hoosier Housing Needs Coalition and contributed data describing the statewide housing affordability and stability crisis. The Task Force’s final report included recommendations to increase affordable housing through infrastructure, tax credits, and “addressing substandard housing”, among others.

The most high-profile outcome of the Task Force, HEA 1005 creates a Housing Infrastructure Assistance program and revolving fund, with $75M over two years included in the state budget. Political subdivisions will be able to apply to the revolving fund using criteria that includes investing in a housing study, and through demonstrated need for housing inventory as indicated by the Indiana state housing dashboard. And while PI members testified requesting an additional priority be given to proposals that would develop units affordable to low-income Hoosiers, the authors declined, indicating that the existing criteria could accomplish that end. This means PI members will need to actively engage with their localities to include local examples and data in housing studies so proposals are targeted to develop housing for the communities with the greatest need.

This session, PI and our Hoosier Housing Needs Coalition partners called upon the legislature to increase the supply, access, and habitability of affordable housing statewide. In a positive step, the General Assembly passed SEA 114, which will enable courts to appoint a receiver upon the request of a utility if the owner of a multifamily residential property is severely delinquent on utility bills. While this legislation is good news for tenants whose utilities have been shut off in this case, it will not remedy the fact that Indiana is only 1 of 6 states without laws to enforce health and safety housing standards. In a major missed opportunity, SB 202/HB 1148 would have increased those habitability standards, and would have strengthened enforcement of unresponsive out-of-state corporate landlords, but neither bill was allowed a hearing in their original form. And while SB 202 was transformed into a study committee bill and passed the Senate by a wide bipartisan margin, it was not taken up by the House. The issue is now eligible to be chosen for interim study by the Legislative Council.

In a late-night surprise during the House Rules Committee hearing for HEA 1454 near midnight of the final night of the session, a provision (on pp. 190-191) was revealed that preempts local governmental units from inspecting, or imposing a fee pertaining to the inspection of, a rental unit if a HUD random sample of the rental unit community has been inspected in as much as the previous 36 months. This language had not previously passed either chamber and had not been subject to public testimony or review.

Another missed opportunity: despite PI testimony and hundreds of calls from members, the legislature failed to include funding for a Housing Stability Pilot in the biennial budget. This means state, local, and public-private partnerships will need to find alternative resources to bridge the gap between expiring emergency rental assistance funding and a potential sustainable solution through the federal Eviction Crisis Act sponsored by Senator Todd Young.

Community Development Resources

While the General Assembly did not advance the PI-supported HB 1147 to grow and provide funding options for Indiana’s land banks, the legislature did pass HEA 1627 ‘Sale of tax sale properties to nonprofits’. The bill, which PI members and staff testified to support, extends the ability for the sale of real property to eligible nonprofit entities for low or moderate income housing to all 92 counties.

By far, the legislation providing the greatest potential resources for community development is HEA 1001, the biennial budget bill. However, PI members will need to involve themselves with the implementation of some of these resources to get the most from how the legislative majorities’ prioritized the budget. Several budget provisions with the most potential impact for the sector include:

$250M each year for the newly-established regional economic acceleration and development initiative 2.0 fund (READI 2.0). PI members, note that in the bill, an "eligible regional economic acceleration and development organization" means "a development authority" AND a "qualified nonprofit organization" - a private, nonprofit entity formed as a partnership between local units, private sector businesses, or community or philanthropic organizations to develop and implement a regional economic acceleration and development strategy. Also note the potential to combine the impact of READI 2.0 funds with proposals for the $75M Housing Infrastructure Assistance Revolving Fund authorized in HEA 1005.
$1M each year for the Housing First program. This continuity in funding is a win, as Housing First programs have been under attack in many states.
$20M for a Low Barrier Homeless Shelter Grant Program in Indianapolis. This item was a last-minute pleasant surprise addition to the budget, as part of a larger Economic Enhancement District provision included for the city. While this is good news for Indy residents bearing the brunt of the state's housing stability crisis, it does not replace the need for a statewide eviction prevention fund.
$5M for a Homelessness Prevention Grant, with the explanation that the grant be "used to support programs that seek to prevent homelessness among vulnerable populations, including but not limited to foster youth and expectant mothers". This line item may be meant for the construction of a single facility for each of these populations.
$4M annually for a newly-established Attainable Homeownership Tax Credit for a taxpayer who makes a contribution to an affordable housing organization. Eligible organizations, such as Habitat for Humanity, are 501c3 nonprofits that use volunteer labor for the construction or development of affordable housing for individuals between 30%-80%AMI.
Establishes the Employer Child Care Expenditure Credits - a state tax credit for a taxpayer that makes certain qualified child care expenditures in providing child care to the taxpayer's employees.

Asset Building & Consumer Protections (thanks to PI Coalition Coordinator Hale Crumley for contributions to this section)

Two of the most exciting victories for Prosperity Indiana this session were the inclusion of Earned Income Tax Credit (EITC) reform in the state budget, and the passage of SEA 35 to include a financial literacy course as a graduation requirement. Both of these wins fulfill long-term priorities of the PI co-chaired Indiana Assets & Opportunities Network (see the Indiana A&O Network press release with member and legislator quotes).

In the asset-building sphere, the EITC is a resource for low and moderate income Hoosiers that encourages work by providing a wage subsidy in the form of a tax credit. Most states, including Indiana, have their own version of an EITC, calculated as a percentage of the federal credit. Under current law, Indiana’s state EITC is 10% of the federal credit as calculated before 2009, meaning the state credit is decoupled from the federal credit. The decoupled state EITC has several repercussions including a ‘marriage penalty’ in which a couple currently receives larger individual credits if they are not married, in contrast to the single credit they receive as a married couple. Decoupling also prevented foster parents from being able to claim foster children on their taxes unless they spent the entire year with them. This session, the Indiana A&O Network advocated to strengthen Indiana’s EITC by increasing the state percentage of the federal credit, as well as recoupling the state credit back to the federal credit. Ultimately, while the budget bill did not include an increased state percentage, this time the Genreral Assembly did listen to PI Action Alerts and can 'Fly the W Flag' after including recoupling the EITC with the federal credit in the final budget bill, providing additional relief to thousands of Hoosier families.

SEA 35 rose to the top of a number of bills introduced to increase financial literacy in Indiana’s K-12 education curriculum. Indiana Code 20-30-5-19 already required that personal financial responsibility be taught sometime between 6th and 12th grade, but in no particular manner. SEA 35 require that all Hoosier students starting with the Class of 2028 must pass a standalone financial literacy course in order to graduate high school. These students will be able to earn credit for their studies of money management, debt management, savings, tax returns, credit scores, simple contracts, and more. PI and the A&O Network will continue to work with policymakers to ensure members and community stakeholders are engaged in the implementation of this new requirement.

In addition, the final budget bill included $609,945 in level funding each year for the Individual Development Accounts (IDA) program, with the note that the Division of Family Resources shall apply all qualifying expenditures for IDA deposits toward Indiana's maintenance of effort under the federal Temporary Assistance for Needy Families (TANF) program.

On the consumer protections front, unfortunately the General Assembly did not advance the PI-supported HB 1026 to cap payday loans at 36% APR. But on the bright side, there was a welcome break from the large-scale defensive efforts necessary in previous sessions to prevent expansion of payday lending. However, PI and our Hoosiers for Responsible Lending coalition partners did successfully engage on two dangerous proposals, including HB 1547, which before being defeated, would have eliminated the state’s current ‘step rate’ on large loans and increased the allowable interest rate plus fees. Also, a late addition to SEA 452 would have allowed banks and credit unions to “change, amend, alter, add, or remove any term in a contract or agreement with a depositor at any time” before the provision was removed in conference committee.

Thanks again to Prosperity Indiana members and coalition partners - with your help, this session we've strengthened Indiana's communities and improved Hoosiers' lives.

The Shortage of Affordable Housing is Worst for Hoosier Renters with Extremely Low Incomes; Indiana’s Supply and Cost Burden Remains Behind Midwest Average

Thu, 16 Mar 2023 15:00:00 GMT

FOR IMMEDIATE RELEASE

March 16, 2023

Contact: Andrew Bradley | (317) 222-1221 x403| abradley@prosperityindiana.org

The Shortage of Affordable Housing is Worst for Hoosier Renters with Extremely Low Incomes in all 92 Counties; Indiana's Supply and Cost Burden Remains Behind Midwest Average

By Andrew Bradley, Erica Boswell, Hale Crumley, and Maya Painter

INDIANAPOLIS, IN- The Gap: A Shortage of Affordable Homes, a new report released today by the National Low Income Housing Coalition (NLIHC) and Prosperity Indiana, finds that Indiana’s shortage of affordable housing and severe housing cost burden is statewide and is concentrated in extremely low-income renter households in all 92 counties. The new report finds a statewide shortage of 120,796 affordable and available rental homes for extremely low-income renter households, defined as those with incomes at or below the poverty level or 30% of their area median income, whichever is greater. This means there are just 39 affordable and available rental homes for every 100 extremely low income Hoosier renter households. As a result, 70% of the most vulnerable renter households are severely housing cost-burdened, spending more than half of their incomes on housing, with little left over for basic necessities. Both measures underperform the regional average for Midwest states, continuing a years’-long trend. In addition, the report finds that Black and brown Hoosier households are twice or more as likely to be extremely-low income renters than white households, and bear a disproportionate burden of Indiana’s shortage of affordable housing.

The report confirms that Indiana’s largest housing gaps and cost burdens are borne by the lowest-income Hoosier renters who comprise some of the most vulnerable populations in the state. At 36%, the greatest proportion of these extremely low-income renter households are in the workforce, along with older Hoosiers at 26% (increasing from 21% in 2022), disabled Hoosiers at 21%, students at 5%, caregivers at 3%, and other households at 9%. Of the plurality of Indiana’s extremely low-income households who are in the labor force, over two-thirds of these Hoosiers are working more than part-time hours, with the greatest proportion (35%) working 40 hours or more per week and another 33% working between 20 and 39 hours per week. Another 12% work fewer than 20 hours per week and the remaining 20% are in the labor force but are jobless, looking for a job, and available for work.

The new report finds that Indiana’s gap in affordable housing is part of a national shortage of 7.3 million affordable and available rental homes for the lowest-income households. Every year, The Gap reports on the severe shortage of affordable rental homes available to extremely low-income families and individuals. The new Gap report finds that the economic repercussions of the COVID-19 pandemic, followed by significant rent increases, drastically impacted the supply of affordable and available rental homes, nationally, in recent years. While rental inflation has cooled going into 2023, extremely low-income renters will continue to face significant barriers to finding and maintaining affordable housing, as their incomes are insufficient to cover even modest rental prices.

The Gap 2023 finds that Indiana’s largest housing deficit is by far among its lowest income households, a shortage that also makes up the largest housing gap for the Hoosiers earning below 80% of the state’s median income. When considered cumulatively along with Extremely Low Income (ELI) households, Very Low Income Hoosier households (those earning between 0-50% AMI) experience a smaller but still substantial gap of 78,123 affordable and available units. This equals a rate of 76 units for every 100 households earning below half of AMI statewide. But The Gap data finds that, at or below 80% Area Median Income, a population known as Low Income (LI), there is an absolute surplus of 16,336 affordable and available rental units in Indiana, equaling a rate of 103 units for every 100 of these LI households. And above the statewide median income, there is an absolute surplus of 39,223 affordable and available units. So while small localized gaps can and do exist, for every 100 Hoosier households making above median income there is an average of 105 affordable and available units.

The housing gap for affordable and available housing in Indiana means that while the highest-earning households have their pick among all rental units, Hoosiers at lower income levels must compete for the remaining available housing stock that is affordable at their income level. For example, the 177,858 households earning above median income can afford any of the state’s 813,063 rental units, and the 81,115 households in the state’s middle income range can afford 794,957 of those units. But when those households choose to rent a unit that would be affordable to families making less than middle-income, that unit is no longer available on the market to lower-income households. So while there are already only 152,592 units affordable in price to Indiana’s 199,050 extremely low-income households, the ‘picking over’ effect contributes to the state’s gap of 120,796 units that are both affordable and available to this population. Also contributing to the lack of supply for ELI households is the fact that Indiana is only 1 of 6 states nationwide without habitability enforcement mechanisms, which artificially depletes the housing supply while increasing the severe housing cost burden for the most vulnerable Hoosiers.

The burden of Indiana’s gap in affordable and available rental housing is disproportionately borne Black and brown Hoosier households, as these households are both more likely to be renters and to have extremely low incomes. They are twice or more as likely as white households to be extremely low-income renters. For example, 63% of Black households are renters and 21% are extremely low-income renters. 45% of Latino households are renters and 12% are extremely low-income renters. In contrast, 24% of white households are renters and 6% are extremely low-income renters. These disparities are the product of historical and ongoing injustices that have systematically disadvantaged Hoosiers of color, often preventing them from owning a home and significantly limiting wealth accumulation. These disparities also mean that Indiana’s policy choice to not allow enforcement of habitability standards further disproportionately puts the health and economic burdens of substandard housing on Black and brown Hoosier renter households.

And while Indiana is commonly thought of as an affordable place to live regarding the availability and cost of housing, this reputation does not bear out for the lowest-income Hoosiers who face housing shortages and high rates of housing cost burden. And while the Midwest is typically more affordable than heavily populated coastal areas, within the region Indiana performs below average. Indiana has a lower rate of affordable and available housing for ELI households at 39.3% than six other Midwest states, and below the average of 41% for states in the region. And Indiana’s rate of 70.5% of ELI households experiencing severe cost burden is higher than seven Midwest states and is higher than the 68.7% average for states in the region.

The Gap in Affordable Housing is Most Prominent for the Lowest-Income Households in all 92 Indiana Counties

Additional analysis by Prosperity Indiana of the most recent county-level data (via HUD’s Comprehensive Housing Affordability Strategy data released in September 2022) finds that the state’s housing affordability gap and housing cost burden is truly statewide, but is consistently concentrated among the state’s lowest-income renter households. In all 92 Indiana counties, the rate of affordable and available rental housing is lowest for households making 0-30% of the county’s Area Median Income. And in 22 counties, the rate of affordable and available housing for the lowest-income renters is actually below the national average of 33 units for every 100 ELI households, including rural (Benton, Brown, and White), urban (Allen, Marion, and Vanderburgh), and suburban/mixed (Hamilton, Hendricks, and Porter).

See a table of the rates of affordable and available housing and housing cost burden for all 92 Indiana counties here.

In addition, in all 92 Indiana counties the rate of severe housing cost burden among extremely low income households was higher than the rate of severe housing cost burden among all other income categories combined. 21 counties have rates of severe housing cost burden above the national average of 72% for ELI households, including rural (Benton, Jennings, and Union), urban (Vigo, Lake, and St. Joseph), and suburban/mixed (Elkhart, Howard, and Wabash).

“Despite an improving state and national economy, this year’s Gap report finds that Indiana is making far too little progress to increase the supply, affordability, and habitability of housing to meet demand in all 92 counties. This new report shows the gap in affordable housing in Indiana is heavily borne by the lowest-income and most vulnerable Hoosier households,” said Prosperity Indiana Policy Director Andrew Bradley. “Indiana remains below average in the Midwest for the rate of affordable and available housing for extremely low income households, and higher than average for the rate of severe housing cost burden for those households. Indiana’s policymakers at the state, federal, and local levels must take advantage of every opportunity to focus efforts on increasing the supply of deeply affordable units; increasing funding for preserving the stock of existing affordable housing; and preventing the artificial depletion of supply by strengthening the enforcement of habitability standards,” Bradley said.

“As this year’s Gap report makes clear, extremely low-income renters are facing a staggering shortage of affordable and available homes,” said NLIHC President and CEO Diane Yentel. “In the wake of the pandemic, federal housing investments are more critical than ever for sustaining our communities and helping low-income people thrive. Yet House Republicans are now threatening to cut funding for the very programs that provide a lifeline to low-income renters. Balancing the national budget must not be done on the backs of our nation’s lowest-income and most marginalized people and families.”

For additional information, visit: http://nlihc.org/gap and https://www.prosperityindiana.org/

###

About Prosperity Indiana

About the National Low Income Housing Coalition

Prosperity Indiana Comments to Federal Regulators to Strengthen and Modernize the Community Reinvestment Act

Tue, 09 Aug 2022 13:23:43 GMT

FOR IMMEDIATE RELEASE

August 9, 2022

Contact: Andrew Bradley | (317) 222-1221 x403 | abradley@prosperityindiana.org

Prosperity Indiana Comments to Federal Regulators to Strengthen and Modernize the Community Reinvestment Act

INDIANAPOLIS, IN - On August 5, Prosperity Indiana submitted the attached comments on the notice of proposed rulemaking (NPR) concerning the Community Reinvestment Act (CRA) regulations to federal regulators at the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Board of Governors of the Federal Reserve System, informed by our statewide membership and national partners:

To Whom It May Concern:

Prosperity Indiana and our statewide network of nearly 200 community economic development organizations appreciate the opportunity to comment on the Notice of Proposed Rulemaking for the Community Reinvestment Act. We also respect the open approach regulators have taken the last several years, carefully considering feedback from a wide range of stakeholders, including those working on the front lines of community economic development and representing the Americans most impacted by the decisions you will be making regarding strengthening the CRA.

This is the right moment to modernize CRA for the needs of the 21st Century. At its core, the proposed CRA rule is a marked improvement over the status quo. However, the proposed rule is far from ambitious compared to the need that Prosperity Indiana and our members and partners see throughout the state and the nation...

Prosperity Indiana believes the NPR is a good start and promises to make parts of CRA exams more rigorous, but we urge the agencies to extend the rigor of the large bank lending test to the other tests. We also ask the agencies to incorporate race in CRA exams, to expand the public reporting of their data collection proposals, to bolster their assessment area proposal to make sure that smaller communities are not left out and to refrain from reducing reinvestment requirements for any segment of banks. If CRA is improved while maintaining public input and accountability, we believe the proposed rule could help reduce inequalities, disinvestment and other disadvantages in America’s overlooked communities."

Click here to read the full Prosperity Indiana comments on the proposed CRA rule.

###

About Prosperity Indiana

Affordable Housing is Out of Reach and Getting More Expensive for Low-Wage Hoosiers

Thu, 28 Jul 2022 14:00:00 GMT

FOR IMMEDIATE RELEASE

July 28, 2022

Contact: Andrew Bradley | (317) 222-1221 x403 | abradley@prosperityindiana.org

Affordable Housing is Out of Reach and Getting More Expensive for Low-Wage Hoosiers

INDIANAPOLIS, IN - In order to afford a modest, two-bedroom apartment at fair market rent in Indiana in 2022, full-time workers need to earn $16.97 per hour, up from $16.57 a year ago. This is Indiana’s 2022 Housing Wage, revealed in a national report published today. The report, Out of Reach, is jointly released by the National Low Income Housing Coalition (NLIHC), a research and advocacy organization dedicated to achieving affordable and decent homes for people with the lowest incomes, and Prosperity Indiana, the statewide association for community economic development.

This year, the Out of Reach report is being released amid record-high inflation and rising rental costs. These rent increases are affecting tenants nationwide, with median rents for two-bedroom apartments increasing nearly 18% between the first quarter of 2021 and the first quarter of 2022. At the same time, costs for necessities like food and transportation have also skyrocketed, leaving low-income renters with increasingly tighter budgets. With inflation breaking a 40-year record in 2022, many renters have had to make difficult decisions about their budget, sacrificing childcare, medical care, and food to maintain housing.

In Indiana, a renter needs to earn on average $14.19 to $18.87 per hour, depending on location, to afford a modest two-bedroom rental home without spending more than 30% of their income on housing costs. For Hoosiers, the Housing Wage is above the statewide median in 23 counties covering rural, suburban, and urban parts of the state.

The new report finds that the combination of inflated costs and wages increasingly out of step with neighboring states means that housing is getting further out of reach for Hoosier renters. Despite a reputation of being a low-cost state, the housing wage in Indiana has worsened from 43rd-least affordable in the nation in 2021 to 40th in just one year. Among Midwest states, Hoosier renter wages remain consistently and increasingly behind those in the region. In 2022, the mean renter wage of $16.61 is now $1.05 an hour lower than the $17.66 mean renter wage across all Midwest states. This means Hoosier renters working full time make $2,184 less each year than the typical Midwest renter. Filling that wage gap would pay for nearly 2.5 months of the state’s fair-market rent for a two-bedroom unit at $882/month.

The report also finds that nine of Indiana’s top 20 largest occupations pay a lower median wage than a full-time Hoosier worker needs for the state’s housing wage for a modest two-bedroom apartment at the state’s fair market rent. Among the state’s top 20 largest occupations, 228,320 Hoosiers work as waiters and waitresses, fast food and counter workers, cashiers, and home health and personal care aides where the median wage is insufficient even for a one-bedroom unit. These are some of the same occupations that employers report having the hardest time keeping positions filled.

“To lighten the burden of increased housing costs, Indiana’s policymakers should support efforts to increase the supply of new housing at attainable prices for renters,” said Jessica Love, executive director for Prosperity Indiana.

“Preserving and rehabilitating aging units and enforcing habitability standards are both critical components in ensuring all Hoosiers have a decent and affordable place to live.”

The increased cost of housing is also causing inflation in the number of hours Hoosiers working minimum wage must work to afford rent. The federal minimum wage has remained at $7.25 an hour without an increase since 2009, and Indiana has remained tied to that national wage floor. In no Indiana county or metro area can a minimum-wage renter working a 40-hour workweek afford even a modest studio rental unit at the average fair market rent. Working at the minimum wage of $7.25 in Indiana, a Hoosier wage earner must have 1.9 full-time jobs or work 76 hours per week to afford a modest one-bedroom apartment; or earn 2.3 full-time jobs or work 94 hours per week to afford a two-bedroom apartment. To afford a two-bedroom apartment at minimum wage across all 92 Indiana counties, the estimated hours needed range from 78 to 104 hours worked per week. This means that minimum-wage Hoosier workers in Benton, St. Joseph, and Tippecanoe Counties must work longer per week (104 hours) to afford a two-bedroom unit than workers in Washington, DC (85 hours), Portland, OR (99 hours), or Los Angeles County, CA (99 hours).

“Decades of chronic underfunding for housing assistance have resulted in a housing-lottery system, where only 25 percent of eligible households receive the housing assistance they need,” said NLIHC President and CEO Diane Yentel. “With rents rising rapidly, homelessness worsening, and millions of families struggling to stay housed, federal investments in expanding proven solutions – like Housing Choice Vouchers, the national Housing Trust Fund, and public housing – are badly needed and long overdue. As a country, we have the data, partnerships, expertise, solutions, and means to end homelessness and housing poverty – we lack only the political will to fund solutions at the scale necessary.”

For additional information, visit: http://www.nlihc.org/oor

###

About Prosperity Indiana

About the National Low Income Housing Coalition

Notre Dame Student Policy Network Releases Report on Tenant Protections in Indiana

Mon, 25 Apr 2022 18:49:03 GMT

FOR IMMEDIATE RELEASE

April 25, 2022

Contact: Andrew Bradley | (317) 222-1221 x403 | abradley@prosperityindiana.org

Notre Dame Student Policy Network Releases Report on Tenant Protections in Indiana

INDIANAPOLIS, IN – In a recently released report, Tenant Protections: An Impact Analysis, the Student Policy Network at the University of Notre Dame examines policies in Indiana aimed at providing additional security for tenants and the health and economic impacts of these policies. In conjunction with Prosperity Indiana and the Hoosier Housing Needs Coalition, the Student Policy Network hosted an event outlining the findings of the report on April 20, 2022.

"My team, as part of the Notre Dame Student Policy Network, took a semester-long dive into the impacts of proposed tenant protections throughout Indiana. Identifying a lop-sided policy outlook in favor of landlords, we used health data, state comparisons, and advocate interviews to qualify the need for further tenant-focused legislation and recommend specific policy implementation. We hope our findings can be used by policymakers, advocates, and community developers to better understand the issues at hand in Indiana's housing market, and find equitable solutions," said Thomas Musgrave, Project Lead of the Notre Dame Student Policy Network.

According to the report, “Low-income tenants are consistently underrepresented in legislative debate; we aim to voice the concerns of these Hoosiers, while considering the effects of our proposed legislation on landlords, the state, the judiciary, and the overarching housing market.”

Analysis of recent legislation includes SB 230, enforcement of habitability standards (Sen. Fady Quaddora (D-Indianapolis) and Sen. Greg Walker (R-Columbus)), and HB 1214, residential eviction actions including sealing and expungement, (Rep. Ethan Manning (R-Denver), Rep. Chris Jeter (R-Fishers), Rep. Edward Clere (R-New Albany), and Rep. Vernon Smith (D-Gary)). SB230 was sent for consideration of an interim study committee while HB1214 was passed and signed into law by Governor Holcomb this session.

When compared to other states, tenants in Indiana are limited in ensuring basic habitability standards, and lack necessary legal support in fighting eviction and removing evictions from their record, which has devastating impacts on the most vulnerable Hoosiers. With adverse health effects, social immobility, cyclical poverty, and increased state costs directly associated with current tenant-landlord policies, the report advocates that changes must be made to create a safer, more equitable, and more fiscally responsible Indiana.

Read the full report here. View the presentation slides here.

View the report release event here.

###

About Prosperity Indiana

About the Hoosier Housing Needs Coalition

Hoosier Housing Needs Coalition (HHNC) was formed by members of Indiana’s housing security advocacy community in April 2020 to support advocacy and education related to housing and homelessness prevention in response to the COVID-19 pandemic. Staffed by Prosperity Indiana through advocacy and coalition building grants from the National Low Income Housing Coalition and the Central Indiana Community Foundation, HHNC convenes partners from across Indiana to advocate for immediate, medium- and long-term housing stability policy solutions and conduct education and research to achieve federal, state, and local policies for an equitable response and recovery to the pandemic and beyond.

The HHNC Steering Committee is comprised of members from AARP Indiana, the Coalition for Homelessness Intervention & Prevention (CHIP), Fair Housing Center of Central Indiana, Family Promise of Greater Indianapolis, Hoosier Action, Indiana Coalition Against Domestic Violence, Indiana Community Action Poverty Institute – INCAA, Indiana University McKinney School of Law, Prosperity Indiana, The Ross Foundation, and United Way of Central Indiana.

Severe Shortage of Affordable Housing in Indiana Means Families with the Lowest Incomes Suffer Most

Fri, 22 Apr 2022 13:49:17 GMT

FOR IMMEDIATE RELEASE

April 22, 2022

Contact: Andrew Bradley | (317) 222-1221 x403 | abradley@prosperityindiana.org

Severe Shortage of Affordable Housing in Indiana Means Families with the Lowest Incomes Suffer Most

INDIANAPOLIS, IN –The Gap: A Shortage of Affordable Homes, a new report released today by the National Low Income Housing Coalition (NLIHC) and Prosperity Indiana, finds a national shortage of seven million affordable and available rental homes for the lowest-income households. There are just 36 affordable and available rental homes for every 100 of the lowest-income renter households nationwide. Seventy-one percent of the poorest renter households are severely housing cost-burdened, spending more than half of their incomes on housing, with little left over for other basic necessities. The pandemic has only made things worse. Long-term federal investments are needed to combat this housing crisis for the lowest-income renters. Every year, The Gap reports on the severe shortage of affordable rental homes available to extremely low-income families and individuals.

“Sadly, Indiana now has the single highest housing cost burden among all Midwest states for the lowest-income residents. Compounding this concern is the fact that our state continues to have one of the smallest rates of affordable and available rental units. This lack of affordable housing stock is putting increasing pressure on families struggling to pay their bills and move up the economic ladder,” said Prosperity Indiana Executive Director Jessica Love.

Indiana has 38 affordable and available rental homes for every 100 households with extremely low incomes, tied for the fourth-lowest rate in the Midwest and 20th-lowest among all states. Facing a shortage in Indiana of 135,033 affordable and available rental homes, 72 percent of these Hoosier renters are severely housing cost-burdened, the highest rate of severe housing cost burden in the Midwest and 13th-highest in the nation.

Love said, “To relieve the pressures being caused by the state’s high housing costs and limited availability, Indiana policymakers must tackle this issue through both increased resources and better public policy. We need to see greater investment in the production of affordable housing for the Hoosiers who need it most, as well as stronger habitability standards and tenant protections to improve housing stability and affordability throughout the state.”

The shortage of affordable housing in Indiana affects rural, urban, and suburban counties alike. In no Indiana county is the supply of affordable and available units enough on average for the number of extremely low-income Hoosier households living in that county. According to the most recent HUD Comprehensive Housing Affordability Strategy (CHAS) data¹, 51 of Indiana’s 92 counties have a lower rate of affordable and available units than the statewide average identified in The Gap 2022 report. These range from a high of 80 units for every 100 extremely low-income households in Crawford County to a low of only 8 units for every 100 households in need in Tipton County. Similarly, Indiana’s Midwest-leading severe housing cost burden for the lowest-income households extends throughout the state, ranging from 29 percent of extremely low-income households spending half or more of their incomes on housing in Pike County to 89 percent in Tippecanoe County.

The report shows how these lowest-income renters were uniquely positioned to suffer disproportionately from the effects of lost income and housing insecurity during the pandemic.

Although the federal government took unprecedented actions to protect the lowest-income renters, the government’s actions were temporary. Most eviction moratoriums have been lifted and resources, such as federal emergency rental assistance, are running out. Longer-term federal investments in affordable housing are needed to combat the underlying shortage of affordable housing that exposed so many of these lowest-income renters to housing instability in the first place.

“The pandemic has made plain our nation’s lack of a housing safety net,” said NLIHC President and CEO Diane Yentel. “It is time to invest in long-term housing policies that will finally address the systemic shortage of affordable housing and provide housing stability for the lowest-income families.”

NLIHC and Prosperity Indiana both advocate for the adoption of federal legislation to increase housing stability and security.

For additional information, visit: https://nlihc.org/gap

¹https://www.huduser.gov/portal/datasets/cp.html

###

About Prosperity Indiana

About the National Low Income Housing Coalition

Short session, long impact for Prosperity Indiana members

Fri, 11 Mar 2022 13:49:53 GMT

Although the 2022 session of the Indiana General Assembly was a ‘short session’ in a non-budget year lasting only nine weeks, legislation that passed (and failed) has the potential for long-lasting impact for Prosperity Indiana members and the state’s community economic development sector. PI member involvement this session helped pass legislation that will seal eviction filing records, secure $150 million in affordable housing state tax credits, and prevent the expansion of predatory small loans statewide.

Following the feedback of members who told us that the pandemic continues to disproportionately affect vulnerable Hoosiers in their communities and strain their capacity to serve them, PI sought to respond to these short-term critical needs while building resources and policy structures to strengthen Indiana’s communities in the long term. Our 2022 Policy Agenda: Rebuilding Stronger, More Equitable Indiana Communities focused on opportunities to rebuild communities through recovery efforts for the hardest-hit Hoosiers; strengthening the infrastructure of resources for the state’s community economic development sector; and permanently improving the lives of Hoosiers long neglected by public policies.

Throughout the session, Prosperity Indiana members stepped up to act on these priorities. Members took center stage when we unveiled our agenda in a live event with legislators before the session, drove hundreds of miles to participate in PI’s Statehouse Day in January and testify before committees, and made countless calls and emails to legislators over the short session to explain how PI’s priority legislation would help them serve Indiana’s communities. Here are the results of those efforts and the outcomes of the legislation most directly tied to PI’s agenda:

AFFORDABLE HOUSING

HB 1214: Residential eviction actions (Rep. Ethan Manning) included a provision that will seal eviction filing records when the case doesn’t go to court or is found in the tenant’s favor. This provision has been a top PI agenda item and a priority of the PI-convened Hoosier Housing Needs Coalition (HHNC) for the past two sessions. The bill also requires courts to track and compile this data and that all emergency rental assistance programs create a designated landlord application process. PI remains concerned with provisions that require all court-based eviction diversion programs to be voluntary and encourages the legislature to revisit this provision if it does not increase the uptake in such programs. The bill passed with 49-0 votes in the Senate and 91-0 in the House.

HB 1306: Housing task force (Rep. Doug Miller) named the PI-convened Hoosier Housing Needs Coalition to the newly-created Indiana Housing Task Force, which will be charged with reviewing issues related to housing and housing shortages in Indiana and issuing a report to the General Assembly and the Governor by November 1, 2022. The bill passed with 48-0 votes in the Senate and 88-2 in the House.

While SB 230: Enforcement of habitability standards (Sen. Fady Qaddoura) was not granted a hearing in the House after passing the Senate 47-1, the broad bipartisan support provides momentum for interim study of the habitability standards for residential rental units, including the issue of jurisdictional questions. Also regarding habitability enforcement, HB 1048: Sheriff's sale in mortgage foreclosure action (Rep. Sean Eberhart) passed and prevents predatory and negligent landlords, including those from out of state and out of country, from buying foreclosed property in online sheriffs’ sales. The final votes on HB 1048 were 50-0 in the Senate and 87-3 in the House.

COMMUNITY DEVELOPMENT RESOURCES

SB 382: Various tax matters (Sen. Travis Holdman) included provisions originally in SB 262 (Sen. Travis Holdman) providing up to $30 million annually over five years in affordable and workforce housing state tax credits, for a total of up to $150 million. PI testified in favor of this provision in committee and supported the bill that has been considered in various versions since first introduced five years ago. SB 382 passed with 38-12 votes in the Senate and 66-32 in the House.

The provisions of SB 292: Land banks (Sen. Tim Lanane) that would have required counties to provide a list of eligible properties to land banks, as well as an optional transfer of those properties, were added to SB 62: Sale of tax sale properties to nonprofits (Sen. Michael Young) during conference committee in the last week of session. However, due to disagreements in caucus that were not made public, SB 292 language was stripped out of the conference committee report, and SB 62 passed without them. The final votes on SB 62 were 50-0 in the Senate and 91-2 in the House. Despite this setback, look for broader recommendations from PI’s Land Bank Incubator Scholarship team to be introduced next session.

CONSUMER PROTECTION/ASSET DEVELOPMENT

Despite broad bipartisan support, committees did not hear HB 1159 (Rep. Carey Hamilton) or SB 253 (Sen. Ron Alting) ‘Small loan finance charges’ that would have capped payday APRs at 36%. However, Hoosier consumers were protected from an expansion of predatory lending when the House refused to hear SB 352: Supervised consumer loans after it passed the Senate by a narrow margin. As the PI co-convened Hoosiers for Responsible Lending (HRL) stated, SB 352 would have “drastically change[d] subprime, high-cost installment lending across Indiana by increasing the finance charges and fees, compared to current law, [allowing] lenders to aggressively push borrowers to refinance these installment loans as often as possible.” Prosperity Indiana and HRL are committed to working with legislators before next session on solutions and alternatives that provide equitable and responsible access to credit.

Beyond these agenda priority bills, Prosperity Indiana tracks a wide array of legislation impacting the community economic development sector. See the final outcomes for all of the bills we tracked during the 2022 session:

Prosperity Indiana 2022 Priority Agenda bills
Affordable Housing Policy bills policies related to housing stability, eviction prevention, etc.
Community Development Resources bills including tax credits, properties, and other resources for the sector
Asset-Building & Consumer Protection bills related to ensuring economic opportunity for Hoosiers and communities
Other tracked bills relevant to PI's community economic development sector members

Thanks again to all Prosperity Indiana members and coalition partners who advocated for our priorities this session and helped secure several key victories that will have a positive impact for Indiana’s communities over the long term. If you are new to PI, please sign up for email and action alerts to keep up to date with policy and advocacy efforts throughout the year.

Prosperity Indiana praises House passage of Build Back Better Act, urges speedy Senate action

Fri, 19 Nov 2021 21:54:21 GMT

FOR IMMEDIATE RELEASE

Contact: Andrew Bradley | (317) 222-1221 x403 | abradley@prosperityindiana.org

Prosperity Indiana praises House passage of Build Back Better Act, urges speedy Senate action

INDIANAPOLIS, IN – Prosperity Indiana applauds the U.S. House of Representatives for voting today to approve the Build Back Better Act, a $1.75 trillion economic recovery package that includes historic investments in community economic development. With today’s vote, Congress is one step closer to enacting this legislation critical for an equitable recovery for Indiana’s communities. Of Indiana’s House Delegation, Representatives André D. Carson (D-IN-7) and Frank J. Mrvan (D-IN-1) joined the majority in voting for the bill, which next heads to the Senate for final approval.

“Prosperity Indiana thanks Rep. Mrvan and Rep. Carson for voting to approve the historic investments in affordable housing and community economic development in the Build Back Better Act,” said Executive Director Jessica Love. “These investments will help strengthen Indiana’s communities by making housing more stable, affordable, and available, and reinforcing an equitable recovery by increasing economic opportunities for low-income Hoosiers as well.”

The legislation includes robust funding for the Opportunity Starts at Home-Indiana campaign’s top priorities: $25 billion to expand rental assistance to over 300,000 households; $65 billion to preserve the nation’s deteriorating public housing infrastructure; and $15 billion for the national Housing Trust Fund to build and preserve over 150,000 affordable, accessible homes for households with the lowest incomes.

In addition, the Build Back Better Act passed by the House includes key investments to expand the stock of affordable housing, increase homeownership, and make housing more fair and affordable, including: $10 billion for the HOME Investment Partnership Program First-Generation Downpayment Assistance, $750 million in new funding for the Housing Investment Fund, part of the Community Development Financial Institutions Fund to provide competitive grants to CDFIs and nonprofit developers. The legislation also supports low income housing tax credits through $740 million in grants to nonprofits to develop, preserve, or rehabilitate housing; $1.2 billion for Section 24 grants to improve affordable housing units’ health, safety, climate, and disaster resilience; $1.7 billion to increase the energy efficiency of units; and $1.5 billion to keep at-risk projects viable. The bill also includes the provisions of the Neighborhood Homes Investment Act, originally co-authored by Senator Todd Young (R-IN).

The Build Back Better Act also advances community economic development for Indiana with investments that increase asset-building, shrink wealth gaps, and expand equitable economic opportunities. This includes expanding the Child Tax Credit to more than 35 million households nationwide, expanding the Earned Income Tax Credit for 17 million low-wage workers, and helping Hoosier families meet everyday challenges through increased childcare and universal pre-K, making college more affordable, and increasing paid leave.

Love said, “Prosperity Indiana urges Indiana’s Senators to do everything in their power to ensure these vital affordable housing and community economic development investments are promptly passed by the Senate, so that they can quickly help strengthen Indiana’s communities and improve Hoosiers’ lives.”

###

About Prosperity Indiana

Indiana Association for Community Economic Development d/b/a Prosperity Indiana builds a better future for our communities by providing advocacy, leveraging resources and engaging an empowered network of members to create inclusive opportunities that build assets and improve lives. Since its founding in 1986, Prosperity Indiana has grown to nearly 200 members from the public, private and nonprofit sectors.

Bipartisan legislation would expand Military Lending Act protections on payday and car title loans to all veterans and consumers

Thu, 18 Nov 2021 21:17:21 GMT

For Immediate Release

November 18, 2021

Contact: Natalie James, (317) 222-1221 ext.406, njames@prosperityindiana.org

Bipartisan legislation would expand Military Lending Act protections on payday and car title loans to all veterans and consumers

INDIANAPOLIS, IN – Hoosiers for Responsible Lending applauds the introduction of the Veterans and Consumers Fair Credit Act of 2021 in the U.S. House of Representatives. This legislation would extend the 36 percent APR interest rate cap on payday and car title loans in the Military Lending Act (MLA) to cover all citizens.

The bipartisan House bill was introduced on November 17 and would achieve a major policy goal of Hoosiers for Responsible Lending. Among those who introduced the bill, Representative André Carson is an original sponsor for the Veterans and Consumers Fair Credit Act.

“We thank Congressman Carson for supporting this bipartisan legislation that takes an important step toward eliminating predatory lending in Indiana and across the country,” said Andy Nielsen, Senior Policy Analyst with the Indiana Institute for Working Families and HRL member. “High-cost lending in our state traps Hoosiers in a cycle of debt that many struggle to leave, jeopardizing the economic security of individuals and families and the health of our communities. Congress already recognized the need to enact strong interest rate caps that protect our active duty military, and this protection must be extended to all consumers.”

View the entire press release here.

Prosperity Indiana comments in support of OCC's proposal to rescind its dangerous 2020 CRA rule

Fri, 29 Oct 2021 19:25:06 GMT

Prosperity Indiana joined state and national partners in submitting comments in support of the Office of the Comptroller of the Currency (OCC) proposal to rescind its disastrous 2020 rule for the Community Reinvestment Act (CRA).

Prosperity Indiana is a network of nearly 200 organizations and individuals committed to advancing community economic development statewide. The focus of our efforts is to ensure everyone can enjoy equal economic and social opportunities and live in thriving communities. In carrying out this work, we know how critical CRA is to ensuring that areas and/or projects that would not otherwise receive investment can secure critical capital from banks through loans and investments for affordable housing and economic development. These investments and credit services spark neighborhood revitalization and help more Hoosiers achieve and maintain economic success.

When this rule was being considered in April of 2020, our membership was strongly concerned not only with the timing and short period of public commenting, which came during the very beginning of the COVID-19 public health emergency, but with the content of the rule which our members believed would undermine the purpose of CRA. In the eighteen months that have followed, the serious damage from the ongoing pandemic has only strengthened the weight of those comments.

What’s at stake in Indiana?

Every Indiana community has a stake in strengthening the CRA, from our small towns to growing suburban areas to the core urban areas. This is true from Angola, which saw $130.3 million in mortgages or loans to LMI borrowers or neighborhoods from 2009 through 2018, $0 in business loans to LMI neighborhoods, and $97.2 million in loans to small businesses, to Warsaw with $277 million in mortgages to LMI borrowers or neighborhoods, $36.1 million in business loans to LMI neighborhoods, and $271.4 million in loans to small businesses. And in our state’s largest metro area of Indianapolis-Carmel-Anderson, which itself spans a large city, a wealthy suburb, and a former industrial center now facing challenges, mortgages to LMI borrowers or neighborhoods totaled $14.2 billion from 2009 through 2018, with $3.9 billion in business loans to LMI neighborhoods, and nearly $4 billion in loans to small business. Indiana’s communities from smallest to largest can’t risk a weakening of the CRA from the rule OCC is rightfully considering rescinding, that would have allowed an increase in discrimination in lending.

Strengthening CRA is a critical component of a just recovery

Indiana communities who have been hardest-hit and are still battling the public health, economic, and housing impacts of COVID-19 are the same who carry the ongoing scars of redlining. The National Community Reinvestment Coalition (NCRC) recently released a major report finding significant correlations between redlining and susceptibility to COVID, including Evansville, Fort Wayne, Indianapolis, Gary and Lake County, Muncie, South Bend, and Terre Haute. In the 1930s, the Home Owners Loan Corporation (HOLC) commissioned the production of maps that rated neighborhoods based on the risk of lending in them. Working class and minority neighborhoods usually received the riskiest designation of hazardous. The designations subsequently facilitated redlining and discrimination against these neighborhoods, which remain starved of credit and are predominantly lower-income and minority. These neighborhoods also have the highest incidence of health conditions such as asthma, diabetes, kidney disease and stroke, which make residents more susceptible to COVID-19. Life expectancy is almost four years lower in the redlined communities than the neighborhoods not designated as hazardous by HOLC.

In Indiana, the pandemic has disproportionately affected communities of color in additional ways. For example, according to the Federal Reserve Bank of Atlanta’s Unemployment Claims Monitor, through October 23, 2021, Black Hoosiers continue to file 27.9% of unemployment insurance claims during the pandemic, although they make up only 9.4% of the labor force.

While we have not seen state-level data about Indiana’s Black-owned businesses, reports from the experiences of our members throughout the state align with nationwide trends showing a disproportionate impact on these businesses. Since the start of the pandemic, more than 440,000 African American businesses (41%) have been closed nationwide, compared to just 17% of White-owned small businesses. Discrimination in lending contributes significantly to racial disparities in small business survival rates. An NCRC investigation found that African American testers applying for Paycheck Protection Program (PPP) loans for their small businesses during the pandemic were likely to receive less information or encouragement to apply than White testers. We do not need state-level data to confirm the impact, and we cannot afford to see the CRA watered down in the meantime. CRA must be strengthened considerably in order to combat discrimination and help our communities recover from the pandemic.

Read the full comments here.

