Efforts meant to create affordable housing, prevent eviction and solve homelessness will continue under Mayor Joe Hogsett’s proposed 2026 budget.
But as Hogsett tells city agencies to “do more with less” because of state property tax cuts, it isn’t clear whether those programs will be fully funded or face even more budget pressure.
The Department of Metropolitan Development will have about $6 million less to work with in 2026 than it was approved to spend this year. The department is responsible for working with developers and operating affordable housing programs.
About 80% of its budget comes from federal grants. A department spokesperson said the department will continue to put money toward programs that were funded by pandemic relief — including a homeowner repair program.
“It’s hard to tell right now if we’re going to expect any major changes,” the director, Megan Vukusich, told Mirror Indy on Aug. 13.
Along with federal pandemic funding going away, President Donald Trump’s administration has created uncertainty. Trump has, for example, told cities and states to move away from a “housing first” approach to homelessness.
The Office of Public Health and Safety will have about $1 million less to work with in 2026. The office funds eviction assistance and homelessness initiatives.
Asked if he expects any services to be affected, the agency’s director, Andrew Merkley, said no.
“OPHS’ programs will still operate,” he told reporters Aug. 13.
But the future of at least one program is unclear.
Eviction assistance funded, but not enough
A program offering free legal aid to people facing eviction is getting city funding for the first time.
But the amount budgeted for the Tenant Advocacy Project — $750,000 — isn’t enough to fully fund the program, which started in 2021 using pandemic relief money.
Merkley said he’s hoping more money will come in from other sources, including the Indiana Bar Foundation, which has previously helped fund the program.
The $750,000 in city funding is only about half of what the program needs, Merkley said.
He said the office may need to “right-size” the program and find “efficiencies.” But Merkley wouldn’t say if that means cutting positions or operations.
“We are not at that point yet,” he said, “so I can’t speak to that.”
$10 million for homelessness
Hogsett’s budget calls for $10 million to be spent on homelessness initiatives.
Some of that money will fund future phases of Streets to Home Indy, which has a goal to end long-term and unsheltered homelessness by 2028.
Merkley said it isn’t clear yet how much of the $10 million will go toward Streets to Home. The city has already invested $2.7 million for the first phase, which is focused on housing the roughly 350 people who are living outside.
Other homelessness initiatives will also need funding.
That includes the city’s winter contingency plan for people experiencing homelessness and a planned low-barrier homeless shelter in Fountain Square.
More ‘master leasing’ and a new-look land bank
The Department of Metropolitan Development plans to make 20 more units available through its master leasing program.
Master leasing, launched earlier this year, is part of the city’s attempt to reduce homelessness through partnerships with service providers and landlords.
The Damien Center, an HIV organization that offers housing assistance, holds the lease with a landlord and then subleases the unit to someone who needs housing.
There have been about 30 units opened through the program this year.
The department is also continuing its Vacant to Vibrant program, which began in 2023 using pandemic relief funds.
As part of the program, the city’s land bank is now part of the department. It previously operated through a nonprofit called Renew Indianapolis.
“It makes it more efficient,” Vukusich said of the change.
The land bank can acquire residential properties through tax sales and sell the property to create affordable housing.
Priority will be given to buyers who either commit to living in a home once it’s rehabbed or to selling the home at an affordable price.
Give your feedback
The Department of Metropolitan Development will present its budget to the City-County Council’s Metropolitan and Economic Development Committee at 5:30 p.m. Aug. 18 at the City-County Building.
The Office of Public Health and Safety will present its budget to the council’s Public Safety and Criminal Justice Committee at 5:30 p.m. Aug. 27 at the City-County Building.
There will be an opportunity for public comment at both meetings.
The committees will vote on whether to recommend approval of the budgets.
There will be another opportunity for public comment during the full council meeting Sept. 22.
The council is expected to vote on the entire city-county budget Oct. 6.
Mirror Indy, a nonprofit newsroom, is funded through grants and donations from individuals, foundations and organizations.
Mirror Indy reporter Tyler Fenwick covers housing and labor. Contact him at 317-766-1406 or tyler.fenwick@mirrorindy.org. Follow him on X @ty_fenwick and Bluesky @tyfenwick.bsky.social.
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