The Indiana Finance Authority closed on more than $25 million in low-interest loans for housing developments in six Hoosier cities and towns throughout the state, the agency announced in a news release Wednesday.
The loans come from the Indiana Residential Infrastructure Fund — a revolving-loan fund created by statute three years ago to support housing development through low-interest municipal loans.
Once a city pays off its loan, the money becomes available for other communities.
The agency recently closed on $25 million in loans for:
- Arcadia: $3 million
- Attica: $1.7 million
- Austin: $1.19 million
- Elkhart: $10 million
- Fort Wayne: $8.15 million
- Terre Haute: $1.575 million
“Indiana’s economy is growing, and our housing supply needs to grow with it,” Gov. Mike Braun said in the release. “These investments will save local communities money while helping them ensure Hoosier families have access to a variety of housing options.”
The low-interest loans will save cities $6.2 million in aggregate principal and interest costs, said Sherry Seiwert, director of the loan program for the Indiana Finance Authority.
To date, the Indiana Finance Authority has closed more than $87 million in loans for housing developments in 20 cities and towns throughout the state since 2024, according to the release.
Seventy percent of the loans are reserved for cities or towns with a population below 50,000 people by law.
About the projects
Arcadia, population 1,500, will use its $3 million loan to develop 264 singe-family detached homes.
Attica will build 29 single-family lots, the first phase of an 87-lot project for the rural city of 3,500.
A new housing development in Austin will see the creation of 119 single-family homes, 60 triplex units and 72 apartments. The first phase of the project—made possible through the city’s $1.19 loan—is expected to yield 54 single-family homes.
A $10 million loan to Elkhart will help finance the city’s redevelopment of an abandoned mall into a mixed-use housing development, anticipated to include 140 housing units, a health center, job training center and retail space.
Other projects include development of 182 single-family lots and 240 multi-family rentals in Fort Wayne, and a 50-unit development along Terre Haute’s trail system.
The list of cities that closed on loans excludes St. Joseph and New Carlisle, which had been selected by the Indiana Finance Authority in December for $4.5 million in low-interest loans.
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