Prosperity Indiana Urges Congress to Prioritize Affordable Housing Investments in the Build Back Better Act

Wed, 06 Oct 2021 15:51:19 GMT

FOR IMMEDIATE RELEASE

Contact: Natalie James | (317) 222-1221 x406 | njames@prosperityindiana.org

Prosperity Indiana Urges Congress to Prioritize Affordable Housing Investments in the Build Back Better Act

INDIANAPOLIS, IN – As Congressional leaders negotiate over the size and scope of the Build Back Better Act, the National Low Income Housing Coalition’s (NLIHC) HoUSed campaign and Prosperity Indiana urge Congress to ensure that any final economic recovery package prioritizes housing investments targeted to serve America’s lowest-income and most marginalized households who face the greatest, clearest needs. The Build Back Better Act must include investments in rental assistance, public housing, and the Housing Trust Fund at the historic levels approved by the House Financial Services Committee and drafted with the Senate Banking Committee.

America is in the grips of an affordable housing crisis, most severely impacting the most marginalized and lowest-income people. Nationally, there is a shortage of 7 million homes affordable and available to the lowest-income renters including a gap of nearly 127,000 units in Indiana alone. While there are proven solutions that can address the affordability crisis, current funding levels from Congress leave three out of four eligible households receiving no assistance at all, which is what brought us to the brink of an eviction tsunami during a global health emergency.

“The spotlight that COVID has shown on the preexisting crisis - the need for better and more affordable housing - makes this long-standing issue undeniable at this point,” said Jessica Love, executive director for Prosperity Indiana. “It’s time now to not only address the immediacy of the moment but to invest into the future of our nation’s families and communities by supporting the myriad of tools available to us to build and preserve affordable housing.”

The National Low Income Housing Coalition’s (NLIHC) HoUSed campaign and Prosperity Indiana urge Congress to enact historic investments in the country’s affordable housing infrastructure, including $90 billion to expand rental assistance to 1 million more households, $80 billion to preserve public housing for more than 2.5 million residents, and $37 billion for the national Housing Trust Fund to build, preserve and rehabilitate 330,000 apartments affordable to the lowest-income people. Any spending cuts to the Build Back Better Act must not come at the expense of these proven solutions to America’s housing crisis.

“There’s never been a moment where there were such transformative investments on the table and there was a real potential to achieve them,” said NLIHC President and CEO Diane Yentel. “The Build Back Better Act is a once-in-a-generation opportunity to effectively end homelessness – if done right. Congress cannot allow this opportunity to pass us by.”

An underlying cause of America’s housing crisis is a market failure that results in a severe shortage of rental homes affordable to people with the lowest incomes. In Indiana there are 202,171 extremely low-income households but only 75,219 affordable rental homes available to them. The result is only 37 affordable and available rental homes for every 100 Hoosier households with extremely low incomes, the second-lowest rate of availability among Midwest states.

Despite the clear and urgent need, only one in four households who qualify for housing assistance receives it due to decades of chronic underfunding by Congress. People of color – especially women of color – and other marginalized renters are most harmed by the housing crisis.

# # #

For more information about the HoUSed campaign, please visit www.nlihc.org/housed.

About Prosperity Indiana

Testimony to the Interim Fiscal Policy Committee Study on Affordable, Workforce, & 'Missing Middle' Housing

Tue, 24 Aug 2021 21:57:25 GMT

Thank you Chairman Holdman and Members of the Interim Study Committee. My name is Andrew Bradley, and I am Policy Director for Prosperity Indiana. My testimony today is informed by a series of regional housing convenings we’ve been conducting this month with our statewide membership of community economic development organizations and housing providers, realtors, homelessness service organizations and legislators. We’re holding our last two tomorrow in Fishers and next Tuesday in Fort Wayne and I invite all of you to join what have been some very illuminating discussions.

Those regional discussions have uncovered new support for the evidence we’ve seen that Indiana has a pre-existing and intertwined housing affordability and stability crisis that has only been exacerbated by the pandemic and increasingly puts our state at a competitive disadvantage with our Midwestern peers when it comes to maintaining and growing our workforce. However, there are policy options and resources on the table that could close the gap and secure homes for future generations of Hoosiers.

The stakes for housing our workforce and overall population are clear. Brand new Census data show that Indiana’s population grew 4.7% from 2010 to 2020. But our housing stock only grew 4.6% during that time, with net losses in nearly half of Indiana’s counties, mostly the smallest and most rural parts of the state. We can’t sustain or grow Indiana without sustaining and growing safe, affordable, and stable homes for Hoosiers.

Although Indiana is a relatively affordable place to live for some, quality affordable housing is far out of reach for too many across our state, including for much of our workforce. In fact, data from the National Low Income Housing Coalition finds that Indiana has a gap of -126,952 affordable and available units for the bottom 30% of earners. Indiana has the second-lowest supply of affordable and available housing among all Midwest states for people at 30% or below of area median income, with only 37 units for every 100 households. This bottom 30% of earners are what’s known as ‘extremely low income households’ and are the same category that employers say they can’t fill jobs for – the restaurant and bar workers; hotel and hospitality workers; certified nursing assistants and all kinds of high-touch personal service jobs most likely to be held by the Black and brown Hoosiers, women, and Hoosiers with low educational attainment that were most affected by the pandemic. Without a stable foundation of housing they can afford, these Hoosiers won’t be able to compete for higher-level jobs.

At the same time, 72% of Indiana’s extremely low-income households are severely housing cost burdened, meaning they spend more than half of their income on housing. This is the second-higest rate in the Midwest, And in 2021, it takes a renter $16.57 an hour to afford a 2BR unit at the statewide fair market rent of $862/month, the average Hoosier renter earns $14.58 per hour. That average renter wage of $14.58 is increasingly out of step with the Midwest average of $15.35, a gap of $0.77 per hour or almost $1,600 less than neighbors across the region. Meanwhile, the median wage for 10 of Indiana’s top 20 occupations pays less than the housing wage for a 2BR at fair market rent – and 6 of those top 20 occupations pays less than what’s needed for 1BR.

That’s a competitive disadvantage.

During our regional convenings, stakeholders who work with these issues on the ground every day told us that when Hoosiers have fewer available options and have to put a greater proportion of of a smaller income towards housing than elsewhere in the Midwest, it means they’re forced to choose rent instead of medicine, childrens’ school supplies, or savings needed to buy a home or skill up to move up the career ladder. It also means that families may be forced to accept substandard housing and live in poor conditions that affect children’s health and learning outcomes, parent’s ability to gain and maintain a job, and the overall economic viability of the community.

What adds fuel to the fire is the current housing crisis brought on by COVID-19. Indiana has seen over 55,000 eviction filings during the pandemic, despite eviction moratoriums. Even before the pandemic, Indiana had an eviction rate of 4.07%, nearly double the national average, with three Indiana cities among the top 20 for highest eviction rates nationwide.

And while emergency rental assistance is now beginning to reach the landlords and renters who need it, even having that eviction filing can hang like a “Scarlet E” around a renter family’s neck, making it harder for them to obtain new housing, and leaving them more susceptible to the cycle of substandard housing that drains resources from families and communities. But unlike many criminal records, there is currently no way for renters to expunge that Scarlet E from their records, or even a right to access and correct errors in a tenant screening record.

At one convening this month, after hearing these stories from his community, one legislator remarked that “this housing issue is more complicated than rocket science”, but agreed that it’s necessary for communities to thrive and too important to neglect. However, the tools available to communities to keep their workforce stably housed has been reduced over the past few years, from preventing inclusive zoning to increase workforce housing, to disallowing communities from informing landlords and tenants of their legal rights.

Another stakeholder remarked that communities too often try to address housing issues thinking about the $300K-$500K homes, but too often don’t have a strategy for the lower income workforce that sees the most acute gaps. Perhaps the greatest benefit of this committee would be to provide a strategy for the state to align partners and resources to target available resources in the areas of greatest need, including:

Using available policy levers to increase the supply of affordable, workforce housing by increasing state tax credit resources targeted for the development of housing for low-income households, and through robust land bank tools and resources.

Creating a Housing Stability Task Force to to inform the use of federal housing recovery resources with input from housing providers, residents, and communities with on-the-ground experience of what works and what doesn’t.

Assessing the effectiveness of current policies affecting housing affordability and stability with the input of those affected by them, and weeding out those that are outdated, lopsided, or counterproductive to housing Indiana’s future.

Thank you for your dedication to addressing and finding lasting solutions to this complex issue.

Sincerely,

Andrew Bradley

Policy Director, Prosperity Indiana

Remarks to the White House Eviction Prevention Convening

Thu, 22 Jul 2021 01:09:29 GMT

[On July 21, 2021, Andrew Bradley, Prosperity Indiana Policy Director presented these remarks to the White House Eviction Prevention Convening]

Thank you, Mr. Sperling and Mr. Wardell and thank you to the White House for your leadership and ongoing efforts on this critical issue. I’m Andrew Bradley with Prosperity Indiana and the Indianapolis Summit working group to discuss our framework for equitable distribution of rental assistance.

Indianapolis and Indiana have a pre-existing eviction crisis with disproportionately unequal impacts that have only been exacerbated by COVID-19. Even before the pandemic, Indianapolis had the second-highest number of evictions among all U.S. cities, and was one of three cities in Indiana in the top 20 highest eviction rates nationwide. Since the pandemic began, there have been over 51,000 evictions filed statewide in Indiana, nearly double any other state tracked by EvictionLab, and over 17,000 in Indianapolis alone. Indianapolis also has one of the strongest correlations between neighborhoods with high eviction filings and low vaccination rates. We know that low-income renter households, Black and brown Hoosiers, and renter families with children have suffered the most housing instability during the pandemic. And we know that evictions cause long-term economic damage to families that can last over a decade, and that a new wave of evictions at the end of the CDC moratorium would overburden local community services already stretched thin.

However, Indiana communities like Indianapolis are currently limited by state legislation and policies in the proactive eviction prevention steps they can take, including notification of tenant rights or programs, eviction sealing or expungement, requiring settlement diversion programs, and other tools allowed in other states that cannot be implemented here without state action. But the stakes are too high to not make every effort to ensure Emergency Rental Assistance (ERA) and American Rescue Plan Act resources reach the families, providers, and communities who need them most.

This is why our Indianapolis working group that includes city ERA program officials, local and state court officials, legal aid organizations, and local housing advocates is focusing on actions to ensure equitable implementation of emergency rental assistance that can serve as a model to scale statewide. We’ve created a framework to ensure the ERA program is visible, accessible, and preventative, and that it connects with other recovery resources in the courts and throughout communities. The participants in this working group will engage community stakeholders, including housing providers, public officials, low-income tenants, and Black, indigenous, and other people of color to implement a checklist to strengthen equitable marketing and targeting of ERA and other recovery programs (such as nutrition and workforce development), exploring alignment with funds from the Community Engagement portion of the American Rescue Plan Act’s Homeowner Assistance Fund to enable door-to-door outreach to the hardest hit communities. We’ve prioritized reducing barriers for tenants and landlords to apply for and receive the maximum allowed amount of ERA funds in the shortest possible amount of time. The framework also includes actions to strengthen connections and coordination between court-based eviction diversion activities and the Emergency Rental Assistance program, exploring adding ERA program access points in courts during eviction proceedings to increase awareness and fast-track applications. We plan to use outcome data to ensure that the communities most at need are being served, and so that this local effort in Indianapolis can be scaled to other ERA programs and courts statewide to help ensure no one is left out of a stronger and more equitable recovery for all Hoosiers. Thank you.

Affordable Housing is Out of Reach in Indiana for Low-Wage Hoosier Workers

Wed, 14 Jul 2021 13:30:00 GMT

FOR IMMEDIATE RELEASE

Contact: Andrew Bradley, Policy Director, Prosperity Indiana, abradley@prosperityindiana.org

Affordable Housing is Out of Reach in Indiana for Low-Wage Hoosier Workers

In order to afford a modest, two-bedroom apartment at fair market rent in Indiana, full-time Hoosier workers need to earn $16.57 per hour. This is Indiana’s 2021 Housing Wage, revealed in a national report released today. The report, Out of Reach, was jointly released by the National Low Income Housing Coalition (NLIHC), a research and advocacy organization dedicated solely to achieving affordable and decent homes for people with the lowest incomes, and Prosperity Indiana, the statewide membership organization for the individuals and organizations strengthening Hoosier communities.

This year, the Out of Reach report is released 16 months into a devastating pandemic, which has created enormous suffering. In addition to the lives lost, COVID-19 also created an economic crisis that pushed millions of low-wage workers out of work. The public health crisis is not over, but as the country begins to imagine life after COVID, it is imperative to also address the profound economic fallout for the lowest-income and most marginalized members of our communities. Prior to the pandemic, more than 7.6 million extremely low-income renters were already spending more than half of their limited incomes on housing costs, including more than 145,000 Hoosier households, sacrificing other necessities to do so.

After a year of job losses, furloughs, and limited hours, many of these Hoosier households will be even worse off in 2021. Across Indiana, a renter needs to earn $16.57 per hour to afford a modest two-bedroom rental home without spending more than 30% of their income on housing cost, up from $16.32 in 2020; or $13.43 per hour to afford a one-bedroom home, up from $13.16 in 2020. While the Housing Wage varies by county and metropolitan area, low-wage workers everywhere throughout Indiana struggle to afford their housing, requiring no less than $14.08 and as much as $18.19 per hour for a modest two-bedroom unit.

Jessica Love, executive director for Prosperity Indiana, said, “The cost of housing in Indiana just keeps rising, which means the state Housing Wage – what you really need to earn for your home to be affordable to you – keeps going up. Unfortunately, the average renter’s wage hasn’t risen much for Hoosiers, especially when compared to our Midwestern peers. And this only serves to widen the disparities experienced by the lowest income renters.”

Source: Prosperity Indiana analysis of data from Out of Reach 2021

The federal minimum wage has remained at $7.25 an hour without an increase since 2009, not keeping pace with the high cost of rental housing. In no state, including Indiana, can a minimum-wage renter working a 40-hour work week afford a modest one- or two-bedroom rental unit at the average fair market rent. Working at Indiana’s minimum wage at the federal floor of $7.25 in 2021, a Hoosier wage earner must have 1.9 full-time jobs or work 74 hours per week to afford a modest one-bedroom apartment, up from 73 in 2020; and earn 2.3 full-time jobs or work 91 hours per week to afford a two-bedroom apartment, up from 90 in 2020.

Source: Prosperity Indiana analysis of data from Out of Reach 2021

The typical Hoosier renter earns $14.58 per hour, which is $1.99 less than the hourly wage needed to afford a modest unit. Even before the additional economic pressures of the COVID-19 pandemic, Indiana’s renter wages were consistently far below the state’s housing cost. Indiana’s mean renter wage is increasingly out of step with that of our Midwestern neighbors, with Hoosiers now earning $0.77 per hour less than the average of other Midwest states.

Source: Prosperity Indiana analysis of data from Out of Reach 2021

Despite Indiana’s reputation for having a low cost of living, working full-time does not guarantee affordable housing for many Hoosiers in Indiana’s largest occupations. The median wage for 10 of Indiana’s top 20 largest occupations is below the two-bedroom Housing Wage, with six of those occupations paying less than what is needed for even a one-bedroom unit.

Source: Occupational wages from May 2020 Occupational Employment Statistics, BLS, adjusted to 2021 dollars. Housing wages based on HUD fair market rents.

“Housing is a basic human need and should be regarded an unconditional human right,” said Diane Yentel NLIHC president and CEO. “With the highest levels of job losses since the Great Depression and a pandemic that continues to spread, low-income workers and communities of color are disproportionately harmed. The enduring problem of housing unaffordability ultimately calls for bold investments in housing programs that will ensure stability in the future. Without a significant federal intervention, housing will continue to be out of reach. This leaves millions susceptible to the overwhelming consequences of Congressional inaction.”

For additional information, visit: http://www.nlihc.org/oor and contact Prosperity Indiana for additional Indiana county- and metro-area data.

###

About Prosperity Indiana

Prosperity Indiana and the Opportunity Starts at Home – Indiana Coalition Thank Senator Young for Introducing Key Housing Stability and Affordability Legislation

Fri, 02 Jul 2021 16:39:28 GMT

FOR IMMEDIATE RELEASE

July 2, 2021

Contact: Natalie James | (317) 222-1221 x406| njames@prosperityindiana.org

Prosperity Indiana and the Opportunity Starts at Home – Indiana Coalition Thank Senator Young for Introducing Key Housing Stability and Affordability Legislation

INDIANAPOLIS, IN – Prosperity Indiana and the Opportunity Starts at Home – Indiana Coalition are thanking Senator Todd Young for introducing three key pieces of legislation that would help address Indiana’s eviction and housing affordability crisis. The three bills, including the Eviction Crisis Act of 2021, the Task Force on the Impact of the Affordable Housing Crisis Act, and the Family Stability and Opportunity Vouchers Act strongly align with the agenda of the Opportunity Starts at Home campaign and Prosperity Indiana’s policy priorities for Indiana’s community economic development sector.

Jessica Love, Executive Director for Prosperity Indiana, said, “We are thankful to see that Senator Young has not relented in his pursuit of addressing the affordable housing challenges that Indiana communities continue to face. Our work at Prosperity Indiana, in conjunction with our partners, is broadly focused on strengthening our communities but zeroes in on solving housing stability concerns that our lowest-income neighbors continue to face in the state. Senator Young’s solution-oriented bills – that are both proactive and responsive to the needs of the most vulnerable Hoosier families – are critical next steps to moving the needle on these escalating issues.”

Indiana had a pre-existing eviction and housing affordability crisis that has only been exacerbated by the COVID-19 pandemic. There are only 37 affordable and available rental homes for every 100 households with extremely low incomes in Indiana, which is tied for the second-lowest rate among 12 Midwest states. As a result, approximately 72 percent of Hoosier renters with extremely low incomes are severely cost burdened and at risk of homelessness, which is the second-highest rate in the Midwest. This severe cost burden contributes to a statewide eviction rate far higher than the U.S. average, with Indianapolis, South Bend, and Fort Wayne among the 20 cities with the highest eviction rates nationwide.

In the midst of COVID-19, and despite eviction moratoria, Indiana has seen over 47,000 evictions filed during the pandemic, with the greatest increases occurring in the state’s small and rural counties. But what could exacerbate the dangers of evictions in our cities during the lingering pandemic is the fact that neighborhoods with the highest eviction filing rates have the lowest levels of COVID-19 vaccination.

Love said, “Just as seriously as our nation has pursued vaccines and ‘getting shots in arms’ to eliminate this deadly virus plaguing our state and country, we must attack our affordable housing and eviction crises head-on. If we operate under the same assumption – that addressing the needs of the most vulnerable ultimately benefits us all – and attack the frailty of housing stability for so many with the same level of resources and dedication, Hoosier families and communities will become stronger. And Senator Young’s bills will help us do just that.”

On June 23, 2021, Senator Todd Young (R-IN), along with Senators Michael Bennet (D-CO), Rob Portman (R-OH) and Sherrod Brown (D-OH), reintroduced the Eviction Crisis Act, which creates new tools to help end the nation’s continuing eviction epidemic. Among various other promising provisions, the legislation includes the creation of an Emergency Assistance Fund to test, evaluate, and expand proven interventions to help low-income households facing housing instability due to an unexpected economic shock. This policy solution was developed and championed by the Opportunity Starts at Home campaign, which worked closely with the bill’s sponsors. The reintroduction of this legislation marks a significant milestone for the campaign in advancing its policy agenda.

Leading national organizations from the housing, education, health, civil rights, anti-hunger, anti-poverty, criminal justice, child welfare, and faith-based sectors have come together through the Opportunity Starts at Home campaign to advocate for more robust and equitable federal housing policies, such as those included in the Eviction Crisis Act.

“Improving housing stability is not just about keeping people in their homes, but it’s also about providing them with the foundation they need for success in many other areas of life. Stable, affordable homes are linked with better educational outcomes, better health outcomes across the lifespan, greater food security, upward economic mobility, and reduced costs to the taxpayer,” said Mike Koprowski, National Director of the Opportunity Starts at Home Campaign.

Also on June 23, Senator Young, along with Angus King (I-Maine), Maria Cantwell (D-WA), John Kennedy (R-LA), and Jon Tester (D-MT), reintroduced the Task Force on the Impact of the Affordable Housing Crisis Act, which would create a bipartisan housing task force to understand and respond to America’s housing affordability crisis. If enacted, the task force would evaluate and quantify the impact of housing costs on other government programs and provide recommendations to Congress on how to increase affordable housing options to improve life outcomes.

In a statement on the bill’s introduction, Senator Young said, “I’ve seen firsthand in Indiana how a lack of affordable housing has negative and lasting consequences. The inability to access safe and affordable homes leaves Hoosier families with fewer dollars to spend on important expenses like health care and groceries, and the pandemic has only exacerbated this problem. Our bipartisan bill would assemble a group of experts to better understand the housing affordability crisis so that we might take legislative action to end the cycle of poverty for millions of struggling Americans while decreasing overall taxpayer expenditures.”

On June 9, Senator Young and Senator Chris Van Hollen (D-MD) reintroduced the Family Stability and Opportunity Vouchers Act, which would create an additional 500,000 housing vouchers – specifically designed for low-income families with young children – to expand their access to neighborhoods of opportunity with high-performing schools, strong job prospects, and other resources. This legislation could largely eliminate homelessness among families with young children, as well as substantially reduce the number of children growing up in areas of concentrated poverty. This policy solution has been championed by the Opportunity Starts at Home campaign, which worked with the bill’s sponsors to get the concept introduced into legislation.

The legislation prioritizes these new vouchers for low-income pregnant women and families with children under age 6, who either have a recent history of homelessness or housing instability, or live in an area of concentrated poverty (or are at risk of being displaced from an opportunity area). These new vouchers would be coupled with counseling and services that have a proven track record of supporting parents and helping families move out of neighborhoods of concentrated poverty. The half-million new vouchers created through this legislation would be phased in over five years at 100,000 per year.

“At its root, housing affordability is a basic needs issue. For the most vulnerable Hoosiers, lack of access to affordable housing means an increased likelihood of evictions and impeded access to economic opportunity, and the Opportunity Starts at Home Indiana Coalition is working to ensure that economic opportunity is available to all Hoosiers,” said Natalie James, Prosperity Indiana Coalition Builder.

Research shows that when children in poor families grow up in neighborhoods with low poverty, quality schools, and low crime, they are significantly more likely to attend college, less likely to become single parents, and more likely to earn dramatically more as adults over the course of their lifetimes. This helps break cycles of generational poverty and produces a positive taxpayer return. Research also shows that low-income students perform better academically and close achievement gaps faster when housing assistance enables them to live stably in opportunity neighborhoods with lower-poverty schools.

James added, “Eviction is expensive, not just for renters, but also for cities and municipalities that deal with the consequences of eviction. To remedy the issues of eviction and housing affordability, we must create opportunities for vulnerable renters to have access to the resources they need. Solving this problem supports not just the renters but the Hoosier state as a whole. Thank you to Senator Young for leading efforts to make Indiana a more equitable place to live for everyone."

###

Opportunity Starts at Home – Indiana Coalition

The goal of the Opportunity Starts at Home - Indiana Coalition (OSAH-IN) is to achieve ambitious increases in affordable housing — through existing and new housing infrastructure; and direct support to organizations that assist those who are unstably housed or homeless. The Indiana coalition will also seek to expand voucher supports that fund deeply targeted housing assistance for extremely low-income households, including vulnerable populations, such as youth, seniors and those with disabilities. The coalition will also seek to implement policy change to reduce federal and state barriers to housing stability.

About Prosperity Indiana

New 50-State Survey Finds Losses for Indiana Consumers in Larger, Longer High-Cost Predatory Loans

Fri, 04 Jun 2021 15:23:11 GMT

FOR IMMEDIATE RELEASE

June 4, 2021

Contact: Jessica Fraser, Indiana Institute for Working Families, jfraser@incap.org; Jan Kruse, National Consumer Law Center, jkruse@nclc.org

New 50-State Survey Finds Losses for Indiana Consumers in Larger, Longer High-Cost Predatory Loans

INDIANAPOLIS – A high-cost predatory loan is only made worse when the loan is larger and longer. But while residents in some states are gaining protections from these larger, longer-term products, Hoosiers are now paying more than before the COVID-19 crisis, according to a new report from the National Consumer Law Center. This report builds on NCLC’s extensive work on predatory lending.

“The Institute and Prosperity Indiana have been working to educate policymakers and the public about how harmful these high-cost loans are to financially vulnerable Hoosiers. This research will help us advance the 36 percent rate cap Hoosiers desperately need,” said Jessica Fraser, Director of the Indiana Institute for Working Families.

“This new report shows how Indiana stacks up against other states when it comes to rate caps, and it’s not pretty. Despite Hoosiers asking for more responsible lending policies, the state allows some of the highest rate caps in the Midwest. This is now pitting Hoosiers who are working to recover from the COVID-19 pandemic against the growing predatory lending industry – a result of policies that have been moving in the wrong direction for years,” said Jessica Love, Executive Director of Prosperity Indiana.

In 2020, Indiana enacted a law (SEA 395) that increases the already excessive fees that lenders can charge and distorts the interest rate. The result is that non-bank lenders in the state can now charge an APR of 89 percent for a $500 six-month loan, an increase from 71 percent. For a two-year, $2,000 loan, the increased fee pushes the APR cap up from 39 percent to 40 percent.

Source: National Consumer Law Center, State Rate Caps for $500 and $2,000 Loans, March 2021

“Since the pandemic, Indiana has failed to assist struggling families by decreasing rates on consumer loans and instead welcomed predatory lenders by increasing already excessive fees,” said National Consumer Law Center Deputy Director Carolyn Carter, author of the report. “To avoid trapping residents in long-term debt, we encourage a 36 percent interest rate, including all fees.”

Key Recommendations

Cap APRs at 36 percent for smaller loans, such as those of $1,000 or less, with lower rates for larger loans.

Prohibit loan fees or strictly limit them to prevent fees from being used to undermine the interest rate cap and acting as an incentive for loan flipping.

Prevent loopholes for open-end credit. Rate caps on installment loans will be ineffective if lenders can evade them through open-end lines of credit with low interest rates but high fees.

Ban the sale of credit insurance and other add-on products, which primarily benefit the lender and increase the cost of credit, or require their cost to be included in the APR cap, as the Military Lending Act does for loans made to servicemembers.

Examine consumer lending bills carefully. Predatory lenders often propose bills that obscure the true interest rate. For example, they may present a rate as being 24 percent per year plus 7/10ths of a percent per day, instead of acknowledging the rate as being 279 percent. Or the bill may list the per-month rate rather than the annual rate. To protect consumers, legislators should get a calculation of the full APR, including all interest, all fees, and all other charges, and reject the bill if it is over 36 percent.

###

About the Indiana Institute for Working Families

The Indiana Institute for Working Families promotes public policies to help Hoosier families achieve financial well-being. We value, gather, and translate quantitative and qualitative data to communicate the opportunities and challenges that Hoosiers experience. We advance well-being by promoting evidence-based solutions and building coalitions to engage in direct and strategic conversations with policymakers and the public.

About the National Consumer Law Center

Since 1969, the nonprofit National Consumer Law Center® (NCLC®) has worked for consumer justice and economic security for low-income and other disadvantaged people in the U.S. through its expertise in policy analysis and advocacy, publications, litigation, expert witness services, and training.

About Prosperity Indiana

Prosperity Indiana Releases Joint Policy Brief on One Year of COVID-19 Housing Instability and an Overview of Indiana's Emergency Rental Assistance Programs

Wed, 26 May 2021 15:56:00 GMT

Prosperity Indiana is pleased to co-release with the Indiana Institute for Working Families and Indiana Youth Institute, Policy Brief: A Year in Review: Housing Instability Trends for Hoosier Families and Counties Most Affected by COVID-19. The ongoing COVID-19 pandemic has exacerbated a pre-existing housing stability crisis in Indiana, with effects particularly concentrated among renter households, families with children, Black and brown Hoosiers, and low-income households. Throughout the first year of the pandemic, these Hoosier households were most likely to be affected by job and income loss and least likely to be able to stay current on housing payments. Therefore, they were most at risk of eviction or foreclosure.

After a year of economic disruptions, Indiana has experienced over 41,000 eviction filings at an average rate of over 750 per week, despite two eviction moratoria and two rounds of federally-funded emergency rental assistance. With the addition of a new state law that increases eviction powers and reduces local control over landlord-tenant relations, nearly one third of the state’s counties are now above pre-pandemic eviction filing rates, with the highest increases concentrated in Indiana’s smaller and more rural counties.

The report considers data from the weekly U.S. Census Household Pulse Survey, Federal Reserve Bank of Atlanta’s Unemployment Claims Monitor, and EvictionLab’s Eviction Tracking System to analyze the economic and social demographics and geographies of COVID-19 housing instability. Recognizing the significant federal resources becoming available to address COVID-related housing instability for renters concurrently with state and federal law and policies making eviction an increasingly available option for landlords, the brief also provides policy recommendations designed to inform Indiana’s state and federal policymakers regarding measures needed to rebuild housing stability and move towards long-term housing security.

Read the Joint Policy Brief

Additionally, Prosperity Indiana published “Indiana’s Emergency Rental Assistance: Program Outlines and Recommendations for Equitable Outcomes.” Currently, there are seven emergency rental assistance programs across Indiana, including six local programs and one statewide program that serves Hoosiers that are not covered by the local programs. This overview reviews the requirements of each program and includes recommendations on maximizing the equity and efficiency of ERA programs.

Read about Indiana’s Emergency Rental Assistance Programs

Prosperity Indiana 2021 Indiana General Assembly End-of-Session Update: Lack of state focus on community economic development needs means Hoosiers will rely on federal efforts for relief

Fri, 30 Apr 2021 16:15:00 GMT

At the end of a session like no other before it, the Indiana General Assembly largely demonstrated that it was not focused on ensuring basic needs for Hoosiers nor protecting resources for the community economic development sector and the communities it serves. A notable “bright spot” included winning a measure of housing protections for renters, instead of seeing a whole-cloth reversal of the governor’s 2020 veto of the “evictions bill” with no correcting trailer bill. However, due to the combination of advocacy efforts of Prosperity Indiana’s members and investments in recovery from the federal government, there is reason to be optimistic for the future of community development in Indiana for the remainder of 2021 and beyond.

As a benchmark for the review of the session found below, please refer back to Prosperity Indiana’s 2021 policy agenda, A Blueprint for Equitable Response, Recovery, and Rebuilding in Indiana. This agenda was developed in consultation with PI’s Board after a series of virtual regional member meetings with lawmakers to communicate the immediate and long-term needs of Hoosiers and their communities. PI’s members wanted policymakers to know that “in order to respond, recover, and rebuild from COVID-19, we must first have equitable policies that take care of the most vulnerable Hoosiers and their communities”. So with the directive to advocate for racial equity across all state and federal COVID-19 response and recovery policies, members urged policymakers to focus above all on these three priorities:

Provide adequate housing stability resources so that no Hoosier is evicted, foreclosed upon, or made homeless due to the pandemic.
Increase Hoosiers’ consumer protections, guarding against predatory lending and increasing financial assets and opportunities at a time of great economic upheaval.
Protect resources for community economic development organizations in budget decisions to ensure vital services for the organizations on the front lines of the pandemic.

So, how did the Indiana General Assembly deliver on these priorities during this session? Let’s take a look.

End-of-Session Update

On Thursday, April 22, the Indiana General Assembly departed the Statehouse for what observers are calling ‘Spring Adjournment’ rather than the typical term of adjourning Sine Die, an indication of the impact of the ongoing COVID-19 pandemic on the structure and content of the session. For much of the session, the public was not able to testify in person in the same room as committee members, large gatherings were not possible under safety precautions, and the typical interaction between legislators, constituents, and advocates was greatly disrupted. To ensure our members’ voices were heard, Prosperity Indiana conducted our first-ever virtual ‘Statehouse Week’ and mid-session update, in addition to action alerts, virtual press conferences, outdoor rallies, and presenting testimony on video to committees. The progress we made on our priority bills would not have been possible without the countless e-mails, phone calls, and sign-ons from members and partners throughout the state.

PI-sponsored legislation and high-priority bills:

SEA148 Override of Governor’s Veto (Sen. Blake Doriot) / HB1541 Landlord-Tenant Relations (Rep. Ethan Manning)

Despite those hundreds of calls, emails, and signatures, the General Assembly overrode Governor Holcomb’s veto of SEA148 on February 17, 2021. This made the law’s provisions, including the broad preemption of local ordinances affecting all aspects of the landlord-tenant relationship, effective immediately. However, we are grateful that legislators listened to the calls from PI and our partners in the Hoosier Housing Needs Coalition urging them to make improvements to the new law in ‘trailer bill’ HB1541. In its final form, HB1541 eliminates the provision of SEA148 allowing a landlord to ‘contract around’ anti-retaliation guarantees for tenants. Because form leases are generally ‘take it or leave it’ and are not up for negotiation, adding a provision to SEA 148 via HB 1541 that says the anti-retaliation language cannot be waived in any instance was necessary. Now, even by signing a written contract, residents cannot be stripped of their legally-protected rights against retaliation via a waiver clause. In addition, HB 1541 removes the broad provision in SEA 148 that nullified and preempted local ordinances that address “all other aspects of the landlord-tenant relationship” beyond those named in the law.

Even so, despite our testimony in House and Senate committees, HB1541 left several dangerous provisions of SEA148 in place, including seven new forms of ‘emergency possession’ that effectively allow expedited three-day evictions, including instances when the tenant is not at fault, as well as other loopholes in retaliation protections. HB1541 passed 96-0 in the House and 49-0 in the Senate, indicating unanimous support for fixing the problems in SEA148, even in limited form. See the Hoosier Housing Needs Coalition press release here.

HB1001 State Budget (Rep. Tim Brown)

The budget bill included $500 million for the renamed Regional Economic Acceleration and Development Initiative (READI), a program meant to fuel regional collaborations with opportunities for PI’s community economic development membership. However, despite a late revenue forecast that is $2 billion above previous projections, the budget bill decreased annual appropriations for the state’s Individual Development Account (IDA) programs from $874,645 in FY19-21 to $609,945 in FY21-23. The final version of HB1001 passed 96-2 in the House and 46-3 in the Senate.

SB214 Low-Income Housing (Sen. Travis Holdman)

PI testified in support of an early version of this bill, which in its final form reinstates provisions regarding eligibility for the property tax exemption for improvements on real property that are constructed, rehabilitated, or acquired for the purpose of providing low-income housing. The final bill also provides that payments in lieu of taxes (PILOTS) may be allowed from a property owner claiming such an exemption. The final vote on the bill in the House was 48-0 in the Senate and 94-0 in the House.

SB236 Land Banks (Sen. Tim Lanane)

SB236 would have increased the capacity of Indiana’s local land banks and increased the stock of affordable and available housing throughout the state. The bill would have allowed a county fiscal body to adopt an ordinance that requires 50% of the amount of property taxes paid on the tract to be transferred to the land bank, for the five years after a tract is purchased from the land bank. In addition, under SB236 a county executive would provide a land bank with a list of tracts that are delinquent on property taxes and have been offered for public sale at least twice and remain unsold; it would also permit the county executive to transfer its interest in a tract on the list to a land bank, if requested by the land bank no later than 30 days after it receives the list. PI testified in support of this bill, along with members and land bank supporters from across the state. Despite bipartisan authors, including the chairs of the House and Senate Local Government Committee where SB236 passed unanimously, the bill died after failing to be voted out of the House Ways and Means Committee.

HB1219 Various Housing Matters (Rep. Ed Clere)

Prosperity Indiana and our partners in the Hoosier Housing Needs Coalition worked with author Rep. Clere and co-authors of HB1219 to include provisions that would increase housing stability for at-risk Hoosiers during the COVID-19 pandemic and help those who’d fallen through the cracks to regain housing. These provisions would have created an eviction expungement process allowing tenants to expunge certain evictions from their court records; create a right for tenants to see their tenant screening records, if denied housing, to remedy and/or rectify inaccurate information; and create problem-solving housing courts to test effective remedies for tenants and landlords. Despite bipartisan authorship and support, the bill was not granted a hearing in the House Judiciary Committee.

HB1530 Housing Stability Task Force and Eviction Data (Rep. Sue Errington)

Rep. Errington’s HB1530 addressed two more housing stability priorities of PI and the Hoosier Housing Needs Coalition. The bill would have created a task force composed of landlords, tenants, public health experts, state officials, and other stakeholders to identify solutions to prevent evictions and foreclosures. The bill also would have required the state to include eviction and foreclosure data, as well as outcomes from Indiana’s housing stability efforts, on the state housing stability website. Despite bipartisan authorship and support, the bill was not granted a hearing in the House Government and Regulatory Reform Committee.

SB184 Small Loan Finance Charges (Sen. Greg Walker)

Supported by PI and partners in the Indiana Assets and Opportunities Network, Sen. Greg Walker’s SB184 would have capped payday loans at 36% APR. Despite bipartisan authorship and support, the bill was not granted a hearing in the Senate Insurance and Financial Institutions Committee.

The full list of bills that PI tracked this session across several issue categories, including all actions taken and final outcomes:

Although progress made for community economic development was limited this session, Prosperity Indiana thanks the General Assembly for those steps that were taken and thanks Governor Holcomb for signing them into law. Prosperity Indiana will continue working on the federal and administrative priorities of our 2021 policy agenda. Millions of federal dollars are coming to Indiana for relief, recovery, and rebuilding, including $448 million already available for seven Emergency Rental Assistance programs across the state and $168 million for the new Homeowner Assistance Fund from the American Rescue Plan act. Prosperity Indiana will continue to advocate and work with members and partners to ensure these funds reach the hardest-hit Hoosiers and communities throughout Indiana.

Affordable Housing Supply in Indiana is Insufficient, Especially for Families With Lowest Incomes

Thu, 18 Mar 2021 14:18:55 GMT

FOR IMMEDIATE RELEASE

March 18, 2021

CONTACT: Andrew Bradley, Policy Director, Prosperity Indiana, abradley@prosperityindiana.org

AFFORDABLE HOUSING SUPPLY IN INDIANA IS INSUFFICIENT, ESPECIALLY FOR FAMILIES WITH LOWEST INCOMES

The Gap: A Shortage of Affordable Homes, a new report released today by the National Low Income Housing Coalition (NLIHC) and Prosperity Indiana, finds a national shortage of nearly seven million affordable and available rental homes for extremely low-income (ELI) renter households, those with incomes at or below the poverty level or 30 percent of their area median income. There are just 37 affordable and available rental homes for every 100 ELI renter households nationwide. Seventy percent of the poorest renter households are severely housing cost-burdened, spending more than half of their incomes on housing, with little left over for other basic necessities. The report shows that, even before COVID-19 devastated many low-income households, they were already struggling to afford their rent. Every year, The Gap reports on the severe shortage of affordable rental homes available to extremely low-income families and individuals.

“While Indiana likes to tout being an affordable place to live, I think two questions need to be asked: for whom and compared to what? In looking at the data, what we see is how Indiana continues to fail our lowest-income renters, especially when compared to our peers. Only one Midwest state is less affordable than Indiana,” said Jessica Love, executive director of Prosperity Indiana.

In Indiana, only 75,219 affordable rental homes are available for the 202,171 extremely low-income Hoosier households. That means there are only 37 affordable and available rental homes for every 100 households with extremely low incomes, tied for the second-lowest rate among 12 Midwest states. Approximately 72 percent of Hoosier renters with extremely low incomes are severely cost burdened and at risk of homelessness, which is the second-highest rate in the Midwest.

According to NLIHC and Prosperity Indiana, without public subsidies, the private market does not provide an adequate supply of rental housing affordable to low-income households. Both groups note that, even if rents fall during an economic downturn, they will not fall sufficiently to provide extremely low-income renters with an adequate supply of affordable housing. They say a downturn often leads to property owners abandoning rental housing or converting it to other uses when rental income is too low to cover basic operating costs and maintenance, making the housing affordability crisis worse.

Love said, “What this new data says about Hoosiers is that our most vulnerable families remain at risk of housing instability, which impacts job stability, and now also public health, and threatens the state's economic recovery. We need our Congressional delegation to step up as champions for policies that help these Hoosiers experience housing affordability, not just short-term housing stability as part of an immediate rescue plan, but looking beyond the pandemic to real and lasting solutions.”

Both NLIHC and Prosperity Indiana advocate for increased production and preservation of affordable rental housing, an increase in rental assistance resources for lowest income households, a stabilization fund to prevent evictions, and stronger legal protections for renters.

For additional information, visit: https://nlihc.org/gap

###

About Prosperity Indiana

The Indiana Association for Community Economic Development d/b/a Prosperity Indiana builds a better future for our communities by providing advocacy, leveraging resources, and engaging an empowered network of members to create inclusive opportunities that build assets and improve lives. Since its founding in 1986, Prosperity Indiana has grown to nearly 200 members from the public, private, and nonprofit sectors.

Applications for Indiana's Emergency Rental Assistance (IERA) Program Now Available

Fri, 12 Mar 2021 21:07:18 GMT

By Natalie James, Coalition Builder

On Wednesday, March 10, 2021, Jacob Sipe, Executive Director of the Indiana Housing and Community Development Authority, announced that the State of Indiana’s portal for emergency rental and utility assistance is now open at IndianaHousingNow.org. The Indiana Emergency Rental Assistance program (IERA) will provide rent and utility assistance to eligible Hoosier families using $372 million of $448 million allocated to Indiana from Congressional COVID-19 relief passed by Congress in December 2020. The remaining $76 million will be administered by six city and county-based programs (see below).

One of the biggest questions is: who qualifies for rental assistance from the IERA? An eligible household under the IERA as defined by the U.S. Treasury includes renter households in which one or more people: qualifies for unemployment or has experienced a reduction in household income, incurred significant costs, or experienced a financial hardship due to COVID-19; demonstrates a risk of experiencing homelessness or housing instability; has a household income at or below 80% of area median income (two-person household: $46,250; four-person household: $57,850; six-person household: $67,100).

This program is designed to assist households that are unable to pay rent and utilities due to the COVID-19 pandemic. Eligible renter households can receive up to 12 months of rental assistance and utility/home energy assistance. This includes a combination of past due rent incurred since April 1, 2020, and future months of rental assistance. The person filling out the application will be considered the head of household.

Utility assistance is also available for those eligible for the IERA program. As long as the utility is in the name of one of the tenants listed on the lease and the utility is not paid as part of the monthly rental payment, the applicant may receive utility assistance. Internet assistance is also available, with additional eligibility requirements outlined in the application.

Renters, housing providers, and community-based organizations can find more information at IndianaHousingNow.org in English and Spanish, including application materials, frequently asked questions, and assistance examples. The site also links to other resources for foreclosure prevention and consumer protection, home repair or modification, senior housing, housing for persons with disabilities, shelters, and fair housing.

Renter applicants must meet all of the above requirements in order to be considered for rental assistance. While landlord participation is not required in order for a renter to receive assistance, IHCDA will attempt to work with landlords to verify amounts due and to issue payments. For more information, visit the application portal. For assistance submitting the application call 211.

In addition to IERA, six Indiana cities and counties have received funding and will administer separate programs. These six areas include Elkhart County, Marion County, Hamilton County, St. Joseph County, City of Fort Wayne, and Lake County. Renter households living in these six areas MUST apply through their LOCAL PROGRAM and are NOT ELIGIBLE to apply for the IERA program administered by IHCDA.

Need assistance?

State of Indiana: IndianaHousingNow.org or call 211
Elkhart County: www.elkhartcounty.com/rentalassistance
Marion County: www.indyrent.org
Hamilton County: www.HCTAIndiana.com
St. Joseph County: www.sjcindiana.com
City of Fort Wayne: www.fwcares.org
Lake County: www.LakeCountyIN.care

The state program, through IHCDA, will cover all areas in the state that do not have a local government receiving separate funds to distribute rental assistance.

Prosperity Indiana comments on Indiana's 2022 Draft Qualified Allocation Plan

Wed, 10 Mar 2021 20:45:53 GMT

Prosperity Indiana submitted comments on Indiana's 2022 Draft Qualified Allocation Plan (QAP). In the comments, we expressed appreciation for the complex task of balancing our state’s substantial affordable housing needs in setting the priorities through the QAP. To inform our response, Prosperity Indiana consulted our membership, inviting members to attend the virtual hearing for this draft plan and to provide feedback through an online member meeting and over email. PI's comments represent the feedback we received from our membership of community development practitioners.

We appreciate that the current draft 2022 QAP addresses some of the preferences and concerns expressed by our membership regarding prior plans. This includes recurring feedback that there were so many set-asides, too few credits were awarded under critical categories, meaning high scoring projects were not funded. In the past, we have recommended eliminating, combining, or reducing points for some of the categories, which has been acknowledged by the elimination of the Stellar and Workforce Housing categories.

