Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
“What can Indiana policymakers do to solve the housing shortage?”
The data in our community, our state and our nation shows a staggering underproduction of housing since the housing market collapse in 2008, the result of which has been sharp increases in housing prices driven by a lack of housing supply to meet growing demand. Add to that the strains on the system through and since the pandemic, population growth, generational shifts, inflation and increased cost of borrowing, and it is not an exaggeration to say we have a housing crisis writ-large and an affordability crisis for more and more hard-working Americans than we’ve ever experienced.
There is no silver bullet. It will take a substantial and sustained commitment at all levels of government, and high-fidelity innovative execution by all players in the housing industry, to dig ourselves out of the hole.
At the Indianapolis Neighborhood Housing Partnership, our strategies span everything from consumer (or demand) advising and lending to a range of community (or supply) solutions, thus attacking the issue from both sides.
This experience informs our advocacy at the federal, state and local levels, focused in three key areas:
1. Listen and learn. Policymakers need to deeply understand the issue—how we got here; the impact it is having on families and in communities; the foundational nature of safe, stable, affordable housing to family success; the problem’s sheer magnitude; and the substantial and sustained commitment needed.
2. Commit financial resources. Expansion of existing tools such as Low-Income Housing Tax Credits, New Market Tax Credits, HOME Investment Partnerships Program and Community Development Block Grant funding, and a variety of state and local incentives such as tax abatement, tax-increment financing, developer and consumer subsidy, and a willingness to explore new approaches and partnerships. Commitments need to be substantial and sustained to have an impact.
3. Remove barriers. The barriers to developing housing, particularly housing for households with low and moderate incomes, are plentiful. The regulation and complexity to execute on many of the financial resources noted above extend development timelines and significantly increase development costs. Any subjectivity and extra time spent on permitting and other approvals in a space where time really is money can make or break a razor-thin project. Zoning and ordinances further constrain a community’s ability to innovate and add product that meets today’s demand.
When stakeholders ask whether we need strategy A, B, C or D—our answer is, “Yes.” We need a wide range of strategies working together to solve one of our community’s biggest problems. We need policymakers to prioritize housing as the cornerstone of family and community success, and to attack the issue on all fronts. At the same time, the housing industry needs to continue to be innovative and effective in developing strategies to leverage these resources to their fullest. This cannot be just a flavor of the day, week, month, year or administration—the commitment must be substantial and sustained.•
__________
Miller has been president and CEO of the Indianapolis Neighborhood Housing Partnership since 2022. Send comments to [email protected].
Click here for more Forefront columns.
Please enable JavaScript to view this content.
Editor's note: You can comment on IBJ stories by signing in to your IBJ account. If you have not registered, please sign up for a free account now. Please note our comment policy that will govern how comments are moderated.