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Around Indiana
Challenges for the Indianapolis Housing Market Cited in New Report
On August 3, 24/7 Wall Street issued a report on the health of the 75 largest U.S. metropolitan areas in which Indianapolis was ranked "second sickest." The article notes that the list's ranking was based on homeowner and rental vacancy rates, employment data from the Bureau of Labor Statistics, and the National Association of Realtors historical median home prices. Using that criteria, Indianapolis was second due to the city's homeowner vacancy rates (5.2 percent), the rental vacancy rates (13.5 percent), and the unemployment rate (7.8 percent). Further, the article cited the $20,000 drop in average home prices (15.3 percent), between the second quarter of 2010 and the first quarter of this year in assigning the ranking.
On June 20, IACED and the Land Bank of Indianapolis partnered to host a land banking symposium to shed light on the problem of vacant and abandoned homes here in Indiana and discuss new strategies to revitalize Hoosier communities.
Click here to find a copy of the presentation.
Main Street Revitalization Program for Hoosier Communities
The Main Street Revitalization Program (MSRP) is federally funded through the Community Development Block Grant Program (CDBG) with the national objective of preventing and eliminating slums and blight. MSRP is administered by the Indiana Office of Community and Rural Affairs (OCRA) in conjunction with the Indiana Main Street Program. MSRP's goal is to encourage communities to focus on long-term community development within the downtown area. Projects eligible for MSRP funds include downtown infrastructure, streetscape, and facades.
In addition, each applicant must have a designated Active Indiana Main Street Community Group and the project must be part of the Group's overall strategy. Eligible applicants include: small cities which do not receive CDBG funds directly from U.S. Housing and Urban Development (HUD), incorporated towns, counties (excluding Lake and Hamilton, which are entitlement counties). The total amount awarded annually will be approximately $1 million over two competitive funding rounds.
To find out more details on the program, check out our blog post.
Across the Nation
HUD/VA Announce $46.2 Million Investment in HUD-VASH
In a joint announcement on July 14, U.S. Department of Housing and Urban Development Secretary Donovan and U.S. Department of Veterans Affairs Secretary Shinseki announced a $46.2 million investment in HUD's Veterans Affairs Supportive Housing Program (HUD-VASH).
The HUD-VASH program is a collaboration among HUD, VA and local housing agencies that distribute vouchers that not only provide rental assistance, but comprehensive case management services to veterans in need. The case management services are provided through partnerships with local VA Medical Centers. Indiana will receive $369,378 for 75 vouchers. To read more, click here.
Consumer Financial Protection Bureau Opens Its Doors
The new Consumer Financial Protection Bureau opened its doors on July 21, issuing new rules and launching the new Consumer Response Center which began accepting consumer finance complaints and questions on its new website, ConsumerFinance.gov.
The Consumer Financial Protection Bureau was created under the Dodd-Frank Wall Street Reform and Consumer Protection Act, with its mission as the watchdog for American consumers to ensure that financial choices are made with the right information and to prevent abusive and deceptive financial practices in the industry.
Click here to read the CFPB progress report.
Secure Infrastructure Grants for Rural Communities
The U.S. Department of Transportation recently announced a new grant opportunity for rural communities across the country. The Transportation Investment Generating Economic Recovery (TIGER) grant program is a great opportunity for rural communities to leverage federal funds for local transportation projects.
If you plan to apply for this year's round of TIGER grants or want to learn more about the program and the application process, click here to find updates and links to informational webinars on the program.
US Interagency Council on Homelessness Is Seeking Best Practices
On June 22, 2010, The US Interagency Council on Homelessness (USICH) released Opening Doors, the nation's first comprehensive strategy to prevent and end homelessness. Opening Doors serves as a roadmap for joint action by the 19 USICH member agencies along with local and state partners in the public and private sectors.