We also appreciate the circumstances of this one-year plan being drafted as IHCDA also grapples with the housing and community development needs brought on by an ongoing pandemic. Many of our members are on the front lines of COVID-19 response and recovery, and some who would typically be active in this process are preoccupied by ensuring basic needs are met in their communities. Given that, we affirm holding off on multi-year planning efforts when an issue with longer-term ramifications can be addressed at a later time.

Throughout this process, some clear themes emerged regarding the current QAP, even though our membership and the populations and geographies served are diverse. Far and away, we received the most feedback on the proposed penalty for filing for a qualified contract release. In the interest of partnership and working towards shared community development goals, we are providing those themes – as well as some of the more technical suggestions – from member responses to address concerns from members as you continue work on the 2022 QAP draft. These responses are not necessarily presented verbatim but represent the spectrum of perspectives we received.

Please click here to see PI's full comments on the draft 2022 QAP.

Housing coalition: General Assembly leadership must bring solutions to the table to fix newly-enacted SEA 148

Wed, 17 Feb 2021 20:58:33 GMT

FOR IMMEDIATE RELEASE

February 17, 2021

CONTACT: Andrew Bradley | (317) 222-1221 x403| abradley@prosperityindiana.org

Housing coalition: General Assembly leadership must bring solutions to the table to fix newly-enacted SEA 148

INDIANAPOLIS – The Hoosier Housing Needs Coalition is disappointed that the General Assembly has completed the override of Governor Holcomb’s veto of SEA 148 without input from stakeholders who advocate on behalf of the 30% of Hoosiers who rent their homes and without a plan to mitigate the immediate and long-term damage it will create. The Coalition urges the General Assembly to use its remaining time this session to implement common-sense solutions that have been left out of the discussion to date.

Throughout SEA 148’s 11-month ordeal, the process for creating language that would affect approximately 2 million renters was never open to their contributions. No stakeholders that represent the interests of tenants or their communities was allowed to be party to the original language of SEA 148 or the two ‘trailer bills’ which, despite claims to the contrary, leave the new law overly broad and unbalanced in scope and now made law at exactly the wrong time.

In the short term, SEA 148 becomes effective immediately and will allow seven new forms of expedited evictions in the middle of a glacial winter and an ongoing deadly pandemic. SEA 148 specifies that landlords may now use emergency possessory actions (evicting tenants in three days), not just for destroying property. In fact, reporting code violations is now a legitimate reason for a three-day eviction.

We now know that every new eviction spreads COVID-19 wherever it happens: in rural, suburban, or urban communities, wherever evicted families are forced to double up in others’ homes or sleep in overburdened congregate housing like homeless shelters. And due to holes in the CDC’s eviction moratorium, 900 Hoosier households are already being evicted each week.

In the long term, SEA 148 locks the full state into the lowest common denominator of housing standards and tenant protections. Starting today, the new law voids substantial portions of local ordinances enacted to reduce evictions, promote housing stability, and enable better enforcement of housing codes to improve housing conditions. It also replaces local anti-retaliation ordinances and codifies loopholes in anti-retaliation protections.

In addition to these damages to Hoosiers’ public health and tenant rights, the Coalition agrees with the 65 Indiana business and community leaders who wrote “overriding the governor’s veto of legislation overturning local ordinances on renter-landlord relations [undermines] reasonable housing close to employment centers [and keeps] more residents away from work and living in poverty." With SEA 148 taking away tenant protections and employment opportunities throughout Indiana, it is our local economies and service providers who will bear the brunt, decreasing from their capacity to help Indiana recover from the pandemic and rebuild economic growth.

To remedy the negative impacts that will be felt by Hoosier renters as a result of this law, the Hoosier Housing Needs Coalition has developed a list of simple fixes that would address flaws in the new law regarding expedited evictions and loopholes in retaliatory protections and would allow those who slip through the cracks to regain stable housing.

“It is now on the General Assembly to address these issues before the end of this legislative session,” said Jessica Love, executive director of Prosperity Indiana and HHNC member.

“We are prepared to offer our recommendations for a more balanced law. The solutions are at the ready. Now it’s time to see leadership bring those solutions to the table.”

###

About the Hoosier Housing Needs Coalition:

Hoosier Housing Needs Coalition (HHNC) was formed by members of Indiana’s housing security advocacy community in April 2020 to support advocacy and education related to housing and homelessness prevention in response to the COVID-19 pandemic. Staffed by Prosperity Indiana through advocacy and coalition building grants from the National Low Income Housing Coalition and the Central Indiana Community Foundation, HHNC convenes partners from across Indiana to advocate for immediate, medium- and long-term housing stability policy solutions and conduct education and research to achieve federal, state, and local policies for an equitable response and recovery to the pandemic and beyond.

The HHNC Steering Committee is comprised of members from AARP Indiana, the Coalition for Homelessness Intervention & Prevention (CHIP), Fair Housing Center of Central Indiana, Family Promise of Greater Indianapolis, Indiana Coalition Against Domestic Violence, Indiana Institute for Working Families – INCAA, Prosperity Indiana, and The Ross Foundation.

Prosperity Indiana comments on the Fed's Advance Notice of Proposed Rulemaking on the Community Reinvestment Act

Tue, 16 Feb 2021 19:18:23 GMT

Prosperity Indiana submitted comments regarding the Federal Reserve Board’s (Fed) Advance Notice of Proposed Rulemaking (ANPR) on the Community Reinvestment Act (CRA). We believe the Fed’s approach is a good first step to improve upon the current CRA exam, in contrast to the Office of Comptroller’s final rule. However, we join our state and national partners in calling for more rigor in performance measures in order to ensure that CRA ratings will not be as inflated as they are today. More rigor is key to ensuring that CRA exams leverage more lending, investing and services for communities of color and low- and moderate-income (LMI) communities.

Increased intentionality around meeting the purposes of CRA is critical, in light of the disproportionate impact COVID-19 has had on people on color and LMI households and those that serve them. Prosperity Indiana offers these comments as the cross-sector intermediary for organizations dedicated to community economic development, which means our members are the people and organizations on the front lines fighting COVID-19. Our members and the populations and communities they serve statewide have borne the brunt of the pandemic, resulting in stresses on capacity and finances. Three-quarters of our members report having six months or less cash reserve on hand; and the great majority have been forced to cancel programs or events and experienced disrupted services, even while seeing an increased demand for services and assistance. In May 2020, 82% anticipated a future decrease in revenue, and 94% anticipated a moderate to high impact on their programs, services, and general operation.

And while many of our nearly 200 members are deeply engaged in the community economic development work affected by the CRA and the proposed changes in the ANPR, few have the capacity during the ongoing emergency of COVID-19 to respond to the 99 questions involved. In order for our members to continue to respond, recover, and rebuild from COVID-19, they need a robust CRA that does not hinder services to communities of color and low- and moderate-income communities.

What’s at stake in Indiana?

Every community has a stake in strengthening the CRA, from Indiana’s small towns to growing suburban areas to the core urban areas. This is true from Angola, which saw $130.3 million in mortgages or loans to LMI borrowers or neighborhoods from 2009 through 2018, $0 in business loans to LMI neighborhoods, and $97.2 million in loans to small businesses, to Warsaw with $277 million in mortgages to LMI borrowers or neighborhoods, $36.1 million in business loans to LMI neighborhoods, and $271.4 million in loans to small businesses. And in our state’s largest metro area of Indianapolis-Carmel-Anderson, which itself spans a large city, a wealthy suburb, and a former industrial center now facing challenges, mortgages to LMI borrowers or neighborhoods totaled $14.2 billion from 2009 through 2018, with $3.9 billion in business loans to LMI neighborhoods, and nearly $4 billion in loans to small business. Indiana’s communities from smallest to largest can’t risk a weakening of the CRA that would allow an increase in discrimination in lending.

Strengthening CRA is a critical component of a just recovery

Indiana communities who have been hardest-hit and are still battling the public health, economic, and housing impacts of COVID-19 are the same who carry the scars of redlining. The National Community Reinvestment Coalition (NCRC) recently released a major report finding significant correlations between redlining and susceptibility to COVID, including Evansville, Fort Wayne, Indianapolis, Gary and Lake County, Muncie, South Bend, and Terre Haute. In the 1930s, the Home Owners Loan Corporation (HOLC) commissioned the production of maps that rated neighborhoods based on the risk of lending in them. Working class and minority neighborhoods usually received the riskiest designation of hazardous. The designations subsequently facilitated redlining and discrimination against these neighborhoods, which remain starved of credit and are predominantly lower-income and minority. These neighborhoods also have the highest incidence of health conditions such as asthma, diabetes, kidney disease and stroke, which make residents more susceptible to COVID-19. Life expectancy is almost four years lower in the redlined communities than the neighborhoods not designated as hazardous by HOLC.

In Indiana, the pandemic has disproportionately affected communities of color in additional ways. For example, according to the Federal Reserve Bank of Atlanta’s Unemployment Claims Monitor, Black Hoosiers have filed one in five unemployment insurance claims throughout the pandemic, although they make up only 9.4% of the labor force, according to 2019 data.

Read Prosperity Indiana's full comments to the Fed's ANPR on the CRA.

Restrictions on reopened Indiana Rental Assistance Portal will prevent many needy Hoosiers from getting help

Mon, 19 Oct 2020 17:49:30 GMT

By Laura Berry and Andrew Bradley

On October 13, Indiana reopened its Rental Assistance Portal for the first time since closing on August 26. While the Hoosier Housing Needs Coalition applauds this needed step, the restrictions now attached to the portal funds will likely mean that very few of the nearly quarter million Hoosier households at threat of eviction will be helped. The Coalition renews its calls for Governor Holcomb to create a coordinated COVID-19 Housing Stability Policy Plan and leverage some of over $1 billion in CARES Act funds still sitting on the table to ensure no Hoosier is evicted or made homeless due to the pandemic.

Read the entire blog post here.

Prosperity Indiana comments on proposed Emergency Solutions Grant Round 2 spending, again urges coordinated statewide COVID-19 Housing Stability policy response

Tue, 15 Sep 2020 15:20:39 GMT

Prosperity Indiana has submitted comments to the Indiana Housing & Community Development Authority on proposed use of Emergency Solutions Grant (ESG) Round 2 from the CARES Act. The letter states "[i]n large part, our comments today do not object to the proposed new activities in the amendment, but instead demonstrate our concern about the continuing missed opportunities of the State of Indiana not providing a coordinated COVID-19 housing stability policy response that aligns ESG-CV alongside current and newly-available CARES Act funds."

The comment period coincides with an announcement from the U.S. Department of Housing and Urban Development of new allocations totaling over $27.3M in Community Development Block Grant (CDBG) funds to Indiana and its cities with explicit guidance that "funds can be used to provide temporary financial assistance to meet rental obligations for up to 6 months".

The comments state: "[f]or the proposed ESG plan to make a meaningful impact on the scope of Indiana’s housing stability crisis, the state must act quickly to incorporate both the ESG-CV2 and CDBG-CV3, as well as other remaining CARES Act funds to re-open the Rental Assistance Program well before the end of the CDC’s moratorium."

The comments reiterate calls on the state to provide a coordinated COVID-19 Housing Stability policy response, with a Task Force comprised of landlords, tenants, and experts in the connections between public health and housing; as well as a dashboard on the state's COVID-19 website with data on evictions and outcomes of rental assistance programs.

Read Prosperity Indiana's full comments here.

CDC’s National Eviction Moratorium Takes Effect September 4 – what it means for Hoosiers

Fri, 04 Sep 2020 18:39:07 GMT

Dear Hoosier Housing Needs Coalition partners and friends,

We’re happy to write today with information about the new federal CDC eviction moratorium, and to provide an updated flyer from our partners at Prosperity Indiana.

From the National Low Income Housing Coalition:

A federal eviction moratorium issued by the Centers for Disease Control (CDC) takes effect today, September 4, extending vital protections to tens of millions of renters at risk of eviction for nonpayment of rent during the global pandemic.

To be protected, qualified renters facing eviction should immediately provide a signed declaration to their landlords. For more details about the moratorium and a sample declaration that renters can use, read NLIHC’s and NHLP’s Overview of National Eviction Moratorium and our National Eviction Moratorium: FAQ for Renters.

From Prosperity Indiana:

Please share this updated Federal Eviction Moratorium flyer that outlines qualifications and procedures, and provides links to additional resources for renters.

See also Indiana Legal Services, Inc.'s COVID-19: New Federal Eviction Moratorium page

From the Hoosier Housing Needs Coalition:

The new CDC moratorium is an important step for up to 313,000 Hoosier households at risk of eviction and homelessness due to the pandemic, but more needs to be done. Because the moratorium provides no additional rent assistance, it’s critical that Indiana’s Senators Todd Young and Mike Braun champion $100B in rent assistance and homelessness prevention resources in the next coronavirus relief bill to meet Hoosiers’ needs.

The CDC has clearly established that housing is public health, and Indiana’s policymakers must recognize that housing stability needs to be a top priority in 2021. The new moratorium does not eliminate Indiana’s housing stability crisis, but simply delays the waves of evictions that will resume after December 31. To avoid unleashing a built-up tsunami of evictions in the dead of winter, Indiana’s policymakers must act during this moratorium, and should start by considering HHNC’s recommendations for a Housing Stability Policy Plan, including:

Re-open Indiana’s Rental Assistance Portal with f unds and outreach targeted towards the hardest-hit Hoosiers, including low-income renters and Black and brown communities.
Include a Housing Stability Dashboard on the state’s COVID-19 website to track eviction filings and rent assistance outcomes.
Governor Holcomb should appoint a Housing Stability Task Force that includes representatives from housing providers, tenants, legal aid, state agencies, and experts in the intersections between public health and housing to advise equitable funding and policy decisions.

Take Action: tell Indiana’s policymakers and Senators to prioritize housing stability now!

###

About the Hoosier Housing Needs Coalition:

Hoosier Housing Needs Coalition (HHNC) was formed by members of Indiana’s housing security advocacy community in April 2020 to support advocacy and education related to housing and homelessness prevention in response to the COVID-19 pandemic. Staffed by Prosperity Indiana through advocacy and coalition building grants from the National Low Income Housing Coalition and the Central Indiana Community Foundation, HHNC convenes partners from across Indiana to advocate for immediate, medium- and long-term housing stability policy solutions and conduct education and research to achieve federal, state, and local policies for an equitable response and recovery to the pandemic and beyond.

The HHNC Steering Committee is comprised of members from AARP Indiana, the Coalition for Homelessness Intervention & Prevention (CHIP), Fair Housing Center of Central Indiana, Family Promise of Greater Indianapolis, Indiana Coalition Against Domestic Violence, Indiana Institute for Working Families – INCAA, Prosperity Indiana, and The Ross Foundation.

Prosperity Indiana submits comments on OCC's damaging 'Rent-a-Bank Rule'

Thu, 03 Sep 2020 21:00:19 GMT

On September 3, Prosperity Indiana submitted comments on behalf of our network opposing the federal Office of the Comptroller of the Currency’s proposal “National Banks and Federal Savings Associations as Lenders” or "Rent-a-Bank Rule", and offering recommendations to instead strengthen our communities.

In our letter, Prosperity Indiana made the following arguments opposing the 'Rent-a-Bank Rule':

This rule would allow predatory lenders to evade state imposed rate caps by laundering loans through banks, enabling them to charge triple-digit interest rates even when states have already capped interest at much lower levels.
The “Rent-a-Bank” rule would directly harm Hoosiers hardest hit by the COVID-19 pandemic and economic depression, including the 37.9% of Hoosiers without emergency savings.
During our recently-completed Regional Members, our membership of experienced community economic development professionals consistently emphasized their federal policy priority to take action against unfair lending practices, of which Rent-a-Banks are a prime example, and instead promote a fairer financial market.

As an alternative to this damaging rule, Prosperity Indiana urges the OCC to promote alternatives to predatory lending that help lenders build assets and financial stability to keep wealth growing in our communities, including Community Loan Centers.

Read Prosperity Indiana's Comments on National Banks and Federal Savings Associations as Lenders Docket ID: OCC-2020-0026 RIN 1557-AE97.

Housing Coalition Urges Indiana Policymakers to Create a Waitlist and Resources Stopgap for Hoosiers Facing Eviction – Before Closing COVID-19 Rental Assistance Program – Without #RentReliefNow

Wed, 26 Aug 2020 15:34:19 GMT

INDIANAPOLIS – The Hoosier Housing Needs Coalition is urging Indiana Governor Eric Holcomb to ensure a waitlist and additional resources are made available before closing the state’s COVID-19 Rental Assistance Program Wednesday. More than 200,000 additional Hoosiers are expected to need pandemic-related rental assistance than will be provided through resources that are currently available through state and local government programs. The Coalition also calls on Indiana’s state and federal policymakers to come together to take critical steps to provide protections for renters to prevent the flood of evictions – that started with the end of the state’s moratorium August 14 – from deluging the state.

The Coalition issued an action alert stating concern that closing the rental assistance portal without a waiting list would leave renters in the dark with no way to document their request for assistance if an eviction case is filed against them. It also leaves the state no queue of assistance requests in the case that the program receives additional funds.

“The problem of evictions and housing instability isn’t going to disappear with the premature closure of the state’s rental assistance portal – quite the opposite will occur,” said Jessica Love, Executive Director of Prosperity Indiana. “A waiting list is the least the State of Indiana can do to demonstrate that it hasn’t turned its back on hundreds of thousands of Hoosiers who will continue to need emergency rental assistance as the impacts of the COVID-19 economic downturn continue to ramp up. A waiting list application confirmation could at least show due diligence for the renter attempting to work with their landlord but with limited resources to pay.”

As an example, the Coalition points to the waiting list used by the City of Indianapolis at IndyRent.org (the city’s rental assistance program portal), which will allow the city to contact tenants in the order they appear and invite them to apply once new funds become available. The state could use a similar waiting list to reactivate the state portal as funds are made available from over $1B currently available in CARES Act resources, or from any future coronavirus related funds passed by Congress.

“Working with the City of Indianapolis, I’m optimistic that they have found ways to work with partners on the ground to help make sure the Black and brown residents most impacted by COVID-19 receive rental assistance,” said Derris Ross, CEO/Founder of The Ross Foundation and the Indianapolis Tenants Rights Union. “Indiana needs a more tactical and intentional statewide plan to ensure an equitable housing recovery that reaches all Hoosiers no matter the color of their skin or their ZIP code.”

The Coalition sees the move to close the state’s rental assistance program without a waiting list as inconsistent with the facts on the ground of more than 30,000 applications to the program during its six-week run, compared to the approximately 25,000 households the program will serve (at $2,000 per household) through the $40 million in Coronavirus Relief Funds appropriated by the state. In sharper contrast, estimates indicate that up to 313,000 Hoosier households are at risk of eviction before the end of the year, part of multiple waves of evictions anticipated to last into 2021.

The Coalition reiterates its call for a coordinated statewide Housing Stability policy response to COVID-19, including a Governor-appointed Task Force representing the needs of landlords, tenants, and experts in housing and public health, as well as a Housing Security Dashboard on the state’s coronavirus web site to track eviction data and rent assistance outcomes. The Coalition has also called for a state Court Order to uniformly implement recommendations from the Supreme Court’s Landlord-Tenant taskforce. The Coalition also continues to call on Indiana’s Senators to follow the lead of the House in passing $100B in emergency rental assistance that would meet the estimated need in Indiana and nationwide.

“While the Senate hasn’t yet come through with the resources Indiana needs to serve all COVID-19 impacted renter households, that’s no excuse for the state to shut down its rental assistance program,” said Jessica Fraser, Director of the Indiana Institute for Working Families. “We’ve noticed that Indiana’s Senators have yet to stand up as champions for Hoosiers’ housing stability in negotiations for the next coronavirus package, and we see the impact that’s having here at home. Hopefully the state won’t give up on Hoosier renters before the Senate finishes the job in front of them.”

The Coalition asks Hoosiers to contact their policymakers by responding to the “Don't End Indiana's Emergency Rental Assistance Program!” Action Alert located at Prosperity Indiana’s online Advocacy Action Center. Organizations and individuals who wish to join the Hoosier Housing Needs Coalition and receive updates should also email hoosierhousingneeds@prosperityindiana.org.

###

About the Hoosier Housing Needs Coalition:

Hoosier Housing Needs Coalition (HHNC) was formed by members of Indiana’s housing security advocacy community in April 2020 to support advocacy and education related to housing and homelessness prevention in response to the COVID-19 pandemic. Staffed by Prosperity Indiana through advocacy and coalition building grants from the National Low Income Housing Coalition and the Central Indiana Community Foundation, HHNC convenes partners from across Indiana to advocate for immediate, medium- and long-term housing stability policy solutions and conduct education and research to achieve federal, state, and local policies for an equitable response and recovery to the pandemic and beyond.

The HHNC Steering Committee is comprised of members from AARP Indiana, the Coalition for Homelessness Intervention & Prevention (CHIP), Fair Housing Center of Central Indiana, Family Promise of Greater Indianapolis, Indiana Coalition Against Domestic Violence, Indiana Institute for Working Families – INCAA, Prosperity Indiana, and The Ross Foundation.

Coalition Calls for COVID-19 Housing Stability Dashboard, Court Order for Renter Protections as Governor’s Eviction Moratorium Ends

Fri, 14 Aug 2020 13:29:22 GMT

FOR IMMEDIATE RELEASE

August 14, 2020

CONTACT: Andrew Bradley | (317) 222-1221 x403 | abradley@prosperityindiana.org

Coalition Calls for COVID-19 Housing Stability Dashboard, Court Order for Renter Protections as Governor’s Eviction Moratorium Ends

INDIANAPOLIS – With Indiana’s eviction moratorium ending on August 14, the Hoosier Housing Needs Coalition is calling on Governor Holcomb to include a ‘COVID-19 Housing Stability Dashboard’ on the state’s coronavirus response website to track eviction and rental assistance data. The Coalition also urges the Indiana Supreme Court to strengthen protections for renters facing COVID-19 related evictions in court with an order to uniformly enact recommendations of the Court’s Landlord-Tenant Task Force. These recommendations would help inform the state’s housing stability policies, in the absence of an articulated plan, and in the face of new data finding that up to 720,000 Hoosiers are at risk of eviction without additional protections.

The Coalition believes that neither the data nor the facts on the ground support lifting the moratorium at this point. Although the Coalition applauds state and municipal leaders for establishing emergency rental assistance programs, the amounts allocated to date are not enough to cover the current list of applicants, much less the new estimates of up to 313,000 households at risk of eviction in waves that could last through 2021.

And while the Coalition’s recommendations for the Governor to appoint a Housing Stability Task Force to ensure an adequate and equitable policy response has so far gone unheeded, the data from a COVID-19 Housing Stability Dashboard could inform future policy decisions in order to mitigate the risks of future evictions and homelessness. The dashboard should include the following updated weekly:

number of applications to state and city Rental Assistance Programs by county, including by housing cost-burdened Census tracts, compared with the number of requests for housing assistance to the Indiana 211 network
average amount requested by household per county
number of applications accepted and denied per county and per reason why rejected, including ineligibility or lack of landlord participation
number of evictions filed and completed per county and by cost-burdened Census tract
balance remaining in the state COVID-19 Rental Assistance Fund

Eviction data for Indiana is notoriously difficult and expensive to obtain, with the most recent publicly-available information from 2016. And because Indiana is largely relying on partners for outreach about the state rental assistance program, it should arm those partners with up-to-date information about eviction filings and outcomes. The COVID-19 Housing Stability Dashboard should also include information directing people to the existing rental assistance programs throughout the state, as well as link to the Supreme Court's website with advisories and appendices for tenants, landlords and attorneys.

In addition, because the eviction moratorium is being lifted before measures on the Coalition’s Housing Stability Yardstick have been met and the state’s mediation program is not yet operational, the Coalition calls on the Indiana Supreme Court to issue a Court Order to ensure uniform application of the recommendations of the Landlord-Tenant Task Force across the state. A Court Order should elevate the Guidelines for Judges from suggestions to standard practices and be strengthened where needed to reduce unnecessary evictions, prevent homelessness, and safeguard public health, including:

Determine if the leased property is governed by rules applicable to federally-backed mortgages, or any previous or future COVID-19 related relief or moratorium
Separate court sessions for back rent versus damage hearings, and contested claims and other matters
Establish a procedure where the first hearing is simply for information with courts advising both landlord and tenant to complete an application to the applicable public rental assistance program before proceeding to a possession hearing.
Prioritize cases by oldest eviction cases first, i.e. the cases that were already scheduled when the moratorium was issued. Also consider situations where a party may have already resorted to impermissible self-help measures since tensions may be heightened.
Deprioritize cases where, after the initial information hearing, the landlord and/or tenant have sought to create a payment plan, and/or have applied for assistance after the first hearing but have not been granted that assistance.

In part, because demographic information, including disaggregated data on racial disparities, is difficult to obtain, the state should consider appointing a Housing Stability Task Force to monitor the disproportionate impact of policies and funding decisions on low-income communities and Black and brown Hoosiers across these areas.

“The Fair Housing Center of Central Indiana (FHCCI) implores our state to take the steps as outlined by the HHNC. The FHCCI fears the upcoming eviction pandemic and the long-term and sustained impact upon our Hoosier households. In our state, the filing of an eviction, justified or not, will follow Hoosiers around in their housing search for years to come, impacting their ability to find safe and affordable housing options. Indiana already received national attention, pre-COVID-19, on its high eviction rates. More must be done to address and counteract this crisis,” said Amy Nelson, Executive Director, Fair Housing Center of Central Indiana.

“Unfortunately, the end of the moratorium in no way signals that the threat of evictions and homelessness is now gone. Just the opposite. Not only will the coming tsunami of coming evictions have a long-term impact on renters, it will also cause lasting devastation on the communities that have been hit hardest by the pandemic job and income losses. This type of double-whammy is no jackpot. And the Hoosiers whose lives we are gambling with - hoping this problem will go away without additional, sweeping financial and legal interventions and accountability measures in place - are depending on our state’s leaders to do more,” said Jessica Love, Executive Director, Prosperity Indiana.

Organizations and individuals who wish to join the Hoosier Housing Needs Coalition and receive updates should email hoosierhousingneeds@prosperityindiana.org.

###

About the Hoosier Housing Needs Coalition:

Hoosier Housing Needs Coalition (HHNC) was formed by members of Indiana’s housing security advocacy community in April 2020 to support advocacy and education related to housing and homelessness prevention in response to the COVID-19 pandemic. Staffed by Prosperity Indiana through advocacy and coalition building grants from the National Low Income Housing Coalition and the Central Indiana Community Foundation, HHNC convenes partners from across Indiana to advocate for immediate, medium- and long-term housing stability policy solutions and conduct education and research to achieve federal, state, and local policies for an equitable response and recovery to the pandemic and beyond.

The HHNC Steering Committee is comprised of members from AARP Indiana, the Coalition for Homelessness Intervention & Prevention (CHIP), Fair Housing Center of Central Indiana, Family Promise of Greater Indianapolis, Indiana Coalition Against Domestic Violence, Indiana Institute for Working Families – INCAA, Prosperity Indiana, and The Ross Foundation.

Hoosiers Should Continue to Apply for Rent Assistance as Indiana’s Eviction Pause Extended to August 14

Fri, 31 Jul 2020 19:30:00 GMT

By Andrew Bradley

The Hoosier Housing Needs Coalition thanks Governor Holcomb for extending Indiana’s eviction moratorium through August 14, and for his willingness to continue extending the pause and adding resources to the Indiana COVID-19 Rental Assistance Program as demand necessitates. The Coalition encourages Hoosiers in need to apply for assistance while resources are available and urges Indiana’s policymakers to make necessary progress towards housing stability before lifting the moratorium.

Governor Eric Holcomb officially extended the moratorium on residential evictions and foreclosures, which had previously been set to expire July 31, through Executive Order 20-39 until August 14, to align the expiration date with the existing moratorium on utility shutoffs. In the renewed order, landlords, tenants, lending institutions, and property owners are “strongly encouraged to work together to establish reasonable payment plans for past due rent or mortgage payments.” During his press briefing Wednesday announcing the extension, the Governor stated his willingness to add funding to Indiana’s $25 million rent assistance program and that it is too early to say whether the moratorium will be extended again.

Hoosier renters who have lost income due to the pandemic are encouraged to apply at IndianaHousingNow.org for non-Marion County residents, or at IndyRent.org for Marion County residents. While both programs have reached their initial estimated capacity, it is important for renters in need to apply to be added to the wait list and to demonstrate the demand for additional funds for these programs to policymakers. In addition, service providers, congregations, and other community-based organizations should make sure their members and clients are aware of this assistance. IHCDA has provided a Communications Toolkit with resources in English and Spanish, as well as Social Media Posts.

Before Governor Holcomb considers lifting the eviction moratorium, the Coalition urges him to ensure the state has met four measures on our Housing Stability Yardstick, including:

1.) Coordinate rent assistance programs to align all available funding streams. This includes stacking state and local funds and incentivizing philanthropic and private participation.

2.) Ensure equitable access to rental assistance program resources. Target outreach to highest cost burden areas and racial communities most impacted by public health, income and job loss, and housing instability.

3.) Appoint an Indiana Housing Security Task Force to advise on funding, outreach, and outcomes with expertise of landlords, impacted renters, public health and housing experts.

4.) Congress should provide adequate support for #RentReliefNow, with Indiana’s Congressional delegation as champions.

Meeting these measures will help ensure that 258,782 Hoosier renter households affected by the pandemic have the help they need to avoid eviction and potential homelessness. However, lifting the moratorium before meeting these measures would put Indiana at risk of regressing in its COVID-19 Back On Track Plan.

Please share this message with your networks. To join the Hoosier Housing Needs Coalition and receive updates, please contact hoosierhousingneeds@prosperityindiana.org.

###

About the Hoosier Housing Needs Coalition:

Hoosier Housing Needs Coalition (HHNC) was formed by members of Indiana’s housing security advocacy community in April 2020 to support advocacy and education related to housing and homelessness prevention in response to the COVID-19 pandemic. Staffed by Prosperity Indiana through advocacy and coalition building grants from the National Low Income Housing Coalition and the Central Indiana Community Foundation, HHNC convenes partners from across Indiana to advocate for immediate, medium- and long-term housing stability policy solutions and conduct education and research to achieve federal, state, and local policies for an equitable response and recovery to the pandemic and beyond.

The HHNC Steering Committee is comprised of members from AARP Indiana, the Coalition for Homelessness Intervention & Prevention (CHIP), Fair Housing Center of Central Indiana, Family Promise of Greater Indianapolis, Indiana Coalition Against Domestic Violence, Indiana Institute for Working Families – INCAA, Prosperity Indiana, and The Ross Foundation.

With maxed-out rent assistance, Indiana running out of time to prevent a tsunami of evictions as COVID-19 resurges; Housing Coalition provides Housing Stability Yardstick

Wed, 22 Jul 2020 11:54:27 GMT

By Andrew Bradley, Jessica Fraser, and Michaela Wischmeier

With nearly maxed-out rental assistance programs, Indiana is running out of time to prevent a tsunami of evictions starting August 1, even as COVID-19 resurges through the state. Self-inflicted funding limits and a lack of statewide coordination between state and city rent assistance programs have set Indiana further back on the timeline needed to advance to higher stages of housing stability. In response, the Hoosier Housing Needs Coalition (HHNC) proposes a yardstick to measure the steps necessary to ensure COVID-19 housing stability.

On July 13, the State of Indiana and City of Indianapolis opened their COVID-19 emergency rental assistance programs after weeks of planning. In a little over a week, the state program had received 17,491 applications[1] for a program expected to serve 12,000 households, and the city suspended applications after maxing out the projected capacity of 10,000 households in the first 48 hours. Including the households covered by these two programs, the HHNC estimates that no more than 50,000 households are likely to receive some form of rental assistance from the resources available from various government, faith-based and philanthropic organizations across the state at current capacity.

As a result, over 200,000 Hoosier renter households – of the estimated 258,782 who will need rental assistance before September – will remain subject to eviction and potential homelessness, if Governor Holcomb’s eviction pause expires on July 31 as planned. With Indiana’s early attempts at rent assistance nearly maxed out, thousands of Hoosier renters are at risk of spreading disease and experiencing economic calamity from losing their housing.

To prevent evictions that will cause Indiana to regress in its COVID-19 Back On Track Plan, the Hoosier Housing Needs Coalition has developed a ‘yardstick’ to measure four necessary steps for the state to take before Gov. Holcomb should consider lifting the eviction moratorium. The necessary steps include:

1.) Coordinate rent assistance programs to align all available funding streams. This includes stacking state and local funds and incentivizing philanthropic and private participation.
2.) Ensure equitable access to rental assistance program resources. Target outreach to highest cost burden areas and racial communities most impacted by public health, income and job loss, and housing instability.
3.) Appoint an Indiana Housing Security Task Force to advise on funding, outreach, and outcomes with expertise of landlords, impacted renters, public health and housing experts.
4.) Congress should provide adequate support for #RentReliefNow, with Indiana’s Congressional delegation as champions

The ‘yardstick’ is as follows:

1.) Coordinate rent assistance programs. The current Indiana COVID-19 Rental Assistance Program provides up to $500 a month for up to four months, but families receiving rent assistance from another program are not eligible to apply. This design disincentives cities and private or philanthropic partners considering creating rent assistance programs of their own, as well as prevents ‘stacking’ local and state.

The current state program uses $25M in Coronavirus Relief Funds (of $2.4B) and $7.6M in Emergency Solutions Grant funds (of nearly $32M) allocated to the state from the CARES Act. But it leaves over $38M in Community Development Block Grants allocated to the state on the table, using none for rent assistance despite explicit authorization from HUD. funds together to help make families whole on their housing costs to avoid eviction.

Before the moratorium is lifted: Statewide coordination is needed to align available funding. The state also has not taken HHNC’s recommendations to date to provide coordination of CARES Act resources that could be used for housing stability across the state and local levels. Over a dozen Indiana cities have committed to using CARES Act resources for rent assistance, but the state has created an ‘either/or’ instead of a ‘both/and’ structure. Worse yet, while the U.S. Treasury explicitly allows CRF funds for rent assistance – and both the state and City of Indianapolis used CRF funds to launch their respective rent assistance programs, the state currently does not include rent assistance on the listof reimbursable CRF expenses for local units of government receiving CRF allocations from the state.

2.) Ensure equitable access to rental assistance program resources. Indiana must ensure that the hardest-hit communities and Hoosiers have been given equitable access to available rent assistance, including through targeted outreach. The HHNC has found that rent assistance is Indiana’s top unmet need even during the eviction moratorium, and that low-income renters and Black and Latino Hoosiers have been most impacted by COVID-19 income loss and housing instability. And while the state has relied on others for outreach, and Indy included community partners for its program that lasted three days, a coordinated statewide program must include metrics to ensure assistance is properly targeted to low-income renters and Hoosiers of color.

Before the moratorium is lifted: Rent assistance must reach the top cost-burdened Hoosiers and where Black and Latino households live.

Across Indiana, 40.4% of white renter households are cost-burdened by housing, meaning they “pay more than 30 percent of their income for housing” and “may have difficulty affording necessities such as food, clothing, transportation, and medical care.”[2] However, 44.5% of Indiana’s Latino households and 51.4% of Black households are cost-burdened.[3] In addition to Marion County, the counties with the highest rates of cost-burdened people of color include Delaware, Vigo, Johnson, Tippecanoe, Brown, Monroe, Allen, Lake, Clark, and Hendricks. For Indiana’s COVID-19 housing stability policy response to be a success, assistance must proportionally reach the most cost-burdened renters and the Black and Latino communities most impacted by the pandemic.

To assist with targeting outreach for Indiana and Marion County’s rent assistance programs, the Hoosier Housing Needs Coalition has used Census data to identify top housing cost-burdened Census tracts and areas with high proportions of Black and Latino households in the state. A larger database of these Census tracts can be found here.

While Indiana has housing cost burden across the entire state, Census data shows that the top 20 most cost-burdened communities in the state [excluding Marion County] have over two-thirds of their population allocating more than 30% of their income for rent each month. At 81%, Delaware County has the most cost-burdened census tract in the state. Geographically, these census tracts are spread across all parts of the state and include rural, suburban, and urban areas.

High proportions of Black households live in cost-burdened census tracts in many Indiana counties, including Lake, Marion, St. Joseph, Delaware, LaPorte, and Allen. In addition, large percentages of Latino households also live in cost-burdened Census tracts in many Indiana counties, including Lake, Noble, St. Joseph, Marion, Clinton, and Elkhart.

Similar to statewide trends, the top 20 cost-burdened census tracts in Marion County all have cost-burden rates of 65% or higher. Marion County has higher rates of racial diversity in its most cost-burdened census tracts, in comparison to the state as a whole. The majority of Marion County’s 20 most cost-burdened tracts have a Black population of 25% or higher, and slightly fewer than half have a Latino population above 10%.

3.) Appoint an Indiana Housing Security Task Force to advise on funding, outreach, and outcomes with expertise of landlords, impacted renters, public health and housing experts. Indiana’s ability to coordinate resources across funding sources could be significantly improved through a task force that includes elected officials, housing advocates, people of color and other Hoosiers most impacted by COVID-19 housing instability. While a COVID-19 task force already exists, the ‘Economic Relief and Recovery Team’ – appointed by the governor to plan, administer and account for federal relief funds the state of Indiana receives from the CARES Act – does not reflect this level of diversity and has not made housing stability a priority.

Before the eviction moratorium is lifted: Indiana should take up the HHNC’s recommendation for Governor Holcomb to create an Indiana Housing Stability Task Force

to represent renters, housing providers and investors, and experts in the connections between housing and public health in the decisions about Indiana’s COVID-19 housing policy response. This task force would help ensure that the hardest-hit communities are served as outlined above. Ideally, a representative of the Housing Stability Task Force would serve on the Economic Relief and Recovery Team on any housing-related decisions from this point forward.

4.) Congress should provide adequate support for #RentReliefNow, with Indiana’s Congressional delegation as champions. Indiana and Indianapolis have made progress in constructing pipelines for emergency rental assistance. And while each program could be expanded somewhat with existing CARES Act resources, the combined capacity is nowhere near the existing need for over a quarter of a million Hoosier households.

Before the eviction moratorium is lifted: Resources significant enough to provide the rent assistance needed for all ‘severely cost burdened’ (paying over 50% on housing) Hoosier renters to ensure housing stability must be appropriated. Congress must come through with #RentReliefNow, and Indiana’s Congressional delegation should be out front as champions for the hundreds of thousands of Hoosiers relying on them. We urge Indiana’s Senators and Representatives to join HHNC to support $100 billion in emergency rental assistance to help low-income renters avoid evictions and homelessness; a national, uniform moratorium on evictions; $11.5 billion to help local communities address the pressing health and safety needs of people experiencing homelessness; and at least $13 billion in additional funding for HUD and USDA housing programs to ensure housing stability during and after the pandemic, including funds for 100,000 new Housing Choice Vouchers.

“With such limited resources in Indiana’s rental assistance programs, it is incumbent upon the State and the cities that are running these programs to target their outreach efforts in the most impacted communities,” said Indiana Institute for Working Families Director Jessica Fraser. “Otherwise, these programs run the risk of widening disparity and not solving it.”

Jessica Love, Executive Director of Prosperity Indiana, said, “The last thing Indiana needs is for Hoosier families to be evicted and thrown out on the street or couch-surfing during a resurgent pandemic and exacerbating the surge we’re already seeing in COVID-19 cases. We can no longer afford to delay the policy decision to have a COVID-19 Housing Stability Plan in place.”

Andrew Bradley is Policy Director and Michaela Wischmeier is AmeriCorps Member-Fellow for Prosperity Indiana. Jessica Fraser is Director of the Indiana Institute for Working Families.

[1] Indiana has received 17,491 applications to its COVID-19 Rental Assistance Program as of July 21 according to IHCDA.

[2] Definition of cost burdened renter from https://www.huduser.gov/portal/pdredge/pdr_edge_featd_article_092214.html

[3] Source: authors’ calculations of ACS 1-Year Estimates - Public Use Microdata Sample 2018 https://data.census.gov/mdat

###

About the Hoosier Housing Needs Coalition:

Hoosier Housing Needs Coalition (HHNC) was formed by members of Indiana’s housing security advocacy community in April 2020 to support advocacy and education related to housing and homelessness prevention in response to the COVID-19 pandemic. Staffed by Prosperity Indiana through advocacy and coalition building grants from the National Low Income Housing Coalition and the Central Indiana Community Foundation, HHNC convenes partners from across Indiana to advocate for immediate, medium- and long-term housing stability policy solutions and conduct education and research to achieve federal, state, and local policies for an equitable response and recovery to the pandemic and beyond.

The HHNC Steering Committee is comprised of members from AARP Indiana, the Coalition for Homelessness Intervention & Prevention (CHIP), Fair Housing Center of Central Indiana, Family Promise of Greater Indianapolis, Indiana Coalition Against Domestic Violence, Indiana Institute for Working Families – INCAA, Prosperity Indiana, and The Ross Foundation.

Affordable Housing is Out of Reach in Indiana for Low-Wage Workers

Tue, 14 Jul 2020 13:30:00 GMT

To afford a modest, two-bedroom apartment at fair market rent in Indiana, full-time workers need to earn $16.32 per hour. This is Indiana’s 2020 Housing Wage, revealed in a national report released today. The report, Out of Reach, was jointly released by Prosperity Indiana, a statewide community development network, and the National Low Income Housing Coalition (NLIHC), a research and advocacy organization dedicated solely to achieving affordable and decent homes for the lowest income people.

Indiana’s 2020 Housing Wage of $16.32 per hour is up from $16.03 in 2019 and is now sixth-highest among the 12 Midwest states, above the regional median of $16.30. The report also finds that the current median renter wage in Indiana of $14.44 per hour is sixth-highest in the Midwest, a penny above the regional median of $14.43. This would indicate that the cost of living in Indiana, compared to Midwestern peers, is not particularly low.

“Data shows that the typical renter income is insufficient to afford rental housing in 80 of Indiana’s 92 counties — and in all 92 for low-income renters — and that’s before the economic and income disruptions caused by COVID-19,” said Jessica Love, Prosperity Indiana’s Executive Director. “This pandemic has certainly highlighted the very harsh reality of living at the edge of housing stability – often just one paycheck away from homelessness – and the impact it can have on the health and well-being of us all. As a result, we must consider the housing affordability issue that so many Hoosier renters experience and begin to proactively address it as a community-level concern.”

This year, the Out of Reach report is released during a time when the coronavirus has clearly illustrated that housing is healthcare. The mandate to “stay at home” was echoed by top officials across the country. However, having a stable place to stay was out of reach for millions of people before the pandemic. Prior to the pandemic, more than 7.7 million extremely low-income renters were spending more than half of their limited incomes on housing costs, sacrificing other necessities to do so. The compounding of high job losses and the lack of access to proper healthcare and resources considerably depleted already limited resources and access. In the past few months alone, millions of households have dealt with a decline in wages through layoffs, furloughs, or decreased work hours and many will struggle to afford their rents. There are no states, metropolitan areas, or ZIP codes in the country where renters can afford a home at Fair Market without spending more than 30% of their income on housing costs. The severe shortage of affordable and available rental homes is still prevalent.

Indiana’s minimum wage has remained at the federal floor of $7.25 an hour without an increase since 2009, not keeping pace with the high cost of rental housing. In no state, even those where the minimum wage has been set above the federal standard, can a minimum wage renter working a 40-hour work week afford a modest two-bedroom rental unit at the average fair market rent. Working at the minimum wage of $7.25 in Indiana, a wage earner must have 1.8 full-time jobs or work 73 hours per week to afford a modest one-bedroom apartment (up from 71 hours in 2019). To afford a two-bedroom apartment at fair market rent, that Hoosier must have 2.3 full-time jobs or work 90 hours per week (up from 88 hours in 2019).

The typical renter in Indiana pre-COVID-19 earns $14.44, which is $1.88 less than the hourly wage needed to afford a modest unit. The economic downturn spurred by the coronavirus has further increased the risk of housing instability for millions of low-wage renters at a time when stable housing is vital.

“Housing is a basic human need, but millions of people in America can’t afford a safe, stable home,” said Diane Yentel, NLIHC president and CEO. “The harm and trauma of this enduring challenge is laid bare during COVID-19, when millions of people in America risk losing their homes during a pandemic. The lack of affordable homes for the lowest-income people is one of our country’s most urgent and solvable challenges, during and after COVID-19; we lack only the political courage to fund the solutions at the scale necessary. It’s time for Congress to act.”

For additional information, visit: https://reports.nlihc.org/oor/indiana

###

About Indiana Association for Community Economic Development D/B/A Prosperity Indiana

Prosperity Indiana is a statewide membership organization for the individuals and organizations strengthening Hoosier communities. Prosperity Indiana builds a better future for our communities by providing advocacy, leveraging resources, and engaging an empowered network of members to create inclusive opportunities that build assets and improve lives. Since its founding in 1986, Prosperity Indiana has grown to approximately 200 members from the public, private, and nonprofit sectors.

