INDIANAPOLIS (WISH) — A new Indiana law has been designed to give nonprofits that work to provide low-income housing a fighting chance against big out-of-state investors.
These investors buying real estate and raising rents has become a growing trend in Indianapolis, some say.
“The sale of the tax lien has become…it’s an investment tool,” said Mickey Rogers, assistant treasurer of operations at the Marion County Treasurer’s Office. “There are institutional investors, people doing this across the country, who are showing up with very deep pockets and buying dozens and dozens of liens.”
Rogers says the new law does not prevent out-of-state investors from buying property, but rather sets a 5% cap on properties available for tax lien sale and specifically targets homes. company-owned or limited-liability. society.
“There are nine townships in Marion County; it would kind of create a 10th township,” Rogers said. “Before this legislation, because they (nonprofits) were kicked out of this (tax lien sales), they generally had to wait for what we then call overselling, which is properties that did not sell at a tax lien auction. .”
Rogers tells I-Team 8 that waiting for surplus sales makes homes more likely to lose value.
“By the time these nonprofits are able to get their hands on these properties for rehabilitation and conversion into housing, they’re so far gone that it’s no longer useful to them,” Rogers said.
Elan Daniel, general manager of Mapelton-Fall Creek Community Development Corp., is grateful for the new law. “This specific invoice helps us because the acquisition can be a significant cost, especially when these prices are rising so quickly in the real estate market.”
Daniel took I-Team 8 to a newly renovated Mapleton-Fall Creek neighborhood home, catering to households considered low-income. He says the average home price in Mapleton-Fall Creek is $200,000, with some homes fetching over $400,000.
Five years ago, homes in the neighborhood would have easily been 20-25% cheaper. “Values here have exploded,” the Mapleton-Fall Creek CEO said. “I think the law itself achieves the goal it set itself. But I would say, to start with, we need more investment in affordable housing.
The deputy treasurer says not all nonprofits will meet the qualifications for the new law. It’s only for nonprofits that have “experience and track records in creating low-to-moderate income housing.”
Rogers says the next step is for the Marion County Treasurer to work with county commissioners to develop policies and procedures so that nonprofits can be licensed, and then the list of properties forwarded to them.