CareSource Commits $5 Million to Affordable Housing Investments in Indiana
August 18th, 2020 | 3 min read
The Health Insurer’s Investments Will Drive Positive Member Outcomes in Indiana
(INDIANAPOLIS, Ind. – August 18, 2020) – CareSource, a nonprofit multi-state managed care plan, announced it is committing $5 million in investments to affordable housing projects in Indiana. This commitment is part of the $50 million financial investment CareSource is making to housing projects across the U.S., focusing on underserved communities with high rates of poverty. The health insurer is now actively searching for partners in Indiana to champion this commitment and to find solutions for Hoosiers searching for affordable housing.
“Because of the pandemic, we are intensifying our commitment to growing our housing program. We know that as housing resources improve, health outcomes also improve,” said Steve Smitherman, president of CareSource Indiana. “We will be investing in projects such as affordable housing loan funds that provide financial resources to developers who are working to create housing options for low income individuals. Our goal with this investment is to assist in producing the best opportunities for our members and Hoosiers that may be searching for affordable housing.”
According to the National Low Income Housing Coalition, there is a shortage of rental homes affordable and available to extremely low income households in Indiana. These households’ incomes are at or below the poverty guideline or 30% of their area median income. Many of these households are severely cost burdened, spending more than half of their income on housing. The COVID-19 pandemic has only worsened the number of families who are housing insecure. An April 2020 study by Washington University in St. Louis suggests individuals are now facing increased housing hardship such as evictions, delayed rent or mortgage payments, and unexpected utility payments and home repairs.
CareSource’s announcement follows years of affordable housing support through CareSource Foundation grants. Earlier this year, the organization also announced its role as an investor in the $100 million housing action fund administered by the Affordable Housing Trust for Columbus, Ohio and Franklin County, which provides below-market financing for affordable housing development.
Additionally, CareSource joined 33 other organizations in asking senators and representatives to address housing instability in the next COVID-19 relief package. Dubbed the Emergency Rental Assistance and Rental Market Stabilization Act, the $100 billion rental relief fund would be a tremendous support to prevent individuals from falling further into housing instability.
“While it’s unusual for a nonprofit like CareSource to invest this way, we feel strongly that it makes good financial sense for the organization,” said Dave Goltz, chief financial officer at CareSource. “CareSource is not only diversifying existing investment dollars but also aligning our investments with our mission and better serving members.”