The Indiana Housing Finance Authority (IHFA) has designed a group of programs called Foundations to finance predevelopment activities. Money from the federal HOME Investment Partnerships (HOME) and Community Development Block Grant (CDBG) programs is used for housing needs assessments, feasibility studies and predevelopment loans. Because most major urban areas of the state get their own allocation of HOME and CDBG funds, the Indiana authority can only distribute these funds outside of metropolitan areas.
IHFA recently introduced a new Foundations program called "CHDO Seed Money Loans" for Community Housing Development Organizations (CHDOs). These loans can be used for preparing final architectural and engineering plans. The maximum loan is $50,000, which must be used within 12 months and repaid within 24 months. The loans have a 0 percent interest rate and can be forgiven if IHFA determines that impediments to the development were beyond the borrower's control.
IHFA's other Foundations programs include:
Housing Needs Assessments—These studies are not specific to a particular site or activity. They are used to gather data, prepare housing-related community plans and identify steps needed to create, develop or preserve affordable housing. Only local units of government are eligible to apply, and the maximum amount of this grant is $50,000.
Feasibility Studies—Applicants can identify a site for a particular development, work out a preliminary estimate of costs or identify whether there is adequate demand for a particular type of affordable housing. Only local units of government are eligible to apply, and the maximum amount is $50,000.
Predevelopment Loan—Recipients are allowed to go further into the planning process, to the point of obtaining site control. Only CHDOs are eligible to apply, and the maximum amount is $50,000.
For information on these or other IHFA programs, call 1-800-872-0371 (Indiana only) or go to IHFA's web site at www.indianahousing.org.
The Federal Reserve Board recently announced that the exemption threshold for depository institutions that are required to report data under the Home Mortgage Disclosure Act (HMDA) has been increased to $31 million. For further information, call Henry Dove Jr. at (314) 444-8846.
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