New Indiana Initiative Targets Hidden Housing Crisis to Save Family Homes

INDIANAPOLIS – December 29, 2025 – Thousands of Hoosier families are at risk of losing their most significant asset—their homes—due to a complex and often misunderstood legal issue known as heirs’ property. In response, a powerful coalition has formed to tackle this hidden crisis head-on. The Federal Home Loan Bank of Indianapolis (FHLBank Indianapolis) today announced the launch of the Indiana Heirs’ Property Initiative, a new program backed by a $500,000 grant and designed to protect generational wealth and stabilize communities across the state.

This crucial initiative will be administered through a partnership with two statewide nonprofits, Indiana Legal Services and Prosperity Indiana, who will provide education, legal assistance, and strategic outreach to families affected by tangled property titles. The program aims to turn a growing problem into an opportunity for families to secure their legacies for generations to come.

A Hidden Crisis Uncovered

Heirs’ property refers to land or a home that has been passed down informally from one generation to the next, typically without a will or a formal estate plan. While the family may have lived on the property for decades, the lack of a clear, legal title creates a cascade of devastating problems. Without proof of ownership, families cannot sell the property, borrow against it for repairs or other needs, or access federal aid for disaster relief. This leaves them in a state of legal limbo, making the property vulnerable to speculators and developers who can exploit legal loopholes to force a sale, often for a fraction of the property's market value.

This issue, once considered primarily a rural problem, is a significant and growing threat in urban centers as well. A December 2024 report commissioned by FHLBank Indianapolis and conducted by the consulting firm Black Onyx Management laid bare the scale of the problem in two of Indiana’s largest counties. The research identified 1,410 properties in Marion County already impacted by tangled titles, with a staggering 3,181 additional properties deemed ‘at risk’ of becoming heirs’ properties. In Allen County, 484 properties are currently impacted, with another 1,525 considered ‘at risk.’ The combined estimated value of these at-risk properties alone totals more than $8.2 million, representing a massive potential loss of generational wealth for families.

“Research from Black Onyx Management revealed that heirs’ property is a widespread and growing risk to housing stability and generational wealth in Indiana,” said Roxann Lawrence, VP of Applied Research at Black Onyx Management. “This partnership ensures the data leads to action by connecting families to education, legal support, and trusted resources that help protect homes and strengthen communities for the long term.”

A Three-Pronged Strategy for Stability

The Indiana Heirs’ Property Initiative is built on a comprehensive, three-pronged strategy focused on education, prevention, and resolution. This multi-faceted approach ensures that the program can address the needs of families at every stage of the issue.

First, the initiative will focus heavily on education and outreach. Prosperity Indiana and Indiana Legal Services will lead efforts to raise awareness about the risks of heirs’ property among the public, community leaders, and financial institutions. By explaining the importance of clear titles and estate planning, the program aims to equip Hoosiers with the knowledge to protect their assets before a crisis occurs.

Second, the program emphasizes prevention as the most effective tool. The simplest way to avoid the heirs’ property trap is to have a formal will or estate plan. The initiative will connect homeowners with the resources needed to create these crucial legal documents, ensuring a smooth and legally sound transfer of property to the next generation. This proactive step is the key to stopping the cycle of tangled titles before it begins.

Finally, for the thousands of families already grappling with this issue, the initiative offers a path to resolution. Indiana Legal Services will provide free, expert legal assistance to help families untangle complicated titles. This can involve complex legal work, including probate, title clearing, and sometimes litigation. For many low-income families, the cost of hiring an attorney for such services is prohibitive, leaving them with no viable options.

“Families shouldn’t risk losing a home simply because they’re unsure where to turn for help,” said Blair Hedges, Heirs Rights Attorney at Indiana Legal Services. “This initiative allows us to expand our services and offer free legal support to Hoosiers who need to make an estate plan, clear inherited title, or learn more about their rights. We’re committed to making sure every Hoosier knows that legal tools exist to help protect their homes and the communities they’ve built.”

Forging Partnerships to Protect Generational Wealth

The strength of the Indiana Heirs’ Property Initiative lies in the collaboration between organizations with deep roots in community development, legal aid, and finance. FHLBank Indianapolis, a regional cooperative bank owned by its member financial institutions in Indiana and Michigan, is driving the effort as part of its core mission.

“Our partnership with Indiana Legal Services and Prosperity Indiana will support educational efforts and evidence-backed strategies that help at-risk homeowners in our communities access the full benefits of homeownership and help maintain the generational wealth they’ve worked hard to build,” said FHLBank Indianapolis President and CEO Brendan McGrath. “As part of our core mission to promote affordable housing and community development, FHLBank Indianapolis is committed to providing solutions that promote housing stability in communities that might otherwise be at risk.”

Prosperity Indiana, an association dedicated to community economic development, brings a statewide network of over 200 member organizations to the table. Their role in outreach and education will be critical to reaching families in all corners of the state. “Helping families protect and preserve their homes is essential to creating and maintaining generational wealth as well as thriving communities,” said Aspen Clemons, Executive Director of Prosperity Indiana.

Meanwhile, Indiana Legal Services provides the direct, hands-on legal muscle required to resolve existing cases. As the state's largest provider of free civil legal assistance to low-income residents, the organization is uniquely positioned to serve the families most vulnerable to losing their homes. Black Onyx Management, which conducted the initial research, will remain engaged to track the program's progress and provide ongoing data analysis to measure its impact, ensuring the initiative remains effective and responsive to community needs.

The Path Forward for Hoosier Homeowners

For Indiana families who believe their property may have a clouded title or for those who wish to take proactive steps, this initiative provides a clear and accessible lifeline. The program is more than just a financial grant; it is a system of support designed to empower homeowners. By providing free legal counsel, the initiative removes the most significant barrier that prevents families from resolving these complex issues. The educational component will help demystify the legal processes surrounding property ownership and inheritance, encouraging more families to create wills and secure their financial futures.

The long-term impact of resolving heirs’ property issues extends far beyond individual households. When titles are cleared, families can invest in their homes, access equity, and build wealth. This, in turn, stabilizes neighborhoods, increases the tax base, and prevents the cycle of blight that often follows when properties are abandoned or lost. By tackling this problem at its root, the Indiana Heirs’ Property Initiative is making a foundational investment in the economic health and resilience of communities across Indiana.