Introduced Version
HOUSE BILL No. 1535
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 4-4-28; IC 6-1.1-24-17.5; IC 6-3.1;
IC 24-4.4-1-202; IC 24-4.5-1-202; IC 36-7-14-22.2.
Synopsis: IDAs and neighborhood assistance credits. Replaces the
term "community development corporation" in statutes concerning
individual development accounts (IDA) with the term "community
based organization" and makes conforming changes throughout the
Indiana Code to reflect that change. Provides that: (1) $1,500 (rather
than $800) is eligible for a state deposit in an individual's individual
development account (account); (2) the allocation, for each account
that has been established for not more than five years, is $3 for each $1
of the first $1,500 (rather than the first $400) an individual deposited
into the individual's account during the preceding 12 months; and (3)
the amount of the allocation may not exceed $4,500 (rather than
$2,400) for each account. Makes various changes to the neighborhood
assistance tax credit.
Effective: July 1, 2023.
Manning
January 19, 2023, read first time and referred to Committee on Ways and Means.
2023 IN 1535—LS 6967/DI 129 Introduced
First Regular Session of the 123rd General Assembly (2023)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2022 Regular Session of the General Assembly.
HOUSE BILL No. 1535
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 4-4-28-2 IS AMENDED TO READ AS FOLLOWS
2 [EFFECTIVE JULY 1, 2023]: Sec. 2. As used in this chapter,
3 "community development corporation" based organization" means a
4 private, nonprofit corporation:
5 (1) whose board of directors consists primarily of community
6 representatives and business, civic, and community leaders; and
7 (2) whose principal purpose includes the provision of:
8 (A) housing;
9 (B) community based economic development projects; or
10 (C) social services;
11 that primarily benefit low income individuals and communities.
12 SECTION 2. IC 4-4-28-4 IS AMENDED TO READ AS FOLLOWS
13 [EFFECTIVE JULY 1, 2023]: Sec. 4. As used in this chapter, "fund"
14 refers to an individual development account fund established by a
15 community development corporation based organization under
16 section 13 of this chapter.
17 SECTION 3. IC 4-4-28-5, AS AMENDED BY P.L.50-2016,
2023 IN 1535—LS 6967/DI 129 2
1 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2 JULY 1, 2023]: Sec. 5. As used in this chapter, "individual
3 development account" means an account in a financial institution
4 administered by a community development corporation based
5 organization that allows a qualifying individual to deposit money:
6 (1) to be matched by the state, financial institutions, corporations,
7 and other entities; and
8 (2) that will be used by the qualifying individual for one (1) or
9 more of the following:
10 (A) To pay for costs (including tuition, laboratory costs, books,
11 computer costs, and other costs associated with attendance) at
12 an accredited postsecondary educational institution or a
13 vocational school that is not a postsecondary educational
14 institution, for the individual or for a dependent of the
15 individual.
16 (B) To pay for the costs (including tuition, laboratory costs,
17 books, computer costs, and other costs) associated with an
18 accredited or a licensed training program that may lead to
19 employment for the individual or for a dependent of the
20 individual.
21 (C) To purchase a primary residence located in Indiana for the
22 individual or for a dependent of the individual or to reduce the
23 principal amount owed on a primary residence located in
24 Indiana that was purchased by the individual or a dependent of
25 the individual with money from an individual development
26 account.
27 (D) To pay for the rehabilitation (as defined in IC 6-3.1-11-11)
28 of the individual's primary residence located in Indiana.
29 (E) To begin or to purchase part or all of a business based in
30 Indiana or to expand an existing small business based in
31 Indiana.
32 (F) Subject to section 8(b) of this chapter, to purchase a motor
33 vehicle.
34 SECTION 4. IC 4-4-28-7, AS AMENDED BY P.L.50-2016,
35 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
36 JULY 1, 2023]: Sec. 7. (a) A qualifying individual, including an
37 individual who:
38 (1) established an individual development account under this
39 chapter before July 1, 2001; and
40 (2) held the account described in subdivision (1) for less than four
41 (4) years;
42 may establish an account by applying at a community development
2023 IN 1535—LS 6967/DI 129 3
1 corporation based organization after June 30, 2001.
