FORT WAYNE, Ind. (WOWO) — Allen County has been awarded nearly $9.9 million in state funding to help expand housing in the Fort Wayne area.
Local lawmakers say the low-interest loan from the Indiana Finance Authority will help pay for infrastructure needed to support new residential development, including water and utility systems, streets, roads and bridges.
State Rep. Dave Heine, R-Fort Wayne, said the funding comes through the Indiana Residential Housing Infrastructure Assistance Program, a program created through a 2023 law backed by House Republicans.
“We want more Hoosiers to have access to quality housing that they can afford,” Heine said. “Expanding the number of available homes in Fort Wayne will help meet the growing demand, support our local economy and create more opportunities for Hoosiers to put roots down.”
State Rep. Chris Judy, R-Fort Wayne, said the Fort Wayne-area loan will support development of 182 single-family lots and 240 multifamily rental units.
That’s a potential addition of 422 housing units tied to the latest funding.
“This program has given communities statewide a valuable tool to address ongoing housing needs,” Judy said. “By helping local governments invest in necessary housing infrastructure, we can expand the supply of homes and improve affordability within our communities.”
Judy supported House Enrolled Act 1005 in 2023, which established the housing infrastructure assistance program.
According to lawmakers, the Indiana Finance Authority has closed more than $87 million in loans for housing developments in 20 Indiana cities and towns since the program began.
Those projects have helped communities add more than 3,000 housing units, lawmakers said.
The program is designed to help local governments address one of the biggest barriers to new housing construction: the cost of preparing land and building the infrastructure needed before homes can be developed.
That can include extending water and sewer systems, installing electric or natural gas distribution lines and constructing roads and bridges needed to serve new neighborhoods.
State Rep. Bob Morris, R-Fort Wayne, said the program is structured to make sure smaller communities have access to a significant share of the available funding.
Seventy percent of the program’s funding is dedicated to communities with populations below 50,000, while the remaining 30% is available to communities with populations above 50,000.
“Communities of every size face unique housing challenges, and this program provides flexibility to work with the state to find solutions that fit their needs,” Morris said.
“By reducing the upfront costs associated with housing development, we can encourage new construction and give more Hoosiers access to affordable housing,” he said.
The latest funding comes as state lawmakers continue to focus on increasing Indiana’s housing supply and reducing the cost of developing new homes.
House Republicans also backed House Enrolled Act 1001 this year, which lawmakers say is intended to expand housing availability, lower costs and make homeownership more attainable for Hoosiers.
Fort Wayne was one of six Indiana cities that closed on more than $25 million in housing loans during the latest funding round.
The Indiana Residential Housing Infrastructure Assistance Program provides low-interest loans to local governments for eligible infrastructure associated with residential development.
For Allen County and Fort Wayne, the latest award is expected to help prepare infrastructure for hundreds of new single-family and rental housing opportunities as the area continues to experience demand for additional housing.
