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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.
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