House committee advances bill to expand down payment assistance, raise AMI to 160%

Representative Rosemary Miller introduced House Bill 1519 to the House Financial Institutions Committee as a measure to continue and expand Indiana's down payment assistance programs and create new financing tools to spur workforce and multifamily housing production. The committee adopted two amendments by consent and voted to advance the bill to the next stage, 11-1.

The bill would continue the existing down payment assistance program, increase the AMI eligibility threshold to 160 percent and authorize a revolving loan fund intended to make down payment assistance repayable and sustainable over time. Representative Miller told the committee the change in AMI moves the effective price point for assistance from about $200,000 to roughly $300,000 in many markets, widening the pool of buyers who could use the program.

A range of housing industry witnesses supported the bill or described it as a useful tool while flagging concerns about funding. Maggie McShane, senior vice president of government affairs at the Indiana Association of Realtors, testified in a neutral position and urged lawmakers not to dilute the existing Indiana Housing and Community Development Authority (IHCDA) down payment…