A new Indiana law will help nonprofit organizations providing home ownership opportunities to low-income families by continuing access to zero-interest mortgages and special protections against private lenders.
Groups like Habitat for Humanity work with volunteers that help build or renovate homes for Hoosiers in need. Habitat houses are sold to partner families at no profit, financed with affordable, no-interest loans. The homeowners' monthly mortgage payments are recycled into a revolving “Fund for Humanity” that is used to build more houses.
State Sen. Ed Charbonneau (R-Valparaiso), co-sponsor of the bill, said access to zero-interest loans is key to helping these groups continue to operate and help local families who desperately need affordable places to live.
“In these tough economic times, it can be difficult for many struggling Hoosiers to find safe, affordable housing,” Charbonneau said. “This new law will benefit nonprofits like Habitat for Humanity and their volunteers continue to help deserving families.”
In Indiana, Habitat affiliates have built more than 3,300 homes since 1984. Officials said they expect to build 200 more this year. The organization has built more than 300,000 homes sheltering about1.5 million people in more than 3,000 communities worldwide in its mission to eliminate poverty.
House Enrolled Act 1180 will go into effect July 1.