2 (b) At the time of establishing an account under this section, the
3 qualifying individual must name a beneficiary to replace the qualifying
4 individual as the holder of the account if the qualifying individual dies.
5 If the beneficiary:
6 (1) is a member of the qualifying individual's family, all funds in
7 the account remain in the account; and
8 (2) is not a member of the qualifying individual's family, all funds
9 in the account provided by the state revert to the state.
10 The qualifying individual may change the name of the beneficiary at
11 the qualifying individual's discretion. A beneficiary who becomes the
12 holder of an account under this subsection is subject to this chapter and
13 rules adopted under this chapter regarding withdrawals from the
14 account.
15 (c) Only one (1) member of a qualifying individual's household may
16 establish an account.
17 (d) A qualifying individual shall maintain residency in Indiana until
18 the individual development account is closed.
19 SECTION 5. IC 4-4-28-8, AS AMENDED BY P.L.50-2016,
20 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
21 JULY 1, 2023]: Sec. 8. (a) A community development corporation
22 based organization shall do the following:
23 (1) Determine whether an individual who wants to establish an
24 account is a qualifying individual.
25 (2) Administer, through a financial institution, and act as trustee
26 for each account established through the community development
27 corporation. based organization.
28 (3) Approve or deny an individual's request to make a withdrawal
29 from the individual's account.
30 (4) Provide or arrange for training in money management,
31 budgeting, and related topics for each individual who establishes
32 an account.
33 (b) A community development corporation based organization may
34 approve a qualifying individual's request to make a withdrawal from an
35 account to purchase a motor vehicle if the purpose of the purchase is
36 primarily to transport the individual to and from work, postsecondary
37 education, or an accredited or licensed training program intended to
38 lead to employment of the individual or a dependent of the individual.
39 SECTION 6. IC 4-4-28-9, AS AMENDED BY P.L.150-2007,
40 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
41 JULY 1, 2023]: Sec. 9. (a) An individual may deposit money from the
42 individual's earned income into the individual's account.
2023 IN 1535—LS 6967/DI 129 4
1 (b) An individual may deposit an unlimited amount of money into
2 the individual's account. However, only eight hundred one thousand
3 five hundred dollars ($800) ($1,500) annually is eligible for a state
4 deposit as provided in section 12 of this chapter.
5 SECTION 7. IC 4-4-28-10, AS AMENDED BY P.L.150-2007,
6 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7 JULY 1, 2023]: Sec. 10. (a) Not more than eight hundred (800)
8 accounts may be established in the state each state fiscal year
9 beginning before July 1, 2009.
10 (b) Not more than one thousand (1,000) accounts may be
11 established in the state each state fiscal year beginning after June 30,
12 2009.
13 (c) A community development corporation based organization
14 shall use money that is in an individual development account fund
15 established under section 13 of this chapter to allow a qualified
16 individual on a waiting list maintained by the community development
17 corporation based organization to establish an account.
18 SECTION 8. IC 4-4-28-11, AS AMENDED BY P.L.1-2007,
19 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
20 JULY 1, 2023]: Sec. 11. (a) Each community development corporation
21 based organization shall annually provide the authority with
22 information needed to determine:
23 (1) the number of accounts administered by the community
24 development corporation; based organization;
25 (2) the length of time each account under subdivision (1) has been
26 established; and
27 (3) the amount of money an individual has deposited into each
28 account under subdivision (1) during the preceding twelve (12)
29 months.
30 (b) The authority shall use the information provided under
31 subsection (a) to deposit the correct amount of money into each
32 account as provided in section 12 of this chapter.
33 SECTION 9. IC 4-4-28-12, AS AMENDED BY P.L.50-2016,
34 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35 JULY 1, 2023]: Sec. 12. (a) The authority shall allocate, for each
36 account that has been established, for not more than five (5) years,
37 three dollars ($3) for each one dollar ($1) of the first four one
38 thousand five hundred dollars ($400) ($1,500) an individual deposited
39 into the individual's account during the preceding twelve (12) months.
