Indiana House Bill 1519 aims to expand down payment assistance and affordable housing options

The Indiana House of Representatives made significant strides in addressing the state's housing crisis during the Senate Legislative Session on January 28, 2025, by advancing House Bill 1519, which focuses on down payment assistance and workforce housing. This bill aims to enhance access to homeownership for low- to moderate-income families, a critical need as housing prices continue to rise.

Key amendments to the bill were discussed, including one that clarifies the language regarding appropriations and another that allows collaboration with low-income housing providers. Representative Rosemary Miller emphasized the importance of increasing the Area Median Income (AMI) eligibility for down payment assistance from 80% to 160%, which would expand the market for potential homebuyers and help families afford homes priced between $200,000 and $300,000.

The bill proposes a revolving loan fund for down payment assistance, which would not only sustain the program but also free up funds for building affordable housing through tax credits. Currently, Indiana's down payment assistance program provides about $32 million annually, but the demand for housing assistance is estimated to be much higher. The proposed changes aim to create a more sustainable funding model that could potentially double the amount of affordable housing units available in the state.

Testimonies from various stakeholders, including the Indiana Association of Realtors and the Indiana Builders Association, highlighted the urgent need for more affordable housing options. They expressed support for the bill, noting that it addresses barriers faced by first-time homebuyers, such as high closing costs and interest rates. The United Way of Central Indiana also voiced its support, emphasizing the importance of homeownership in building long-term financial stability for working families.

The committee's discussions underscored the importance of maintaining existing successful programs while introducing new measures to enhance housing accessibility. The bill passed with a vote of 11 to 1, signaling a strong commitment from Indiana lawmakers to tackle the housing shortage and support first-time homebuyers.

As the bill moves forward, it is expected to undergo further scrutiny in the Ways and Means Committee, where discussions will continue on funding allocations and the overall impact on Indiana's housing landscape. The passage of House Bill 1519 marks a proactive step towards addressing the pressing housing needs of Indiana residents, particularly those in underserved communities.