Indiana must be prepared for multiple waves of COVID-19 evictions starting August 1 through 2021 and beyond

Fri, 10 Jul 2020 18:03:03 GMT

FOR IMMEDIATE RELEASE

July 10, 2020

Andrew Bradley, Policy Director

abradley@prosperityindiana.org, 317-222-1221 x403

It’s common to hear that Indiana will face a ‘tsunami of evictions’ sometime after the state moratorium on residential evictions expires on July 31. But based on the evolving nature of the COVID-19 pandemic and the economic crisis that has followed and using what we know from past recessions, Indiana’s policymakers must prepare now for more than the first wave of the tsunami. Rising and falling with the economy, multiple waves of evictions are likely to last at least through 2021, as state and federal unemployment and current pandemic assistance expire and families exhaust any remaining resources. Failing to adequately provide and coordinate housing stability resources throughout this extended storm season could result in long-term damage to Hoosier jobs, public health, and the economy.

The best state estimates find that 258,782 Hoosier renter households affected by the pandemic will need emergency rent assistance by September 2021. But even as unemployment claims are expected to gradually decrease over the coming year, 186,069 households will continue to need pandemic-related rent assistance by June 2021. Over that time, we are likely to see those evictions come in several waves:

The first wave lands August 1: When the Governor’s eviction moratorium ends July 31, the first wave will hit on August 1 when landlords can again initiate evictions for any delinquent rent. National estimates find that for every 10 successful unemployment claim filings, three to four people tried to apply but could not get through, and two more found the system too difficult to attempt to apply. In addition, people at risk of homelessness may have had difficulty receiving the federal stimulus payment. So with nearly 850,000 Hoosiers claiming unemployment since March 21, up to 500,000 more Hoosiers never received state or federal unemployment or pandemic assistance and may be among that first wave of evictions. Because these Hoosiers did not receive a substantial income replacement, even with city or partial state rent assistance available, these families likely won’t be able to make ends meet to avoid immediate eviction, without coordinated non-governmental resources or an abundance of landlord cooperation.

The second wave begins to land September 1: 409,455 Hoosiers are set to lose a total of $245,672,928 per week in unemployment benefits starting on July 27 when the Federal Pandemic Unemployment Compensation (FPUC) expires. If one in three of these recipients has been relying on FPUC for rent, policymakers should expect a new wave of 136,485 evictions in Indiana, beginning when rent is due in September. Even for those who are among the 12,000 families who receive $500 per month in Indiana’s COVID-19 Rental Assistance Program – while continuing to receive the average state unemployment benefit of $272.72 after FPUC expires, the assistance still doesn’t add up to the $834 per month needed for the average two-bedroom apartment in Indiana. The bottom line is that, without an extension of federal pandemic unemployment assistance, over 100,000 Hoosier households will be vulnerable to eviction starting September 1.

The third and biggest wave won’t crest until 2021: The U.S. officially entered recession in February. Although the sharp spike in unemployment and associated public health risks make the COVID-19 recession unique, Indiana’s policymakers should be prepared for evictions to again be a lagging indicator, with a wave that comes a year or more after the peak of unemployment. Following the Great Recession, which lasted from December 2007 to June 2009, Indiana’s peak monthly unemployment rate of 11% occurred in January and February of 2010, with an annual average for that year of 10.4%. But Indiana’s evictions actually dipped that year, and didn’t peak until the following year, with an eviction rate of 4.9% and an eviction filing rate of 8.8% in 2011. These rates very slowly declined over the next five years before again rising, starting in 2015. If Indiana’s unemployment rate of 17% in April 2020 turns out to be the peak from the COVID-19 recession, the state can expect the resulting wave of evictions and eviction filings to peak sometime in 2021. However, if the recession continues or is exacerbated by a second wave of the COVID-19 public health emergency, the wave of evictions could crest again in 2022 or beyond. After a year or more of recession, without additional resources, this wave could devastate Indiana's renter community and economy.

Indiana is not yet ready for the first eviction wave, much less three or more. While Indiana has built a pipeline for emergency rental assistance and homeless prevention with the Indiana COVID-19 Rental Assistance Program and several city-based programs, state leadership has not yet provided proportional resources or coordination to cover the need statewide. This is preventing city and state agencies from aligning available funds and ensuring resources get to where they’re needed most. Prosperity Indiana and The Hoosier Housing Needs Coalition have recommended that Governor Holcomb appoint a Housing Stability Task Force with members that represent renters, housing providers, and experts in the connections between housing and public health. More data will be needed once the state and city programs are operational – and after Indiana’s eviction moratorium expires – to gauge the effectiveness of outreach, utilization rates, and need for additional funds for these efforts. Indiana’s Congressional delegation must also provide adequate resources for housing stability to prevent each eviction wave from sinking Hoosier families.

“Without having a more coordinated system for rental assistance delivery to pair governmental and nongovernmental resources, it’s hard to know just how unprepared we are as a state to address the first wave of evictions that’s coming,” said Jessica Love, Executive Director of Prosperity Indiana. “But knowing the total of what’s been announced as available through state and city administered federal resources to date, without more, we are certain the second and third waves of this housing crisis will result in a major wipeout for housing stability for families in this state. Without more and better coordinated resources to mitigate the coming storms, massive evictions will undoubtedly become Hoosiers’ ‘next normal‘,” Love said.

Several issues pre-date COVID that exacerbate housing instability in Indiana during this new crisis, and should be taken into consideration for long-term policy solutions. Even before the pandemic, nearly 40%of Hoosier households had less than $400 saved for emergencies. Indiana also already had an eviction crisis with an eviction rate of 4.07 in 2016 (above all neighbors and the national average of 2.34%), with three cities (Indianapolis, Fort Wayne, and South Bend) among the top 20 in the U.S. for high eviction rates.

A rule of thumb of ‘one in three’ unemployment recipients needing emergency rent assistance aligns with the rate of 31% of Indiana residents are renters, according to U.S. Census data, as well as a mid-range estimate, as studied by the Urban Institute in ‘The Price Tag for Keeping 29 Million Families in Their Homes: $162 Billion,’ March 27, 2020 https://www.urban.org/urban-wire/price-tag-keeping-29-million-families-their-homes-162-billion.

Housing Coalition Applauds Creation of Indiana COVID-19 Rental Assistance Program and Extension of Eviction Pause Through July

Wed, 24 Jun 2020 23:56:18 GMT

Housing Coalition Applauds Creation of Indiana COVID-19 Rental Assistance Program and Extension of Eviction Pause Through July; Members Urge Governor to Create Rental Housing Task Force to Ensure Funds Reach Hardest Hit Hoosiers

The Hoosier Housing Needs Coalition commends Governor Eric Holcomb for heeding several of our recommendations to establish the ‘Indiana COVID-19 Rental Assistance Program’ and thanks him for announcing that he will extend his moratorium on residential evictions through July. The $25 million allocated by the state is estimated to serve 12,000 Hoosier renter households affected by the pandemic across 91 of the state’s 92 counties.

With Lt. Governor Crouch rightly acknowledging that “housing stability has never been more important” than during this public health crisis, and the estimate for rental housing need in the state exceeding 258,000 Hoosier renter households affected by the pandemic who will need emergency rental assistance this summer, it will take careful targeting to make sure those who need the resources most actually receive them. To address these concerns, we recommend a Rental Housing Stability Task Force to ensure the aid gets to the hardest-hit Hoosier communities and populations.

"Although we appreciate the significant step finally made today in the announcement of a statewide rental assistance program to help our Hoosier COVID-19 impacted renters, our state must do more. Current funding will only impact a small number of the anticipated Hoosier renters who are at risk of housing loss or the devastating effects of an eviction on their record. It is imperative that the state allocate additional funding and/or work at the federal level to secure additional needed renter assistance," stated Amy Nelson of the Fair Housing Center of Central Indiana.

As announced, the program will provide up to $500 in assistance for four months, totaling a maximum of $2,000 in assistance to eligible renters to help cover past and ongoing rent payments or late fees. The program will also require participation of both tenants and landlords, who will agree not to evict for balance due for 45 days after the last month of assistance. Applications will be open at indianahousingnow.org starting July 13 and will be available to residents in any Indiana county except Marion County, where a local $15 million CARES Act-funded program will provide aid to renters.

Even when the new state program is considered in tandem with the known city rental assistance programs to date, an estimated 200,000 renters affected by COVID-19 may go unassisted without additional state resources allocated. State coordination around the various rental assistance programs would give Hoosiers a better understanding of the resources available and if the existing state programs will meet the demand.

For this reason, the Hoosier Housing Needs Coalition urges Governor Holcomb to use the time before this limited state program launches to establish an Indiana Rental Housing Stability Task Force with members that represent renters, housing providers and investors, and experts in the connections between housing and public health. Only by including the Hoosier communities and organizations most directly affected by COVID-19 housing instability will the state be able to ensure that resources are adequately allocated and targeted to those most in need. Members of the Coalition stand ready to serve and help advise this Task Force so that no Hoosier is evicted or made homeless due to the pandemic.

“We applaud Governor Holcomb’s steps to establish this much-needed program. It’s on-target to move the state in the right direction to ensure housing stability in response to COVID-19,” said Jessica Love, Executive Director of Prosperity Indiana. “Next we need to look factually at what’s happening on the ground and use the best data available to make sure we have enough resources to do the job right. That will mean Congress stepping up to provide the funding needed to complete what our state and local partners have started,” Love said.

“Black and Brown Hoosiers have been disproportionally affected by this pandemic and its effects on tenants’ housing stability,” said Derris Ross, Founder and CEO of The Ross Foundation and the Indianapolis Tenants Rights Union. “Providing them with a say in determining what happens to the resources used to prevent evictions is the least we can do to address the division, the trauma, and the violence within our communities,” Ross said.

###

About the Hoosier Housing Needs Coalition:

Hoosier Housing Needs Coalition (HHNC) was formed by members of Indiana’s housing security advocacy community in April 2020 to support advocacy and education related to housing and homelessness prevention in response to the COVID-19 pandemic. Staffed by Prosperity Indiana through advocacy and coalition building grants from the National Low Income Housing Coalition and the Central Indiana Community Foundation, HHNC convenes partners from across Indiana to advocate for immediate, medium- and long-term housing stability policy solutions and conduct education and research to achieve federal, state, and local policies for an equitable response and recovery to the pandemic and beyond.

The HHNC Steering Committee is comprised of members from AARP Indiana, the Coalition for Homelessness Intervention & Prevention (CHIP), Fair Housing Center of Central Indiana, Family Promise of Greater Indianapolis, Indiana Coalition Against Domestic Violence, Indiana Institute for Working Families – INCAA, Prosperity Indiana, and The Ross Foundation.

Three Months of Prosperity Indiana Recommendations for a Coordinated Statewide COVID-19 Housing Stability Plan

Wed, 17 Jun 2020 13:51:05 GMT

Three months since Governor Eric Holcomb declared a public health emergency due to the coronavirus pandemic, Hoosiers are still waiting for a coordinated statewide housing stability policy response that aligns available federal, state, and local/philanthropic resources and provides emergency rental assistance. This blog post collects the analysis and recommendations that Prosperity Indiana and members of the Hoosier Housing Needs Coalition have offered to Indiana’s state and federal policymakers and other partners to date.

A common theme of our analysis and advocacy is the importance for state policymakers to use the time available during the eviction moratorium to create a coordinated policy response and clearly communicate procedures and expectations to renter families, landlords, and community service providers and stakeholders alike. Because many of the resources available for emergency rental assistance to date come through the CARES Act but are allocated through existing programs at the state and local levels with differing eligibility requirements, it’s essential that state leadership provides the role of Housing Stability Lead to coordinate these resources to ensure they reach the hardest hit populations and communities. And because data has emerged showing that low-income renters, women, and Hoosiers of color have been most affected by the pandemic, by loss of jobs and income, and by housing insecurity, it’s all the more urgent that a state Housing Security Lead takes responsibility that these Hoosiers aren’t further endangered at this critical time. In addition, it is clear that not enough federal resources or guidance has been received to fill the need statewide. Congress will need to provide additional resources, and the federal administration must expedite authorization and guidance so that no Hoosier is evicted or made homeless due to the pandemic.

Updating Indiana’s COVID-19 Housing Response (April 3, 2020) “[J]ust as the state has adopted an approach of #INthistogether to successfully weather the long-term impact of the crisis, Indiana must also use the policy tools at its disposal to craft a longer-term housing security response that keeps Hoosier families secure over the months to come.”

Prosperity Indiana Joins Housing Providers and Advocates Calling on Senator Young to Champion Emergency Rental Assistance for Indiana (April 21, 2020) “While it will take Hoosiers #INthistogether to address the state’s response, Congress must come through to meet Indiana’s short term emergency rental assistance needs.”

New Hoosier Housing Needs Coalition urges actions to ensure housing stability response to COVID-19 (May 1, 2020) “In order to prevent a sudden wave of evictions and the damaging health and social disruptions that follow for affected families, Indiana policymakers must plan ahead to create an emergency short-term rental assistance program and communicate steps to be taken. It will take each level of Indiana’s elected leaders, working hand-in-hand with community leaders and advocates, to achieve these steps.”

Indiana extends evictions pause through June 4, but what’s happening in your community? (May 5, 2020) “Indiana’s pause on evictions has been extended through June 4, and that means the state has one more month to create and implement a COVID-19 housing security policy response to ensure no Hoosier is evicted or becomes homeless due to the pandemic.”

Prosperity Indiana comments on 2020 amendment to 2019 OCRA Annual Action Plan (May 9, 2020) “[Our comments] demonstrate our concern about the missed opportunity of not employing allowed uses of Community Development Block Grant (CDBG) resources for emergency rental assistance as part of a recommended state COVID-19 housing stability plan.”

Indiana extends eviction pause again through July 1. The clock's now ticking for emergency rent assistance! (May 21, 2020) “[T]he state is now officially on the clock to have an emergency rental assistance program up and running so that no Hoosier becomes evicted or homeless due to the COVID-19 pandemic.

Prosperity Indiana comments on State of Indiana 2019 Annual Action Plan ESG-CV HOPWA-CV Amendments (May 22, 2019) “Prosperity Indiana especially appreciates that the draft plan includes funding that would create a structure for emergency rental assistance to be delivered statewide to Hoosier renters most in need.”

Prosperity Indiana comments 2020 amendment to 2019 CDBG Long Term Annual Action Plan (June 3, 2020) “[W]e ask you to reconsider the opportunity to use part of the CDBG resources covered by this amended Long-Term Phase of the COVID-19 Response Program to align with the long-term needs for housing security, including emergency rental assistance, in response to the pandemic.”

Short Term Emergency Rental Assistance White Paper for INHP (May 29, 2020) “This white paper examines the pros and cons of several types of STERA [Short Term Emergency Rental Assistance] programs, including those delivered at the federal, state, municipal, and/or private philanthropic levels. Using examples of existing or proposed programs, the paper walks the reader through the features of STERA programs and the benefits or drawbacks of key decisions that go into program design, including implications for program outcomes.”

Housing and Rental Assistance Among Hoosiers’ Top Unmet COVID-19 Needs (June 2, 2020) “Without coordinated action this month by state policymakers to enact a working rental assistance program and support from Indiana’s Congressional delegation to fund it, many Hoosier families remain at risk of eviction and homelessness when the state’s eviction moratorium expires June 30.”

Hoosier Housing Needs Coalition: Indiana not making enough progress to avoid an eviction crisis when moratorium ends June 30 (June 10, 2020) “Without a clearly communicated comprehensive statewide COVID-19 policy response in place, ending the eviction moratorium would inflict even more harm on the most disadvantaged Hoosiers, undoing all of the strides made by the state’s COVID-19 response to date.”

Hoosier Housing Needs Coalition Virtual Press Conference (June 10, 2020) ““Being evicted come July 1 will only further escalate the division, the trauma, and violence within our communities,” said Dee Ross, CEO & Founder of The Ross Foundation and Founder, Indianapolis Tenants Rights Union. “Tenant screening companies will judge them more harshly in conducting future background checks due to having an eviction filed against them, forever impacting their ability to secure safe and affordable housing,” said Amy Nelson, Executive Director, Fair Housing Center of Central Indiana.

Results of Entitlement Cities Survey on using CARES Act funds for emergency rental assistance (June 16, 2020) “Indiana needs statewide rent assistance, and CARES funds allocated to entitlement cities can be part of that if coordinated. Through a survey of cities conducted from late May through mid-June, here’s what we know to date about use of CARES Act resources by Indiana’s cities for emergency rental assistance.”

Recommendations for an Indiana Statewide Emergency Rental Assistance program using Coronavirus Relief Funds (June 16, 2020) “With an understanding that the full CRF allocation to Indiana may not be available for rent assistance, here are suggested guidelines for how a statewide rent assistance program could prioritize Hoosiers most in need.”

Hoosier Housing Needs Coalition: Indiana not making enough progress to avoid an eviction crisis when moratorium ends June 30

Wed, 10 Jun 2020 11:36:49 GMT

The Hoosier Housing Needs Coalition is sounding the alarm that not enough progress has been made by state and federal policymakers for renters affected by COVID-19 to avoid falling off an ‘eviction cliff’ when Governor Holcomb’s moratorium ends June 30.

Even while protesters are marching for racial equality in communities across the state, the pandemic is disproportionately harming and killing Hoosiers of color, and unemployment is impacting low-income renters, women, and Hoosiers of color most. Without a clearly communicated comprehensive statewide COVID-19 policy response in place, ending the eviction moratorium would inflict even more harm on the most disadvantaged Hoosiers, undoing all of the strides made by the state’s COVID-19 response to date.

Prosperity Indiana Executive Director Jessica Love said, “To be clear, we do not want to be in the position to ask for another extension of the eviction pause. We know landlords are hurting alongside renters right now. So, we had hoped that state and local governments would use the most recent extension period to proactively establish a coordinated and comprehensive plan to address this mounting crisis. But unfortunately, we are again approaching the moratorium deadline, without a clear path forward for the growing number of families getting behind on rent.”

With over a quarter million Hoosier renter families affected by the pandemic needing emergency rental assistance when temporary stimulus measures expire, the Coalition urges Governor Holcomb to take immediate steps to prevent upending the state’s economic recovery with a wave of evicted Hoosiers. Until emergency rental assistance is available across the state, Governor Holcomb must extend the eviction moratorium for Hoosiers affected by the pandemic, while considering comprehensive measures to respond to this looming aspect of the crisis.

Since the COVID-19 public health emergency began, housing advocates have urged Governor Holcomb to enact a plan and pledge that no Hoosier is evicted or made homeless due to the pandemic. In early May, the new Hoosier Housing Needs Coalition issued a set of recommendations based on best practices from states across the country, asking that the Governor appoint a Housing Stability Lead to coordinate available federal, state, and private/philanthropic resources to ensure that the hardest-hit communities and populations are assisted. And while promising ideas have been proposed at the state agency level and several cities have begun moving forward with rental assistance plans, based on what’s been presented publicly, these early efforts will fall far short of the need, and additional measures are now necessary to stem the potentially devastating housing impact statewide.

Housing and rental assistance are now among Hoosiers’ top unmet COVID-19 needs, with low-income renters and Hoosiers of color at increased risk. New data from Indiana 211 finds that, despite the eviction pause, housing is now the network’s top request for referrals and unmet needs, ahead of utilities, food/meals, and health care. Unlike before the pandemic, when most requests for rent assistance came from individuals unable to work, requests now come primarily from Hoosiers who are unemployed and looking for work. The pandemic has hit housing providers hard as well, with rent delinquency rates increasing above 20% and now coming mostly from market rate housing in the $20,000-$30,000 income range most typical of the state’s renters. This aligns with state unemployment data finding that Hoosiers who have been most likely to lose their jobs and income – working in accommodation and food services, retail, health care and social assistance – are primarily held by low-income renters, women, and people of color.

In addition, brand-new U.S. Census data finds that Black Hoosiers were nearly three times as likely to not have been able to pay May rent on time as white Hoosiers. And while 31% of white Hoosiers report having little or no confidence in being able to pay their June rent, that proportion increases to 41% for Black and 72% of Latino Hoosiers. Ending the eviction moratorium without an equitable housing security plan in place will further disproportionately harm these Hoosiers of color in a time of unparalleled turmoil and peril.

But Hoosiers can't be expected to pay the rent with assistance that hasn't shown up. Indiana has paid less than half (45.5%) of the 630,383 total initial unemployment claims over March and April. Estimates show that up to 400,000 additional Hoosiers may have been unemployed due to the pandemic but couldn’t get through the state’s unemployment system. And while the State has received over $70.4 million in allocations from the CARES Act that could be used for emergency rental assistance (including $32 million in Emergency Solutions Grants and $38.4 million in Community Development Block Grants), in addition to $2.6 billion from the Coronavirus Relief Fund, to date only $7.6 million has been earmarked thus far by the State for emergency rental assistance. And while some cities, like Evansville, Fort Wayne, and Indianapolis, are moving forward with using their respective CARES Act resources for rent assistance, and various churches and nonprofits are assisting families with support they have secured, these individual efforts cannot meet the need of the 258,782 Hoosier families that the National Low Income Housing Coalition estimates will need assistance just this summer. In fact, that number declines only to 186,069 – with unemployment rates that the Congressional Budget Office expects to remain above 10% – through June 2021. Meanwhile, residents of communities where emergency rental assistance has not been announced are awaiting relief with no clear understanding of what might be provided, when evictions filings are set to start back in a mere three weeks. But Indiana’s local and state resources can’t do it alone – Congress must pass the ‘Emergency Rental Assistance and Rental Market Stabilization Act’ to adequately fund any statewide program that Indiana builds.

“Any state or city COVID-19 rental assistance program needs to include directly-impacted people and Black- and Brown-led organizations in their planning and delivery to make sure the vulnerable communities who most need assistance actually receive the funds. These need to include organizations with the right capacity and people to do outreach and walk door-to-door to ensure Black and Brown people aren’t just jumping through hoops but have direct access to the help they need. Otherwise there are a lot of vulnerable communities all throughout Indiana who will be forgotten yet again, and left without the right resources,” said Derris Ross, CEO and Founder of the Ross Foundation and the Indianapolis Tenants’ Union.

“It is imperative that the state be a leader in addressing the critical renter needs approaching. If rental assistance will not be ready for those in need to access, there must be an announced plan to help those at risk of homelessness to navigate these troubling times and assist in working with at-need landlords. Our Hoosier renters are already seeing the increased harms due to their vulnerability. For example, the FHCCI has received increased allegations of sexual harassment for at-risk renters unable to pay rent by bad acting landlords,” stated Amy Nelson of the Fair Housing Center of Central Indiana.

“Both the state and local county health departments have provided significant resources for those experiencing homelessness to reduce emergency shelter numbers in response to the public health crisis, with shelter populations reduced to allow for adherence to public health guidelines. Our crisis response system cannot handle an influx of new households experiencing homelessness because of the looming eviction crisis. If there is not a statewide effort to address this, our homeless response system will once again be overburdened and all of the work done to keep people safe and healthy will be undermined. Housing is healthcare and we have to keep people in housing and out of the shelter system!” said Dr. Chelsea Haring-Cozzi, Executive Director of Coalition for Homelessness Intervention & Prevention (CHIP).

"As the economic impact of COVID-19 unfolds, the Neighborhood Christian Legal Clinic is concerned that more and more of our low-income neighbors and communities of color will slip into greater economic distress. We anticipate a “tsunami of foreclosures and evictions" that is reminiscent of the Great Recession a decade ago. A statewide plan is needed to provide hope for the vulnerable and the marginalized, who will disproportionally suffer housing insecurity," said Amy Horton, Executive Director of the Neighborhood Christian Legal Clinic.

“What we would love to see, in the end, is that no additional Hoosiers become homeless as a result of COVID-19. What we need to see, now, is a coordinated plan with strategies outlined to achieve that goal. We want to see Indiana move from the relief phase to true recovery and resiliency. But if thousands across the state become homeless next month, when families need to be focused on the future and gearing up for things like a new school year, it will absolutely throw Indiana’s pandemic recovery into reverse,” said Prosperity Indiana’s Jessica Love.

Three months into the state’s COVID-19 response, Indiana can’t risk backsliding on its ‘Back on Track’ recovery plan by families forced to drag their belongings to the curb and potentially contracting coronavirus in homeless shelters. At a bare minimum, the following should be implemented:

Until a fully operational state rental assistance program is in place, Governor Holcomb must extend the eviction moratorium for all households who have lost income due to the pandemic but who have not received unemployment or other stimulus relief sufficient to make rent.
In extending the moratorium again, the State should consider the impact it will have on the housing industry and its role in ensuring it does not collapse, including potentially establishing a short-term bridge loan program for rental housing owners/operators.
Appointing a statewide Housing Stability Lead – to work with those representing tenants and housing advocates, landlords, the legal aid community, and Indiana’s philanthropic and private sectors – remains a critical next step.
Indiana’s Senators Todd Young and Mike Braun must champion the Emergency Rental Assistance and Rental Market Stabilization Act to provide adequate funding to meet Hoosiers’ COVID-19 housing security needs.

About the Hoosier Housing Needs Coalition:

Hoosier Housing Needs Coalition (HHNC) was formed by members of Indiana’s housing security advocacy community in April 2020 to support advocacy and education related to housing and homelessness prevention in response to the COVID-19 pandemic. Staffed by Prosperity Indiana through advocacy and coalition building grants from the National Low Income Housing Coalition and the Central Indiana Community Foundation, HHNC convenes partners from across Indiana to advocate for immediate, medium- and long-term housing stability policy solutions and conduct education and research to achieve federal, state, and local policies for an equitable response and recovery to the pandemic and beyond.

The HHNC Steering Committee is comprised of members from AARP Indiana, the Coalition for Homelessness Intervention & Prevention (CHIP), Fair Housing Center of Central Indiana, Family Promise of Greater Indianapolis, Indiana Coalition Against Domestic Violence, Indiana Institute for Working Families – INCAA, Prosperity Indiana, and The Ross Foundation.

Housing and Rental Assistance Among Hoosiers’ Top Unmet COVID-19 Needs

Tue, 02 Jun 2020 16:30:00 GMT

Housing security is emerging as Indiana’s top need during the ongoing pandemic, with data supporting that COVID-19 income loss as the main cause. And while Governor Holcomb’s eviction and foreclosure moratorium has been essential for Hoosiers economically affected by COVID-19, it has also obscured the mounting need for housing assistance throughout the pandemic and the community’s recovery period to follow. Without coordinated action this month by state policymakers to enact a working rental assistance program and support from Indiana’s Congressional delegation to fund it, many Hoosier families remain at risk of eviction and homelessness when the state’s eviction moratorium expires June 30.

Data from the Indiana 211 Partnership show that despite the eviction pause, 22,354 Hoosiers have contacted 211 seeking housing services, with a one-week maximum of 2,707 requests over that time. Housing requests are up 22% since before the declared public health emergency. Requests for rent payment assistance, 11, 253 total since the COVID-19 public health emergency, have come in at a rate nearly three times any other housing assistance type, including for homeless shelters or mortgage assistance. Throughout May, housing was the 211 network’s top need for both referrals and unmet needs, ahead of utilities, food/meals, and health care. And while the majority of housing requests come from Indiana’s largest cities, they come from all regions of the state and from urban, suburban, and rural counties alike. Analysis by Indiana 211 found that, consistent with pre-emergency data, single females were the most common household composition reporting housing needs. However, the most common reported employment status since the declared public health emergency is now ‘unemployed and looking for work’. Indiana 211 reports “[t]his is not consistent with pre-public health emergency data, where unable to work/disabled was the primary reported status.” COVID-19 related lack of income is now fueling the need for housing assistance.

The burden of lost jobs and income during the pandemic are largely falling on low-income Hoosier renter households, but the assistance provided to date is not being directed to them. Since Governor Holcomb declared a public health emergency on March 6, Hoosiers have filed 698,492 initial unemployment claims. However, national estimates find that for every 10 successful filings, three to four people tried to apply but could not get through, and two more found the system too difficult to attempt to apply, meaning there are up to 419,094 more Hoosiers who have lost jobs and income but have not been successfully assisted with state or federal pandemic unemployment assistance. In addition, of the over quarter-million Hoosiers with continued unemployment claims, the largest industries affected include accommodation and food services, retail, health care and social assistance, administrative support and waste management, the kinds of jobs held by low-income renters, women, and Hoosiers of color. And while help has been made available to Indiana homeowners to avoid foreclosure through the Hardest Hit Fund, so far the state’s guidance for Hoosier renters on June 1 still relied on advising tenants to ask landlords to set up payment plans or consult local charities and churches for assistance to avoid eviction.

COVID-19’s increasing impact on housing has also been hurting Indiana’s housing providers, as evidenced by collections data that declined sharply from April to May. The Indiana Apartment Association reported that members only collected 79% of rent on-time in May, down from 94% in April, with a delinquency rate jumping from 6% in April to 21% in May. In response, 95% of IAA member properties are waiving late fees, 46% are creating payment plans, 9% are discounting rent paid on time, and 5% are deferring rent. IAA finds that the highest percentage of May delinquency comes from market rate/conventional properties (compared to low-income tax credit program or student housing). The income category most likely to be delinquent is not the lowest ($0-$20,000), but between $20,000-$30,000 for 20% of renters who were delinquent in May. This is the range of the average Indiana renter’s wage and provides further evidence that Hoosiers whose jobs are most likely to be affected by COVID-19 are also those least likely to be able to afford rent.

And while the eviction moratorium masks the true need, estimates from the National Low Income Housing Coalition find that 267,832 renter households have been affected by the pandemic in Indiana. But because only 9,051 of those households are served by HUD-subsidized housing, 258,782 low-income Hoosier renter households will need emergency rental assistance by September 2020, two months after the eviction moratorium is lifted and pandemic unemployment insurance ends. Using Congressional Budget Office estimates of an unemployment rate that stays above 10% through July 2021, over 186,000 Hoosier households will likely continue to need rent assistance through next summer. The cost to keep these affected Hoosier renters housed is nearly $98M per month and $1.6B total, but that pales in comparison to the devastating personal, economic, and public health costs of Indiana’s policymakers allowing nearly a quarter of a million Hoosier families to risk being evicted or becoming homeless.

The economic effects of COVID-19 will not disappear overnight. A new nationwide poll from Opportunity Starts At Home finds “over half (54%) of all people express concern that they will lose their housing if they don’t get additional assistance to help cover the costs – and this concern is more acute among lower-income households and people of color (61% of households making below $40,000 say this is a concern; and 72% of African Americans and 76% of Latinos say this is a concern, compared to 43% of whites).” In addition, among all Americans, 93% believe the Congress should take major action to “provide emergency rental assistance for people who are struggling to afford the rent and are at serious risk of eviction as a result of the coronavirus outbreak”.

Simply put: to address Hoosiers’ urgent need for housing stability before the eviction pause expires on June 30, Indiana’s state policymakers must implement a COVID-19 housing stability plan and Indiana’s Congressional delegation must provide adequate resources to ensure no Hoosier is evicted or made homeless due to the pandemic.

Indiana extends eviction pause again through July 1. The clock's now ticking for emergency rent assistance!

Thu, 21 May 2020 21:18:44 GMT

Indiana’s pause on evictions, foreclosures, and utility shutoffs has been extended again, with an end date now set for July 1. That means the state is now officially on the clock to have an emergency rental assistance program up and running so that no Hoosier becomes evicted or homeless due to the COVID-19 pandemic.

Governor Eric Holcomb’s Executive Order 20-28, announced on May 21, extends the moratorium on evictions and foreclosures for residential real estate or property, whether rental or otherwise, until July 1, along with a pause on utility shutoffs. The moratorium had previously been extended to match the public health emergency, which was set to expire June 4.

An exception the Executive Order makes is that starting May 22, landlords may file for 'emergency' evictions. Since the Executive Order now makes it clear that filing claims for emergency possession are allowed, landlords can only do that for one reason -- if the tenant commits waste. In other words, the tenant needs to have actually caused, or is causing, actual damage to the physical structure of the rental property. The Executive Order makes it clear that nonpayment of rent is not 'waste' and is not an eligible reason for eviction until July 1.

Under current state guidance, renters who are still having issues with their landlords should first consult IHCDA’s Coronavirus Eviction & Foreclosure Prevention Guide which provides a FAQ section and encourages renters to seek a payment plan with landlords. Renters should also consult a summary of their rights as a tenant from Indiana Legal Services, Inc. and may also file a complaint with the Attorney General’s office to report potentially unlawful evictions.

The expiration date for the moratorium means that evictions for nonpayment of rent will be allowed starting July 1. This means the clock is now ticking for Indiana to have a plan for emergency rental assistance up and running before the end of June. The state and many of its cities has begun to receive millions of dollars in funds from the CARES Act that can be used for housing security, including emergency rental assistance and homelessness prevention.

Earlier this month, Prosperity Indiana and partners from the Hoosier Housing Needs Coalition offered recommendations for a coordinated Indiana COVID-19 housing security plan that includes urging the state to appoint a Housing Stability Lead to ensure that resources are distributed equitably to Indiana's hardest hit populations and communities. We are also calling on Indiana's Congressional delegation to support #RentReliefNow in the next coronavirus relief package to provide the necessary funding for 258,782 low-income Hoosier renters who will need rental assistance in the wake of the pandemic.

Please reach out to hoosierhousingneeds@prosperityindiana.org to join our efforts!

Indiana extends evictions pause through June 4, but what’s happening in your community?

Tue, 05 May 2020 12:34:36 GMT

Indiana’s pause on evictions has been extended through June 4, and that means the state has one more month to create and implement a COVID-19 housing security policy response to ensure no Hoosier is evicted or becomes homeless due to the pandemic.

Governor Eric Holcomb’s Executive Order 20-25 announced on May 1 extended the eviction/foreclosure moratorium on residential real estate or property, whether rental or otherwise, until June 4. In Section 1 of Executive Order 20-06 (the initial ‘eviction pause’) the Governor issued a moratorium on the initiation of eviction or foreclosure actions “…for the duration of the state of emergency. In Section 1 of the new Executive Order 20-25 the Governor extended the public health disaster emergency to June 4. which is 30 days beyond the most recent expiration date of May 5.

The extended pause on evictions is good news because Indiana doesn’t yet have a policy response for when the moratorium is finally lifted. An estimated surge of 43,800 low-income Hoosier renter households will need emergency housing assistance due to the pandemic. Indiana’s federal, state, and community leaders must pledge that those families aren’t evicted or made homeless.

That’s where you come in. Prosperity Indiana and a group of housing security advocates have formed the Hoosier Housing Needs Coalition and released a set of policy recommendations, but we need to hear your voice. Please reach out to hoosierhousingneeds@prosperityindiana.org and let us know:

What eviction efforts or new housing insecurity problems have you heard of during the COVID-19 crisis?
What short-term emergency rental assistance efforts are you aware of in your area?
How can you help share the message of the Hoosier Housing Needs Coalition with your policymakers?

With your help, we will work to make sure Indiana delivers an equitable housing security policy related to COVID-19 response and recovery.

New Hoosier Housing Needs Coalition urges actions to ensure housing stability response to COVID-19

Fri, 01 May 2020 14:21:32 GMT

While Indiana has reopened the Hardest Hit Fund for homeowners in response to the COVID-19 pandemic, assistance for Hoosier renters who are also hit hard during the crisis remains unclear under current state guidance. Prosperity Indiana understands that there are lots of moving parts, and that the state doesn’t yet have the direction it needs from HUD regarding implementation of CARES Act funding Indiana will receive. But we also haven’t yet heard a commitment from the Governor that Indiana intends to do whatever it can to support renters and ensure no Hoosier is evicted or becomes homeless due to the COVID-19 crisis.

For those reasons, Prosperity Indiana and several key housing stability advocates have formed the Hoosier Housing Needs Coalition with a steering committee that is first focusing its efforts on making recommendations regarding critical short-term emergency rental assistance and homelessness prevention. We invite members to join the coalition’s efforts by reaching out to hoosierhousingneeds@prosperityindiana.org to receive updates and find out additional ways to get involved.

Here is the press release sent by the Hoosier Housing Needs Coalition on May 1 urging that Indiana create an #INthistogether housing stability response to the COVID-19 crisis:

FOR IMMEDIATE RELEASE:

May 1, 2020

Contact: Andrew Bradley, Policy Director, Prosperity Indiana

abradley@prosperityindiana.org, 317-222-1221 x403

New Hoosier Housing Needs Coalition urges actions to ensure housing stability response to COVID-19

INDIANAPOLIS – Rent is due May 1 across Indiana, but hundreds of thousands of Hoosiers impacted by the COVID-19 pandemic won’t be able to pay, leaving them open to eviction and threatening their long-term housing stability. The newly-formed Hoosier Housing Needs Coalition is issuing policy recommendations to avoid a tsunami of evictions and homelessness in the wake of the COVID-19 pandemic. Formed to advocate for housing stability policy solutions for an equitable response and recovery to the pandemic, the Coalition is urging immediate action ahead of the expiration of Indiana’s moratorium of evictions, which is set to expire on May 5.

Housing stability is a major, unaddressed need in the face of the pandemic. Over half a million Hoosiers have filed for unemployment since Governor Holcomb issued a pause on evictions on March 19^th. While this pause was a critical and welcomed step, the state has not yet confronted the economic impact on Hoosier renters. And while the economic fallout is felt across the state and cuts across all demographics, Hoosiers of color and those working in occupations including manufacturing, retail, accommodation and food services, and health care and social assistance are more likely to have been furloughed, have hours reduced, or been medically impacted by the COVID-19 pandemic.^1,2 While more on-the ground data is needed, estimates from the National Low Income Housing Coalition find that Indiana will see a surge of 43,800 newly low-income renters as a result of COVID-19, and a total of 205,837 low-income Hoosier renter households who will need short-term emergency rental assistance in the wake of the pandemic.³

Mitigating steps: While a pause on evictions was necessary, it specifically did not relieve any portion of rent or other lease obligations. And while federal coronavirus response has included limited additional unemployment and one-time stimulus payments, this is not enough for the many thousands of Hoosier renter households whose incomes have declined and who will be subject to eviction if the pause is suddenly lifted.

For these reasons, the Hoosier Housing Needs Coalition calls on Indiana’s policymakers at the state, federal, and local levels to commit to an #INthistogether housing security response that ensures no Hoosier is evicted or becomes homeless due to the COVID-19 crisis. In order to prevent a sudden wave of evictions and the damaging health and social disruptions that follow for affected families, Indiana policymakers must plan ahead to create an emergency short-term rental assistance program and communicate steps to be taken. It will take each level of Indiana’s elected leaders, working hand-in-hand with community leaders and advocates, to achieve these steps:

First, Indiana must create certainty for Hoosier renters and landlords with updated deadlines and information:

Extend the state moratorium on evictions to match the end of the federal moratorium on July 25, 2020 or 60 days after the state public health emergency ends, whichever is later. The extension is critical not only to give the state and communities time to enact emergency housing assistance, but also because the federal government has not yet delivered guidance for how CARES Act funds can be used.
Give notice 60 days before the pause is lifted to communicate expectations for how tenants economically impacted by COVID-19 can avoid eviction. This should include instructions for where and how to apply for emergency rental assistance.

While the eviction pause is still in place, Indiana must enact a housing stability plan to keep Hoosiers in their homes, prevent homelessness, and keep rental properties viable:

Governor Holcomb should appoint Lieutenant Governor Suzanne Crouch or a designee from his leadership team as Housing Stability Lead from to coordinate state and local agency action, including Indiana’s housing authorities and community development efforts. This Housing Stability Lead will serve as the main point of coordination for housing stakeholders, including financial institutions, property owners, renters, housing counselors, and legal aid organizations. This Lead is also responsible for ensuring an equitable delivery of services among Hoosiers of color and disproportionately impacted communities.
As federal guidance is issued, Indiana should designate IHCDA or another state agency lead to implement CARES Act resources to address homelessness and populations with immediate short-term housing needs. Because funds from the CARES Act alone will not cover the longer-term COVID-19 related housing security needs, part of these funds should be used to create the framework for a ‘Hardest Hit 2.0 Fund’ for emergency rental assistance with flexibility to incorporate and administer future funds from varying sources.
A state-administered website should be created that will allow Hoosier renters to apply for emergency rental assistance, refer applicants to community-based organizations who can determine eligibility and process payments, and identify additional available resources. Importantly, a single statewide site would serve as a clearinghouse for all statewide needs, track data about hardest hit communities, and provide a conduit to distribute multiple funding sources.
Indiana’s non-profit service provider organizations with multi-county service areas already equipped to conduct intake and distribute resources can be used to assist in screening applications, providing case management with renters, and delivering payments to landlords.
The application process for Indiana’s short-term rental assistance should be kept as simple as possible to minimize barriers for Hoosiers in most need of assistance. Best practices from other states include using an initial self-assessment that asks if hardship is COVID-19 related and collects information about income pre/post pandemic and whether renters have received an eviction notice. Eligibility limits should be based on length of time since loss of income and prioritize lower-income residents and account for household size and region. The program should not create cost burdens and should limit any co-payments to no more than 30% of renter households’ current income, with considerations of other basic needs.

Keeping Indiana’s responsible housing providers and rental property investments viable is critical for long-term housing security for all Hoosiers. An Indiana COVID-19 housing security plan should incorporate features to support owners/operators, including:

Market-based incentives should be provided for landlords who commit to working with tenants to keep them housed. This could include tax credits or access to additional matching funds in addition to the short-term rental assistance.
Federal resources should be used to increase or maintain health and safety of rental properties and safeguards for staff.
Support the efforts of landlords working to keep renters housed by providing additional tools for courts to urge mediation and payment plans to avoid evictions.

Indiana’s Congressional delegation must also contribute fully to the #INthistogether housing security response by championing emergency rental assistance in future federal coronavirus response legislation.

“Local, state, and federal officials must take immediate action to keep the thousands of Hoosier children and their families who are on the brink of homelessness due to the COVID- 19 crisis from being evicted and to help families who are homeless get housing,” said Mike Chapuran, Executive Director of Family Promise of Greater Indianapolis.

“Prior to the COVID-19 pandemic, Indiana was already facing an extreme housing crisis. The lack of housing affordability, reports of housing discrimination, documented incidents of substandard housing, and the number of our cities in reports of highest evicting cities, had our Hoosier renters already struggling to secure safe homes for them and their families,” stated Amy Nelson, Executive Director of the Fair Housing Center of Central Indiana. “Now more than ever, we need our public officials identify this housing crisis as an emergency need and take the steps necessary to assist those most at risk of housing loss,” Nelson said.

“Once again, Indiana is topping terrible charts when it comes to evictions. According to Eviction Lab’s new COVID-19 Housing Policy Scorecard, Indiana is ranked near the bottom for its state level response, which has only included a moratorium on evictions for the duration of the state’s stay at home order thus far. But to be clear, our concerns are not about rankings. Our concerns are about the people impacted by the lack of policies and programs to support renters in this state,” said Jessica Love, Executive Director of Prosperity Indiana.

“And if we don’t do more to get ahead of the coming compounding crisis, Hoosiers – regardless of whether they’re going back to work – may soon have no home to return to at night. We can, and we must do better. So, we’re offering our assistance in thinking through a better response and making recommendations that are meant to reverse the trajectory for Hoosiers struggling the most right now,” Love said.

The founding steering committee for the Hoosier Housing Needs Coalition includes: AARP Indiana, the Coalition for Homelessness Intervention & Prevention (CHIP), Fair Housing Center of Central Indiana, Family Promise of Greater Indianapolis, Indiana Coalition Against Domestic Violence, Indiana Institute for Working Families – INCAA, Prosperity Indiana, and The Ross Foundation. Prosperity Indiana staffs its coalition activities through grants from the National Low Income Housing Coalition and the Central Indiana Community Foundation.

Hoosiers and organizations who are interested in joining the Hoosier Housing Needs Coalition are encouraged to contact the coalition by email at hoosierhousingneeds@prosperityindiana.org.

¹‘Demographic Distributions’ via https://www.coronavirus.in.gov/

²‘Weekly Unemployment Claims’ via http://www.stats.indiana.edu/claims/industry-visualization.asp

³Indiana state-level estimates provided by the authors of “NLIHC Research Note: The Need for Emergency Rental Assistance During the COVID-19 and Economic Crisis,” April 13, 2020.