40 However, if the amount appropriated by the general assembly is
41 insufficient to make the deposits required by this section for accounts
42 that have been established, the authority shall proportionately reduce
2023 IN 1535—LS 6967/DI 129 5
1 the amounts allocated to and deposited into each account. The authority
2 may allocate three dollars ($3) for each one dollar ($1) of any part of
3 an amount above four hundred dollars ($400) an individual deposited
4 into the individual's account during the preceding twelve (12) months.
5 However, the authority's allocation under this subsection may not
6 exceed two four thousand four five hundred dollars ($2,400) ($4,500)
7 for each account described in this subsection.
8 (b) The authority shall deposit into each account established under
9 this chapter the appropriate amount of money determined under this
10 section.
11 (c) Money from a federal block grant program under Title IV-A of
12 the federal Social Security Act may be used by the state to provide
13 money under this section for deposit into an account held by an
14 individual who receives assistance under IC 12-14-2.
15 SECTION 10. IC 4-4-28-13, AS AMENDED BY P.L.50-2016,
16 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
17 JULY 1, 2023]: Sec. 13. (a) Each community development corporation
18 based organization may apply to the authority for an allocation of tax
19 credits under IC 6-3.1-18 for the contributors to a fund established
20 under this section. A community development corporation based
21 organization may establish an individual development account fund
22 to provide money to be used to finance additional accounts to be
23 administered by the community development corporation based
24 organization under this chapter and to help pay for the community
25 development corporation's based organization's expenses related to
26 the administration of accounts.
27 (b) Each community development corporation based organization
28 shall encourage individuals, financial institutions, corporations, and
29 other entities to contribute to the fund. A contributor to the fund may
30 qualify for a tax credit as provided under IC 6-3.1-18.
31 (c) Each community development corporation based organization
32 may use up to twenty percent (20%) of the first one hundred thousand
33 dollars ($100,000) deposited each calendar year in the fund under
34 subsection (b) to help pay for the community development
35 corporation's based organization's expenses related to the
36 administration of accounts established under this chapter. All deposits
37 in the fund under subsection (b) of more than one hundred thousand
38 dollars ($100,000) during each calendar year may be used only to fund
39 accounts administered by the community development corporation
40 based organization under this chapter.
41 (d) A community development corporation based organization may
42 allow an individual to establish a new account as adequate funding
2023 IN 1535—LS 6967/DI 129 6
1 becomes available.
2 (e) Only money from the fund may be used to make the deposit
3 described in subsection (f) into an account established under this
4 section.
5 (f) The community development corporation based organization
6 shall annually deposit at least three dollars ($3) into each account for
7 each one dollar ($1) an individual has deposited into the individual's
8 account as of June 30.
9 (g) A community development corporation based organization may
10 not allow a qualifying individual to establish an account if the
11 community development corporation based organization does not
12 have adequate funds to deposit into the account under subsection (f).
13 SECTION 11. IC 4-4-28-15, AS AMENDED BY P.L.1-2007,
14 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15 JULY 1, 2023]: Sec. 15. (a) An individual must request and receive
16 authorization from the community development corporation based
17 organization that administers the individual's account before
18 withdrawing money from the account for any purpose.
19 (b) An individual who is denied authorization to withdraw money
20 under subsection (a) may appeal the community development
21 corporation's based organization's decision to the authority under
22 rules adopted by the authority under IC 4-22-2.
23 SECTION 12. IC 4-4-28-16, AS AMENDED BY P.L.50-2016,
24 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
25 JULY 1, 2023]: Sec. 16. (a) Money withdrawn from an individual's
26 account is not subject to taxation under IC 6-3-1 through IC 6-3-7 if the
27 money is used for at least one (1) of the following:
28 (1) To pay for costs (including tuition, laboratory costs, books,
29 computer costs, and other costs) at an accredited postsecondary
30 educational institution or a vocational school that is not a
31 postsecondary educational institution for the individual or for a
32 dependent of the individual.