A key strategy within Opening Doors is to identify and promote the use of best practices to end homelessness. As a result, USICH is building a searchable database that will serve as a central repository for information on promising practices and innovative programs. IACED members have a chance to contribute their best ideas. Of primary importance is that you send 1) agency/program name, 2) location, and 3) topic area. Click here to find out how to submit your recommendations.
Out of Reach 2011: Affordable Housing Challenges for Renters
The National Low Income Housing Coalition's Out of Reach 2011 report offers a look at the housing challenges facing American families in 2011. The length of the economic recession and growing concerns over homeownership following the housing crisis led to a decrease in homeownership to 66.5% by the fourth quarter of 2010, the lowest level in over a decade. More Americans are choosing to rent as a means of making housing more affordable and maintaining flexibility at a time when geographic mobility improves job prospects. Out of Reach addresses the affordability of rental housing with respect to full-time wage levels. It is generally accepted that housing should account for no more than 30% of a household's income to be affordable; in 2009, 52% of US renters were spending above this limit, a jump from 40% ten years ago. Half of that increase occurred between 2007 and 2009.
In Indianapolis, the Housing Wage (the full-time hourly wage necessary to afford a two-bedroom unit at HUD's estimated Fair Market Rent) is $14.63; it would take two people working minimum wage jobs full-time to afford a two-bedroom unit. The highest Housing Wage for a metropolitan area is $15.67 in Gary, where it would take 2.2 full-time jobs at minimum wage to make a two-bedroom unit affordable. Lake, Newton, and Porter Counties have the highest Housing Wage by county, also at $15.67. The lowest Housing Wage in Indiana is $11.46 in a number of counties across the state, which is equivalent to 1.6 full-time minimum wage jobs.
To read more, check out our blog post by clicking here.
Institute for Children, Poverty and Homelessness Report Examines Need for Comprehensive Statewide Strategies
A recent report from the Institute for Children, Poverty and Homelessness (ICPH) reviewed statewide plans to end homelessness throughout the country, providing the first comprehensive survey to include stakeholders' perceptions of these plans and recommendations for their improvement.
Twenty-eight states approved ten-year state-level plans between 2002 and 2008 to address the federal priority of ending chronic homelessness in a decade. The ICPH report finds that 26 of the 28 state plans broadened that goal to include other vulnerable populations, such as families with children. Respondents justify focusing on a larger target population by noting that a more inclusive policy may be better suited to the demographics of the state's homeless population. Families with children constitute the fastest growing homeless population today, and interviewees expressed unanimous support for broad-based plans that include multiple target populations. ICPH agrees that plans must be tailored to local demographics of the homeless.
Click here for our post on the report's findings and recommendations.
As U.S. Credit Rating is Downgraded, the Effects on Borrowers Remain Uncertain
On August 4, the Dow Jones Industrial Average dropped 4.3% (513 points) following a week of steadily declining prices. This was the largest single-day drop in the Dow since October 2008, when Congress initially failed to pass TARP legislation. Reports on the struggling stock market reference the ongoing crisis in European financial markets, sluggish job growth, and uncertainty regarding the political will to create a long-term debt reduction plan in the U.S. as contributing factors. Following the close of markets on Friday, Standards and Poor's downgraded the federal government's credit rating from AAA to AA+ for the first time in history.
For consumers, the downgrade could result in higher interest rates on loans of all types. Many interest rates are pegged to the yields on Treasury securities, so if the lower credit rating makes it more difficult for the U.S. government to get a loan, it could become more difficult for the rest of us, too. The S&P also announced additional downgrades of agencies linked to U.S. long-term debt, including Fannie Mae and Freddie Mac. Fannie and Freddie own or guarantee about half of all U.S. mortgages, or nearly 31 million home loans worth more than $5 trillion. Their downgrade might force anyone looking to buy a home to pay higher mortgage rates. Other agencies experiencing a downgrade include farm lenders, long-term U.S. government-backed debt issued by 32 banks and credit unions, and three major clearinghouses that execute trades of stocks, bonds and options.
To read more, follow this link for our blog post.
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