2019 ANNUAL REPORT
Dear Friends,
The past few months of 2020 have reminded us that a person’s housing situation is one pillar to their economic and social well-being. Being able to afford the place you call home is essential to the choices you make, especially in times of need.
We examined affordability more than ever in 2019. Through research, we know the amount of housing cost burdened households in Marion County keeps rising while median home values continue to be out of reach for low- and moderate-income families. There is a critical need for education and more affordable housing options.
INHP is addressing these realities as a champion for affordable housing. We make data-driven decisions in partnership with the people and places we serve. We innovate to bring together the ideas, talents and resources of many and unify them under a common goal: To enhance the neighborhoods of our city.
Together, we are making our city a place we are proud to call home.
Moira Carlstedt
President and CEO
PROVIDING PEOPLE THE POWER TO CHOOSE WHERE THEY WANT TO LIVE
The power to choose where you want to live is a powerful thing. Our key strategies are built upon that principle, informed by data and responsive to our community’s need. According to recent data, more than 31% of Marion County households are low- and moderate-income AND spend more than 30% of their income on housing. Even more, renters comprise 70% of those households. This reveals a housing cost-burden challenge, and one that has grown during the past few years.*
*Source: Greenstreet, LTD.
Real estate market data reinforces that the affordable housing stock is not aligned with the demand. The number of homes that are available for sale that our families can afford has continued to decline. While 213 families finished INHP’s advising program in 2019, many of them found the cost of a home in a neighborhood that met their needs was more than they could afford.
KEY STRATEGY
HOMEBUYER EDUCATION, ADVISING & LENDING
INHP is committed to helping low- and moderate-income people understand their homeownership potential and purchasing power.
HOMEOWNERSHIP DEVELOPMENT
We enable clients to become knowledgeable homebuyers while preparing them to sustain their investment.
SINGLE-FAMILY LENDING
We provide qualified low- and moderate-income people access to loan programs to purchase or repair a home
DEMOGRAPHICS: INHP home purchase loans
*AMI = Area Median Income.
DEMOGRAPHICS: INHP home repair loans
*AMI = Area Median Income.
Glen trusts INHP to be the additional resource he needs to help his clients achieve homeownership.
Bonnie worked with INHP’s rehab team to make repairs to the home she loves.
DEMOGRAPHICS: private sector loans
Local banks partner with INHP to offer competitive loan options, so we can offer our clients more mortgage options.
*AMI = Area Median Income.
INHP’S ADVISING STAFF IS HUD CERTIFIED
Through our Homeownership Development team, we enable homebuyers to establish a healthy financial future and become educated and knowledgeable consumers. In 2019, every member of this team earned a HUD Certified Housing Counselor accreditation, ensuring our clients receive expert counsel.
KEY STRATEGY
COMMERCIAL LENDING
INHP creates development and reinvestment opportunities by providing commercial lending options to help respond to each neighborhood’s unique needs.
MORE CAPACITY, MORE FLEXIBILITY
Indianapolis’ neighborhoods have varied and unique plans for developing affordable housing. INHP continued to respond to community priorities in 2019 by offering a broader range of financing options.
As a U.S. Treasury certified community development financial institution (CDFI), INHP helps qualified nonprofits finance affordable housing initiatives. We provide construction financing, land loans, working capital and patient capital to support affordable housing development. Below are a few of the organizations we closed commercial loans with in 2019.
NWQOL
Holding
Company
KEY STRATEGY
DIRECT INVESTMENT
INHP is creating opportunities for individual homeowners and neighborhoods with targeted investments across the city.
AFFORDABLE HOUSING ALONG MASS TRANSIT LINES
In 2019 we officially announced our Equitable Transit-Oriented Development (ETOD) fund and purchased eight properties for future affordable housing opportunities near high-frequency transit routes. As properties are completed, residents will have easier access to jobs, healthcare, schools, and other Indianapolis amenities, and lower annual transportation costs.