33 (2) To pay for the costs (including tuition, laboratory costs, books,
34 computer costs, and other costs) associated with an accredited or
35 a licensed training program that may lead to employment for the
36 individual or for a dependent of the individual.
37 (3) To purchase a primary residence located in Indiana for the
38 individual or for a dependent of the individual or to reduce the
39 principal amount owed on a primary residence located in Indiana
40 that was purchased by the individual or a dependent of the
41 individual with money from an individual development account.
42 (4) To pay for the rehabilitation (as defined in IC 6-3.1-11-11) of
2023 IN 1535—LS 6967/DI 129 7
1 the individual's primary residence located in Indiana.
2 (5) To begin or to purchase part or all of a business based in
3 Indiana or to expand an existing small business based in Indiana.
4 (6) Subject to section 8(b) of this chapter, to purchase a motor
5 vehicle.
6 (b) At the time of requesting authorization under section 15 of this
7 chapter to withdraw money from an individual's account under
8 subsection (a)(5), the individual must provide the community
9 development corporation based organization with a business plan that:
10 (1) has been approved by a financial institution or is approved by
11 the community development corporation; based organization;
12 (2) includes a description of services or goods to be sold, a
13 marketing plan, and projected financial statements; and
14 (3) may require the individual to obtain the assistance of an
15 experienced business advisor.
16 SECTION 13. IC 4-4-28-18, AS AMENDED BY P.L.1-2007,
17 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
18 JULY 1, 2023]: Sec. 18. (a) Each community development corporation
19 based organization shall annually:
20 (1) evaluate the individual development accounts administered by
21 the community development corporation; based organization;
22 and
23 (2) submit a report containing the evaluation information to the
24 authority.
25 (b) Two (2) or more community development corporations based
26 organizations may work together in carrying out the purposes of this
27 chapter.
28 SECTION 14. IC 6-1.1-24-17.5, AS ADDED BY P.L.123-2022,
29 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 JULY 1, 2023]: Sec. 17.5. (a) This section does not apply to real
31 property:
32 (1) used as a principal place of residence and receiving a
33 homestead standard deduction under IC 6-1.1-12-37 for the most
34 recent assessment date; or
35 (2) for which a set off has been obtained under IC 6-8.1-9.5
36 against the delinquent debt owed on the real property.
37 This subsection includes any real property adjacent to and under the
38 same ownership as the homestead real property described in
39 subdivision (1).
40 (b) This section applies only in a county having a consolidated city
41 and to real property that has been offered for sale by the county at two
42 (2) or more public tax sales held under this chapter.
2023 IN 1535—LS 6967/DI 129 8
1 (c) For purposes of this section, "county executive" refers to the
2 board of commissioners as provided in IC 36-3-3-10.
3 (d) For purposes of this section, "eligible nonprofit entity" means an
4 organization exempt from federal income tax under 26 U.S.C.
5 501(c)(3) that is either:
6 (1) an entity that:
7 (A) acquires real property to stabilize and provide future home
8 ownership opportunities to those who would not otherwise be
9 financially capable of purchasing a home;
10 (B) has the organizational capacity and community experience
11 necessary to successfully undertake community development
12 projects;
13 (C) has been organized and in operation for at least five (5)
14 years; and
15 (D) has each year of the immediately preceding two (2) years,
16 rehabilitated and transferred at least one (1) single family
17 dwelling to a low or moderate income household for use as a
18 residence; or
19 (2) a community development corporation based organization
20 (as defined in IC 4-4-28-2).
21 (e) For purposes of this section, "low or moderate income
22 household" means a household having an income equal to or less than
23 the Section 8 low income limit established by the United States
24 Department of Housing and Urban Development.
25 (f) A county treasurer may, as a separate part of a regularly
26 scheduled sale conducted under section 5 of this chapter, offer for sale
27 a tract or item of real property, subject to the right of redemption, to an
28 eligible nonprofit entity for purposes of a project for the development
29 of low or moderate income housing, using either:
30 (1) the sale process under section 5 of this chapter; or
31 (2) a procedure developed and implemented by resolution of the
32 county executive that conforms in all material respects to the
33 procedures under section 5 of this chapter.