###

About Hoosier Housing Needs Coalition

Hoosier Housing Needs Coalition (HHNC) was formed by members of Indiana’s housing security advocacy community in April 2020 to support advocacy and education related to housing and homelessness prevention in response to the COVID-19 pandemic. Staffed by Prosperity Indiana through grants from the National Low Income Housing Coalition and the Central Indiana Community Foundation, HHNC works to convene partners from across Indiana to advocate for immediate and long-term housing stability policy solutions and conduct education and research to achieve federal, state, and local policies for an equitable response and recovery to the pandemic and beyond.

Prosperity Indiana Joins Housing Providers and Advocates Calling on Senator Young to Champion Emergency Rental Assistance for Indiana

Tue, 21 Apr 2020 18:30:00 GMT

Today a group of 17 Hoosier housing providers and housing security advocates joined Prosperity Indiana in sending a letter to Senator Todd Young, asking him to urge the Senate to include $100 billion in emergency rental assistance in the next coronavirus response stimulus bill. This request for the Senator’s leadership around this widespread national concern would address the estimated housing assistance need for more than 200,000 of Indiana’s lowest income renter households affected by the crisis.

The COVID-19 outbreak is expected to continue to cause great financial harm to businesses, workers, and communities in Indiana for the foreseeable future. Since the passage of the CARES Act, an additional 245,194 Hoosiers have filed for unemployment, at a rate more than 4000% higher than a year before. Estimates show that Indiana may lose over 400,000 total jobs due to the pandemic and reach an unemployment rate of 15 percent by July. Nearly a third of tenants did not pay rent in the first week of April, according to national estimates. These indicators are a clear sign that additional government action will be needed to ensure people remain in their homes rather than overwhelm the homeless system.

Estimates from the National Low Income Housing Coalition find that 205,837 extremely low-income and very low-income Hoosier renter households will need to be assisted with short-term rental assistance, as a result of the COVID-19 pandemic and economic after-effects. With an average cost of $6,494 per affected household, Indiana’s total annual cost of meeting unmet rental assistance needs will be $1.34 billion.[1] While it will take Hoosiers #INthistogether to address the state’s response, Congress must come through to meet Indiana’s short term emergency rental assistance needs.

This is why an estimated $100 billion in emergency rental assistance is needed to avoid a financial cliff for renters – once eviction moratoria are lifted and back-rent is owed – and ensure the continued viability of our country’s essential affordable housing infrastructure. This direct rental assistance could ultimately prevent the current public health and economic crisis from morphing into a broad-scale financial market collapse like we saw in 2008.

Senator Young needs to hear from you regarding the reasons housing security is essential for Hoosiers throughout the pandemic. Click here to add your name to the letter calling on Senator Young to champion emergency rental assistance for Hoosiers.

_____________

[1]State-level estimates provided by the authors of “NLIHC Research Note: The Need for Emergency Rental Assistance During the COVID-19 and Economic Crisis,” April 13, 2020.

Prosperity Indiana Comments on Proposed Rule to Undermine CRA

Wed, 08 Apr 2020 14:34:05 GMT

Today, Prosperity Indiana submitted a letter on behalf of our network opposing the federal government’s proposed CRA rule change, and offering recommendations to instead strengthen our communities. In our letter, Prosperity Indiana made the following arguments opposing the CRA rule change:

Prosperity Indiana appreciates the opportunity to comment regarding the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) proposed regulations regarding the Community Reinvestment Act (CRA). Since 1996, banks have issued almost $2 trillion in loans and investments in low- and moderate-income communities, ensuring more individuals have the opportunity prosper and become homeowners, more businesses receive loans to grow and thrive, and more community development organizations can expand their work to revitalize neighborhoods. CRA is a critical tool to address equity in lending, access to credit, and investments in underserved communities.

The timing of the closing of this comment period comes at an especially unfortunate time, as Indiana is under a public health emergency under the COVID-19 pandemic, which has caused Prosperity Indiana and most of our member organizations to dramatically alter our business operations. Like many of our community economic development members we serve, Prosperity Indiana has been called upon to shift much of our focus to immediate needs brought about by the pandemic. Many of those members and their partners across Indiana who are on the front lines of serving their communities do not have the time or resources needed to provide comments to these proposed CRA rule changes in the middle of the pandemic. We therefore ask that you give additional consideration to the comments of the organizations who represent those addressing those hardest hit during this pandemic.

With that in mind, we have strong concerns about how the proposed substantial revisions to the CRA’s regulations do not all appear to align with the intent of the Act. And while the CRA was established to address a legacy of redlining and divestment in low- and moderate-income (LMI) communities, the proposed changes raise concerns about how it will affect CRA’s charge to affirmatively meet the community needs for credit and services in LMI communities. Prosperity Indiana has identified core issues of critical concern in the NPR, which would result in diluting benefits for LMI communities and lead to exacerbating banking deserts for these communities. Prosperity Indiana has categorized the damaging impacts of the NPR into three key areas: what counts, how it counts, and where it counts.

What counts: By broadening what bank activities count as CRA-qualifying and diluting the focus of bank activities on LMI consumers and communities, the changes would weaken the ability of the CRA to specifically target services to those LMI communities. Deleting ‘economic development’ & ‘revitalization/stabilization’ of LMI communities from the definition of community development would take emphasis away from rehabilitating communities impacted by the legacy of redlining and ensuring stability of those who would fall prey to it if regulations are weakened. Introducing a ‘non-exhaustive’ list of eligible activities that includes a definition of ‘infrastructure’ for activities that are not clearly limited to LMI communities (such as roads and even sports stadiums) would further lessen the impact of targeted investment. In addition, no longer considering key bank services (such as deposit accounts) as qualified activities could lead to proliferation of check-cashing, payday lending and other subprime services and further drive banking deserts if the NPR is finalized. And by counting financial education for all income levels and widening the definition of community development services to include all volunteer activities, the NPR would reduce the CRA’s intended focus and impact on LMI communities.

Where it counts: Because the NPR limits consideration of bank branches more than under the current CRA service test, it would introduce uncertain effects for banks and the communities, non-profits, and individuals they serve in Indiana. And while assessment areas are updated in ways that aim to account for the proliferation of internet-based banks, there is much that is left vague or unknown about how the new regulations would assign deposits collected via the internet to branches. The NPR also notes that there is an allowance for credit for qualifying activities conducted outside of bank assessment areas. We continue to have concerns about how these changes will impact investment in small non-profits in Indiana.

How it counts: The proposal dramatically and irresponsibly expands what activities would be eligible for CRA credit. CRA serves Indiana’s communities by driving resources – we otherwise could not access – to places where they are needed. These resources address the financial and community development needs identified and prioritized by local communities. Switching to a “non-exhaustive list” of eligible activities – to include infrastructure, transportation, and even sports stadiums – removes Indiana’s community voices from determining our own needs.

Under this NPR, retail lending analysis would count for much less under the new proposed exams, which could exacerbate banking deserts. Potential impacts of a ‘one ratio test’ include a reduction in valuing retail branches in LMI communities and the potential to encourage an over-reliance on the largest and easiest deals at the expense of small-dollar business and home mortgage lending in LMI communities and a reduction in partnerships with small non-profits who make significant local impact in LMI communities. The regulations would also result in the lack of differentiation for asset classes, meaning state or regional banks are being compared to the largest banks on performance.

This single-ratio approach completely disregards whether the community development and financial needs of an area are being served by the bank or its investments. And as a result, the nearly 200 organizations that make up Prosperity Indiana’s membership, that have served our neighborhoods for years, and whose experience and expertise is seriously considered as part of the current CRA examination process, will be rendered voiceless. We would no longer be able to identify and prioritize our needs. Nor would our members and partners be taken as seriously by examiners when bank actors behave inappropriately in our community.

The single ratio is a deeply flawed concept. This was made clear during previous public comment periods. Yet it still remains part of this proposed rule. Please listen to our members from across Indiana during this period. The single ratio must be discarded.

Further, the rule proposes that a bank must meet investment benchmarks in only a “significant portion” of its assessment areas in order to receive a satisfactory or outstanding rating. The rule suggests that a “significant portion” be defined as something more than 50 percent.

That approach would legalize and encourage redlining! Communities like those that our members represent across the entire state of Indiana will be in the areas that are left behind. Permitting such behavior would bring us back to an era where financial institutions had the option to draw red lines around—and deny financial services to—poor neighborhoods and all neighborhoods of color. Except this time, it’s worse because we understand, yet choose to ignore, history.

The OCC and FDIC acting without the participation of the Federal Reserve risks producing three separate sets of CRA regulations. That makes everyone’s job more complicated, less transparent, and results in confusion. And in the end, Indiana’s communities will lose.

The problems of the single ratio, the overly broad definitions of CRA-eligible investments, the gutting of communities’ voices, the speedy rule-making process, the credibility gap created by the Federal Reserve’s absence, and the lack of good faith and outreach from the OCC that drove this reckless proposal make it beyond repair.

Because the CRA was originally enacted to end redlining, the primary goal of CRA modernization should continue to prioritize the problem CRA was intended to fix. Above all, it is critical for any CRA modernization to preserve the original intent of the CRA. But unfortunately, by damaging what counts in the CRA, where it counts, and how it counts, this proposal prioritizes policy compliance over impact and outcomes for the LMI families and communities that Prosperity Indiana and its members serve. On behalf of the low- and moderate-income people and places Prosperity Indiana serves, we ask that you please discard this proposal and start again. But if this rule does move forward, please keep our recommendations for Indiana’s communities at the forefront of the final rules.

Thank you for your thoughtful consideration of these comments.

Updating Indiana’s COVID-19 Housing Response

Fri, 03 Apr 2020 15:49:27 GMT

Updating Indiana’s COVID-19 Housing Response

FOR IMMEDIATE RELEASE

April 3, 2020

Contact: Jessica Love, Executive Director, executivedirector@prosperityindiana.org, 317-222-1221 x402

Andrew Bradley, Policy Director, abradley@prosperityindiana.org, 317-222-1221 x403

In less than a month since Governor Eric Holcomb issued Executive Order 20-02, declaring a Public Health Emergency for Coronavirus disease on March 6, 2020, the world around us has drastically changed. This includes how the state has responded to the pandemic’s effects on housing, landlord-tenant relations, and evictions and foreclosure. And just as the state has adopted an approach of #INthistogether to successfully weather the long-term impact of the crisis, Indiana must also use the policy tools at its disposal to craft a longer-term housing security response that keeps Hoosier families secure over the months to come.

Following the original declaration of Public Health Emergency, Governor Holcomb became one of the first state leaders to help keep residents secure at home by issuing a Temporary Prohibition on Eviction and Foreclosures through Executive Order 20-06 on March 19. Combined with the Governor’s veto of the eviction bill SEA 148, these executive actions helped relay a sense of calm and stability for the more than two million Hoosiers who rent – over 30 percent of the state’s population. However, the pause in evictions is currently limited both in time – tied to the Public Health Emergency and set to expire with that emergency order by April 6 unless extended – and in scope. The scope limitation results from the order saying no provision “shall be construed as relieving any individual of their obligations to pay rent” or other obligations under a tenancy or mortgage.

But just as Governor Holcomb is expected to extend the duration of the original public health emergency to reflect the ongoing timeline of the pandemic, so too should he adjust Indiana’s housing response and executive orders to reflect the evolving facts on the ground, aligned with policy tools at his disposal. Here are several ways Governor Holcomb can ensure that the COVID-19 pandemic doesn’t create a housing and eviction crisis before the economic effects of the emergency subside.

Extend the Prohibition on Eviction and Foreclosures for all Hoosiers to match the moratorium for renters in homes covered by a federally-backed mortgage. Currently this moratorium stands at July 25, 2020, which is 120 days from March 27, the date when President Trump signed the CARES Act into law. Setting Indiana’s moratorium to match the federal date will provide additional security and predictability for renters as the pandemic continues to grow. It should be extended further, if facts on the ground warrant.

Create a ‘Hardest Hit 2.0’ fund to help Hoosiers, whose incomes have been impacted by the pandemic, stay above water in their housing through the extended emergency order. Pair already available federal and state resources together to allow affected individuals to apply for rent assistance. These resources include CDBG funds that allow for “emergency grant payments made over a period of up to three consecutive months to the provider of such items or services on behalf of an individual or family” at 80% Area Median Income or below. In addition, the Governor should use his authority to ensure Township Poor Relief Funds are being fully utilized and consider ways to direct part of the state surplus ‘rainy day’ funds to cover housing during the extended emergency. Reasonable parameters (such as COVID-19 related unemployment insurance claims) should keep eligibility as simple as possible.

Reimburse landlords who do not evict hardest hit tenants for six months after the eviction moratorium is lifted. Use market-based tools and other forms of compensation, such as tax credits, forgiving state property taxes, stipends, etc., to encourage landlords to work proactively to keep renters housed after the public health emergency is over. Support these efforts by providing courts with additional tools to urge mediation and payment plans to avoid evictions.

Now is the time for Indiana to take active steps to ensure that the tens of thousands of Hoosiers whose employment has been affected by the COVID-19 pandemic do not see the economic fallout continue to snowball into the loss of stable housing. Clear, decisive steps to utilize available resources to keep Hoosiers in their homes and their heads above water could make the difference in getting Indiana past this crisis in the long run.

###

About Indiana Association for Community Economic Development D/B/A Prosperity Indiana

Housing Advocates Thank Governor Holcomb for Protecting Hoosier Renters with Veto of SEA 148

Wed, 25 Mar 2020 22:45:04 GMT

FOR IMMEDIATE RELEASE:

March 25, 2020

Contact: Jessica Love, Executive Director

executivedirector@prosperityindiana.org, 317-222-1221 x402

Andrew Bradley, Policy Director

abradley@prosperityindiana.org, 317-222-1221 x403

Housing Advocates Thank Governor Holcomb for Protecting Hoosier Renters with Veto of SEA 148

INDIANAPOLIS – Prosperity Indiana thanks Governor Holcomb for listening to our call to ensure housing stability remains a long-term priority in the Hoosier state with his veto of SEA 148. During this time, when the state’s economic and housing future faces uncertainty in the length and severity of the COVID-19 pandemic, Hoosier renters will not have to additionally worry about the “dangerous, unvetted language” in this legislation or the prospect of new forms of eviction and retaliation that the act could have brought.

Prosperity Indiana Executive Director Jessica Love said, “We applaud Governor Holcomb for his leadership in stopping this sweeping legislation, during what became an unusually difficult season for our state. We anticipate and look forward to working with impacted parties – those in support of and opposing SEA 148 – next session. By then, we should have a better grasp on what housing stability looks like for the foreseeable future for Hoosiers in the aftermath of COVID-19. After we survive this pandemic, I think we’ll all have a greater appreciation for safe and stable housing.”

Before its veto, SEA 148 would have expanded the remedy for emergency possession to include cases where the tenant is not at fault and limited tenants’ protections from retaliation by landlords, among other measures. And while the Governor’s executive order temporarily pauses evictions and foreclosures during the state of emergency, once lifted, SEA 148 would have exposed the more than two million Hoosiers who rent – over 30 percent of the state’s population – to weakened protections from bad-actor landlords. In addition, it would have nullified positive protections from cities and local governments.

By vetoing SEA 148, Governor Holcomb prevents this bill from undermining his administration’s efforts to date to address the social determinants of health, which specifically includes stable housing. The bill also would have undercut the results of existing state efforts to increase access to recovery housing and workforce housing, as well as IHCDA programs, including the Housing First model and Permanent Supportive Housing Institute and the Landlord Mitigation Reserve Program and Reserve Fund.

Now freed from the exacerbated threat of SEA 148, Indiana can commit state resources and work with statewide partners to help estimate the number of Hoosiers who will be have their housing impacted by the COVID-19 crisis, measure the shortfall of resources and services they face, and begin to work with community-based organizations and service providers on mitigation efforts.

Love said, “In addition to showing our appreciation to the Governor, we thank the hundreds of Prosperity Indiana members and other statewide organizations and individuals who called and wrote to voice their opposition to this legislation. While their voices were shut out of the democratic process for this bill, their advocacy and calls upon the Governor helped him grasp just how many Hoosiers were counting on his leadership on this issue at this critical moment. Prosperity Indiana and our members stand ready to assist the state in addressing the needs of the more than two million Hoosier renters, as this public health crisis continues to unfold.”

###

About Indiana Association for Community Economic Development D/B/A Prosperity Indiana

Advocacy & End-Of-Session Update 2020

Mon, 23 Mar 2020 13:40:55 GMT

Prosperity Indiana Advocacy Update

What had already been a challenging session of the General Assembly for Prosperity Indiana members has now been compounded by the COVID-19 pandemic that is spreading across Indiana. In light of this new public health crisis, the failure of the Assembly to take up several positive bills and its passing of SEA 148 takes on new urgency for millions of Hoosier renters. Prosperity Indiana is currently leading a group of statewide organizations to ask Indiana Governor Eric Holcomb to veto SEA 148, citing the bill’s “dangerous, unvetted language that would worsen Indiana’s affordable housing and eviction crisis.” And while Prosperity Indiana thanks Governor Holcomb for listening to our call to ensure Hoosiers' housing is protected during the current public health emergency by issuing an executive order to temporarily halt evictions and foreclosures, we call on him to veto SEA 148 to make sure housing stability remains a long-term priority in the Hoosier state. See our statement and letter to the Governor and please sign on here if you haven’t already. We are also monitoring additional state and federal policy fallout from the COVID-19 crisis and will keep members current as updates unfold.

End-of-Session Update

The Indiana General Assembly adjourned Sine Die on Wednesday, March 11. This session proved to be challenging in terms of bills that we supported passing one house with bipartisan votes before dying in committee, and a bill that we strongly opposed passed. While we are disappointed with the overall outcome of session, we are grateful for all of the support that we received through our colleagues and members via testimony, legislator meetings, attendance at our Statehouse Day and the press conference, as well as countless e-mails, phone calls and sign-ons to our letter opposing SB340/SEA148. Below is a summary of where all of our priority bills landed:

SB340/SB148

Originally, language was inserted into SB340, which was previously uncontroversial and which we previously weren’t watching, in the House Judiciary Committee without any advance notice and with little testimony in opposition. The language was targeted to preempt municipalities from enacting ordinances regarding landlord-tenant relationships and making other changes to the state’s landlord-tenant laws. During conference committee, this language was stripped from SB340 due to lack of germaneness, and, with a few changes, was inserted into SB148. This bill, which passed the Senate 29-19 and the House 64-32 and is now headed to Governor Holcomb’s desk, contains the following concerning provisions:

Preempts cities from enacting any ordinances that attempt to address the landlord-tenant relationship
Limits “rights of the parties,” meaning landlords are not required to inform tenants of their rights under the law
Expands the remedy for emergency possession to include cases where the tenant is not at fault
Limits tenants’ protections from retaliation by landlords

HB1191 Land Contracts (Rep. Ed Clere) –
After passing the House by a bipartisan 84-9 vote, HB1191 died in the Senate after failing to receive a hearing in the Senate Judiciary Committee. It contained provisions to ensure that sellers disclose important information, such as property defects or existing liens, to buyers and that contracts are recorded. The bill also included a provision that gives buyers a 3-day period in which to change their mind on the contract, if they find that problems exist with the property that weren’t disclosed.

SB123 Affordable and Workforce Housing Incentives (Sen. Travis Holdman) –
After passing the Senate by a bipartisan 48-1 vote, SB123 died in the House after not receiving a hearing in the House Ways and Means Committee. Initially, the bill contained provisions to create a state tax credit to pair with a federal 4% Low Income Housing Tax Credit award for the development of affordable housing. However, the bill was essentially stripped via amendment and changed to require a study and report by the Indiana Housing and Community Development Authority (IHCDA) as to what affordable housing incentives exist in other states and what types of incentives should be offered in Indiana.

SB327 Reporting of Consumer Loans by Unlicensed Lenders (Sen. Andy Zay) –
After passing out of the Senate with a vote of 47-2, SB327 died without receiving a hearing in the House. It required certain persons that are not licensed with the Department of Financial Institutions under the Uniform Consumer Credit Code to report certain information regarding each consumer loan made to a resident of Indiana.

SB395 Uniform Consumer Credit Code (Sen. Eric Bassler) –

After extensive negotiations in conference committee, Sen. Bassler concurred with House changes to his original bill, which will result in additional loans at an effective 72% APR.

Bills that We Were Tracking that Died Without an Initial Hearing

HB1012 Repeal of Housing Restriction on Local Government (Rep. Chris Chyung) –
Repeals a statute that prohibits a county, city, town, or township from requiring a landlord to participate in a federal Section 8 housing assistance program or similar housing program.

HB1103 Tenant’s Rights (Rep. Robin Shackleford) –
Contains various provisions relating to termination of rental agreements and tenant rights when landlords fail to remedy property issues that affect the health and safety of the tenant.

SB26 Small Loan Finance Charges (Sen. Greg Walker) –
Changes the incremental finance charge limits for small loans to a maximum 36% rate.

SB204 Notice of Lease Termination for Failure to Pay Rent (Sen. Mark Messmer) –
Changes the notice period for the termination of a lease from 10 days to 3 days.

SB253 Principal Dwelling Land Contracts (Sen. J.D. Ford) –
Contains provisions related to defining “principal dwelling land contract”, disclosures by the seller to the buyer, and a buyer’s right to the homestead deduction regardless of being conveyed the title.

SB329 Supervised Loans (Sen. Andy Zay) –
Changes current rate from 25% to 36% on supervised loans, repeals current limitations on charges that lenders contract for and receive and specifies replacement limitations, and does not allow lenders to solicit loans using a negotiable check, facsimile or other negotiable instrument.

SB359 Landlord-Tenant Relations (Sen. Jim Merritt) –
Amends current statute to require a landlord to provide to a tenant 10-day written notice of their right to cure – specifying all rent and late fees due – prior to initiating an eviction, regardless of lease types. Also includes provisions that written notice must be provided 60 days prior to any lease changes or increase in rent.

SB391 Property Matters (Sen. Mike Bohacek) –
Contains several provisions that look to limit tenants’ rights and processes for complaints about habitability, including reporting to the county prosecutor any individuals who make false claims and requiring notice from a health officer documenting a public health law or rule violation before a court may issue an order related to the property. (Current law requires reliable information be provided for a court order.)

SB442 Residential Landlord-Tenant Matters (Sen. Eddie Melton) –
Contains provisions to increase a tenant’s right to cure from 10 to 14 days, allows a tenant to withhold rent when a landlord does not remedy certain habitability issues, and establishes the Indiana Eviction Prevention and Reduction Program.

Housing Advocates: Temporary eviction pause won’t prevent long-term damage of SEA 148

Thu, 19 Mar 2020 23:40:15 GMT

Contact: Jessica Love, Executive Director, executivedirector@prosperityindiana.org, 317-222-1221 x402

Andrew Bradley, Policy Director, abradley@prosperityindiana.org, 317-222-1221 x403

INDIANAPOLIS – Prosperity Indiana thanks Governor Holcomb for listening to our call to ensure Hoosiers' housing is protected during the current public health emergency by issuing an Executive Order on Temporary Prohibitions on Evictions and Foreclosures. But beyond this response to the COVID-19 pandemic, Prosperity Indiana calls on him to veto SEA 148 to make sure housing stability remains a long-term priority in the Hoosier state.

While the order provides a critical, temporary reprieve on evictions for the more than 30 percent of Indiana’s population who rents their homes, it does nothing to lessen the permanent damage that SEA 148 would inflict on the nearly two million Hoosier renters once the order is lifted.

Prosperity Indiana Executive Director Jessica Love said, “We applaud Governor Holcomb for recognizing that Hoosiers who are most vulnerable to COVID-19 will be sheltering in their homes throughout the duration of the pandemic. The governor clearly understands that an eviction would subject those individuals, and Indiana at large, to the ‘serious threat to the health, welfare, and safety’ that the coronavirus poses, should they be removed from their homes.

“However, housing stability is not a one-time health concern that only matters during a pandemic like we face today. Housing has impacts on the health and safety of families year-round, and this health crisis should only shine a light on the larger problems Hoosiers are facing related to widespread evictions in this state.”

Because the COVID-19 pandemic will have effects on Indiana’s economy and preexisting affordable housing and evictions crises that will long outlast any temporary measure, Prosperity Indiana and its partners in speaking out against the bill remain concerned about the dangerous, unvetted language in SEA 148. All of the concerns that the hundreds of statewide organizations and individuals who spoke out against SEA 148, after being shut out of the legislative process, still stand.

Love said, “Although tenants who express concerns about unaddressed habitability issues– while spending more time than ever in their homes to avoid or recover from COVID-19 – will temporarily receive a reprieve from evictions, the day will come when angry, bad actor landlords can retaliate once again. So, we are looking to the governor now to see beyond the present health crisis and respond to this bad bill with a veto today.”

See the original letter calling on the Governor to veto SEA 148 along with supporting documents: https://www.prosperityindiana.org/Policy-News/8840057

###

About Indiana Association for Community Economic Development D/B/A Prosperity Indiana

Groups call on Governor Holcomb to veto eviction bill during public health, housing crisis

Wed, 18 Mar 2020 16:20:09 GMT

Contact: Jessica Love, Executive Director, executivedirector@prosperityindiana.org, 317-222-1221 x402

Andrew Bradley, Policy Director, abradley@prosperityindiana.org, 317-222-1221 x403

INDIANAPOLIS – On Tuesday, March 17, 18 statewide organizations asked Indiana Governor Eric Holcomb to veto SEA 148, citing the bill’s “dangerous, unvetted language that would worsen Indiana’s affordable housing and eviction crisis.” The timing of this bill could not be worse because it could have a disastrous effect on the health and safety of renters at a time when the COVID-19 coronavirus has already caused a public health crisis of its own.

“While those who are fortunate enough to do so are currently working from the comforts of home to flatten the curve for COVID-19, sadly, many Hoosiers’ housing stability will be shaken further by this bill – when we can least afford it as a state – if the governor signs it into law,” said Jessica Love, Executive Director of Prosperity Indiana.

The letter to the governor comes from affordable housing developers, religious groups, medical and legal assistance providers, and organizations representing older Hoosiers, veterans, domestic violence survivors, the homeless, and other vulnerable populations. It follows a call from nearly 300 organizations and individuals statewide who signed a letter to the General Assembly opposing the legislation, which first appeared as a surprise last-minute amendment to SB 340, and that was passed without standard public deliberation or debate during the last two weeks of session.

SEA 148 is a substantial change in law that affects the lives of over 30 percent of Indiana’s population, the more than two million people who rent their homes. Research shows that access to affordable housing acts as a “vaccine” that paves the way to health and economic mobility, while housing insecurity and homelessness negatively impact the health, safety, education and development of children. As the COVID-19 pandemic sweeps across the state, SEA 148 would undermine public health by undercutting access to safe and stable housing.

Advocates point to existing Indiana efforts, such as the Governor’s recovery housing and workforce housing initiatives, and to provision of safe and stable housing as a means of improving health outcomes and decreasing health costs, as positive steps for Hoosiers. SEA 148 would hinder Indiana’s ability to reach the ‘next level’ of public health by substantially changing existing landlord-tenant law to diminish state protections for renters. Also, stripping local governments of the ability to take action to improve housing quality and stabilize rental housing, unless specifically permitted by the state legislature, will create dangerous delays that could worsen significant health conditions already prevalent in the state. These include rates of asthma, lead poisoning, mental illness, maternal mortality, and opioid-related deaths.

Changes to Indiana’s landlord-tenant law in previous years followed full vetting in both the House and Senate after many compromises from representatives of both landlords and tenants were made. But this year, the section of SEA 148 impacting tenants was not afforded any full or fair democratic process, and no opportunity for formal input by those concerned was provided. As a result, no balance in the language for renters was achieved. Specifically, this language was never filed as a bill and never heard in any committee of the Senate. It was not posted for hearing in the House to be considered as an amendment to its original bill. The language of this amendment was not available to the public until after it passed out of committee that same day. When the language was later moved to SEA 148 in conference committee, the Senate conference committee chair initially announced there would be no public testimony allowed. Under protest from other conferees, still only two people were allowed to speak. After questions generally relating to how many ordinances would be affected – to which no one knew the answer, the hearing abruptly ended.

The imbalanced bill – favoring landlords – allows accelerated emergency eviction procedures to be used in an expanded class of cases. This includes instances in which a tenant – having committed no violation of law or lease – can be evicted in three days. It also omits standard code provisions that prevent landlords from simply eliminating or changing the limited retaliation protections afforded by SEA 148 through a non-negotiable lease. It further arbitrarily preempts the ability of all local governments throughout the state to regulate any aspect of the landlord-tenant relationship. These measures and allowances are considered extreme, especially since they were passed without having studied or surveyed existing local ordinances and regulations throughout the state to determine how they would be nullified.

According to the group calling for the veto, “Given the potential damage to Indiana’s housing and public health, it is imperative that Governor Holcomb not allow SEA 148 to become law. Legislation this significant, which impacts millions of Hoosiers across all walks of life, should be studied, examined, and debated, through a truly democratic process.”

Resources:

Letter Urging Gov Holcomb to Veto SEA148

Letter to Senate Opposing SB340 (signed by 300+ statewide orgs and individuals)

Legal Concerns of SEA148

Evicted- Hoosiers in Housing Crisis

Health and Housing in Indiana

Hoosier Housing Crisis: By the Numbers

City of Fort Wayne SB340 Opposition Letter

Dr. Sarah Stelzner Statement for Press Conference on Landlord Tenant Issue

###

About Indiana Association for Community Economic Development D/B/A Prosperity Indiana

Nearly 300 Organizations and Individuals Urge "No" Vote on SB 340

Mon, 02 Mar 2020 14:31:53 GMT

INDIANAPOLIS, IN – Today, the Indiana House is scheduled to vote on SB 340. A letter with signatures from nearly 300 organizations and individuals from around Indiana has been sent to the Speaker Brian Bosma and members of the Indiana House of Representatives voicing concern and urging a “No” vote on SB 340. This opposition is in light of the surprise last-minute amendment to the bill on February 24 that will have a significant negative impact on renters across the state.

Although SB 340’s amendment appears to have been in response to the City of Indianapolis’ new Housing Initiative, it will have statewide impact and applicability. SB 340 gives preference to landlords in a variety of ways. Most sweepingly, it takes away a city’s ability to establish landlord-tenant laws. As a result, it decreases a city’s ability to address disclosure and retaliation violations through fines, allowing more types of retaliation against tenants to occur when reporting concerns. It also awards landlords sued for retaliation, who are successful in court, attorney fees plus damages. In contrast, tenants who win a retaliation suit against their landlord only get to stay in their rental unit under the existing terms and receive one month of rent in compensation, while absorbing all of their legal fees associated with the retaliation case. One of the most basic rights outlawed by the bill is a city’s ability to require that landlords provide renters with information on their legal rights as tenants. SB 340 also makes other problematic changes that overwhelmingly favor landlords.

Keith Broadnax, Senior Vice President of Business Development at Cinnaire, stated his concerns, “As an investor, lender, and advocate for affordable housing in Indiana, Cinnaire strongly opposes SB 340 and encourages a ‘No’ vote on it. This bill will be detrimental to our Hoosier families who are already struggling to support themselves. The bill removes any fines imposed on landlords who retaliate against tenants and further limits the actions of local authorities to require that tenants be informed of the basic housing rights afforded to them by law.”

Jessica Love, Executive Director of Prosperity Indiana, said, “At Prosperity Indiana, our work is built around strengthening our communities, and bills like this only tear away at the fabric of family life and local governing power. SB 340 will clip every community’s opportunity to address the bad actors who are only adding to housing instability in this state. To counteract what legislators are being told by some is good public policy, members of our General Assembly need to hear from everyone who believes that SB 340 is an overreach. If not stopped, the bill could be adopted this week. So, the time to speak out is now. Please contact your representative immediately and ask them to vote no and kill this bill.”

Dr. Sarah Stelzner, a pediatrician and legislative chairman of the Indiana American Academy of Pediatrics shared, “We know these families and children are most vulnerable to experiencing significant health impacting issues in their rental homes, such as mold, infestations, high utility bills, and poorly maintained infrastructure. These families often fear or have experienced retaliation, including eviction, for attempting to address any problems and often have inadequate representation in court. Any eviction filed against them, whether there is a judgement or not, stays on their record and makes it even harder for a family to find quality, affordable housing in the future. We need to work to reverse the trends that have caused a dramatic increase in evictions, as well as unsafe and unhealthy housing, in a number of Indiana cities and towns. This bill seeks to undermine even local efforts to address rental habitability concerns and retaliatory evictions, which we know are leading social determinants of health.”

“SB 340 is one of the most harmful housing bills I have seen in my over 20-year housing career,” stated Amy Nelson, Executive Director of the Fair Housing Center of Central Indiana (FHCCI). “Not only does SB 340 modify current law to take away any fines for those landlords who retaliate against tenants with just cause, but it even goes so far as to say that a City cannot even demand that tenants be informed of their most basic housing rights under law, amongst other changes.”

Info on SB 340: http://iga.in.gov/legislative/2020/bills/senate/340

Don’t Know Who Your Legislator Is? Go to Find Politicians in our Advocacy Action Center: https://www.prosperityindiana.org/Action-Center

Learn more on the Prosperity Indiana’s Public Policy Page: https://www.prosperityindiana.org/Policy-Priorities

###

About Indiana Association for Community Economic Development D/B/A Prosperity Indiana

SB 340 Makes Harmful Changes to Landlord/Tenant Law

Tue, 25 Feb 2020 14:31:06 GMT

On Monday, a last-minute amendment to SB 340 passed in the last committee hearing for the House Judiciary committee for this session. The amendment dramatically changes Indiana Landlord/Tenant Law. These harmful changes will stop the current effort in Indianapolis (and possibly other cities) to address the serious rental habitability problems, lack of adequate representation of tenants, and landlord retaliation that occurs when tenants complain about violations of law.

However, SB 340 goes even further. The bill:

Bans Indiana cities from requiring that tenants be provided information on their legal rights
Decreases cities’ ability to address disclosure and retaliation violations through fines, allowing more types of tenant retaliation to occur when contacting the health department or legal services
Awards landlords sued for retaliation, who are successful in court, attorney fees plus damages, while winning tenants only get to stay in the unit under the existing terms and receive just one month of rent, while absorbing all of their legal fees associated with the retaliation case
Favors landlords’ rights overwhelmingly over tenants’ rights at a time when Indiana is already seeing an eviction crisis fueled by affordability and habitability concerns

SB 340 could be going to the House floor vote as early as this Thursday (2/27)! If it passes the House, it seems likely the Senate will support the changes, and the bill will go right to the Governor for signature. To STOP this harmful bill from becoming law, we need your help!

Please contact your House rep and urge a NO vote on SB 340. Don’t know who your House rep is? You can find that info by entering your address under Find Politicians on our Advocacy Action Center. Make phone calls and send emails ASAP, please!

What to say? Speak from your heart on why this legislation should be stopped. Or, if you need any idea, you could say:

Please vote No on SB 340. The changes to his bill will harm housing options for far too many in our state. Indiana tenants already face significant barriers in their housing options due to lack of affordability, habitability issues, retaliation by bad acting landlords, and lack of legal representation to understand their rights. This bill goes too far in taking options away by cities in ensuring safe housing options. Please vote No!

Please act today! For your info, attached is the amendment that was made to SB 340.

Info on SB 340: http://iga.in.gov/legislative/2020/bills/senate/340

Some recent press on SB 340 and Indianapolis’ new Housing Initiative, which SB 340 would immediately pre-empt:

HB1191 is Moving Forward & Other Updates

Fri, 24 Jan 2020 15:35:02 GMT

What a busy week! Prosperity Indiana worked with our colleagues on three bills this week dealing with consumer lending, landlord tenant issues and land contracts. Here is where things stand on those bills:

SB395 Uniform Consumer Credit Code (Sen. Eric Bassler) –

This bill was heard in Senate Insurance and Financial Institutions Committee on Wednesday and Mindi Goodpaster testified in opposition on behalf of Prosperity Indiana. The bill would create a flat 36% rate on any loan regardless of size (think auto loans and second mortgages) and does not address a 36% cap on payday loans, which is what we have been advocating for. The committee is holding the bill and considering three possible amendments introduced by Senator Walker for vote next week. One of the amendments would create an annual cap of four payday loans per year and a maximum of eight in a lifetime. We will wait to see how the bill will be amended before refining our position.

SB391 Property Matters (Sen. Mike Bohacek) –

SB 391 was supposed to be heard in Senate Judiciary on Wednesday, but at the last minute was held and the committee is considering amendments for hearing and discussion next week. The bill contains several concerning provisions that look to limit tenants’ rights and processes for complaints about habitability. Prosperity Indiana is working with Senator Bohacek to make changes to the bill that address those provisions.

HB1191 Land Contracts and Landlord-tenant Matters (Rep. Ed Clere) –

HB1191 is scheduled for a hearing on Monday, Jan 27 at 10:00 a.m. in House Judiciary Committee. The bill is a streamlined version of HB1495, which passed out of the House in 2019 but died in the Senate. In an effort to address some of the concerns that killed the bill last year, the main provisions of HB1191 include disclosures by landlords to tenants on liens, habitability issues, etc. and recording requirements so that tenants will be able to make better informed decisions about the property they want to buy and give them further legal recourse in case issues arise with the property. HB1191 will be amended to take out the landlord-tenant provisions to streamline the bill to improve its likelihood for passage. Jessica Love will be testifying on behalf of Prosperity Indiana in support of the bill.

With the end of the first half of session nearing, committees will be wrapping up their hearings next week. This means that those bills that have been heard will be voted on in their chamber of origin and moving on to the second chamber for consideration. Those bills that did not receive a hearing will be considered dead. While not all of Prosperity Indiana’s priorities received hearings thus far, we are encouraged that HB1191 is moving forward and are hopeful about its passage this session. We will continue to keep you informed and will let you know how you can take action to make this happen.

Click here to read our Priority Legislation Report 1-24-2020.pdf

Members Build Support for Critical Prosperity Indiana Priorities on Statehouse Day

Thu, 16 Jan 2020 00:38:07 GMT

Another Statehouse Day is on the books and the 2020 short session of the Indiana General Assembly speeding along! This week, members walked the halls and advocated for critical policy priorities that impact their communities and clients. Legislators engaged in great conversations about the bills most important to our efforts and why it is critical state legislators take action to increase renter protections and reduce evictions, implement consumer protections to combat predatory lending, and increase access to and the supply of affordable housing. Key handouts that outline each of our top priorities can be found below.

We encourage you to contact your legislators today and speak up in support of these bills. You can find their contact information by entering your zip code on our advocacy action page.

To follow these and other top bills we are supporting, monitoring, or concerned about this session, click here for our bill tracker. This link will automatically be updated as the final bills are added this week.

We thank our members who traveled near and far to make their voices heard. Having policymakers hear from constituents about how these proposals impact work you do is exceptionally powerful.

NEW LEGISLATION WOULD EXPAND CRITICAL, TARGETED HOUSING ASSISTANCE TO LOW-INCOME FAMILIES

Wed, 18 Dec 2019 21:50:54 GMT

RELEASE DATE: December 18, 2019

Contact: Kathleen Lara, klara@prosperityindiana.org, 317-222-1221, 403

SENATORS YOUNG AND VAN HOLLEN INTRODUCE LEGISLATION TO EXPAND CRITICAL, TARGETED HOUSING ASSISTANCE TO LOW-INCOME FAMILIES

INDIANAPOLIS – New legislation introduced today by Senators Todd Young (R-IN) and Chris Van Hollen (D-MD), the Family Stability and Opportunity Vouchers Act, aims to provide 500,000 additional housing vouchers to low-income families with young children that would enable them to access safe, stable housing in areas of opportunity. If enacted, this measure would dramatically reduce family and youth homelessness and improve life outcomes for those assisted.

The legislation prioritizes these new vouchers for low-income pregnant women and families with children under age 6 experiencing persistent housing instability, or living in an area of concentrated poverty. This targeted assistance would be catalytic at a time when the affordable housing crisis throughout the state is acute. In Indiana, a two-bedroom apartment is not affordable for the average renter in 82 of 92 counties; and there is currently a 134,485-unit deficit of housing that is affordable and available to the 27 percent of Indiana renters who are extremely low-income (earning $21,050 or less per year for a family of four).

Limited resources for housing assistance, coupled with high housing cost burden, leads thousands of Hoosier families to face evictions, housing instability, and homelessness —a cycle that has severe negative consequences for health outcomes, educational attainment and economic mobility.

“The Family Stability and Opportunity Vouchers Act will expand assistance targeted to families urgently in need and prove that poverty is a cycle that can be broken,” said Jessica Love, Executive Director of Prosperity Indiana. “Our network enthusiastically supports this bill and applauds Senators Young and Van Hollen for their leadership in working to ensure unstably housed families and children in our state and across the country have more equitable opportunities to thrive in all facets of life.”

"The American Dream should extend to every American child, regardless of the circumstances of their birth. Evidence clearly shows what happens when we empower families with young children to relocate to areas offering good jobs, quality schools, and safe neighborhoods: earnings grow, job vacancies are filled, poverty declines, and children more fully realize their God-given potential,” said Senator Young. “This bill draws on recent groundbreaking research to invest in housing mobility vouchers and customized relocation support services to improve life outcomes and strengthen Hoosier families, all while substantially reducing taxpayer expenditures on healthcare, public safety, and social services.”

This legislation is championed as a key policy solution by the Opportunity Starts at Home campaign, a national effort to engage multi-sector partners in pushing for stronger federal affordable housing policy. Prosperity Indiana was endorsed this year as the Indiana state partner to lead this effort. To find out more, click here: https://www.prosperityindiana.org/OSAH.

For a link to Senator Young's press release, click here: https://www.young.senate.gov/newsroom/press-releases/young-and-van-hollen-introduce-bipartisan-bill-to-increase-mobility-keep-families-together-and-move-children-to-areas-of-opportunity

About Indiana Association for Community Economic Development D/B/A Prosperity Indiana

Prosperity Indiana is a statewide membership organization for the individuals and organizations strengthening Hoosier communities. Prosperity Indiana believes in a society where all persons can live and work in an environment that provides equitable access to economic and social opportunity.

CONGRESS REACHES AGREEMENT ON FY20 BUDGET, TAX PACKAGE- WHAT YOU NEED TO KNOW

Tue, 17 Dec 2019 16:30:00 GMT

On Monday, December 16, congressional negotiators revealed the details of two "minibus" spending bills - one for domestic programs and the other, for the defense budget. These packages will fund the federal government through the end of the fiscal year, September 30, 2020 (domestic and defense. Today, the House passed both measures, sending them to the Senate and then, upon passage, to the President of the December 20 funding deadline.

Our updated budget chart is included below, outlining many major programs of interest for Prosperity Indiana members, but here are key highlights:

HUD: The funding package is a victory for housing advocates in that most HUD programs are funded at or above the Senate proposed levels. The final figures are not as ambitious as the House proposal, but important increases were achieved for TBRA, PBRA (enough to renew all contracts for 12 months), the Public Housing Capital fund, Homeless Assistance Grants, Housing Counseling (which was at risk of cuts in the Senate budget proposal), and Section 202 Housing for the Elderly, among others.

The final bill does not include provisions from the House bill that would have prevented HUD from implementing the harmful proposed mixed-status rule that would separate families in HUD-assisted housing or it's proposed weakening of the Equal Access Rule that provide protections against discrimination in shelters based on sexual orientation and gender identity.

USDA: Most USDA's rural housing programs receive similar funding to last year, with small increases for Section 514 farm labor housing loans and Section 523 self-help housing grants and larger increases for the MPR rental preservation program and for Section 542 vouchers.

What Else Was Included? The minibus packages also contained significant funding and/or funding boosts for physically expanding national border fencing, military spending, the National Institutes of Health, the 2020 Census, election security grants and gun violence research.

WE COMMEND PROSPERITY INDIANA MEMBERS FOR YOUR ADVOCACY IN WORKING TO ACHIEVE CRITICAL FUNDING INCREASES!

WHAT ABOUT THE TAX PACKAGE? HOW DID AFFORDABLE HOUSING CREDIT IMPROVEMENT ACT PROVISIONS FARE?

As the FY20 appropriations bills move forward this week, a year-end tax bill is also moving through Congress this week. Unfortunately, despite the work of our network and local and national partners, no provisions from the Affordable Housing Credit Improvement Act were adopted. Early on yesterday, the 4 percent floor for LIHTC was included, but late night negotiations saw it cut that from the final package. Continued advocacy is needed on this front as we head into 2020.

Proposed Major Changes to CRA Cause for Concern

Tue, 17 Dec 2019 00:58:39 GMT

Background:

Last week, the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) issued a Notice of Proposed Rulemaking (NPR) proposing substantial revisions to the examination process in ways that do not all appear to align with the intent of the Act. CRA was established to address a legacy of redlining and divestment in low- and moderate-income (LMI) communities. However, the proposed changes raise concerns about how it will affect CRA’s charge to affirmatively meet the community needs for credit and services in LMI communities.

