Detroit Receives More Than $4.6M as Federal Home Loan Bank of Indianapolis Awards $34.1M in Affordable Housing Grants

December 2, 2025

The Federal Home Loan Bank of Indianapolis has announced $34. 1 million in Affordable Housing Program grants for 2025, with Detroit receiving over $4. 6 million to support housing development amid rising construction costs and limited affordable inventory.

Who is affected

Low-, very low-, and moderate-income households in Indiana and Michigan
Detroit residents, particularly those earning below 50% of area median income
Nonprofit developers and community development corporations
Community-based housing organizations
Local developers navigating financing challenges

What action is being taken

The Federal Home Loan Bank of Indianapolis is distributing $34.1 million in Affordable Housing Program awards
43 projects are being funded across the region
Detroit developers are receiving more than $4.6 million in allocations
Developers are using layered financing including Low-Income Housing Tax Credits, local gap funding, and federal competitive grants

Why it matters

The funding addresses critical affordable housing shortages in Detroit and the region at a time when rising construction costs, high interest rates, and limited federal resources have created significant barriers to development. Detroit requires thousands of additional deeply affordable units while confronting an aging housing stock that requires expensive rehabilitation beyond what low-income renters can afford without subsidy. The AHP grants serve as essential gap financing that determines whether projects can proceed, particularly in disinvested neighborhoods where market rents cannot support construction costs, making this program one of the few consistent federal tools available to nonprofit developers for addressing regional housing needs.

What's next

No explicit next steps stated in the article

Read full article from source: Michigan Chronicle