34 (g) Not more than five percent (5%) of the number of parcels listed
35 for sale under section 5 of this chapter may be made available for sale
36 to eligible nonprofit entities under subsection (f). However, an eligible
37 nonprofit entity may acquire not more than ten (10) parcels made
38 available for sale under subsection (f).
39 (h) To participate in a sale under subsection (f), an eligible nonprofit
40 entity must file, not later than forty-five (45) days prior to the
41 advertised date of the sale under section 5 of this chapter:
42 (1) an application to the county executive, signed by an officer or
2023 IN 1535—LS 6967/DI 129 9
1 member of the eligible nonprofit entity, that includes:
2 (A) the address or parcel number of the tract or item of real
3 property the entity desires to acquire;
4 (B) the intended use of the tract or item of real property;
5 (C) the time period anticipated for implementation of the
6 intended use; and
7 (D) any additional information required by the county
8 executive and communicated to potential applicants in
9 advance that demonstrates the entity meets the definition of an
10 eligible nonprofit entity under subsection (d); and
11 (2) documentation verifying:
12 (A) the entity's federal tax exempt status; and
13 (B) the entity's good standing in Indiana as determined by the
14 secretary of state.
15 (i) If an eligible nonprofit entity takes possession of a tax sale
16 certificate under this section, the eligible nonprofit entity acquires the
17 same rights and obligations as a purchaser under section 6.1 of this
18 chapter. However, if an eligible nonprofit entity obtains a tax deed after
19 the expiration of the redemption period specified under IC 6-1.1-25, the
20 eligible nonprofit entity shall first offer an occupant of the parcel the
21 opportunity to purchase the parcel.
22 (j) If an eligible nonprofit entity uses a tract or item of real property
23 obtained under this section for a purpose other than the development
24 of low or moderate income housing, the tract or item of real property
25 is subject to forfeiture.
26 (k) Before January 1, 2023, and before each January 1 thereafter, the
27 county executive shall provide an annual report to the legislative
28 council in an electronic format under IC 5-14-6 concerning the tax sale
29 program established by this section.
30 SECTION 15. IC 6-3.1-9-2, AS AMENDED BY P.L.166-2014,
31 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32 JULY 1, 2023]: Sec. 2. (a) A business firm or a person who contributes
33 to a neighborhood organization that engages in the activities of
34 providing:
35 (1) neighborhood assistance, job training, or education for
36 individuals not employed by the business firm or person;
37 (2) community services or crime prevention in an economically
38 disadvantaged area; or
39 (3) community services, education, or job training services to
40 individuals who are ex-offenders who have completed the
41 individuals' criminal sentences or are serving a term of probation
42 or parole;
2023 IN 1535—LS 6967/DI 129 10
1 shall receive a tax credit as provided in section 3 of this chapter if the
2 authority approves the proposal of the business firm or person, setting
3 forth the program to be conducted, the area selected, the estimated
4 amount to be invested in the program, and the plans for implementing
5 the program. neighborhood organization engaging in the activities
6 described in subdivisions (1) through (3).
7 (b) The authority, after consultation with the community services
8 agency and the commissioner of revenue, may adopt rules for the
9 approval or disapproval of these proposals.
10 SECTION 16. IC 6-3.1-9-3 IS AMENDED TO READ AS
11 FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 3. (a) Subject to the
12 limitations provided in subsection (b) and sections 4, 5, and 6 of this
13 chapter, the department shall grant a tax credit against any state tax
14 liability due equal to fifty percent (50%) of the amount invested
15 contributed by a business firm or person in a program the proposal for
16 which was approved under section 2 of this chapter.
17 (b) The credit provided by this chapter shall only be applied against
18 any state tax liability owed by the taxpayer after the application of any
19 credits, which under IC 6-3.1-1-2 must be applied before the credit
20 provided by this chapter. In addition, the tax credit which a taxpayer
21 receives under this chapter may not exceed twenty-five thousand
22 dollars ($25,000) for any taxable year of the taxpayer.