There are some key core issues at of critical concern, based on an initial review of the NPR. We ask that our members who are concerned about these regulations continue to check our website for further details be prepared to comment not only with regulators, but with members of Congress as well!

The NPR would dilute benefits for LMI communities by broadening CRA-eligible activities (including infrastructure - roads and stadiums could count)
It would significantly dilute focus of bank activities on LMI consumers and communities
It limits consideration of bank branches more than under the current CRA service test. Banks may respond by closing more branches in LMI communities
Retail lending analysis would count for much less under the new proposed exams, which could exacerbate banking deserts

More specifically, the NPR changes are broken down into the following three key areas:

What Counts:

The NPR would broaden what bank activities are CRA-qualifying
- The definition of community development is currently: affordable housing for LMI households, economic development for businesses under $1 million in revenue, community facilities and the revitalization/stabilization of LMI communities. The NPR deletes economic development and revitalization/stabilization from the definition
- The NPR also added a new criterion: infrastructure. This can include roads, bridges, or hospitals, but it does not appear those even have to even be based in LMI communities. This dilutes the impact of targeting LMI community investment
- Key bank services, such as deposit accounts, are no longer considered qualified activities. There is significant concern that proliferation of check-cashing, payday lending and other subprime services will only be exacerbated by further driving banking deserts if this is finalized
- While framed as an anti-gentrification move, the NPR excludes the consideration of middle- and upper- income lending in LMI communities. This economic integration, if properly applied, with an eye for preventing displacement, is the kind that can help revitalize divested LMI communities
- Instead of focusing on LMI impact, the NPR would count financial education for all income levels, when research shows LMI communities are disproportionately under- or un-banked
- Community development services now allows for all volunteer activities, which is a departure from the current definition that is a service related to providing financial products for LMI individuals

Where it Counts

Assessment areas are updated in ways that aim to account for the proliferation of internet-based banks, but there is much that is still vague/unknown about how the regs would assign deposits collected via the internet to branches.
The NPR notes that there is an allowance for credit for qualifying activities conducted outside of bank assessment areas. We will be looking into this as we have concerns about how this will impact investment in small non-profits

How it Counts

There remain significant concerns in how the one ratio test may result in

A reduction in valuing retail branches in LMI communities
the potential to encourage an over-reliance on the largest and easiest deals at the expense of small dollar, business and home mortgage lending in LMI communities and a reduction in partnerships with small non-profits who make significant local impact in LMI communities
the lack of differentiation for asset classes, meaning state or regional banks are being compared to the largest banks on performance

Following the NPR release several civil rights/fair housing/consumer groups listed below issued a letter linked here: https://nationalfairhousing.org/2019/12/13/diverse-coalition-issues-joint-statement-on-proposed-changes-to-community-reinvestment-act/. Americans for Financial Reform Education Fund, Center for Responsible Lending, NAACP, NAACP Legal Defense and Educational Fund, Inc., National Association of Real Estate Brokers, National Coalition for Asian Pacific Americans Community Development, National Community Reinvestment Coalition, National Fair Housing Alliance, The Leadership Conference on Civil and Human Rights, and UnidosUS.

General Assembly Org Day: Teachers, Big Announcements, and PI Priorities - Oh My!

Wed, 20 Nov 2019 20:53:18 GMT

There was a sea of red at the Statehouse yesterday on Org Day as tens of thousands of teachers rallied as lawmakers returned for the ceremonial start of the 2020 legislative session. Legislators spent much of the day meeting with educators urging action on compensation, testing reforms and repealing certain professional development mandates.

As attention was focused on the #RedforEd movement, there was additional big news from House leadership as Speaker Brian Bosma announced he will retire after this session to move to a “national legislative campaign role.” Republicans in the House will confirm his replacement in the next two weeks. (Photo Source: Robert Scheer/IndyStar).

Prosperity Indiana's policy staff shared our 2020 State Priorities (see below) with numerous legislators throughout the day as well and specific legislation we are working with lawmakers to craft to address the critical

concerns of our members!

These efforts are focused on ensuring Hoosiers can remain in or gain access to safe, stable, and affordable housing and expanding consumer protections to more low-income households build and retain assets.

The best way you can prepare right now to help us advance these priorities is to register for our Statehouse Day on Tuesday, January 14, 2020, from 1-4 p.m. EST. At this event, we connect members with their legislators to share why these priorities are so critical to our network and our communities. If you have questions regarding these priorities or how to get more engaged in advocacy, contact our policy director, Kathleen Lara, at klara@prosperityindiana.org.

We will keep you updated and engaged throughout session, but please be aware all hearings and session meetings are publicly available to stream live at www.in.gov/iga.

House Passes Short-Term Extension Funding, Faces Procedural Issue in Senate as Shutdown Deadline Looms

Wed, 20 Nov 2019 17:30:00 GMT

On Tuesday, Nov. 19, the House passed a month-long extension of the current short-term funding bill by a vote of 231-192. This measure represents the second continuing resolution of the 2020 fiscal year. This will would allow lawmakers to continue funding the government for 30 days while negotiating differences between the House and Senate FY20 spending bills. Lawmakers seem close to agreement on final spending levels, but key differences remain, particularly around funding for the Administration’s proposed border wall.

This measure has now moved to the Senate as members of Congress look to wrap up the week’s business before both the current federal funding deadline this Friday, November 21 and the Thanksgiving recess next week. This measure would continue FY 19 enacted funding levels for housing and community development programs.

The bill, however, has hit a procedural snag as the underlying bill used as a means to pass the short term funding bill is a funding bill Senate Republicans would like to avoid so as to keep it open to negotiations later in the year. In short, the House is likely to see the bill returned so that they use a different underlying bill to send back to the Senate. That becomes procedurally quite close to the Friday deadline for both the House to vote again and the Senate to vote for final passage.

What happened in the Senate spending bill?

We have outlined on this blog the House and Senate bill proposals for FY 20 spending. In our August newsletter, we urged members to call and urge our Senators to fund community development programs as the highest possible level under the agreed upon spending caps and to restore funding that was cut from HUD’s housing counseling budget. The final bill passed on October 31, by a vote of 84-9, without a change to the counseling program funding level, so we urge continued advocacy and calls to your House Representative and both Senators as negotiations continue.

Some amendment language was passed, however, that Prosperity Indiana believes strengthened the underlying bill, including a provision to allow the USDA to extend rental assistance agreements for projects financed by existing Section 514 or 515 loans for up to 20 years to help assisted residents remain stably housed for longer periods

Stay tuned to our social media and this blog for timely budget updates!

Landmark Settlement in Fair Housing Case Regarding Land Contracts in Central Indiana

Thu, 14 Nov 2019 00:01:57 GMT

On November 11, the Fair Housing Center of Central Indiana (FHCCI) announced a record settlement in a lawsuit against a local business owner accused of targeting Latino communities with predatory land contracts for homeownership of properties that were frequently not in a habitable condition and inflated in their sales price. While the owner of the company in question, Casas Baratas Aqui (translated: “Cheap Homes Here”)

The FHCCI press release noted that several individual plaintiffs brought action in federal court in April 2018 alleging that the company violated the Fair Housing Act, Equal Credit Opportunity Act, Civil Rights Acts of 1866 and 1871, Truth in Lending Act, as well as several Indiana state statutes. Specifically, the company was accused of targeting Hispanic/Latino homeseekers, in particular, with a housing product that offered uninhabitable homes at high interest rates and home prices far above their property values. (Photo Source: IndyStar Article linked below, Sarah Stier, IndyStar)

As IndyStar reported, Amy Nelson, the Executive Director of FHCCI, stated that, “This is a ground-breaking resolution that will have a national impact on rent-to-own and land contracts by providing an example of requirements to ensure fairness in these transactions.”

The IndyStar article outlines one specific case where a plaintiff “entered a one-year lease with a monthly rental rate of $1,000. She was given the option to buy the home for $77,900.” The owner of the company, however, bought the house for only $32,000. The borrower also had a down payment of $8,500 and also required the borrower to “pay $69,400 with a 10 percent interest rate, in monthly installments of $746 for a 30-year term.” In addition to the high costs of this house, the plaintiff found that “the plumbing was completely clogged, the sink didn't function, the floor was rotted and the ceiling had started to collapse,” according to the case complaint. Further, the plaintiff was intimidated after, according to the complaint, “being told to be careful [about complaining] since they are 'illegal.'

These plaintiffs will see financial relief as a result of this settlement thanks to the FHCCI’s work. The owners said they would change their business practices based on this and the September 2019 ruling from the Indiana Supreme Court. (Photo Source: Indystar Article Screenshot, article authored by Crystal Hall)

Earlier this fall, the Court ruled in a case that similarly addressed predatory homeownership contracts. Prosperity Indiana joined the state, the city of Indianapolis, Neighborhood Christian Legal Clinic, the Notre Dame Clinical Law Center and National Consumer Law Center, and the Fair Housing Center of Central Indiana as amicus filers in the Rainbow Realty case where, similar to this instance, borrowers were required to pay for all repairs and maintenance as a homeowner would, but if they fell behind in their monthly payments, they would be treated like renters, facing eviction, not foreclosure, and losing all of their equity.

The Supreme Court’s ruling found that the contract in this case was a rental agreement and not a purchase agreement, as they had been told. Justice Geoffrey Slaughter wrote for the panel in stating, “attempted waiver of their obligations as landlords is void."

Payday Advocates Applaud Federal Bill to Protect Consumers from Predatory Lending

Tue, 12 Nov 2019 20:30:39 GMT

FOR IMMEDIATE RELEASE:

November 12, 2019

Hoosier Veteran, Faith, Community Groups Applaud Federal Bill to Protect Consumers from Predatory Lending

INDIANAPOLIS – A coalition of more than 100 Indiana-based veterans groups, faith-based organizations, non-profits, and civil rights organizations applauds the introduction of the Veterans & Consumer Fair Lending Act, a bipartisan bill sponsored by Senators Jeff Merkley (D-OR), Sherrod Brown (D-OH), Jack Reed (D-RI) and Chris Van Hollen (D-MD), as well as Representatives Jesus “Chuy” Garcia (D-IL) and Glen Grothman (R-WI). The coalition urges members of Indiana’s federal delegation to add their names as coauthors of the legislation.

If passed, the lending regulations outlined in the Military Lending Act (MLA), including a 36 percent interest rate cap on small-dollar, short-term loans (commonly known as payday loans), would be applied to all citizens. Right now, the protections only cover active-duty military members, leaving veterans and civilians vulnerable to lenders charging triple-digit interest rates. In Indiana, payday lenders charging up to 391 percent APR have drained over $300 million in finance charges over the past five years. Nearly 90 percent of Hoosiers want to see these loans capped at 36 percent APR.

“Extending the Military Lending Act is a clear message that our military (active and reserve), veterans, and their families are valued for their service to our nation,” said Brigadier General James Bauerle, Vice Chairman of the Military / Veterans Coalition of Indiana. “We cannot take for granted this group of great Americans as they have sacrificed so much and done so much so we can enjoy the freedom granted in our Constitution.”

Advocates from across Indiana have been recommending that state lawmakers enact a 36 percent rate cap for several years. To date, 16 states and Washington, D.C., have adopted similar legislation (a rate cap at 36 percent or lower) with promising results. At the state level, Senator Greg Walker (R-Columbus) Senator John Ruckelshaus (R-Indianapolis), Senator James Tomes (R-Evansville), Senator Vaneta Becker (R-Evansville), Senator Dennis Kruse (R-Auburn), Senator Jean Breaux (D-Indianapolis), Senator Mark Stoops (D-Bloomington), Senator J.D. Ford (D- Indianapolis), Senator Mike Bohacek (R-Michigan City), and Senator Lonnie Randolph (D-East Chicago) coauthored SB 104 in the 2019 session, which would have capped interest rates on small-dollar, short-term loans statewide at 36 percent APR. The bill failed to pass the Senate 22-27.

“Human service agencies across this state regularly see the damage and distress payday lending causes,” said Emily Bryant, President of the Indiana Coalition for Human Services. “Our members enthusiastically applaud the introduction of federal legislation to extend the Military Lending Act protections to all consumers.”

###

For more information, please see:

Financial Drain: http://www.incap.org/documents/Financial_Drain_Report2019.pdf

Bellwether Polling: http://incap.org/documents/INPaydayLendingMemo1.22.18.pdf

United States Department of Defense report: https://archive.defense.gov/pubs/pdfs/Report_to_Congress_final.pdf

SPEAK UP TODAY Against A HUD Proposal That Would Undermine Fair Housing Enforcement! Comments Due by Oct. 18!

Wed, 16 Oct 2019 20:11:02 GMT

WE NEED YOUR VOICE!

One of the most powerful tools in fighting housing discrimination is the Disparate Impact Rule, a bedrock legal principle under the Fair Housing Act. While disparate impact has been upheld by the U.S. Supreme Court as a legitimate means to target discrimination that often flies under the radar, the Administration has proposed revising this rule in a way that would preclude most from bringing future legal challenges.

Although the federal Fair Housing Act was passed in 1968, housing discrimination enforcement remains woefully incomplete. Nationally, it is estimated that 4 million incidents of housing discrimination occur each year. Without a strong Disparate Impact Rule, the ability to challenge these harmful practices becomes far more difficult. To now add additional and cumbersome barriers for individuals and organizations fighting discrimination is counterintuitive and counterproductive. You have until Friday, October 18 to urge the Administration to reverse this proposal.

Click here to access a pre-drafted letter you can easily add to/edit and submit directly.

Below you can review the full letter we submitted, but even comments that are just a few sentences expressing your concern about this proposed revision of the HUD Disparate Impact rule can have enormous impact. You can learn more about the proposed rule here: https://www.defendcivilrights.org

Docket No. HUD-2019-0067

RIN 2529-AA98

October 16, 2019

Office of General Counsel, Rules Docket Clerk

Department of Housing and Urban Development

451 7^th Street SW, Room 10276

Washington, DC 20410

To Whom It May Concern:

Prosperity Indiana appreciates the opportunity comment on the Department of Housing and Urban Development’s (HUD) Notice of Reconsideration of the Implementation of the Fair Housing Act's Disparate Impact Standard, Docket No. FR-6111-P-02. The Disparate Impact Rule has served as a critical tool in helping enforce anti-discrimination laws.

Our organization represents a network of more than 170 community development organizations dedicated to helping low-income Hoosiers achieve and maintain housing and economic security in each of our state’s 92 counties. Our members strive to ensure all Hoosiers can access safe, stable and affordable housing, and our work is focused on building a society where all persons can live and work in an environment that provides equitable access to economic and social opportunity. Central to that effort is ensuring we confront and eradicate instances of economic and residential discrimination and segregation.

For more than 50 years, the Fair Housing Act has made substantial strides in reducing the discriminatory practices related to renting or buying a home, getting a mortgage, or seeking housing assistance despite our government’s previous history of condoning or perpetuating those practices. As time moves on, the portion of that act that prohibits facially neutral policies that limit housing opportunities based on race, color, national origin, religion, sex, as well as the presence of families with children or people with disabilities, becomes ever more critical. Much of the discrimination that citizens face today manifests in these ways. That is why the Disparate Impact Rule is so critical. Since 2013, the uniform Disparate Impact Rule has been effective in establishing a rigorous, but fair process by requiring plaintiffs to establish a strong case, without undermining their reasonable ability to confront these practices. This Rule has empowered victims to remedy discriminatory practices that unfortunately persist far too frequently throughout our state of Indiana and across the country.

In the past five years alone, the Fair Housing Center of Central Indiana documented 947 fair housing allegations, opened 209 targeted fair housing investigations and assisted numerous persons with disabilities in obtaining reasonable accommodations after initial denials from housing providers, working alongside landlords and tenants to achieve equitable outcomes for all. In addition, the Center has initiated 12 federal court actions and 17 HUD/ Fair Housing Assistance Program complaints to intervene where there have been violations of fair housing law. In two of those lawsuits, more than 3,000 victims of housing discrimination are identified. The Disparate Impact Rule is essential to rooting out these discriminatory practices to fulfill the promise of the Fair Housing Act.

Contrary to HUD’s claims that the proposed revisions to this Rule are merely an effort to update the standard “to better reflect the Supreme Court's 2015 ruling in Texas Department of Housing and Community Affairs v. Inclusive Communities Project, Inc., and to provide clarification regarding the application of the standard to State laws governing the business of insurance,” we find this to be a brazen attempt to undermine the core tenants of the Act and disadvantage parties who have been injured by discriminatory practices to prevent them from successfully bringing forward a claim of disparate impact.

In fact, the majority opinion in the Inclusive Communities case quotes HUD’s rule extensively without any suggestion that its opinion was in tension with that rule. Instead, Justice Kennedy wrote, “In addition, it is of crucial importance that the existence of disparate-impact liability is supported by amendments to the FHA that Congress enacted in 1988. By that time, all nine Courts of Appeals to have addressed the question had concluded the Fair Housing Act encompassed disparate-impact claims.” The Court implicitly endorsed the 2013 Rule by not questioning or challenging it, and no lower court actions since the Inclusive Communities Project suggest that the three-step burden shifting standard is inadequate.

Despite that affirmation, HUD is now proposing dramatic changes to this Rule that blatantly favor defendants to the extent that it nearly invalidates the ability of individuals to effectively bring a case forward. Under the current Rule, §100.500, the three-step standard for presenting a prima facie case is simple. First, the plaintiff has the burden of proving a policy or practice caused or predictably will cause discrimination. Second, if that burden is established, the defendant must prove that the challenged practice is necessary to achieve their legitimate, substantial, nondiscriminatory interests. Third, if the defendant is able to prove that, the plaintiff must then prove that those interests could be served by a different policy or practice that has a less discriminatory impact. That standard is already rigorous in requiring plaintiffs to prove a strong case is present before the burden ever shifts to the defendant.

HUD now proposes to place the burden of proving “the challenged practice is necessary to achieve one or more substantial, legitimate, nondiscriminatory interests” on the defendant as well. The revisions under consideration would impose a new five-point test before the defendant has any burden. Plaintiffs would have to do the following:

1) prove that a policy is “arbitrary, artificial, and unnecessary” to achieve a valid interest; 2) demonstrate a “robust causal link” between the practice and the disparate impact;
3) show that the policy negatively affects “members of a protected class” based on race, color, religion, sex, family status, or national origin;
4) indicate that the impact is “significant”; and
5) prove that the “complaining party’s alleged injury” is directly caused by the practice in question

Under the proposed revisions, the plaintiff must overcome nearly insurmountable barriers to establish their case and provide proof before discovery could even take place. That is essential because the discovery process often provides critical evidence illuminating the specifics of how certain policies and practices came to be implemented and their intent. These excessive barriers will require plaintiffs to anticipate what justifications a defendant may use and try to provide responses before the defendant is ever required to respond.

Further, a closer read of the revised language to §100.500 (b)(1) appears to suggest that if a practice is exceedingly profitable, it may be exempt from disparate impact claims – even if a plaintiff can demonstrate discriminatory outcomes. The current Rule in that section requires the defendant to show that the challenged practice is “necessary to achieve one or more substantial, legitimate, nondiscriminatory interests.” The revision would shift the burden to the plaintiff and requires that the plaintiff show the practice is “unnecessary to achieve a valid interest or legitimate objective such as a practical business, profit, policy consideration, or requirement of law.” This addition of “profit” invites arguments from defendants claiming exorbitant profit may be a legitimate basis to continue the practice.

Finally, the proposed revisions provide new, broad defenses that landlords, lenders and other defendants can employ to subvert responsibility. Those include a defense enabling them to agree that a model used by the defendant in question may be discriminatory, but could be the fault of statistics and algorithms informing their practices related to credit scoring, pricing, marketing and underwriting. While these can still be harmful and discriminatory, the companies using these practices may not be held responsible for their consequences.

Under this proposal, we believe there will no protection against a landlord evicting victims of domestic violence, based on common leases that hold all tenants, even victims, responsible for crimes in their homes. We believe landlords could legally turn away applicants who do not hold full-time jobs, affecting people with disabilities or seniors. We believe an apartment building could also restrict occupancy to one person per bedroom. Families with children would be barred from renting or would be forced to rent more expensive multi-bedroom apartments. We also believe it could allow an insurance company to refuse to insure homes under a certain dollar value. In many communities, this would exclude homes in neighborhoods of color from quality insurance and would prevent homeowners in those areas from fully protecting their homes.

After decades of slow, steady progress, this proposal would eliminate the incentive for property owners, lenders and insurers to adopt stronger policies that better serve us all. It would also eliminate the right of victims of discrimination from reasonably accessing justice. On behalf of our network striving to ensure more residents of Indiana can prosper and live in safe, secure housing, we urge HUD to withdraw this proposed reconsideration of the Disparate Impact Rule and appreciate the opportunity to comment.

Sincerely,

Jessica Love

Executive Director

2019 Policy & Pizza Meetings Foster Stronger Members and Legislator Relationships; Keep Building on Advocacy Momentum by Registering for Statehouse Day on Jan. 14!

Wed, 09 Oct 2019 19:42:42 GMT

Throughout the state this summer and fall, Prosperity Indiana went on the road hosting six regional Policy & Pizza meetings designed to share our 2020 Policy Priorities, but also to help build or deepen direct relationships between our members and legislators. We are thrilled by the results and thankful that at each meeting, legislators were able to hear local context for our priorities and witness the local partnerships among our network as PI members work to address considerable community development challenges.

We were also excited to lift up key successes among our network. We look forward to continuing to find ways to continue this engagement! One key way to touch base with legislators again is at our Statehouse Day on Tuesday, January 14, 2020 from 1-4 pm EST. Registration is free for members and we set up all legislator meetings and provide talking points. Let's keep building on all of this advocacy momentum as we head into 2020!

Congress Passes Stopgap Funding Measure, But Your Advocacy Needed to Increase Housing Resources within Senate Bill!

Tue, 01 Oct 2019 19:32:20 GMT

On September 27, the President signed a continuing resolution (CR), or stopgap funding measure, to keep the government funded through November 21 in an effort to give the House and the Senate to debate differences in their appropriations bills. The full Senate has not approved their appropriations bills as the House has, but the Appropriations Committee did approve the bills, meaning they are ready to be considered on the floor.

Below is an updated budget chart for many of PI's member interests for appropriations bills for housing and community development programs within the Department of Housing and Urban Development and the Department of Agriculture. Members of the Campaign for Housing and Community Development Funding (CHCDF) have sent a letter to Appropriations leaders in both chambers urging them to include the highest possible allocations to support affordable housing under the budget deal.

Overall, the Senate proposal for the HUD budget provides than $11.9 billion above the president’s FY20 request and $2.3 billion above FY19 enacted levels, but still $1.5 billion less in funding than the House version. Key line items of concern to our members include the net loss to already underfunded Housing Counseling budget as well as funding for HOPWA and the Public Housing Operating Fund.

NOW IS THE TIME TO REACH OUT TO OUR SENATORS AND RESPECTFULLY URGE THEM TO PASS THE HIGHEST POSSIBLE FUNDING LEVELS UNDER THE BUDGET AGREEMENT FOR HOUSING PROGRAMS TO ADDRESS OUR STATE’S AFFORDABILITY CRISIS.

Senator Young: (202) 224-5623
Senator Braun: (202) 224-4814

In terms of policy matters addressed in the Senate THUD bill, the legislation joins the House bill in prohibiting the Administration’s proposal for rent increases and rigid work requirements, but does not include the House-passed language to halt the Administration’s proposal to evict mixed-status families from assisted housing and to roll back LGBTQ protections.

Senate Subcommittee Approves FY20 Transportation, Housing Funding Bill

Wed, 18 Sep 2019 19:23:01 GMT

On Tuesday, September 17, the Senate Transportation, Housing and Urban Development, and Related Agencies (THUD) Appropriations Subcommittee today approved its FY20 appropriations bill, laying out critical housing and community development program funding levels for our communities and member network. Last week, the full Senate Appropriations Committee determined how much each subcommittee would receive and the Senate allocated $74.3 billion for the THUD Subcommittee, which is roughly $1.5 billion less than the House proposal, but $3.2 billion above FY19 enacted levels.

The measure will go on to be considered Thursday (September 19) by the full Senate Appropriations Committee. Click here for an updated budget chart.

Highlights include:

$56 billion for the U.S. Department of Housing and Urban Development, $2.3 billion above the FY2019 enacted level
$23.8 billion for tenant-based Section 8 vouchers
$7.5 billion for public housing
$12.6 billion for project-based Section 8 rental assistance (enough to renew all contracts)
$696 million for Section 202 Housing for the Elderly
$184 million for Housing for Persons with Disabilities
$3.3 billion for CDBG
$1.3 billion for HOME funds
$330 million for HOPWA
$2.8 for the Homeless Assistance Grants
$290 million for lead hazard reduction

Senate Hearing Considers Administration’s Housing Finance Reform Proposal That Could Have Sweeping Implications for Credit Access

Tue, 10 Sep 2019 20:53:41 GMT

Today, the Senate Banking Committee heard testimony from Treasury Secretary Steven Mnuchin, HUD Secretary Ben Carson, and Federal Housing Finance Agency Director Mark Calabria regarding the Administration’s proposal to overhaul the nation’s housing finance system. Secretary Mnuchin outlined the Administration’s vision for the future of two giant companies, Fannie Mae and Freddie Mac, that back half of the nation’s mortgages by buying mortgages from lenders, then selling packaged securities to investors. The two companies also have an affordable housing mandate to support access to affordable, 30-year mortgages. They have also been under conservatorship, or government control, for 11 years.

The plan would make these companies private again, but require a fee for the government protection they receive and eliminate a requirement that the companies send their profits to the Treasury Department. Secretary Mnuchin noted that Fannie Mae and Freddie Mac currently have a combined $6 billion in capital but said they should have about $100 billion and that creates an intense reliance on Treasury support. The companies did receive nearly $200 billion in bailouts, but as the market has been working towards recovery, they have since contributed $300 billion in dividends to the Treasury Department. This dynamic complicates the reform roadmap for moving forward.

There is bipartisan support for the need to come up with a plan to end conservatorship and move the mortgage giants move forward, but significant concerns over the proposal were raised regarding the implications for moderate-income households seeking a stable, affordable home loan. The proposal calls for eliminating the affordable housing goals in favor of having the Federal Housing Agency and Congress create “more efficient mechanisms” for Fannie Mae and Freddie Mac to achieve those goals with the goal for delivering tailored support to lower-income, rural and first-time home buyers. Changes to current mandates could have sweeping effects on credit access for first-time homebuyers who lack a 20 percent downpayment.

The plan would also allow for private competitors in the market for the first time who would not have the same obligations or guarantees. This could affect efforts to address racial homeownership gaps. During the hearing, numerous Senators pointed out that the black homeownership is just over 40 percent, which is actually lower than when the Fair Housing Act was passed in 1968 while white homeownership has consistently increased over that time to 73 percent.

Jesse Van Tol, chief executive of the National Community Reinvestment Coalition, noted that the plan would “open the market up to competitors for the first time and introduce private guarantors that won’t have the same obligations as Fannie Mae and Freddie Mac.”

Numerous senators also focused on the proposal’s proposal that would release Fannie and Freddie from their “duty-to-serve” requirements that increase lending in rural communities. We will continue to update members on any further negotiations or discussions around this and other housing finance proposals.

Prosperity Indiana, Members Join Author Matthew Desmond, Senator Young in Roundtable Discussion on Affordable Housing Crisis

Fri, 09 Aug 2019 17:49:27 GMT

Indiana is widely perceived as one of the most affordable places to live in the United States, but that is not the case for far too many Hoosiers. Forty-six percent of renters are cost-burdened and three large Indiana cities are in the top 20 nationwide for evictions, including South Bend, Indianapolis and Fort Wayne.

To dive into the issues surrounding our affordable housing crisis, Prosperity Indiana's Executive Director, Jessica Love, joined U.S. Senator Todd Young and Matthew Desmond, the Pulitzer Prize-winning author of “Evicted: Poverty and Profit in the American City," and numerous members for a community conversation on current challenges and policy solutions to pursue. These events took place at member-hosted sites in South Bend and Fort Wayne.

The Journal Gazette provided the following coverage of the event in Fort Wayne:

Targeting city's rate of eviction
Young leads panel seeking affordable housing solution

BRIAN FRANCISCO | The Journal Gazette

A roundtable discussion Wednesday generated plenty of ideas for shrinking Fort Wayne's home eviction rate, the 13th highest among the nation's large cities.

Among the suggestions: Increase funding for affordable housing from the public and private sectors. Improve legal protections for tenants. Provide better support services for low-income renters. Use lower-cost manufactured housing. Persuade landlords and tenants to take advantage of available options for education and training on their rights and responsibilities.

Perhaps the most frequent recommendation: Expand collaboration among stakeholders.

“Collaboration is a big key to this on a lot of different levels,” said Justin Barker of Pathfinder Services, which assists people with disabilities.

“One organization can't do it all,” he said. “We need each one here at the table and each one in this room to be able to push that needle forward for these low-income households in Indiana.”

Barker was among 10 people invited to participate in the roundtable discussion at Tiffany Heights Apartments on Elmcrest Drive by U.S. Sen. Todd Young. About 40 more people crowded into the Tiffany Heights office, and Young encouraged them to weigh in, too.

Young, R-Ind., said the nation suffers from a “housing affordability crisis.” He has introduced bills addressing it, including legislation signed into law that aims to help public housing voucher recipients relocate to lower-poverty areas.

“Getting people into safe and stable housing saves on health care and education expenses and public safety and corrections,” Young said.

He was accompanied by Matthew Desmond, a Princeton University sociologist and author of the Pulitzer Prize-winning “Evicted: Poverty and Profit in the American City.”

“We are at a point in this country where we are evicting people not by the thousands or hundreds of thousands, but by the millions every year,” Desmond said. “There are more eviction filings in America every single year than there were foreclosure filings at the height of the (financial) crisis” in 2007-08.

The odds of being evicted triples for tenants with children, he said, noting that a New York evictions court offered child-care services until recently.

“So if we want more family stability and more community stability, we need fewer evictions,” Desmond said.

He said a third of evictions involve tenants who owe less than a month's rent.

“People are getting evicted for peanuts. This doesn't make any sense,” Desmond said.

He and others lamented state laws that allow eviction records to follow people as they seek housing elsewhere. An audience member mentioned that Indiana allows for eviction records to be stuck to adult children living with evicted parents.

Desmond said renters have few resources at their disposal for researching and comparing landlords.

“We don't even have the capacity in most cities to identify which landlords are awesome and which landlords are really breaking the rules, and that's strange to be in the dark in the age of the internet,” he said.

Roundtable participants agreed that affordable housing is in great demand in Fort Wayne.

“Our phone rings off the hook. People walk in the door all the time. ... Our tax-credit properties are full,” said Nikki Gillenwater of New Generation Management, which manages affordable-living communities.

Roundtable participants included representatives of the Fort Wayne Housing Authority, Brightpoint, Vincent Village, Keller Development, Prosperity Indiana, the Affordable Housing Association of Indiana and the Indiana Manufactured Housing Association.

Young and Desmond conducted a similar discussion Wednesday morning in South Bend, which has the country's 18th highest eviction rate among large cities, according to Princeton's Eviction Lab, a nationwide database of evictions. Indianapolis has the 14th highest rate.

Eviction Lab calculates its eviction rate as the number of evictions for every 100 renters homes in an area. Fort Wayne's rate was 7.39% in 2016, the last year measured.

Three communities in northeast Indiana – Waterloo, Grabill and Cromwell – had among the 60 highest eviction rates for small communities and rural areas nationwide in 2016. All three were in double digits, topped by Waterloo's 24.3%, ranked ninth nationally.

2019 Policy & Pizza Meetings

Mon, 05 Aug 2019 17:35:56 GMT

Register for the Policy & Pizza event with legislators from your region below!

Southern Region

Friday, August 23

Northeast Region

Thursday, September 5

Northwest Region

Thursday, September 12

Midwest Region

Thursday, September 19

Central Region

Friday, October 4

North Central Region

Friday, October 4

Congress Passes Bill to Lift Budget Caps

Fri, 02 Aug 2019 15:30:00 GMT

As we referenced in our federal budget update in late June, increases in U.S. House-passed FY20 funding bills for housing and community development programs within the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA) would not have a chance of enactment unless Congress agreed to lift spending caps put in place under the Budget Control Act of 2011. Further, if no deal was reached, discretionary programs faced a 10 percent cut across-the-board.

Fortunately, both chambers passed a budget deal before heading out for August recess that would lift the budget caps by about $50 billion this year and another $54 billion the following year and the debt for two years. The package passed by a vote of 284-189 in the House. 67-28 in the Senate. The agreement has received support from President Trump who plans to sign the bill this afternoon and averts prospects of a government shutdown prospects ahead of current funding deadline (October 1).

Under the budget deal, domestic programs will receive a 4.5 percent increase over current FY19 spending levels. Unfortunately, that leaves funding overall at $15 billion less than the House proposed budget.

The work ahead for Prosperity Indiana and our members is to remain focused on Senate budget negotiations that will commence in September now that Congress passed this agreement. We will urge our Senators to pass urgently needed increases in funding for community development programs at House-passed levels. Too see a breakdown of that funding, click here for our chart of programs.

Prosperity Indiana Urges HUD to Withdraw Mixed-Status Rule Proposal

Tue, 09 Jul 2019 22:15:10 GMT

Prosperity Indiana provided the following comments to the Department of Housing and Urban Development's proposed rule to prohibit “mixed-status” families from living in public housing and Section 8 units.

HUD claims that the rule is necessary to prevent undocumented immigrants from benefiting from federal housing assistance. However, existing law already does this. Right now, a family’s rent subsidy is decreased (or prorated) to account for household members who are ineligible for the assistance based on immigration status.

The truth is that this rule proposal

does not alleviate long waits for housing assistance.
promotes misinformation about immigrant communities.
imposes onerous documentation requirements for thousands of housing agencies and private property owners.
represents a tremendous cost and burden for housing authorities and private owners of Section 8-assisted properties.
will most certainly affect households beyond those who are mixed-status as studies show that citizens with low incomes are more likely than others to lack both proof of citizenship or other forms of identification.

Docket No. HUD-2019-0044
RIN 2501-AD89

July 9, 2019

Office of General Counsel, Rules Docket Clerk
Department of Housing and Urban Development
451 7th Street SW, Room 10276
Washington, DC 20410

To Whom It May Concern:

Prosperity Indiana appreciates the opportunity to express our strong opposition to Department of Housing and Urban Development’s (HUD) proposed rule that would impose new burdensome, damaging changes regarding the "verification of eligible status.” Our organization represents a network of more than 170 community development organizations dedicated to helping low-income Hoosiers achieve and maintain housing and economic security in each of our state’s 92 counties.

Our members strive to ensure all Hoosiers can access safe, stable and affordable housing. This proposal to prohibit “mixed-status" families from living in public and federally-assisted housing through Housing Choice Vouchers and Section 8 Project-Based Rental assistance, the three largest HUD housing programs, undermines those efforts. This rule would force families who receive benefits to face eviction from subsidized housing after 18 months for living with those who are ineligible for assistance.

Secretary Carson has characterized the proposed rule as a means to help “legitimate American citizens,” so that we can “put America’s most vulnerable first.” In explaining the justification for implementing this proposal, Carson noted that “there are hundreds of thousands of children, as well as elderly and disabled, who are on the waiting list who are legal American citizens.” In our view, it is most important to note that this rule will do nothing to further achieve those aims, as current law already prohibits ineligible households from receiving assistance.

Section 214 states that the Secretary of HUD is prohibited from making financial assistance available to persons other than United States citizens, nationals, or certain categories of eligible noncitizens in HUD's public and specified assisted housing programs. Further, United States Code defines how HUD should comply in upholding that regulation, while allowing for mixed-status households.

42 U.S. Code § 1436a(b)(2) states:

“If the eligibility for financial assistance of at least one member of a family has been affirmatively established under the program of financial assistance and under this section, and the ineligibility of one or more family members has not been affirmatively established under this section, any financial assistance made available to that family by the applicable Secretary shall be prorated, based on the number of individuals in the family for whom eligibility has been affirmatively established under the program of financial assistance and under this section, as compared with the total number of individuals who are members of the family.”

As clearly outlined, housing for mixed-status households is allowed, albeit prorated to ensure the regulation is fulfilled and those who are not eligible for housing assistance do not receive a subsidy.

Instead of providing a new protection against potential abuse, the rule promotes misinformation about immigrant communities. Mixed-status families are those that include both members who are eligible and ineligible for housing assistance based on their immigration status. Being an immigrant who is ineligible for housing assistance does not mean they are not legal residents or undocumented. Immigrants can have legal status and still not be eligible for federally assisted housing programs.

Additionally, the proposal does not alleviate long waits for housing assistance. The proposal’s practical impact will be to force families of mixed immigration status to break up to receive housing assistance, forego the assistance altogether, or face termination from the programs. By HUD’s own analysis, this measure would force more than 55,000 children, who are U.S. citizens or legal residents, to face eviction under the proposed rule . This comes at a time when community development organizations throughout Indiana, and in other states across this country, are working harder than ever to confront an affordable housing crisis. Our communities can ill afford this misguided policy when there are already measures ensuring public funds are being used to assist only eligible individuals.

In Indiana, 46 percent of renters are cost-burdened and 86 households are evicted every day. Our state has a 134,485-unit deficit of housing that is affordable and available for extremely low-income households (those earning at or below 30 percent of area median income). Only one-in-four households eligible for federal assistance receives it. Prosperity Indiana shares HUD’s concern about long waiting lists for housing assistance. However, we believe the Administration should focus on increasing budget requests to address the critical need for expanded affordable housing production and preservation, rather than destabilizing housing or forcing family separation for thousands of eligible, legal residents and citizens.

The proposed rule imposes new, expensive and onerous documentation requirements for thousands of housing agencies and private property owners, who would have to collect documents “proving” the citizenship for the more than nine (9) million housing-assisted residents under the age of 62 to be screened through the Systematic Alien Verification for Entitlements Program (SAVE) within the Department of Homeland Security. This added reporting is a waste of resources to require citizens, who have already attested under penalty of perjury, to “prove” that they are U.S. citizens.

Critically, this will most certainly affect households beyond those who are mixed-status. Studies, including one from the Brennan Center for Justice, show that citizens with low incomes are more likely than others to lack both proof of citizenship or other forms of identification . The Brennan Center study found 12 percent of U.S. citizens with incomes below $25,000 lack proof of citizenship, and adults earning under $35,000 are twice as likely as others to lack a government-issued photo ID. The elderly, people of color and women are also less likely to have identifying documents. Accordingly, the proposed rule will likely affect eligible households without mixed-status, as well as those that are mixed-status.

Compliance with these regulations represents a tremendous cost and burden for housing authorities and private owners of Section 8-assisted properties. In Indiana, no protection from source of income discrimination exists, so affordable housing organizations and shelters statewide already report challenges in helping low-income individuals and families access affordable housing, particularly because landlords do not want to accept Section 8 vouchers. This rule will further deter private housing providers from participating in Section 8 programs, worsening already substantial barriers to housing affordability for low-income Hoosiers.

On behalf of our network striving to ensure more residents of Indiana can prosper and live in safe, secure housing, we urge HUD to withdraw this proposal and appreciate your consideration.

Sincerely,

Jessica Love
Executive Director

House Passes Funding Bill With Substantial Increases for Housing & Community Development Programs

Thu, 27 Jun 2019 17:11:42 GMT

Thanks in part to your advocacy and response to our Action Alert, the U.S. House passed a package of FY20 funding bills on June 25 that includes critically needed increased funding for housing and community development programs within the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA) by a vote of 227-194.

It is important for Prosperity Indiana members to note, however, that before any spending bill can go into effect, Congress must agree to lift spending caps put in place under the Budget Control Act of 2011. If that does not occur, these programs could face 10 percent cuts across-the-board. We urge members to continue speaking to your Representative and our Senators about the need to reach agreement on such a measure.

As an overview, this House bill provides urgently needed increases, in funding for Housing Counseling, Section 202 Housing for the Elderly, Section 811 Housing for People with Disabilities, and Homeless Assistance Grants. It also includes enough funding to renew all existing Housing Choice Vouchers and Project-Based Rental Assistance contracts.

There were some amendments passed that found mechanisms to increase funding for Homeless Assistance Grants - one aimed at serving youth experiencing homelessness ($5 million) and another to study transitional housing grants ($1 million). Our Prosperity Indiana federal budget chart is below.

In terms of policy amendments of importance to PI members, there was one passed that would examine alternative methods for calculating Fair Market Rents in shifting markets with rapidly rising rents. Despite amendment proposals, the bill retained language that would prevent the administration from imposing it's mixed-status rule proposal and from amending the Equal Access rule to allow homeless shelters to deny equal treatment for transgender individuals experiencing homelessness.

Proposed Funding By Program

(In Millions)

Program	FY19 Enacted	FY20 Administration	FY20 House	FY20 Senate	FY20 Enacted
Transportation-Housing and Urban Development
CDBG	3,300	0	3,600
HOME	1,250	0	1,750
Tenant Based Rental Assistance	22,598	22,244	23,810
Project-Based Rental Assistance	11,747	12,021	12,590
Homeless Assistance Grants	2,636	2,599	2,800
Housing Counseling Assistance	50	45	60
Public Housing Capital Fund	2,775	0	2,855
Public Housing Operating Fund	4,653	2,863	4,753
Choice Neighborhoods Initiative	150	0	300
Family Self-Sufficiency Program	80	75	100
Jobs-Plus Pilot Sufficiency Program	15	15	15
HOPWA	393	330	410
Self-Help Homeownership Opportunity Program	10	0	55
202 (Housing for Elderly)	678	644	803
811 (Housing for Persons with Disabilities)	184	157	259
Rental Assistance Demonstration	0	100	0
Fair Housing and Equal Opportunity	65	62	75
Healthy Homes and Lead Hazard	279	290	290
Policy Development and Research	96	87	98
Agriculture, Rural Development, and Food and Drug Administration
502 Single Family Guarantee	24,000	24,000	24,000
502 Single Family Direct	1,000	0	1,000
502 Self-Help set-aside	5	0	0
521 Rental Assistance	1,331	1,375	1,375
515 Rental Housing Direct Loans	40	0	45
504 VLI Repair Loans	28	0	28
523 Self-Help TA	30	0	32
538 Rental Hsg. Guar.	230	250	250
Rental Prsrv. Demo. (MPR)	24.5	0	40
Rural Community Development Initiatives	6	0	8
Rental Preservation TA	1	0	0

Contact Your Representative Today as House Considers FY2020 Housing and Community Development Funding

Mon, 24 Jun 2019 15:16:01 GMT

The House is set to consider amendments to H.R. 3055 today! This bill includes critical increases in funding for housing and community development programs at the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA). We urge members to expand our outreach to the Indiana delegation by:

Sending this pre-dafted letter urging your Representative to support the bill as well as amendments that would increase investments in affordable housing for low-income households and oppose any amendments that would reduce funding for HUD and USDA programs.

The letter also urges Representatives to support the bill’s policy provisions, including the provision that would prevent HUD from implementing the proposal that would force mixed-status immigrant families – including children who are U.S. citizens or have legal status – to either separate or face eviction and possible homelessness.

Call your Representative directly. See below for helpful talking points. You can easily find/confirm your representative by entering your address under the "Find Politicians" box on our Advocacy Action Center. If you already know your Representative, you can dial the U.S. Capitol Switchboard at 202-224-3121.

For more details, click here to read our summary of the budget bill, including a complete budget chart, or here to read a summary of the Appropriation's Committee's consideration of the bill.

Please contact Kathleen Lara at klara@prosperityindiana.org with any questions. Thank you for your advocacy!

