SAVI Reports - Page 13

HUD also provides resources to local public housing authorities, such as the Indianapolis Housing Authority, through programs that provide project-based and tenant-based assistance. These resources may be used to support the development or redevelopment of individual housing projects, or they may be used by individual families to make up the difference between 30 percent of their income and a HUDestablished fair market rent with participating landlords. housing for low-income households through the Low Income Housing Tax Credit program. This program allows investors in low-income housing projects to offset their income tax burden through a qualified investment in the development of low-income housing; the owner/investor agrees to keep rents affordable for a thirtyyear period, thereby creating and preserving affordable housing. The Indiana Housing and Community Development Authority administers this program throughout the State of Indiana. The US Treasury also serves as a major source of federal subsidy to support the development of high-quality affordable Drivers of Affordable Housing Supply: Housing affordability is greatly shaped by larger economic forces in a metropolitan area. Put simply, there’s a reason New York, San Francisco, and Boston are incredibly expensive places to live, whereas places like Flint (MI), Youngstown (OH), and Scranton (PA) have much lower housing costs. The broader economy attracts capital (human and monetary) from outside the region and increases demand for quality housing, which pushes up prices. A tight housing market is often a sign of a robust economy. Over the long term it may be better to be house-poor in an economically strong region than slightly more house-secure in a weak region because there is more opportunity to progress in the stronger economic region; New York, San Francisco, and Boston are incredibly expensive places to live because their economies attract human and financial capital from outside the regi