Communities across four states will experience an increase in affordable homeownership opportunities with the support of New Markets Tax Credit (NMTC) allocation from Housing Partnership Network (HPN). This NMTC transaction, which closed on August 6, 2025, will result in the development of 86 affordable homes by HPN member organizations Indianapolis Neighborhood Housing Partnership, The Housing Partnership, Inc., Self-Help Enterprises, and Southwest Minnesota Housing Partnership. Each nonprofit housing developer is receiving a NMTC-funded loan to cover market and affordability gaps. American Express NMTC Homeownership 2025 Fund, LLC is the NMTC investor with support from U.S. Bancorp Impact Finance. Smith NMTC Associates, LLC facilitated the closing to maximize the project’s community benefits, provides the recapture guaranty, and will work closely with each project on compliance and impact reporting over the 7-year compliance period.

These affordable homeownership opportunities will strengthen the communities in which they are located and spark economic development. Homeownership development creates jobs, attracts businesses, generates economic activity, provides homeowners with wealth-building through home equity, and stabilizes neighborhoods. Read more about other positive outcomes associated with access to homeownership.

Addressing Indy’s Housing Shortage

With a $7.76 million NMTC loan (QLICI), Indianapolis Neighborhood Housing Partnership, Inc. (INHP) plans to develop 23 homes primarily through new construction, including the completion of Arnold Place—a vibrant townhome community named after a neighborhood centenarian. Conveniently located close to downtown Indianapolis, Indiana and in the heart of the Reagan Park neighborhood, once completed, Arnold Place will be the largest single-site affordable homeownership development in the city in over 20 years. Lack of affordable housing for low- and moderate-income residents is a critical problem in Indianapolis. The Reagan Park area has seen significant increases in income levels and housing values, but significant decreases in the percentage of Black residents due to displacement. The city identified the Arnold Place property site, which served for decades as space for storage and fleet services for the former Colonial Bakery, as one of the few opportunities to support affordable homeownership within a gentrifying area, while repurposing and transforming an environmentally impacted site that had been vacant for over a decade. A majority of the homes developed by INHP will be sold to buyers with household income at or below 80% AMI.

photo #1 above: Finished Phase 1 Arnold Place townhomes (Phase 2 is under construction).

Strengthening Neighborhoods One Vacant Lot at a Time in Louisville

With a $7.76 million NMTC loan, The Housing Partnership, Inc. (HPI) plans to construct 25 new single-family homes in the West End area of Louisville, Kentucky, through scattered infill. With an estimated 5,000 vacant properties, the West End, which is composed of multiple neighborhoods, has experienced the many negative impacts that “blighted properties” pose to communities—costs to public health, property values, local taxpayers, and more (Center for Community Progress). Not only will HPI’s project provide affordable homeownership opportunities, but it will also contribute toward revitalizing West Louisville. HPI’s infill development plan focuses on areas where HPI already owns homes, enhancing safety and improving the visual appeal of entire streets by building on its existing work. As blight is reduced on these targeted streets, neighborhoods will become more welcoming to homebuyers seeking affordable options. HPI plans to sell at least 60% of the homes developed to buyers with household incomes of 80% AMI or below. With a proven track record, including the successful revitalization of 120 single-family homes in the previous 18-month period, HPI has the expertise to deliver impactful results on a large scale.

photo #2 above: A home developed by HPI, similar to those that will be constructed in the West End.

Families Build Their Own Futures in Modesto

With a $6.79 million NMTC loan, Self-Help Enterprises (SHE) plans to develop 17 single-family homes in Modesto, California, in partnership with the City of Modesto and Stanislaus Equity Partners, a community development corporation. East Modesto is an underinvested neighborhood where Hispanic and Southeast Asian residents have experienced historic exclusion from economic opportunities due to a legacy of redlining and systemic exclusion. All the new homes will be sold to homebuyers with household income at or below 80% AMI. SHE provides pre-purchase counseling, homebuyer education, post-purchase support, and referrals to mortgage and real estate professionals to support new homebuyers throughout their journey. This initiative aims to increase affordable homeownership and strengthen neighborhood stability where the unemployment rate is 4.17 times the national average and the AMI is only 69%.

photo #3 above: The community gathering for the grand opening of affordable infill homeownership developments by SHE in Fresno, CA in July.

Affordable Homeownership with Room to Grow in Minnesota

With a $9.7 million NMTC loan, Southwest Minnesota Housing Partnership (SWMHP) will develop 21 homes across Mankato, Minnesota, in conjunction with a community land trust to ensure future access to equity-building, affordable homeownership opportunities. Four homes will be rehabs and 17 homes will be new construction: The new construction development will include detached homes and townhomes, in groupings that leverage density while fostering a neighborhood feel in its design. The units will vary in size to provide options for homebuyers but will offer 3 to 4 bedrooms with 2 bathrooms and a 2-car garage. These offerings address the severe shortage of affordable housing options for larger families. The acquisition/rehabilitated homes will also offer 3 to 4 bedrooms with 2 bathrooms and a 1- or 2-car garage. All of the homes will be sold to low-income homebuyers. To develop successful homeowners, SWMHP provides support services like pre- and post-purchase financial counseling, homebuyer education, and home maintenance courses. Additionally, SWMHP also provides financial literacy workshops and financial coaching services, including advising homeowners on down payment assistance programs such as Minnesota’s First Time Homebuyer and First Generation Homebuyer programs.

photo #4 above: Groundbreaking ceremony including Bill Freitag of Wilcon Construction (left) and SWMHP CEO Chad Adams on the right.

Building Markets & Changing Systems to Improve Lives

Since 2017, the Housing Partnership Network, Inc., an award-winning business collaborative of 100+ of the nation’s leading housing and community development organizations, has received and deployed a total of $225 million in NMTCs to develop 1,071 homes across 13 states. Through its unique network approach including peer to peer learning, HPN promotes proven policies and practices, enabling its member organizations and leaders to accelerate and scale innovation to more rapidly respond to changing market challenges and opportunities. Through this collaborative work with its members, HPN has developed, rehabilitated or preserved 500,000 affordable homes and has provided homebuyer education and counseling for 1.3 million families.