Talking Points:

I respectfully urge you to support H.R. 3055, which contains critical increases in funding for housing and community development programs at the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA).
The bill provides sufficient funding to renew all existing contracts provided through Housing Choice Vouchers and Project-Based Rental Assistance and increases funding for the Section 202 Housing for the Elderly, Section 811 Housing for People with Disabilities, Homeless Assistance Grants, and Rural Multifamily Housing Preservation and Revitalization.
It also authorizes funding for competitive grants to public housing agencies to reduce lead-based paint and other health hazards, which is of particular concern in Indiana.
Our state is facing an affordable housing and eviction crisis. Prosperity Indiana recently released the 2019 Out of Reach Report for Indiana, alongside the National Low Income Housing Coalition, that found that the cost of remaining stably housed continues to rise for average Hoosier renters in most Indiana counties and is out of reach for low-wage workers in every county of the state.
If you are a Hoosier earning minimum wage, data shows you have to work 88 hours per week to afford a two-bedroom apartment, as there is a monthly deficit of over $450 to afford the state average fair market rate for a modest two-bedroom unit.
Even for the typical renters in Indiana, in 82 of 92 counties, a 2-bedroom apartment is not affordable.
These housing wage deficits worsen housing affordability gaps that have already been challenging communities across the state, regardless of size.
Currently, Indiana has a 134,485-unit deficit of affordable, available rental housing for the quarter of all renters in the state who are extremely low-income (which is a maximum of $24,600 per year for a family of four).
It has also been established that, conservatively, 86 households are evicted in Indiana each day.
Our state has three large cities in the top 20 nationwide for eviction rankings.
Further, only one in four households that qualifies for federal housing assistance receives it.
The challenges are great, but modest increases in investments to the housing and community development programs contained within H.R. 3055 will help ensure more communities receive funding to expand safe, affordable housing and more Hoosiers have an opportunity to prosper.
Given the scale of the challenges confronting Hoosier communities, I ask that you support amendments to increase investments in affordable housing for low-income households. Accordingly, I urge you to oppose any amendments that would reduce funding for HUD and USDA housing and community development programs.
I also ask that you support the bill's policy provisions, including the provision that would prevent HUD from implementing the proposal that would force mixed-status immigrant families - including children who are U.S. citizens or have legal status - to either separate or face eviction and possible homelessness.
As already discussed, Indiana cannot afford to have increased evictions or more families experiencing housing instability leading to homelessness and expect to thrive.

Media Coverage of the 2019 Out of Reach Report Release Illuminate Affordable Housing Challenges Across the State

Wed, 19 Jun 2019 18:33:22 GMT

On the heels of the release of the 2019 Out of Reach report, several media outlets took note and ran stories that lift up why this housing wage data is so critical and why our advocacy work to expand the supply of affordable housing is essential to ensuring more Hoosiers have the opportunity to prosper. Below are the highlights:

Televised News:

Russ McQuaid - Fox59: Study shows affordable housing remains out of reach for many Hoosiers

POSTED 4:33 PM, JUNE 18, 2019, BY RUSS MCQUAID, UPDATED AT 06:59PM, JUNE 18, 2019

INDIANAPOLIS, Ind.-- A woman who didn’t want to give her name explained what it cost to live at the Maple Creek Apartments on West Michigan Street west of Haughville.

“It's $628 a month,” she said. “I make about $900 gross a month.”

That's two-thirds of her money going to rent. How does she pay for clothes, electricity and food?

“It's very hard. I’m a single mother,” she said. “I get my bills aside and I calculate them all up and pay what’s important and what’s not important I leave to the side and pay’s over.”

The anonymous mom is one of tens of thousands of Hoosiers that a new study finds can’t afford to live in suitable housing at a reasonable rate.

“Out of Reach: The High Cost of Housing," a study released jointly by Prosperity Indiana and The National Low Income Housing Coalition, reported a worker must earn $16.02 an hour to afford a modest two-bedroom apartment or a minimum wage employee must work 88 hours a week to pay the rent in a comparable unit.

A Prosperity Indiana statement quotes Love as calling for “an urgent need for action in implementing common-sense solutions at the federal and state level to address our affordable housing crisis.”

Derrick Maxwell is a former leasing agent at Maple Creek who stayed on a resident.

“Some of the residents are on Social Security, most retired vets and things like that, they don’t have the means because they’re set on a steady income and I feel like they should not be ostracized because they are on a fixed income,” said Maxwell who estimates he pays a quarter of his monthly income in rent. “There’s not a lot of jobs here in Indianapolis that are…or maybe these people don’t have the type of skill settings and training to make those type of jobs and make that money so it's kind of hard and you’re forced to live in areas where you would prefer not to be in because you only meet their income limit.”

Back east along West Michigan Street at White River Parkway, work continues on the Riverview Apartments, a complex developed by Goodwill and Strategic Capital Partners.

“It's targeted to families with incomes of $40-60,000 and really those that focus in that area,” said Goodwill Vice President Cindy Graham. “When we started to take a look at what was happening in the Indianapolis rental market and seeing that some of those people that are in those mid-level jobs like nursing, teachers, firemen, policemen, are really getting priced out of the fair market pricing market in the downtown area, yet their services are still needed.”

The one- and two-bedroom apartments will rent for an average of $1.35 per square foot, about ten percent less than the average rental costs in downtown.

“You would be surprised to know that Goodwill has teachers,” said Graham. “We operate 14 adult high schools and a traditional school right here on this property and we have nurses who work for us, too, so we actually have employees who would qualify for workforce housing.”

Market analysts report downtown Indianapolis’ residential rental occupancy rate is 93%, down three percent from a couple years ago, as the Mile Square is set to absorb another 1300 new rental units coming on line in 2019.

Back at Maple Creek, the woman who feared that revealing her name would anger the landlord said she had good reasons to cut corners in order to keep a roof over her family’s heads.

“If you don’t have a house, your kids gonna go to the State and you’re gonna be homeless,” she said, “and I don’t want to be homeless.”

Print Media/ Radio:

Study: SEI Renters' Incomes Not Enough To Afford Decent Place

By Mike Perleberg

A new report found the cost of remaining stably housed continues to rise for average Hoosier renters in most Indiana counties. Decent housing is out of reach for low-wage workers in every county of the state.

(Lawrenceburg, Ind.) - A new study says rents are unaffordable for low-wage workers in southeastern Indiana, as well as most of the state.

The report - Out of Reach: The High Cost of Housing - from Prosperity Indiana and the National Low Income Housing Coalition says that in order to afford a modest, two-bedroom apartment at fair market rent on $834 in Indiana, a household must earn $2,779 monthly – or about $33,346 annually. The needed pay figure is up from last year’s study.

With almost a third of households statewide being rented, data shows that typical renter income is insufficient to afford rental housing in 82 of the state’s 92 counties. Included in that list are Dearborn, Franklin, Ohio and Ripley counties, where estimated average renter wages are among the lowest in the state.

The study suggests renters in southeastern Indiana have to work more than one 40-hour week job at the average renter wage in order to have enough money to afford a decent two-bedroom unit. For those making the state minimum wage of $7.25, paying the monthly rent is almost impossible.

In the Cincinnati area, the annual income needed to afford such an apartment is higher at $35,360 than Indiana. About 21 percent of homes in the area are rentals.

“For Hoosiers working full-time at minimum wage, there is a monthly deficit of over $450 to afford the state average fair market rate for a modest two-bedroom unit,” said Jessica Love, Prosperity Indiana’s executive director.

Conservative figures cited in the study show that nearly 32,000 households statewide are evicted each year. With an affordable housing deficit of 134,485 units in Indiana, low-income earners have few options.

Love believes there is “an urgent need for action in implementing common-sense solutions at the federal and state level to address our affordable housing crisis.”

Indiana U.S. Senator Todd Young and others in the Senate last week introduced the HUD Manufactured Housing Modernization Act of 2019. The federal legislation is aimed at improving access to safe and stable housing would provide new support for state and local governments wishing to include manufactured homes as a solution.

“Solving the housing affordability crisis for Hoosiers of all income levels is going to require bold and innovative changes to our nation’s housing policies,” said Young. “With over 2.5 million Hoosiers already living in manufactured homes — and with Hoosier workers leading the way in construction of manufactured housing — I know it’s time to put greater emphasis on manufactured housing as a housing affordability solution.”

Another bill by Young, S. 1772, would establish a task force to assess the impact of the affordable housing crisis and identify possible solutions.

Rental housing needs have worsened considerably over the past 30 years since Out of Reach was first released. Diane Yentel, president and CEO of the National Low Income Housing Coalition, says that although housing is out of reach for millions of low-wage workers, members of Congress are starting to take note.

“Big, robust housing bills have been introduced by key policymakers. The topic of affordable housing is becoming increasingly prevalent on the 2020 presidential campaign trails. We now have a tremendous opportunity to implement bold federal housing policy solutions that will fund affordable housing programs at the scale necessary,” said Yentel.

REPORT RELEASED TODAY: AFFORDABLE HOUSING FURTHER OUT OF REACH FOR AVERAGE & LOW-INCOME HOOSIER RENTERS

Tue, 18 Jun 2019 15:19:53 GMT

AFFORDABLE HOUSING OUT OF REACH FOR AVERAGE RENTERS IN 82 OF 92 INDIANA COUNTIES, IN ALL 92 FOR LOW-INCOME RENTERS

The cost of remaining stably housed continues to rise for average Hoosier renters in most Indiana counties and is out of reach for low-wage workers in every county of the state, according to a national report released today. The report, Out of Reach: The High Cost of Housing, is jointly released by Prosperity Indiana, a statewide community development network, and the National Low Income Housing Coalition (NLIHC), a research and advocacy organization dedicated solely to achieving affordable and decent homes for the lowest income people.

In order to afford a modest, two-bedroom apartment at fair market rent in Indiana, renters need to earn $16.03 per hour. That figure is up from $15.56 in 2018, further exacerbating gaps in housing affordability in communities across the state. Working at the minimum wage of $7.25 in Indiana, a worker must have 1.8 full-time jobs or work 71 hours per week to afford a modest one-bedroom apartment; or have 2.2 full-time jobs or work 88 hours per week to afford a two-bedroom apartment.

“Data shows that the typical renter income is insufficient to afford rental housing in 82 of Indiana’s 92 counties,” said Jessica Love, Prosperity Indiana’s Executive Director. “For Hoosiers working full-time at minimum wage, there is a monthly deficit of over $450 to afford the state average fair market rate for a modest two-bedroom unit.” Noting that conservative figures show 31,767 renter households statewide are evicted each year, Love believes there is ”an urgent need for action in implementing common-sense solutions at the federal and state level to address our affordable housing crisis.”

Indiana has a 134,485-unit deficit of affordable, available rental housing for the 27 percent of Indiana renters who earn 30 percent of Area Median Income, a maximum of $24,600 per year for a family of four. The Out of Reach report also highlights, for example, that rent that would be considered affordable for this income threshold is $527, well below the fair market rents for both one-bedroom and two-bedroom apartments in Indiana.

Senator Todd Young (R-Ind.), who has introduced legislation aimed at addressing barriers to safe, stable housing, said, “I’ve seen firsthand in Indiana how a lack of affordable housing has negative and lasting consequences. The inability to access safe and affordable homes leaves Hoosier families with fewer dollars to spend on important expenses like health care and groceries. As part of my Fair Shot Agenda, I’ve made solving this crisis a top priority.”

Young added that one such bill, S. 1772, is a bipartisan measure that “would assemble a group of experts to better understand the housing affordability crisis, so that we can take legislative action and end the cycle of poverty for millions of struggling Americans.”

Rental housing needs have worsened considerably over the past 30 years since Out of Reachwas first released, but the time is right to reverse that trend according to Diane Yentel, president and CEO of the National Low Income Housing Coalition.

Yentel said, “Housing is out of reach for millions of low-wage workers. But members of Congress are starting to take note. Big, robust housing bills have been introduced by key policymakers. The topic of affordable housing is becoming increasingly prevalent on the 2020 presidential campaign trails. We now have a tremendous opportunity to implement bold federal housing policy solutions that will fund affordable housing programs at the scale necessary.”

For additional details, a copy of the Out of Reach 2019 report is available at: https://reports.nlihc.org/oor/indiana

Senator Young Introduces Key Affordable Housing Bills

Wed, 12 Jun 2019 19:38:41 GMT

Prosperity Indiana is pleased to lend our support to key initiatives introduced/re-introduced by Senator Todd Young (R-Ind.) this month. Bill details are listed below:

AFFORDABLE HOUSING CREDIT IMPROVEMENT ACT

On June 4, Senator Young was announced as a co-author of S. 1703, the Affordable Housing Credit Improvement Act of 2019. This bill will help expand the supply affordable housing for low-income Hoosiers! Below are key highlights of the impact in Indiana:

The bill would produce roughly 1.9 million new affordable housing units over the next decade, an increase of over 550,000 more units than would be built without the legislation. The bill increases the total number of affordable housing units built by:

Increasing the amount of credits allocated to each state by 50% over current levels, resulting in the production of more than 384,000 more affordable homes in the next 10 years than would otherwise be created.

Stabilizing the value of the 4% Affordable Housing Tax Credit – which is used for new construction that uses additional subsidies or the acquisition cost of existing buildings. This will create more certainty for ongoing and new projects and increase affordable housing production by more than 66,000 units.

Expanding and reforming “recycling” of multifamily housing bonds, allowing states to maximize the available resources of private activity bonds by recycling multifamily bonds for affordable housing, resulting in 100,000 additional affordable housing units.

TASK FORCE ON THE IMPACT OF THE AFFORDABLE HOUSING CRISIS ACT

On June 11, Senator Young along with 15 bipartisan senators, reintroduced the Task Force on the Impact of the Affordable Housing Crisis Act (S. 1772) on June 11. The bill would create a bipartisan affordable housing task force to better understand and respond to America’s housing affordability crisis.

This bipartisan task force would:

Evaluate and quantify the impact the lack of affordable housing has on other sectors, including education, health, nutrition, transportation, and more.
Evaluate and quantify the costs incurred by other federal, state, and local programs due to the lack of affordable housing; and
Make recommendations to Congress on how to use affordable housing to improve the effectiveness of other federal programs and improve life outcomes.

HUD MANUFACTURED HOUSING MODERNIZATION ACT OF 2019

Additionally, on June 12, Sen. Young joined Senators Catherine Cortez Masto (D-Nev.), Tim Scott (R-S.C.), Tina Smith (D-Minn.), and Kevin Cramer (R-N.D.) in introducing the HUD Manufactured Housing Modernization Act of 2019 to ensure that the Department of Housing and Urban Development (HUD) supports state and local governments that wish to include manufactured housing as an affordable housing solution when applying for federal funding.

House Committee Approves Federal Housing, Community Development Funding Bills, Floor Consideration Next

Mon, 10 Jun 2019 19:57:45 GMT

The House Appropriations Committee Approves Housing Bills, Full House Set to Vote This Week

On June 4, the House Appropriations Committee moved forward its FY2020 spending bills for affordable housing, community development, and rural development programs. Click Here to find our earlier blog post that includes the full budget chart breakdown of interest for Prosperity Indiana members.

Both the Transportation, Housing and Urban Development (THUD) and the Agriculture, Rural Development, funding bills passed by a 29-21 vote. Members of the committee did not offer any amendments related to the housing provisions of either bill. A package of spending bills, including Rural Development and THUD will be considered by the full House of Representatives on the week of June 17.

HUD— The bill provides a total of $50.1 billion for HUD - $5.9 billion above the 2019 enacted level and $13.4 billion above the President’s budget request.

Policy Provisions – In addition to the budget figures, the bill includes the following policy provisions:

Blocks the administration’s public housing rule change on undocumented immigrants in affordable housing
Requires all HUD grantees to develop a resiliency plan as part of the consolidated planning process.

Rural Development and Infrastructure— The bill provides a total of more than $3.943 billion for rural development programs, including critical housing assistance and loan programs.

Food and Nutrition Programs— The package also includes mandatory funding for food and nutrition programs within the Department of Agriculture. This includes funding for the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), the Supplemental Nutrition Assistance Program (SNAP), and child nutrition programs.

Media Takes Note of Housing Press Conference & Conversation on Evictions and Affordable Housing During Housing Week of Action

Thu, 06 Jun 2019 14:30:00 GMT

Prosperity Indiana is pleased several media outlets helped lift up our productive conversation around evictions and affordable housing at Horizon House on June 5, entitled "Confronting a Hoosier Housing Crisis."

Print Media

Lack of affordable housing is a growing problem in Indiana

June 5, 2019 | Filed under: Jobs, economy & labor,Top stories | Posted by: Janet Williams

By Abrahm Hurt
TheStatehouseFile.com

INDIANAPOLIS—Every day in Indiana 86 families or nearly 32,000 a year are evicted from their homes, an event that will end up making it more difficult for them to find a place they can afford.

That statistic was shared Wednesday by Prosperity Indiana, an economic development organization that works to provide resources and advocacy to strengthen local communities.

Nearly half of all Hoosiers who rent are burdened by the cost because they are paying more than 30% of their monthly income on housing, said Jessica Love, executive director of Prosperity Indiana.

Jessica Love of Prosperity Indiana describes the challenges low-income Hoosiers face in seeking affordable housing. Photo by LaMonte Richardson, TheStathouseFile.com

Across the state there is a lack of affordable housing for low-income individuals, she added. In fact, Indianapolis has the 14thhighest eviction rate among large cities in the United States, according to their data.

“While we’re sharing some dire statistics and trends today, we’re not doing so to indicate that the situation is hopeless,” Love said. “Rather, we want to encourage more voices to speak up now on what is happening to Hoosiers who are housing unstable and build support for the best solutions at the federal, state and local levels.”

Prosperity Indiana joined the Coalition for Homelessness Intervention and Prevention (CHIP), the IU Public Policy Institute and the National Low Income Housing Coalition at the Horizon House in Indianapolis to discuss the affordable housing issue. They stressed the need for advocacy to advance state and federal policy solutions.

Love said two bills filed in the 2019 legislative session would have helped prevent evictions and ensure renters live in safe housing, but they both failed to pass.

Senate Bill 524, authored by Sen. Eddie Melton, D-Gary, would have expanded legal aid to tenants in crisis, and it would have made it a criminal offense to rent a condemned property. It was assigned to the Commerce and Technology Committee and never got a hearing.

Senate Bill 422, which was authored by Sen. Mike Bohacek, R-Michiana Shores, would have allowed tenants to terminate a lease if basic habitability standards were not met within a reasonable time frame after moving in. The bill got out of the Judiciary Committee but never got a vote on the floor of the full Senate.

Kathleen Lara, policy director for Prosperity Indiana, said the biggest reason the legislation failed was because the issue had not been addressed in more than 10 years and a general lack of testimony in favor of the bills.

Michael Hurst, an attorney with Indiana legal services, has been part of a project to make the eviction process less transactional in Indiana and provide counsel. In six months, Hurst has handled 178 referrals.

“I kept the eviction of their record, but when push came to shove, they were not able to find alternative, affordable housing to go to,” he said, explaining that most of his clients are single mothers who cannot find housing they can afford.

Prosperity Indiana reports that an individual making minimum wage would have to work 86 hours a week to afford a two-bedroom apartment at a fair market rate in the state.

Love said a larger coalition of people and groups would bring more options and policy changes.

“We’ve said it’s not legal to put people in a home that’s not habitable,” she said. “But there’s also nothing happening really to enforce that.”

Abrahm Hurt is a reporter for TheStatehouseFile.com, a news website powered by Franklin College journalism students.

This story also ran in:

South Bend: https://www.southbendtribune.com/news/local/lack-of-affordable-housing-is-a-growing-problem-in-indiana/article_001358b7-dffa-5b97-94aa-5b4a29cea0eb.html

Bloomington: https://www.hoosiertimes.com/herald_times_online/news/state/lack-of-affordable-housing-is-a-growing-problem-in-indiana/article_a496f67a-6644-5791-8ce2-4db3bd4da42a.html

NUVO (Indianapolis): https://www.nuvo.net/news/lack-of-affordable-housing-is-a-growing-problem-in-indiana/article_e3227d12-8874-11e9-bd43-bfe945bcb28e.html

Print/Public Media (WFYI/WBAA):

Indianapolis: https://www.wfyi.org/news/articles/community-advocates-call-for-more-affordable-housing-to-solve-eviction-problems

Lafayette: https://www.wbaa.org/post/community-advocates-call-more-affordable-housing-solve-eviction-problems#stream/0

Community Advocates Call For More Affordable Housing To Solve Eviction Problems

ORIGINAL STORY FROM IPBS-RJC

BRANDON SMITH

Article origination IPBS-RJC

Leaders from Indiana and national community organizations discuss the state's high eviction rates and potential solutions.

Brandon Smith/IPB News

Indiana has one of the highest rates of evictions in the country – only six states are worse.

And many community advocates point to one issue as a major cause.

Three of Indiana’s biggest cities are in the top 20 in the country among comparably-sized communities for highest eviction rates – Fort Wayne, Indianapolis, and South Bend. Indianapolis has the second most evictions of any city in the country, behind only New York City.

Prosperity Indiana’s Jessica Love – like many community advocates – points to a major issue the state must address to help reduce evictions.

“They must also include more resources to fund the expansion of affordable housing,” Love says.

Judy Fox runs the Economic Justice clinic in South Bend. She says she’d also like to see Indiana create an eviction expungement process.

“If you were evicted 10 years ago, why is that still on your record and preventing people from renting to you?” Fox says.

Some community leaders say there’s hope for federal action, spearheaded in part by Sen. Todd Young (R-Ind.).

Radio Interview:

Following the event in Indianapolis, Prosperity Indiana's Executive Director, Jessica Love, and Policy Director, Kathleen Lara, appeared on the Community Connection segment of FM 92.7/AM 1310's The Light, hosted by Tina Cosby discussing evictions and the affordable housing crisis in Indiana.

You can listen to that interview here: https://praiseindy.com/2168011/community-connection-thursday-june-6th/

Opinion Piece: South Bend

Our Opinion: Indiana must treat safe, affordable housing with urgency

A shard of glass sticks out of the ground in a common area at Miami Hills apartment complex on May 21 in South Bend.

Tribune Photo/ROBERT FRANKLIN

Most would agree people should have access to safe, affordable housing, but that’s still an elusive goal for many.

Last month tenants at Miami Hills Apartments in South Bend complained about substandard living conditions they’ve been forced to live with. Problems ranged from mold on bathroom walls to leaking ceilings and water heaters not working properly.

And these are not new issues.

In a recent Viewpoint, Judith Fox, a University of Notre Dame law school professor and director of the Economic Justice Clinic, a group that provides free legal services to low-income clients, said she asked HUD in Indianapolis about the apartment complex more than 10 years ago.

Even though the apartment complex was failing inspections, HUD officials passed them anyway because people living there had no other housing options.

A story from TheStatehouseFile.com, a news website, recently reported that 86 families a day, or nearly 32,000 a year, are evicted from their homes in Indiana. And nearly half of all Hoosiers who rent are burdened by the cost because they are paying more than 30% of their monthly income on housing, according to Prosperity Indiana.

The Indiana General Assembly tried to weigh in on the issue. Two bills were filed in the 2019 legislative session that would have helped prevent evictions and ensure renters live in safe housing, but both failed to pass.

One would have made it a criminal offense to rent a condemned property, but it never it received a hearing. Another would have allowed tenants to terminate a lease if basic habitability standards were not met within a reasonable time after a tenant moved in. That bill was never voted on by the full Senate.

Locally, the South Bend Common Council recently adopted the Rental Safety Verification Program that underscores the need for more safe, affordable housing.

The program is managed by the Department of Code Enforcement and allows the city to proactively address violations in rental housing that put residents at risk for health issues and safety concerns.

After the first three months, 108 of 132 rental units inspected have failed. Most of those already had open violation files with code enforcement.

The RSVP is a good step, but it’s only a small one. There are still too many falling through the cracks.

There seems to be consensus building that safe, affordable housing is lacking here and elsewhere in the state. Now what’s needed is action, including from state lawmakers, to prioritize this public safety issue.

The House Releases FY20 Funding Proposals for Housing, Community Development Programs

Fri, 24 May 2019 20:05:12 GMT

This week, two House Appropriations Subcommittees set forth proposed funding levels for affordable housing and community development programs at the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA) for Fiscal Year (FY) 2020. The great news for Prosperity Indiana members is that these spending bills provide a robust increase in funding to housing programs that serve low-income people and communities overall. Both represent significant increases compared to the Administration's proposed FY 2020 budget, as we outlined in an earlier blog post, found here.

To watch the Appropriations Subcommittees' coverage of these two bills, click here for the USDA budget mark up and click here for the Transportation HUD mark up. The week after next, the full Appropriations Committee will consider both of these bills and vote on amendments.

Proposed Funding By Program

(In Millions)

Program	FY19 Enacted	FY20 Administration	FY20 House	FY20 Senate	FY20 Enacted
Transportation-Housing and Urban Development
CDBG	3,300	0	3,600
HOME	1,250	0	1,750
Tenant Based Rental Assistance	22,598	22,244	23,810
Project-Based Rental Assistance	11,747	12,021	12,590
Homeless Assistance Grants	2,636	2,599	2,800
Housing Counseling Assistance	50	45	60
Public Housing Capital Fund	2,775	0	2,855
Public Housing Operating Fund	4,653	2,863	4,753
Choice Neighborhoods Initiative	150	0	300
Family Self-Sufficiency Program	80	75	100
Jobs-Plus Pilot Sufficiency Program	15	15	15
HOPWA	393	330	410
Self-Help Homeownership Opportunity Program	10	0	55
202 (Housing for Elderly)	678	644	803
811 (Housing for Persons with Disabilities)	184	157	259
Rental Assistance Demonstration	0	100	0
Fair Housing and Equal Opportunity	65	62	75
Healthy Homes and Lead Hazard	279	290	290
Policy Development and Research	96	87	98
Agriculture, Rural Development, and Food and Drug Administration
502 Single Family Guarantee	24,000	24,000	24,000
502 Single Family Direct	1,000	0	1,000
502 Self-Help set-aside	5	0	0
521 Rental Assistance	1,331	1,375	1,375
515 Rental Housing Direct Loans	40	0	45
504 VLI Repair Loans	28	0	28
523 Self-Help TA	30	0	32
538 Rental Hsg. Guar.	230	250	250
Rental Prsrv. Demo. (MPR)	24.5	0	40
Rural Community Development Initiatives	6	0	8
Rental Preservation TA	1	0	0

General Assembly Interim Study Committee Topics Announced

Wed, 22 May 2019 19:25:17 GMT

The Legislative Council for the Indiana General Assembly released a resolution on May 21, outlining the study topics assigned to state legislators in interim study committees. There are several critical topics to Prosperity Indiana's member network and we will keep you updated as to when these meetings are scheduled and how to get engaged in advocacy related to these topics!

Revisions to the Uniform Consumer Credit Code (including payday lending).
State tax credits and other issues related to workforce housing and affordable housing. (Source: HB 1234-2019 (as introduced); Letter Lt. Gov. Crouch.
The recurring tax incentive review for the Neighborhood Assistance Tax Credit Program, Individual Development Assistance Tax Credit Program and the low income housing exemption

Prosperity Indiana Comments on CFPB Proposal to Undermine the Payday Rule

Wed, 15 May 2019 18:04:45 GMT

Today, Prosperity Indiana submitted a letter on behalf of our network in response to the proposal to rescind the commonsense ability-to-repay requirements of the Consumer Financial Protection Bureau (the Bureau)’s 2017 payday and vehicle title loan rule (“Ability-to-Repay Rule” or “Rule”). Payday lending is associated with greater risk of delinquency on rent payments and other bills, delayed medical care, overdraft fees, loss of bank accounts, and bankruptcy. It can also inflict severe psychological harm, including distress resulting from aggressive debt collection practices

Prosperity Indiana's letter cited polling from Indiana, conducted by Bellwether Consulting on behalf of numerous consumer coalition partners. As the letter outlines, the poll found "87 percent of respondents saying payday loans are a financial burden versus a financial relief; 94 percent said they are expensive versus inexpensive; and 84 percent said they are harmful versus helpful. Of critical importance to the CFPB’s proposed rule, 78 percent support requiring payday loan lenders to determine a borrower’s ability to pay back a loan without defaulting on other expenses."

Our letter noted that "in Indiana, advocates for consumers and strong

communities will continue to push for a statewide cap on payday loans. Prosperity Indiana will continue to expand the non-profit Community Loan Center program, offering consumers a low-cost payday alternative through employer partnerships. We will continue to strive for greater equity in lending and work to remedy the fact that many regulated banks have divested in communities of color while payday lenders are found to be 2.4 times more concentrated in African American and Latino communities."

The letter concluded by urging Director Kraninger to stand by the CFPB's mission: "In Indiana, we are working hard to empower consumers and support communities to reach that goal, but payday lending is undermining our efforts. The CFPB should be fulfilling its mission to protect consumers from unfair and deceptive practices and move forward with implementing the payday rule and maintaining the ability to repay standard. We urge you to reconsider this proposal and stand by consumers."

Prosperity Indiana also joined numerous consumer coalition partners in sending this letter as well: https://www.regulations.gov/document?D=CFPB-2019-0006-25771

Prosperity Indiana Provides Feedback to the Draft State Annual Allocation Plan

Mon, 13 May 2019 22:02:55 GMT

Today, Prosperity Indiana submitted feedback (linked here) to the Office of Community and Rural Affairs (OCRA) and the Indiana Housing and Community Development Authority (IHCDA) in response to requests for public comment on the draft of Indiana’s 2019 Annual Action Plan.

The Annual Action Plan is part of consolidated planning process, which serves as the framework to identify housing and community development priorities that align and focus funding from the CPD formula block grant programs: Community Development Block Grant (CDBG) Program, HOME Investment Partnerships (HOME) Program, Housing Trust Fund (HTF), Emergency Solutions Grants (ESG) Program, and Housing Opportunities for Persons With AIDS (HOPWA) Program. The Consolidated Plan is carried out through Annual Action Plans, which provide a concise summary of the actions, activities, and the specific federal and non-federal resources that will be used each year to address the priority needs and specific goals identified by the Consolidated Plan.

As part of the annual process of reviewing progress made toward goals stated in the 5-year Consolidated Plan and a description of allocation priorities, OCRA and IHCDA conduct public hearings, issue an online survey and solicit written public comments. Prosperity Indiana plans to engage our members throughout the year as both agencies work on program design and the next five-year Consolidated Plan. We urge our members to participate in these meetings to help shape state priorities for allocating federal housing and community development dollars. If you have any questions about this process or our feedback, please contact Prosperity Indiana’s Policy Director, Kathleen Lara, at klara@prosperityindiana.org.

It's Here: Our Spring Public Policy Update Webinar Recording!

Mon, 06 May 2019 18:08:51 GMT

We invite you to click on the link below to watch our Spring Policy Update from April 24, as Prosperity Indiana’s Policy Director Kathleen Lara updated members on the status of state and federal priorities critical to our network! This webinar covered the latest news from the Indiana General Assembly to Capitol Hill related to our efforts expand affordable housing, protect consumers, and strengthen Hoosier communities.

Prosperity Indiana Policy Update.mp4

It's a Wrap! 2019 Session of General Assembly Yields Important Wins, Missed Opportunities to Advance Prosperity in Indiana

Thu, 02 May 2019 14:14:37 GMT

This year, Prosperity Indiana saw some important policy wins, but legislators also failed to enact bills that would have propelled community development in our state. Here's everything you need to know about how we spent the last four months as your voice in the Statehouse and the work ahead to help more Hoosiers achieve housing and economic security!

(Note you can enjoy a more dynamic review of session work and priorities by checking out a recording of our April 24 Policy Update webinar, covering updates regarding state, federal, and administrative priorities)

Setting the Stage

This year was a long-session for legislators, meaning they needed to pass a statewide budget and adjourn by April 29. In contrast to the chaotic end of last year’s session, the General Assembly actually adjourned late last Wednesday, April 24.

House and Senate Leaders started this year’s session with an agenda focused on passing a balanced budget, making changes to existing workforce development programs, increasing funding for the Department of Child Services, funding for schools, teacher pay and school safety.

Governor Holcomb outlined his priorities under the banner of his Next Level Agenda, urging legislators to take action to increase teacher pay, pass an inclusive bias-crimes bill, expand broadband services in rural Indiana, expanding the Next Level Jobs initiative, and make improvements to the Department of Child Services.

Progress to Bring About Prosperity

Based on member feedback and engagement, Prosperity Indiana started session with an ambitious agenda focused on expanded tax credit resources for affordable housing and community development, working to enhance tenant protections for renters and expanding consumer protections to help more low-income households build assets! Thankfully, more than 30 members attended our Statehouse Day on January 29 to help build support for our state agenda, despite the polar vortex reigning subzero temperatures down on our state!

Consumer Protections

Bill: SB 104/HB 1098 Sen. Greg Walker (R- Columbus) and Rep. Carey Hamilton (D- Indianapolis) introduced a primary priority for Prosperity Indiana—putting a stop to the payday debt trap in Indiana by instituting a 36 percent cap Click here for our one pager with more details

Outcome: This session saw an important success in that SB 104 not only received a comprehensive hearing, but received enough votes to advance out of the Senate Financial Institutions Committee. Unfortunately, on the week SB 104 passed out of committee, the Senate Energy and Commerce Committee voted to advance a bill (SB 613) that had a strip-and-insert amendment that dramatically expanded high-cost subprime loans and allowed for auto title lending. While SB 104 failed in a floor vote in the Senate, SB 613, passed and moved over to the House for consideration. Despite intense advocacy efforts from Prosperity Indiana and a coalition of more than 100 faith-based, veterans and social service organizations, the bill was approved in the committee. Fortunately, our collective advocacy efforts were successful in ensuring it did not have the votes to be approved on the House floor! Click here for more details on the bill.

Bill: 1495: Rep. Vanessa Summers (D-Indianapolis), Ed Clere (R- New Albany), and Rita Fleming (D- Jeffersonville) Prosperity Indiana joined partners the Fair Housing Center of Central Indiana and the Indiana Institute for Working Families to support this bill that aimed to provide greater transparency and modest guardrails to land contracts for homeownership. As this article in the Indiana Lawyer describes, land contracts can be a viable alternative homeownership model, but without any clarity in state law in how to treat them, we have seen large scale sellers churning borrowers in and out of properties who lose all of their investments along the way. HB 1495 would have required the disclosure of basic information about the property and loan terms, such as the annual percentage rate of the contract, existing liens on the property, whether or not seller or buyer will be paying real estate taxes. It also would have required an FHA appraisal to allow borrowers to know some critical information about the property. For our coverage of this bill on our blog, see this post: https://www.prosperityindiana.org/Policy-News/7291254

Outcome: While the bill passed the House handily, the bill passed the Senate by only one vote on the guarantee it would be sent to Conference Committee to work out differences between House- and Senate-passed versions. Ultimately, on the final day of session, the House approved the Conference Report, but it did not get enough votes in the Senate to advance to the Governor’s desk.

Affordable Housing Tax Credits

Bill: HB 1616: Rep. Jim Pressel (R- Rolling Prarie) would have created/funded two new tax credits focused on expanding affordable housing and homeownership for low-income Hoosiers, complementing the existing Neighborhood Assistance Program. Click here for our one pager with more details.

Bill: HB 1234: Rep. Jim Pressel (R- Rolling Prarie) also introduced HB 1234, a bill that would have created/funded a state Affordable Housing Tax Credit program. Click here for our one pager with more details HB 1234.

Outcomes: Unfortunately, with the state budget constraints, the House Ways and Means Committee did not opt not advance funding for programs beyond those identified in leadership priorities. Prosperity Indiana will continue conversations with House leaders about the scale of affordable housing needs across our state to lay the groundwork for increased funding in the 2021 budget session.

Renter Protections

Prosperity Indiana worked to introduce two critical bills aimed at addressing serious habitability concerns and increase tenant protections to help curb the eviction crisis in our state.

Bill: SB 422: Sen. Mike Bohacek (R-Michiana Shores) indtroduced a bill to allow a renter to be able to get out of a lease if a unit was not habitable upon move-in and to update our notice to quit statute, that allows a 10-day window for a tenant to cure if they fall behind on rent, so that it would apply to all leases instead of just oral/informal leases. Click here for our one pager with more details.

Outcome: This bill received a hearing that allowed Prosperity Indiana to outline the scale of the eviction crisis in our state, but the Chairman introduced an amendment that blunted the effectiveness of the bill, so the language that was voted out of committee did not improve landlord-tenant law in a way that made it worthwhile to advance.

Bill: SB 524: Sen. Eddie Melton (D-Gary) introduced SB 524, as comprehsenive statement on the numerous updates to our state’s landlord-tenant laws that are needed to bring about greater housing stability. The bill included provisions to allow for rent withholding, expand legal aid in eviction court, seal eviction records in cases where the court does not enter a judgement, limit security deposits and increase the timeframe for notice of rent increases. Click here for our one pager with more details.

utcome: this was an ambitious bill that ultimately did not receive a hearing, but it is critical to our state to implement some of these changes and Prosperity Indiana will continue legislator outreach on the need and scale of the eviction crisis in our state to advance these goals over the summer and fall before the next legislative session

Successes of Interest to our Network Beyond Top PI Priorities

HB 1628 passed and expands the On My Way Pre-K to be offered statewide while the funding levels would remain about the same at $22 million per year. Importantly, the bill removed barriers to enrollment in the program. Sen. Melton was successful in amending the bill to permit parents or guardians to qualify if they receive Social Security Disability Insurance or Supplemental Security Income benefits to help reduce barriers to enrollment.

HB 1141 passed and addresses the traffic and license reinstatement fees, providing a temporary amnesty program where fees can be reduced by 50 percent so fewer drivers are forced to choose between driving illegally or losing their jobs, childcare, and education.

SB 111 passed and provides $100,000 in annual grant opportunities for community- and faith-based substance abuse programs. The bill also provides $50,000 annually to the community- and faith-based substance abuse transportation assistance grant program.

Legislation Dominating Headlines:

HB 1001, the budget bill for the year, passed with the following spending outcomes: $753 million in increased school funding, this includes $539 million in added tuition support, and $140 million for school districts to spend based on their priorities (with discussion focused on the need to increase teacher pay), and $74 million more for statewide grant programs, including school safety funding.

HB 1002- is a workforce bill that passed and would expand the eligibility for high school students interested in applying for new state workforce grants that will help pay for students to receive credentials in certain fields. The bill also prioritizes funding for workforce programs deemed to be high achieving and provide more resources for schools to partner with employers on work-based learning opportunities.

Bias Crimes- The Governor was active in advocating for an inclusive Hate Crimes bill, alongside Prosperity Indiana members and partners, and while SB 198 did pass. The language omitted gender identity from the list of protected classes, falling short of goal of human service and civil rights organizations that have fought for an inclusive hate crimes bill for years.

Gaming – HB 1015- A comprehensive gambling bill was passed to legalize sports betting, both at bricks-and-mortar facilities and on mobile devices statewide. It also includes payments to four cities in the state that anticipate revenue loss due to new casinos and likely authorizes a new casino in Terre Haute.

Bill Providing Transparency in Land Contracts Passes Senate, Heads to Conference Committee

Tue, 16 Apr 2019 21:30:00 GMT

Today, the Senate passed HB 1495, sending the bill to conference committee where legislators will negotiate bill changes between Senate- and the House-passed versions. As this article in the Indiana Lawyer describes, this bill aims to provide greater transparency and modest guardrails to land contracts for homeownership. While not new, these contracts have exploded in number, particularly in Indiana where communities were hit hard by the foreclosure crisis.

Communities with thousands of vacant homes circulating on tax sales have been purchased as investment properties, but many have also been purchased by speculators, acquiring numerous homes with low values and severe habitability issues to sell to aspiring homeowners on contract at inflated prices. In these transactions, borrowers enter into agreements with sellers who transfer the title at the end of the mortgage, rather than the beginning as you would in traditional mortgages.

While this can be a viable alternative homeownership model, without any clarity in state law in how to treat them, we have unfortunately seen large scale sellers churning borrowers in and out of properties who lose all of their investments along the way. Regularly, these borrowers invest thousands in repairs only to be evicted when they are underwater, unable to keep up with repairs, balloon payments, fees, etc. and they lose all of their equity invested in these properties.

That is because land contracts shift all the burdens and obligations of homeownership to the buyers with none of the rights or protections of homeownership. This transaction has fallen into a no man’s land of policy, with court opinions differing on whether or not it’s a rental contract which would have some habitability standards or a true lending contract.

HB 1495 does not in any way attempt to prevent people from offering or signing these homeownership arrangements, only to provide needed clarity for all parties. In recognition that some individuals offer these contracts informally and not as their primary business, the provisions only apply to those who are regularly engaged in the business of selling land contracts and have four or more outstanding land contracts at a given time.

It does not require a standardized contract, but instead would have the Attorney General publish the necessary contract components or the contract can be considered voidable.

Disclosures required:

This bill would require disclosure of basic information about the property and loan terms, such as the annual percentage rate of the contract, existing liens on the property, whether or not seller or buyer will be paying real estate taxes, for instance that provide clarity for the borrower and the seller.

Appraisal:

Rather than calling for a full inspection that would be required for a traditional mortgage, the bill would have these contracts include an appraisal within the previous year to allow borrowers to know some critical information about the property without the full inspection process.

Terms:

Since this bill does not provide for an extensive inspection process, there will be a three-day cooling off period where the buyer or the seller may deliver to the other party a written notice of cancellation to account for misrepresentation of the property

The legislation is authored by Representative Vanessa Summers, co-authored by Representatives Clere, Fleming, Woody Burton and sponsored by Senators Bohacek, J.D. Ford, and Breaux.

Stay tuned to this blog for updates on bill negotiations and advocacy steps you can take in support of this measure!

For more information, contact Kathleen Lara, at klara@prosperityindiana.org.

Your Voices Were Heard! SB 613 Dies in the House

Mon, 15 Apr 2019 23:00:00 GMT

Thank you so very much for speaking up in support of Hoosier consumers and communities! Your voices were heard and SB 613 has died.

Due in large part to your outreach, testimony, meetings, calls and emails, lawmakers stood with a broad coalition of veterans, faith leaders, community and social service organizations by choosing not to call SB 613 to the floor on the third reading deadline, killing the bill.

Please join us in thanking legislators who opposed this measure throughout session. We look forward to working with lawmakers to discuss reforms to high-cost loan products that exploit Hoosiers facing housing and financial hardship, as well as ways to foster sustainable alternatives.

As a reminder, SB 613:

Would have kept the current payday loan product and allowed the same lenders to make 6-9 month installment loans of up to $1500 to even lower-income borrowers at 167% APR, taking access to bank accounts directly to collect monthly payments.
Would have authorized a brand a new “Chapter 8” product at 72% interest plus the pre-paid finance charge, for $3000 up to 36 months with no limits on how many times the loan could be renewed or how many loans someone can have, a model we have seen is problematic in other states.
And it would have increased costs across the board for conventional loans, like car loans, by increasing the max interest rate from 25% to 36% for loans of ANY SIZE and doubling the pre-paid finance charge allowed (from $50 to $100).

Updated Report Shows Drastic Shortage of Affordable, Available Units to Extremely Low-Income Hoosier Households

Thu, 21 Mar 2019 14:21:20 GMT

A recent report update from the National Low Income Housing Coalition illustrates the critical need for affordable housing in Indiana. NLIHC researchers found that there is a 134,485-unit shortage of affordable, available rental housing for the 212,377 extremely low-income (ELI) renter Hoosier households. Households that are severely cost=burdened and are spending more than half of their income on housing are bearing the brunt of this crisis, and are more likely than other renters to forgo healthy foods and healthcare in an effort to pay for rent.

Additionally, they are more likely to experience evictions. Indiana currently has one of the highest eviction rates in the nation. To view the entire Indiana state profile, click here.

Sen. Warren Re-introduces Sweeping Affordable Housing Bill

Thu, 14 Mar 2019 23:03:50 GMT

On March 13, U.S. Senator Elizabeth Warren (D-Massachusetts) reintroduced the American Housing and Economic Mobility Act. This comprehensive legislation aims to address our nation's affordable housing crisis by producing more than 3 million new housing units, a 10 percent rent reduction, and the generation of 1.5 million new jobs. It also aims to promote home ownership and reverse discriminatory housing policies such as redlining and restrictive zoning.

In addition to the aforementioned goals, the American Housing and Economic Mobility Act aims to protect low-income seniors, people with disabilities, families with children, and persons without housing by:

Creating a new $10 billion grant program that enables communities to build infrastructure, parks, roads, or schools if they reform land use rules that make new affordable housing projects needlessly expensive;
Providing down payment grants to first-time homebuyers living in low-income, formerly redlined, or officially segregated areas in an effort to close the racial wealth gap;
Strengthening the Community Reinvestment Act (CRA) to cover more financial institutions (excludes credit unions in the re-introduced bill) in an effort to promote investment activities in poor-and-middle-class communities;
Supporting families whose wealth sustained substantial damage due to the 2008 financial crisis and still have negative equity on their mortgages;
And making it easier to use housing vouchers in areas with good schools and jobs for residents.

To learn more about the American Housing Economic Mobility Act, click on the following links to read letters of support discussing the potential impact of the bill on families and communities:

Read Letter of Support from the U.S. Conference of Mayors
Read Letter of Support from Massachusetts Mayors
Read Letter of Support from Civil Rights Groups
Read Letter of Support from the National Rural Housing Coalition
Read Letter of Support from Credit Union National Association

Administration’s Budget Proposes $9.6 billion in Cuts to Housing & Community Development Programs

Tue, 12 Mar 2019 00:30:00 GMT

President Trump released his 2020 budget request today and unfortunately, as in his FY18 and FY19 requests, the proposal again calls for dramatic cuts to housing programs that aid low-income households. Those cuts disproportionately affect seniors, those with disabilities, families with children, and veterans.