NEW CONSTRUCTION
In partnership with the Crown Hill, Riverside and Old Southside neighborhoods, we invested in the construction or rehabilitation of 28 new, affordable single-family homes. These houses create new opportunities for buyers while helping neighborhoods reach their plans and goals. Check out floorplans from the Old Southside and Riverside neighborhood homes.
SHARING OUR SUBJECT-MATTER EXPERTISE
Moira joined several of our partners — Big Car Collaborative, Near East Area Development and Eastern Star Church — for a panel presentation at Hamilton County’s HAND, Inc. affordable housing conference. She had the opportunity to talk about specific ways INHP has supported each organization in creating innovative affordable housing strategies in their respective neighborhoods.
KEY STRATEGY
GRANTS
Because of our data-driven, partnership culture, we're trusted with philanthropic funds to strategically deploy into our community to positively impact the affordable housing system.
INHP’S ANNUAL COMMUNITY BREAKFAST
Each year, we use our Community Breakfast to celebrate our partnerships, promote our mission and advance the conversation of a people- and place-based approach to affordable housing. At the 2019 Community Breakfast, an INHP panel discussed the impact of our initiatives.
MORTGAGE ACCELERATOR PROGRAM
We know our low- to moderate-income clients are well-equipped to afford a traditional 30-year mortgage after completing our program. Shorter loan terms may cause payment shock or exceed their debt-to- income ratio. INHP designed a fixed-rate Mortgage Accelerator program that would give clients the option of a 20-year term. By significantly reducing the interest rate, we can offer a shorter repayment term without the corresponding increase in their principle and interest payment. This will help clients save tens of thousands of dollars and build wealth.
The program was piloted in 2019 to serve interested buyers in partner initiatives like Anchor Housing and our three New Markets Tax Credit neighborhoods where we built 29 new homes. After a successful pilot, we were awarded a U.S. Department of Treasury grant to make our Mortgage Accelerator program available across Marion County in 2020. We’ll be able to offer eligible homebuyers a 20-year fixed-rate mortgage loan with a payment that is nearly identical to a 30-year mortgage.
BRING THE HEAT A SUCCESS
For more than 12 years, we’ve partnered with the Indiana HVAC Association, IPL and Citizens Energy to help low-income families prepare their homes’ heating systems for winter through “Bring the Heat” day. On Oct. 5, 2019, we did it again, and we had the pleasure of including new partners Indianapolis Fire Department and CLEAResult Energy Advisors through IPL.
Volunteer teams visited nearly 150 homes to check furnace function and safety, check and/or replace smoke and carbon monoxide detectors, and assess the home's energy efficiency. After crews completed their visits, eight furnaces were flagged for major repair or replacement — a life-saving effort by all those involved.
“What a luxury to head into winter relaxed about my furnace instead of anxious about maintenance and repair costs.”
Bring the Heat participant and homeowner
COMPREHENSIVE SUPPORT IN ACTION ON THE OLD SOUTHSIDE
INHP first engaged with the Old Southside in 2015 to support area partners who wanted to establish a neighborhood plan. Our involvement came full circle in 2019 when the neighborhood was awarded a Lift Indy grant through the City of Indianapolis. Our comprehensive homeownership strategies are now at work in the neighborhood, including new affordable homes developed with Davis Homes, mortgage lending, homeownership education for homebuyers, and repair loans for existing low- and moderate-income homeowners.
REPAIRING A 100-YEAR-OLD HOME
Old Southside resident, Wayne, knew he needed to make repairs to his home. It was challenging for him to find the right time because of his fixed income. Through INHP’s Old Southside repair program — in partnership with the City of Indianapolis — Wayne was able to:
- Replace his HVAC system
- Repair plumbing problems
- Address lead-based paint
- Install floor supports
- Replace basement steps
“I’m happy to have my house back in working order.”
Wayne, Old Southside resident
REVENUE, GAINS & OTHER SUPPORT
EXPENSES & OTHER COSTS