Overall, the administration proposes to cut HUD by an astounding $9.6 billion or 18% below 2019 enacted levels, imposing deep cuts to affordable housing and community development programs. In addition to the cuts, the proposal revisits policy suggestions previously proposed by Secretary Carson to implement rental increases on the lowest-income households and work requirements that have not been shown to increase family or self-sufficiency.

The budget also incorporates draft legislation, known as the “Making Affordable Housing Work Act,” proposed by the administration last year that would increase rents on most non-elderly, non-disabled families receiving HUD assistance by requiring that they pay 35% of their gross incomes, compared to 30% of their adjusted incomes. Due to that calculation, the very poorest elderly and disabled families would also see their rents triple as it eliminates income deductions for medical or childcare expenses. The proposal allows housing providers to broadly impose work requirements, without any resources to help people gain the skills they need for livable wage jobs.

Data shows 46 percent of Indiana renters are cost-burdened and 86 households experience evictions every day in our state. This is not the time for draconian cuts that will undermine essential housing and community development programs like the national Housing Trust Fund, the HOME Investments Partnership program, and public housing capital repairs. We are actively communicating with our Indiana Congressional Delegation, urging them to not only reject this proposal’s cuts, but significantly expand the investments in affordable homes that Hoosier families and communities need to prosper.

See the table below for specifics on the proposed budget:

HUD	USDA Rural Housing
Community Development Block Grants/HOME: The budget proposes eliminating the Community Development Block Grant (CDBG) program and the HOME Investment Partnerships program entirely. The bill also would eliminate Choice Neighborhoods grants, the Section 4 Capacity Building program, and the Self-Help Homeownership Opportunity Program.	Multifamily Preservation and Revitalization demonstration, Section 502 Direct Homeownership Loans, Section 514/516 Farm Worker Housing Loans and Grants, Section 523 Mutual and Self-Help Housing, and Section 504 Rural Housing Assistance grants: The proposal aims to eliminate most rural housing grants and direct-loan programs at the U.S. Department of Agriculture (USDA), eliminating funding for the Multifamily Preservation and Revitalization demonstration, Section 502 Direct Homeownership Loans, Section 514/516 Farm Worker Housing Loans and Grants, Section 523 Mutual and Self-Help Housing, and Section 504 Rural Housing Assistance grants and loans
National Housing Trust Fund: The budget proposes eliminating the national Housing Trust Fund (HTF), the first new housing resource in a generation exclusively targeted to help build and preserve housing affordable to people with the lowest incomes, including those experiencing homelessness.	Section 521: Essentially, the only funding for housing under USDA that remains in the proposal is the Section 521 Rural Rental Assistance, which would be funded at $1.407 billion and the guaranteed loan programs that use fees to offset any federal costs and do not tend to serve the lowest-income households
Tenant-Based Rental Assistance: The proposal would cut funding for tenant-based rental assistance (TBRA) as his request for $22.244 is not sufficient to renew contract obligations, which would result in the loss of thousands of vouchers.
Project-Based Rental Housing: While the proposal offers a $274 million increase from FY19, this is also not sufficient to renew all existing project-based rental assistance (PBRA) contracts
Public Housing: The Public Housing Capital Fund takes a huge hit under this plan as it would eliminate this funding altogether (previously funded at $2.775 billion in FY19) and nearly cuts in half the the Operating Fund from $4.65 billion in FY19 to $2.86 billion, or 38%. Instead, the Administration's proposal requests $100 million for the Rental Assistance Demonstration (RAD) to convert more public housing into housing vouchers and PBRA.
Homelessness: The proposal calls for $34 million in cuts to the HUD Homeless Assistance Grants.
Fair Housing: The budget would cut the Fair Housing Initiatives Program (FHIP) by $3 million.
Homelessness: The proposal calls for $34 million in cuts to the HUD Homeless Assistance Grants.
Fair Housing: The budget would cut the Fair Housing Initiatives Program (FHIP) by $3 million.
202: The budget cuts $34 million from the Section 202 Housing for the Elderly program
811: the proposal cuts $27 million from the Section 811 Housing for People with Disabilities
HOPWA: The proposal would cut $63 million in funding for the Housing Opportunities for People with AIDS (HOPWA) program

Prosperity Indiana, Coalition Partners Hold Press Conference Urging Lawmakers to Reject SB 613

Mon, 11 Mar 2019 23:21:17 GMT

On March 11, Prosperity Indiana and the Indiana Assets & Opportunity Network were joined by dozens of military and veterans’ groups, faith-based organizations and churches, social service providers, community organizations, concerned citizens, and more at the Statehouse for a Reject Senate Bill 613 press conference.

Advocates stood in unity to discuss the devastating consequences SB 613 would have for consumers and communities. They implored House leaders to reject this piece of harmful legislation. If passed, SB 613 would rewrite the definition of criminal loansharking and open the door for high-cost lending in Indiana by permitting larger, longer-term loan products outside of the current 72 percent cap. It would also increase the allowable cost on various consumer loans, including auto and installment loans.

Prosperity Indiana and its members were represented by Mark Lindenlaub, Executive Director of Thrive Alliance in Columbus. He voiced concern regarding the increased workload social service agencies would encounter from families seeking relief from predatory loans should SB 613 pass, stating that, “adding larger, longer-term and higher-rate loans to vulnerable families will only make their lives, and our work, more difficult.”

Iraq War veteran Steven Bramer, Jr., a former payday borrower, shared his experience of getting caught in the vicious payday lending cycle. “I got myself in a horribly expensive cycle,” he shared before adding, “I protected you at one point. Now, it’s time for you to protect me.”

Click here to view a recorded live stream of the press conference and please contact your House Representative to urge him/her to oppose this bill!

Prosperity Indiana Testifies in Support of Legislation Aimed at Bringing Transparency to Land Contracts

Sat, 26 Jan 2019 03:23:47 GMT

TESTIMONY REGARDING HB 1495
KATHLEEN LARA, POLICY DIRECTOR
HOUSE FINANCIAL INSTITUTIONS COMMITTEE HEARING
JANUARY 23, 2019

Thank you Chairman Burton and Members of the Committee. My name is Kathleen Lara and I serve as the Policy Director for Prosperity Indiana.

Our member network of nearly 200 organizations is working in every region of the state to ensure all Hoosiers can enjoy equal economic and social opportunities and live in thriving communities. Our members are working hard to address the deficit of affordable housing and homeownership opportunities, particularly for low-income households. They are focused on empowering individuals and families to build assets so they can climb the economic ladder.

That is why I stand here today to offer our strong support for this bill, HB 1495, a bill that takes on a pervasive practice undercutting those goals and affecting consumers and communities of all sizes and geographies — the lack of strong state policy regarding land contracts for homeownership.

As you have heard, in states that were hardest hit by the foreclosure crisis, particularly those in the Midwest, thousands of homes became vacant and prime investment opportunities for buyers. Significant portions of this housing stock, however, were blighted, abandoned properties with low appraisals and often severe habitability issues.

Subsequently, we started to see an explosion in the number land contract agreements for these homes where would-be homeowners enter into alternative purchase agreements with companies and the title is transferred at the end of the mortgage, rather than the beginning as you would see with traditional mortgages.

Land contracts are not inherently problematic when interests are aligned. In fact, they have been a viable alternative homeownership model utilized by many non-profits, faith-based organizations, home builders with excess supply, and average Hoosiers selling homes to neighbors, family or friends.

The problem lies in the increasingly common predatory model we have seen where interests are not aligned. In this model, sellers regularly churn would-be owners in and out of properties. These borrowers invest thousands in repairs to the homes only to be evicted when the borrower is inevitably unable to keep up with habitability repairs required for code compliance in addition to loan costs and loses all of their equity.

We have seen these land contracts used to exploit a loophole in state code, subverting state landlord-tenant habitability obligations as well as protections afforded to borrowers with traditional mortgages. In short, the seller makes more when the borrower fails.

In HB 1495, we do not aim to prevent anyone from entering into a land contract for homeownership. We do, however, aim to empower consumers by putting into place protections that increase the transparency of these products for borrowers. These are basic disclosures that are far less extensive than what would be required for a traditional mortgage, but provide enough information to help borrowers understand the basic habitability of a property and more clarity regarding the terms of the contract.

We want to foster affordable avenues to housing stability and homeownership, but ones that allow borrowers to be informed and empowered. I want to express our sincere appreciation to Representatives Summers, Clere and Fleming for taking on this important issue. I urge the members of this committee to support HB 1495 and enact common sense protections for Hoosiers.

Prosperity Indiana Urges Members Help Advance Critical State Priorities

Wed, 16 Jan 2019 04:36:07 GMT

With work at the Statehouse well underway early in this long budget session, Prosperity Indiana is working to advance key member priorities, as outlined in our in our 2019 State Policy Priorities.

Our network is pushing for ambitious agenda and we hope our members will register to attend our Statehouse Day on Tuesday, January 29, as we urge their lawmakers to take action on critical community development legislation. Prosperity Indiana will set up all legislator meetings for members and provide you with key talking points to make the process as simple as possible.

Please review the key bills and updates highlighted below to help us move these priorities forward!

ASK YOUR REPRESENTATIVE TO CO-AUTHOR/SUPPORTHB 1616 (bill link pending) THAT WOULD CREATE/FUND NEW TAX CREDITS FOCUSED ON EXPANDING AFFORDABLE HOUSING AND HOMEOWNERSHIP, COMPLEMENTING THE EXISTING NEIGHBORHOOD ASSISTANCE PROGRAM AND HB 1234 THAT WOULD CREATE/FUND A STATE LOW INCOME HOUSING TAX CREDIT PROGRAM)
(BOTH SPONSORED BY REPRESENTATIVE JIM PRESSEL)

ASK YOUR SENATOR TO CO-AUTHOR/SUPPORTSB 524 AND SB 422 WHICH WOULD ADDRESS SERIOUS HABITABILITY CONCERNS AND INCREASE TENANT PROTECTIONS TO HELP CURB THE EVICTION CRISIS (SPONSORED BY SENATORS EDDIE MELTON AND MIKE BOHACEK, RESPECTIVELY)

ASK YOUR SENATOR TO CO-AUTHOR/SUPPORT SB 104 AND YOUR REPRESENTATIVE TO SUPPORT HB 1098 TO PUT A 36% CAP ON PAYDAY LOANS AND CUT DOWN ON PREDATORY LENDING THAT TRAPS LOW-INCOME CONSUMERS IN DEBT (SPONSORED BY SENATOR GREG WALKER AND REPRESENTATIVE CAREY HAMILTON, RESPECTIVELY)

**URGENT BILL UPDATE**
We anticipate this bill will be heard in the Senate Insurance and Financial Institutions Committee next Wednesday, January 23, so please help us stop the debt trap in the Hoosier State by signing on in support of the measure. Click here to sign our letter.

Tracker Lists

We are still combing through final bill lists that are still updating as I type to review measures we will advocate for or against on behalf of our members in this legislative session. Stay posted to our policy blog as we will post our bill tracker lists and details by the end of the week!

Shutdown Jeopardizes Housing for 1,578 Low-Income Hoosier Households

Wed, 16 Jan 2019 00:16:06 GMT

As the longest government shutdown in U.S. history continues, more than 1,500 units of federally assisted housing supporting low-income seniors, people with disabilities, and families with children throughout Indiana are in jeopardy. As outlined in the chart below, Prosperity Indiana has noted the 1,578 units of Project-Based Rental Assistance (PBRA) contracts that expired in December or stand to expire this month or next as the Department of Housing and Urban Development (HUD) is unable to renew them and is scrambling to fund rental assistance in the short-term without an end in sight to the federal shutdown.

How did we get here?

National advocates had previously received word from HUD that the agency had the budget authority to renew PBRA contracts through January. As a Jan. 6 Washington Post article revealed, however, that was not the case. The article quotes HUD spokesman Jerome Brown as saying that “[HUD] budget and contract staff are ‘scouring for money’ to figure out how to fund the contracts on an interim basis.” The piece outlined how 1,500 landlords received letters from the agency on January 4 in order to try and prevent the eviction of tenants after certain HUD officials had allegedly not realized had expired on Jan. 1. Those letters apparently outlined what activities will take place during the first 30 business days of the shutdown and how to prevent the eviction of thousands of tenants who live in homes covered by the Section 8 Project-Based Rental Assistance program or Section 202 (for the elderly) and Section 811 (for people with disabilities) programs.

According to the National Housing Trust, HUD shared that 1,150 contracts were not renewed in December affecting approximately 70,000-85,000 low-income households. Additionally, HUD has indicated that will be unable to renew 500 contracts that expire in January, affecting another 30,000-40,000 low-income households. While HUD has expressed it is working within currently obligated funds at its disposal to cover most rental assistance payments, but if the shutdown continues, 550 more contracts are set to expire in February without HUD in a position to renew these contracts or obligate funds. HUD has indicated that Section 202 owners are expected to rely on their reserves, but advocates have concerns that budget reserves are not sufficient to meet the rental payments. HUD has also stated it plans to use funds carried over from prior years to fund these contracts for December and January, but beyond that, the agency may have to figure out a way to fund these contracts on a short-term basis.

In rural housing, the USDA shutdown plan indicates that direct loan programs will not issue any additional funds, including Section 504, 514, and 502. Further, the guidance noted that banks are unlikely to close on these loans until the government shutdown ends, delaying homeownership. At present, it is not clear if USDA will continue paying rental assistance or vouchers for low- and very low-income tenants.

Click here for the NLIHC breakdown of the shutdown’s impact on major housing programs.

Congressional Call to Action

Prosperity Indiana is urging Congress to pass clean FY19 Transportation Housing and Urban Development and U.S. Department of Agriculture budgets so that thousands of extremely low-income families, seniors and the disabled are not denied critically needed housing assistance. Short-term renewals are destabilizing for private owners of PBRA properties. They limit the owners’ ability to supportive services to their tenants, delay property rehabilitation, and could potentially increase rent burdens on fixed-income populations. The average income of a household receiving PBRA is less than $12,000 and 56 percent of these households have someone who is elderly or someone with a disability, so they can certainly not afford to shoulder this burden imposed by the shutdown.

Guidance for Owners

HUD has shared that owners experiencing delays in payments can request access to replacement reserves, but should not do so without approval. Those requests should be directed to the Director of the Multifamily Hub or Satellite office, all of whom should be working as essential employees.

Join Us in Urging Congress to Pass Full-Year FY19 Spending Bills

Wed, 19 Dec 2018 01:55:25 GMT

If Congress fails to pass additional funding measures by December 21, the federal government will be forced to shut down. As we have discussed in earlier blogs, Congress has failed to pass numerous full-year funding bills for FY19 (including those for Transportation-HUD and USDA) and those programs have been operating under short-term stopgap measures (continuing resolutions, or CRs). The current CR expires in mere days and current negotiations are mired in border security funding debates.

Some speculation has begun to filter out that lawmakers are considering many approaches to address the impasse. The most promising for our member interests is a proposal to have Congress pass most of the remaining bills for the spending year and extend the CR for the controversial Homeland Security bill. Another option, that seems like a very approach at this point would be to pass another short-term measure to keep the federal government open into the new year. One last approach that has been floated is passing a year-long CR through September 30, 2019, for all the outstanding spending bills.

That approach would be a significant setback. For FY19, HUD needs approximately $1.3 billion and USDA needs at least $10 million more than FY18 appropriations to maintain current program levels and renew existing housing assistance contracts. FY19 THUD and USDA bills included funding increases to address urgent affordable housing and community development needs.

Prosperity Indiana is urging our state's delegation to enact full FY19 spending bills for HUD and USDA. Join us in lifting your voice by calling your lawmakers today! To find your representative and their phone number, click here and enter your zip code in the "Find Officials" box!

Thank you for your advocacy!

For more information, visit our previous FY19 budget coverage here: https://www.prosperityindiana.org/Policy-News/6676998 and here: https://www.prosperityindiana.org/Policy-News/6574990

Prosperity Indiana’s 2019 State Policy Priorities Focus on Affordable Housing Expansion, Consumer and Tenant Protections

Tue, 20 Nov 2018 18:23:21 GMT

Today, Nov. 20, the Indiana General Assembly is convening at the Statehouse for Organization Day, the ceremonial start of the 2019 legislative session. The day allows for legislators to meet with fellow lawmakers to arrange committees, swear in new members and generally, roll out key legislative agendas. When lawmakers officially reconvene in early January, it will be for a long session – when the General Assembly creates a two-year budget.

Prosperity Indiana has already been working with state legislators to advance key member priorities, but on this occasion of Org Day, we present to you our formal 2019 State Policy Priorities. Based on member feedback and engagement, this year's priorities are focused on expanded tax credit resources for affordable housing and community development, working to enhance tenant protections for renters and expanding consumer protections to help more low-income households build assets.

These priorities will help ensure Hoosiers can enjoy equal economic and social opportunities and live in thriving communities. Click on the images below to read the full list of priorities and review critical affordable housing data illustrating the need to implement these policies.

Also, please register to join us on Tuesday, January 29 for our Statehouse Day as we connect members with their legislators to share why these priorities are so critical to our network and our communities.

For questions on these priorities or getting engaged more actively in advocacy at the state or federal level, contact our policy director, Kathleen Lara, at klara@prosperityindiana.org.

We will keep you updated and engaged throughout session, but please be aware all hearings and session meetings are publicly available to stream live at www.in.gov/iga.

Prosperity Indiana Applauds Network Advocacy on CRA, Submits Comment Letter on Behalf of Members

Tue, 20 Nov 2018 15:45:51 GMT

Thank you to our members who took time to comment on proposed changes to the Community Reinvestment Act (CRA) over the last month! Extensive grassroots advocacy is required to lift up urgently needed reforms and defend tools that address equity in lending, access to credit, and investments in underserved communities.

As we outlined in our Action Alert, Prosperity Indiana has concerns that changes regulators have proposed via an Advanced Notice of Proposed Rulemaking (ANPR) may substantially weaken the law. On behalf of our member network, Prosperity Indiana submitted comments outlining our concerns and offering ideas to strengthen CRA moving forward that can be found here: https://www.regulations.gov/document?D=OCC-2018-0008-0260

For questions, contact Kathleen Lara at klara@prosperityindiana.org.

Nearly 1 in 20 Assisted Rental Homes in Indiana Face Expiring Affordability in 5 Years: New Report

Tue, 30 Oct 2018 15:56:56 GMT

According to the National Housing Preservation Database, 3,067 public

housing units in Indiana are in need of immediate investment and 4,472 publicly supported rental housing units face an expiring affordability restriction over the next five years.

With 158,322 extremely low-income Hoosier households (those earning at or below 30% of area median income pay already more than half of their income on rent and a 134,998 deficit of rental homes affordable and available to these households, Indiana must expand affordable housing, not lose ground on the already insufficient supply.

The 2018 Preservation Profile lists these facts as well as an updated number assisted rental homes in Indiana with expiring affordability restrictions by funding stream as well.

That profile shows that a substantial portion of this portfolio, two-in-five or 41,397 assisted units, in our state receive Low-Income Housing Tax Credits (LIHTC).

A new report, Balancing Priorities: Preservation and Neighborhood Opportunity in the Low-Income Housing Tax

Credit (LIHTC) Program Beyond Year 30, from the National Low Income Housing Coalition and the Public and Assisted Housing Research Corporation found that by 2030, nearly half a million current LIHTC units, or nearly a quarter of the total stock will reach the end of all federally mandated rent-affordability and income restrictions nationwide.

The report highlights the fact that many of these units will be lost in conversion to market-rate rents, but others will be lost due to physical deterioration unless new capital investment is available for

rehabilitation. The report also makes the case that scarcity in resources for affordable housing have led to the dilemma of whether to prioritize resources for preserving existing units or focusing on new resources to increase mobility instead of focusing on building a broader housing safety net.

It also lists units with expiring affordability nationwide by neighborhood desirability and opportunity, broken down by educational opportunity, transit access, labor market access and health environment.

For a link to the full Indiana 2018 Preservation Profile, click here.

We Need You to Comment Today to Defend CRA!

Fri, 26 Oct 2018 14:39:53 GMT

Action Alert!

We are counting on you to lift your voice to push back against potentially harmful changes to the Community Reinvestment Act (CRA). CRA is a landmark civil rights law to end discrimination that was once common in America’s banking and housing markets.

While some strides have been made, the lack of investment in low-income areas and communities of color remains a persistent concern. Even still, regulators have proposed ideas that may substantially weaken the law via an Advanced Notice of Proposed Rulemaking (ANPR). We need you to speak up to ensure CRA is strengthened, not weakened.

We only have until Nov. 19 to comment on these ideas and urge regulators to consider CRA reforms that more effectively hold banks accountable for equitable investments and help them more flexibly respond to community needs.

In order to simplify the process, we have drafted a letter at the end of this email for our members to use that outlines our concerns and suggestions.

Please open a new document, paste the draft letter, just add in your personal and organizational details in the sections in bold as appropriate.
Where the data by congressional district is referenced, please refer to the table below. If you do not know your district, click here to find it!
Lastly, follow this link directly (https://www.regulations.gov/docket?D=OCC-2018-0008), click "comment now" to upload your document and then submit it!

Thank you for your advocacy. There is power in community voices coming together to protect critical resources and push for urgently needed reforms. For more background on CRA basics, the proposed changes and our concerns related to ANPR, click here to find the PowerPoint presentation from our joint NCRC-Prosperity Indiana webinar.

For questions, contact Kathleen Lara at klara@prosperityindiana.org.

Congressional District	Current Representative	20% Loss of LMI Mortgage and Small Business Lending
1	Pete Visclosky	$83,751,400
2	Jackie Walorski	$104,119,600
3	Jim Banks	$90,553,000
4	Todd Rokita	$123,727,400
5	Susan Brooks	$99,963,800
6	Luke Messer	$120,547,200
7	Andre Carson	$385,917,000
8	Larry Bucshon	$100,525,000
9	Trey Hollingsworth	$172,333,600
Statewide	Indiana	$1,281,438,000

DRAFT LETTER

(Date)

Comment regarding “Reforming the Community Reinvestment Act Regulatory Framework”

RE: Docket ID OCC-2018-0008

(Name of Your Organization) appreciates the opportunity to comment regarding the Office of the Comptroller of the Currency’s (OCC) Advance Notice of Proposed Rulemaking (ANPR) regarding the Community Reinvestment Act (CRA). Since 1996, banks have issued almost $2 trillion in loans and investments in low- and moderate-income communities, ensuring more individuals have the opportunity prosper and become homeowners, more businesses receive loans to grow and thrive, and more community development organizations can expand their work to revitalize neighborhoods. CRA is a critical tool to address equity in lending, access to credit, and investments in underserved communities.

(Your organization’s name) is based in (city or neighborhood), and (describe services and mission). In carrying out this work, it is clear how CRA has motivated banks to provide loans and investments for affordable housing and economic development in areas and/or for projects that would otherwise not receive this critical capital. (Describe here in a few sentences an example of CRA financing that has addressed a critical need and/or is innovative.)

With that in mind, (Name of Your Organization), has strong concerns about how the proposed changes weaken regulators’ and communities’ ability to ensure CRA-related investments are indeed responsive to community needs. The OCC’s proposal significantly diminishes the importance of assessment areas on CRA exams, which are essential in combating lending inequities. Using data collected from the CRA and the Home Mortgage Disclosure Act (HMDA) from 2012 through 2016 to examine loan volumes, the National Community Reinvestment Coalition (NCRC) estimates that if these proposed changes were to be implemented, the losses in mortgage and small business loans in low- and moderate-income (LMI) census tracts would be between 10 and 20 percent. In Indiana, that would mean LMI neighborhoods could lose up to $1.28 billion in home and small business lending over a five-year time period. In the Congressional district in which we operate, the loss would be (insert the appropriate data from the table above).

Specifically, we are concerned that an OCC idea, commonly called the one ratio, would make CRA exams considerably less effective in evaluating how banks are meeting local needs, particularly in hard-to-serve areas that are economically divested in very rural or urban areas. The one ratio would consist of the dollar amount of a bank’s CRA activities (loans, investments, and services to low- and moderate-income borrowers and communities) divided by the bank’s assets. The ratio is supposed to reflect CRA effort compared to a bank’s capacity.

This approach cannot tell an examiner, a bank, or a member of the public how responsive a bank is to its various service areas. Currently, CRA exams evaluate and rate bank performance in assessment areas where banks have branches, and examiners are required to solicit and consider comments from community members about performance in assessment areas. This is central to the intent of CRA because these public comments offer insight on the practical impacts of CRA investments or areas for improvement. The one ratio replaces assessment areas or significantly diminishes the importance of assessment areas and public input on CRA ratings. Regulators must not devalue the public input process or weaken standards; rather, they should increase communication between all stakeholders about ways to more effectively meet community needs.

(Add any details about how your organization has engaged banks and/or CRA examiners in discussions about local needs and proposed financing and/or bank lending. Describe how these discussions may be diminished if assessment areas become less important on CRA exams.)

Additionally, we agree that changes in banking and technology require innovation to increase services to communities in need, but research has shown that low- and moderate-income consumers rely on branches for access to loans and banking services. This is a critical tool to combat reliance on predatory lending operations that are often pervasive in divested communities and disproportionately impact communities of color. If CRA exams dropped branches from consideration, the amount of lending and bank services in low- and moderate-income neighborhoods would decrease significantly. (Add your experience about bank branches in lower income neighborhoods or helping your modest income clients who are unfamiliar with banks get loans via bank branches).

Accordingly, the proposal’s discussion of the need to expand CRA exams to assess bank lending in areas beyond bank branches does so in support of the one ratio concept. Instead, the OCC should establish assessment areas for geographies where banks do not have branches but engage in a significant amount of business to gain a better understanding of service needs and opportunities in those areas.

Regarding the question within the ANPR about whether CRA consideration should be broadened for additional activities and populations, consumer and community development advocates like (Your Organization Name) have significant concerns that this would allow financing of CRA-eligible projects that do not directly serve low- and moderate-income neighborhoods and populations. By awarding points for financing or activities that do not address lack of access to banking or community development needs in lower income neighborhoods, the CRA’s mission of addressing inequality and redlining will be diluted.

In terms of expanding populations served by CRA, CRA exams must evaluate lending and services to people and communities of color. Since racial disparities in lending persist, it is essential that CRA must include lending, investing, and service to people and communities of color in its evaluations. The Joint Center for Housing Studies of Harvard University’s 2018 State of the Nation’s Housing report noted that the homeownership rate between black and white Americans is widening nationally. “Between 1994 and 2016, black homeownership rates increased just 0.3 percent while white rates rose 2.2 percent, widening the black-white gap to 29.2 percent,” according to the report.

(Add your thoughts and experiences related to serving communities of color and addressing racial disparities in lending).

One important way to more effectively address lending disparities would be for regulators to consider whether mortgage servicing companies, credit unions and insurance companies should also be subject to CRA-style exams. We suggest requesting public comment on this approach, which has long been a discussion among community development advocates who recognize we need to broaden CRA applicability to more ably address lending inequality.

To summarize, (Your Organization) agrees that CRA modernization is essential, but only in ways that boost lending and access to banking for underserved communities. We agree that CRA ratings must be reformed, but in ways that foster more inclusive investments, not contract current obligations. We also urge regulators to examine assessment areas that include geographies outside of bank branch networks in which banks make high volumes of loans. In order to continue working towards greater equity in lending, we urge regulators to examine lending and services to people and communities of color. Lastly, (Your Organization) believes the one ratio approach will diminish the importance of branches, assessment areas, and public input and result in a decrease of lending and access to banking in the communities that need it the most.

Investments through CRA are catalytic to divested markets and neighborhoods. These investments and capital infusions are often the first-in dollars, meaning it drives rehabilitations, loans, and developments that then spur broader market interest, resulting in larger scale revitalization and quality of life improvements. We urge the OCC to work with national, state and local consumer and community advocates to enact the kinds of reforms needed to ensure more individuals, businesses and communities can access credit, capital and opportunity.

Thank you for your thoughtful consideration of these comments.

Sincerely,

(Your Name)

Congress Passes Short-term Funding for HUD/USDA Funding, Looks to December for FY19 Bills

Wed, 03 Oct 2018 16:12:31 GMT

Despite budget negotiators working right up to the Sept. 30 fiscal year deadline to pass Fiscal Year (FY) 2019 Transportation-Housing and Urban Development (THUD) and U.S. Department of Agriculture budgets, there was no final agreement on the spending package. Instead, Congress passed a continuing resolution, or short-term spending bill, to continue current FY18 funding levels until Dec. 7. Budget negotiators will now work to finalize FY19 funding levels for those departments in the lame duck session of Congress ahead of the December deadline. We will continue to urge the Indiana delegation in Congress to support the higher levels of funding, primarily contained within the Senate proposals, for housing programs and opposed any harmful policy proposals, known as “riders,” from being attached to that spending package. For more information, visit our previous budget coverage here: https://www.prosperityindiana.org/Policy-News/6676998 and here: https://www.prosperityindiana.org/Policy-News/6574990

New Opportunity Atlas Maps How Location Affects Economic Mobility

Tue, 02 Oct 2018 16:16:58 GMT

On October 1, researchers from Harvard and Brown University released the Opportunity Atlas, a mapping tool the aims to address the basic question how much location influences outcomes. The mapping tool is comprised of U.S. Census tract-level datasets from the 2000 and 2010 decennial Censuses as well as data from Internal Revenue Service federal income tax returns and the 2005-2015 Census American Community Surveys (ACS) to evaluate income, parental characteristics, children's neighborhoods, and other variables.

Those data sets were used to evaluate children’s outcomes in adulthood, such as earnings distributions and incarceration rates by parental income, race, and gender. Based on that information, the tool aims to trace poverty and incarceration rates, for instance, to neighborhoods in which children grew up.

"You see that for kids turning 30 today, who were born in the mid-1980s, only 50 percent of them go on to earn more than their parents did," said Harvard University economist Raj Chetty, one of the researchers who built the tool. He added that the information can help pinpoint the places where lots of kids are climbing the income ladder and "the places where the outcomes don't look as good," he says.

These data points add further weight to conversations around equity and how much one’s zip code can determine his/her future, to a significant extent. In an interview on the tool, Chetty shared that the Atlas demonstrates how if a person moves out of a neighborhood with worse prospects into to a neighborhood with better outlooks, that move increases lifetime earnings for low-income children by an average $200,000.

In some cases, the mapping tool shows that those differences can be just miles apart. Unfortunately, the tool also shows significant work that needs to be done to address racial inequities as research showed that earnings and incarceration rates can vary dramatically for white, black, and Hispanic men even when they are raised in the same neighborhoods and hite men experience better upward income mobility than black men virtually everywhere in the country

Moving forward, Prosperity Indiana plans to use this robust tool to help members utilize this data to influence community development plans and initiatives. The conversations must focus on removing barriers to affordability and opportunity in identified low-performing areas so that prosperity is not out of reach for any Hoosier.

First Report Profiling National Housing Trust Fund Projects in Indiana, Across Country Released

Wed, 19 Sep 2018 16:07:37 GMT

This month, the National Low Income Housing Coalition published Getting Started: First Homes Being Built with 2016 National Housing Trust Fund Awards, profiling how 42 states have awarded their inaugural 2016 national Housing Trust Fund (HTF) allocations. Prosperity Indiana pushed for the National HTF program’s creation and funding, so it is encouraging to see these funds deployed to increase the supply of housing for severely cost-burdened households.

The HTF, a block grant to states, is the first federal resource since 1974 for building, rehabilitating, or preserving homes targeted to extremely low income (ELI) households, those with income at or less than 30% of the area median income or less than the federal poverty line. The HTF is funded through a dedicated source, a small assessment on the volume of new business for Fannie Mae and Freddie Mac.

Nationwide, states are using most of their HTF resource for projects that will serve people experiencing homelessness, people with disabilities, elderly people, and other special needs populations. At the time of publication, 129 projects have been awarded 2016 HTF money, with about 1,500 HTF-assisted units anticipated to be constructed or rehabilitated.

In Indiana, four projects have been awarded with a total of 53 HTF-assisted units. Indiana was one of only seven states with more than 50 units.

The first allocation to states in 2016 was $174 million in HTF funding was allocated to states. It was followed by more than $219 million allocated for 2017 and nearly $267 million for 2018.

For information about the HTF program in Indiana, click here.

The full report is at: http://nlihc.org/issues/nhtf

Congress May Punt Vote on Updated Funding for Housing Programs Until December

Wed, 19 Sep 2018 00:00:00 GMT

On Sept. 17, the Senate voted 93-7 to pass a massive $854 billion spending bill (HR 6157), which includes FY19 budget bills for the departments of Defense, Health and Human Services (HHS), Labor and Education, but new funding bills for agencies like the Department of Housing and Urban Development and the Department of Agriculture may very well be stuck at current levels through Dec. 7 via a stopgap funding measure.

House and Senate appropriators are still working through last-minute negotiations towards a spending package that would authorize an FY19 budget for four appropriations bills, including Transportation, Housing and Urban Development (THUD) and Agriculture bills. Unfortunately, that effort appears mired in controversial proposed policy riders the cast doubt on whether or not there can be agreement ahead of the Sept. 30 deadline. If they cannot arrive at an agreement before this deadline, legislators would have to pass a stopgap funding measure and continue working towards approval of FY19 budgets before Dec. 7.

In the meantime, Prosperity Indiana continues to push for the highest possible allocation for the housing titles of these budget bills as well as the inclusion of the Housing Choice Voucher Mobility Demonstration program.

House and Senate FY19 HUD bills included increased compared to FY18 which is promising news as FY18 represented a nearly 10 percent increase compared to FY17 following nearly a decade of deep cuts in the aftermath of the recession and Budget Control Act. For more detailed coverage on those bills, please visit our earlier blog and links here: https://www.prosperityindiana.org/Policy-News/6574990

New Low-Income Renter Relief Bills Introduced

Wed, 08 Aug 2018 15:29:37 GMT

In Congress, two new legislative initiatives have been introduced that aim to alleviate cost burdens for low-income renters. These bills come on the heels of new data showing that In only 22 counties out of more than 3,000 nationwide can a full-time minimum wage worker afford a one-bedroom rental home at fair market rent. These 22 counties are all located in states with hourly minimum wages higher than $7.25. Further, since 1960, median earnings increased 5% while rents rose 61% and despite increasing need, only one out of every four very low-income renter households, those at or below 50% AMI, receives housing assistance.

In Indiana, a minimum wage worker must have 2.1 full-time jobs or work 86 hours per week to afford a two-bedroom apartment. According to calculations based on census data, there is a deficit of 134,998 units affordable and available for extremely low-income Hoosiers earning 30 percent of area median income or below. With that in mind, we take great interest in new initiatives to help address this housing crisis.

Rent Relief Act

On July 19, Senator Kamala Harris (D-CA) introduced the Rent Relief Act, to provide relief to cost-burdened renters by proposing a refundable tax credit to individuals who pay more than 30 percent of their gross income toward rent and utilities. Taxpayers earning less than $100,000 annually, or $125,000 in high-rent areas, would receive a credit that would cover the difference in rental payments between 30 percent of the taxpayer’s income and rent, capped at 150 percent of fair-market rent. Renters in subsidized housing would be able to claim one month’s rent as a refundable credit.

Housing, Opportunity, Mobility, and Equity Act

Soon after, on August 1, Senator Booker (D-NJ) introduced the Housing, Opportunity, Mobility, and Equity Act (HOME) Act that would also provide a refundable tax credit to households who spend more than 30% of their income on rent. The credit would apply to renters earning 80 percent of area median income and would be capped at 100 percent of fair market rent. The HOME Act would also allow renters to defer 20 percent of their tax credit to a rainy day savings program to help cover emergency expenses. Importantly, Sen. Booker’s bill also address the need for the expansion of affordable housing units by requires states and local communities to develop new inclusive zoning policies, programs, or regulatory initiatives to create more affordable housing supply.

Below are best practices the bill proposes communities adopt:
Reduce barriers to housing development, including affordable housing.
Authorizing high-density and multifamily zoning.
Eliminating off-street parking.
Establishing density bonuses.
Removing height limitations.
Prohibiting source of income discrimination.
Relaxing lot size restrictions.
Allowing accessory dwelling units.

Below is a comparison chart for both bills

Housing Appropriations Bill Passes the Senate

Fri, 03 Aug 2018 14:36:49 GMT

Critical Funding Update:
On August 2, the Senate approved its Transportation-HUD Appropriations bill. As outlined below, the bill includes $12 billion above the Administration’s request and $1 billion above the House version. This post details funding levels below, but here is a summary of the amendments added during debate.

An amendment to have the U.S. Department of Agriculture report to Congress on the agency’s strategy to preserve affordable rental homes in rural America.
An amendment to direct HUD to ensure landlords cannot unlawfully evict or deny housing to people based on their status as survivors of domestic violence.
An amendment instructing HUD and the Environmental Protection Agency to report on the removal of lead-based paint and other hazardous materials.
An amendment to prohibit those charged with certain crimes from receiving housing assistance. This provision is concerning for member interests due to concerns over how it would be implemented and we will reach out legislators ahead of reconciliation with the House bill.

Senate Budget Breakdown From Earlier this Year:

On Thursday, June 7, the Senate Appropriations Committee voted to advance its FY19 THUD bill. The bill is stronger for housing programs than the House bill, providing $1.8 billion in additional funding – that works out to $12 billion above the president’s FY19 request and more than $1 billion above the House proposal.

The Senate bill:

rejects any harmful rent increases
does not impose work requirements or time limits
unlike the House bill that does not include sufficient funding to renew all vouchers, the Senate bill fully funds existing rental assistance contracts and provides new funding for 7,600 new vouchers aimed at veterans and youth aging out of foster care.

Programs that would maintain the Omnibus funding levels:

The bill would renew all Section 811 Housing for Persons with Disabilities ($154 million)
Section 202 Housing for the Elderly ($678 million) and provides enough funding for new construction under Section 202.
HOME Investment Partnerships program ($1.36 billion)
Community Development Block Grants ($3.37 billion)

Programs receiving increases include:

Public Housing ($2.78 billion for capital repairs and $4.76 billion for operating)
Homeless Assistance Grants ($2.6 billion), Family Self-Sufficiency ($80 million)
Healthy Homes & Lead Hazard Control ($260 million)
The Office of Policy Development and Research ($100 million).

The only significant cut is to the Choice Neighborhoods program, which was cut b $50 million.

The House has yet to schedule a floor vote on its companion bill, for background on those figures, click here.

Senate Holds Hearing on Nomination for New CFPB Director

Wed, 25 Jul 2018 18:17:22 GMT

On Thursday, July 19, the Senate Banking Committee held a hearing confirmation hearing for President Trump’s nominee to become the new director of Consumer Financial Protection Bureau (CPFB), Kathy Kraninger. The CFPB is responsible for overseeing consumer protections in the financial sector and has jurisdiction includes banks, credit unions, mortgage servicers, foreclosure relief companies, and debt collectors operating in the U.S. If confirmed by the Senate, Kraninger would hold significant sway over the way those companies manage mortgages, credit cards, payday loans and other financial products they offer to customers. Click here to read our coverage of the hearing.

At issue in this hearing is the fundamental disagreement the Administration has with the agency’s underlying constitutionality. The current acting director, Mick Mulvaney, has decried what he considers to be a lack of accountability in the structure of the agency. Kraninger, hand-picked by Mulvaney to take over largely shares his views and promised in the confirmation hearing to continue the more pro-business shift at the agency that started under Mulvaney’s time as Acting Director.

If confirmed, Kraninger would serve a five-year term. In laying out her priorities, Kraninger stated she would use cost-benefit analysis to measure the price tag of regulations to industries and continue to go after bad industry behavior.

When pressed on the agency’s payday loan rule and her thoughts on whether or not the agency should repeal it, Kraninger only stated, “While I will not prejudge and cannot predict every decision that will come before me as director, if confirmed, I can assure you that I will focus solely on serving the American people.”

Senate Republicans who have expressed similar concerns to Mick Mulvaney about the agency and expressed support the nominee during the hearing proceedings. Questions from the panel’s Republican members largely focused on increasing transparency and accountability within the CFPB.

Senate Democrats who back the consumer protection actions taken under the previous director, Richard Cordray, took issue with Kraninger’s lack of experience with the agency, consumer protection issues or the financial services sector. Previously, she served at the White House Office of Management and Budget and helped craft President Trump’s 2019 budget plan, which called for cutting the CFPB’s budget and restricting its enforcement oversight.

Senator Donnelly (D-Ind.) sits on the panel and questioned Kraninger about student loan debt and the agency's recent decision to eliminate student loan office focused on loan abuses, which has returned $750 million in relief since its inception, and refocusing those responsibilities on "financial education." Donnelly stated that Hoosier students graduate with an average of $29,000 in debt and underlined the importance of that office. When asked her position on this action, Kraninger pointed to the fact the that CFPB still had an ombudsman for private student loans and she would be talking to that staff on student loan issues.

Donnelly also asked if she agreed with Mick Mulvaney's previous comments in referring to the CFPB as a "joke" and she said she would not have used those words and would support Bureau's mission, "as passed by Congress."

The full Senate is expected to vote soon on this nomination and Kraninger is expected to be confirmed as Republicans hold the majority of seats.

Action Alert Update! Rescission Package Defeated in Senate!

Thu, 21 Jun 2018 18:20:06 GMT

Thanks to advocacy pressure from you (https://www.prosperityindiana.org/Blog/6242798) and housing and community development proponents around the country, Congress rejected the Administration's effort to rescind $15 billion in previously approved federal funding. Those cuts included $39 million from the U.S. Department of Housing and Urban Development’s Public Housing Capital Fund, $40 million from the U.S. Department of Agriculture’s Rental Assistance Program, as well as $164 million from the U.S. Department of Treasury’s Community Development Financial Institution Fund (CDFI) programs.

These programs help ensure Hoosiers have access to safe, affordable housing and spur community development investments. While it passed the House on June 6, by a close vote of 210 - 206, the Senate voted down the measure by a vote of 48-50 on Wednesday. Senator Young (R-IN) voted to approve the measure and Senator Donnelly (D-IN) opposed it. To see how your Representative voted, click here.

Below is our action alert text addressing the impact this bill would have had on Prosperity Indiana' members and the Hoosiers served by them:

Dear Member,

As a Prosperity Indiana member dedicated to expanding affordable housing access and strengthening our communities, I urge you to oppose harmful rescissions contained in H.R. 3, the Spending Cuts to Expired and Unnecessary Programs Act. Contrary to the bill's title, the legislation would rescind significant resources needed to improve living conditions for low-income Hoosiers and increase investment in distressed communities.

Specifically, H.R. 3 would rescind $39 million from the U.S. Department of Housing and Urban Development's (HUD) Public Housing Capital Fund Program, $40 million from U.S. Department of Agriculture's (USDA) Rental Assistance Program, as well as $164 million from the U.S. Department of Treasury's Community Development Financial Institution Fund (CDFI) programs.

HUD:

The Public Housing Capital Fund enables Public Housing Authorities (PHAs) to maintain safe, sanitary living conditions for residents. These resources are used for roof repairs, maintaining heating and air conditioning systems, and removing hazards such as lead paint. Unfortunately, appropriations have not kept pace with the urgent need. A 2010 HUD study estimated the backlog on deferred maintenance on public housing was $26 billion, and was expected to grow by $3.4 billion per year. That would put the current backlog at more than $50 billion. Unobligated resources in this fund do not reflect a surplus. To the contrary, these funds are unobligated because PHAs often do not receive enough in one year's allocation to make larger repairs and have to save their annual funding for several years before signing contracts which lengthens the process. Cutting these resources only serves to further jeopardize the health and safety of public housing residents across our state.

USDA:

USDA's Rental Assistance Program is critical to community stability, providing funding to help low-income households in rural areas access housing stability through public-private partnerships with landlords. Without these funds, many families would be homeless. Short-term funding via continuing resolutions made it difficult to renew contracts and the funds targeted in this bill were intended to ensure there are no shortfalls in fulfilling those existing obligations that would be harmful to housing providers and low-income Hoosiers alike.

Treasury:

Proposed rescissions also include $151 million from the Capital Magnet Fund, resources that were only made available on May 1 of this year, and $22 million from the Bank Enterprise Award Program. These programs attract private capital to support organizations that increase the availability and affordability of housing and improve access to financial services in divested communities.

When you consider that thirty-one percent of households in Indiana are renters and nearly half are cost-burdened already, it is clear we simply cannot afford to cut programs that provide critical housing assistance and incentivize investments in low-income communities. I urge you to oppose this measure.