23 (c) If a business firm that is:
24 (1) exempt from adjusted gross income tax (IC 6-3-1 through
25 IC 6-3-7) under IC 6-3-2-2.8(2); or
26 (2) a partnership;
27 does not have any tax liability against which the credit provided by this
28 section may be applied, a shareholder or a partner of the business firm
29 is entitled to a credit against the shareholder's or the partner's liability
30 under the adjusted gross income tax.
31 (d) The amount of the credit provided by this section is equal to:
32 (1) the tax credit determined for the business firm for the taxable
33 year under subsection (a); multiplied by
34 (2) the percentage of the business firm's distributive income to
35 which the shareholder or the partner is entitled.
36 The credit provided by this section is in addition to any credit to which
37 a shareholder or partner is otherwise entitled under this chapter.
38 However, a business firm and a shareholder or partner of that business
39 firm may not claim a credit under this chapter for the same investment.
40 SECTION 17. IC 6-3.1-9-4, AS AMENDED BY P.L.1-2007,
41 SECTION 56, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
42 JULY 1, 2023]: Sec. 4. (a) The neighborhood organization, on
2023 IN 1535—LS 6967/DI 129 11
1 behalf of any business firm or person which desires to claim a tax
2 credit as provided in this chapter shall file with the department, in the
3 form that the department may prescribe, an application documentation
4 stating the amount of the contribution or investment which it proposes
5 to make which that would qualify for a tax credit, and the amount
6 sought to be claimed as a credit. The application documentation shall
7 include a certificate evidencing approval of the contribution or program
8 by the authority.
9 (b) The authority shall give priority in issuing certificates to
10 applicants neighborhood organizations whose contributions or
11 programs directly benefit enterprise zones.
12 (c) The department shall promptly notify an applicant whether, or
13 the extent to which, the tax credit is allowable in the state fiscal year in
14 which the application documentation is filed, as provided in section
15 5 of this chapter. If the credit is allowable in that state fiscal year, the
16 applicant shall within thirty (30) days after receipt of the notice file
17 with the department of state revenue a statement, in the form and
18 accompanied by the proof of payment as the department may prescribe,
19 setting forth that the amount to be claimed as a credit under this
20 chapter has been paid to an organization for an approved program or
21 purpose, or permanently set aside in a special account to be used solely
22 for an approved program or purpose.
23 (d) The department may disallow any credit claimed under this
24 chapter for which the statement or proof of payment is not filed within
25 the thirty (30) day period. shall consider documentation from the
26 authority as proof of payment, setting forth that the amount to be
27 claimed as a credit under this chapter has been paid to an
28 organization for an approved program or purpose, or permanently
29 set aside in a special account to be used solely for an approved
30 program or purpose.
31 SECTION 18. IC 6-3.1-9-5 IS AMENDED TO READ AS
32 FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 5. (a) The amount of
33 tax credits allowed under this chapter may not exceed two million five
34 hundred thousand dollars ($2,500,000) in the state fiscal year
35 beginning July 1, 1997, and ending June 30, 1998, and each state fiscal
36 year thereafter.
37 (b) The department shall record the time of filing of each
38 application for allowance of a credit required under section 4 of this
39 chapter and shall approve the applications, if they otherwise qualify for
40 a tax credit under this chapter, in the chronological order in which the
41 applications are filed in the state fiscal year.
42 (c) When the total credits approved under this section equal the
2023 IN 1535—LS 6967/DI 129 12
1 maximum amount allowable in any state fiscal year, no application
2 documentation thereafter filed for that same fiscal year shall be
3 approved. However, if any applicant business firm or person for
4 whom a credit has been approved fails to file the statement
5 documentation of proof of payment required under section 4 of this
6 chapter, an amount equal to the credit previously allowed or set aside
7 for the applicant may be allowed to any subsequent applicant in the
8 year. In addition, the department may, if the applicant so requests,
9 approve a credit application, in whole or in part, with respect to the
10 next succeeding state fiscal year.
11 SECTION 19. IC 6-3.1-18-1 IS AMENDED TO READ AS
12 FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 1. As used in this
13 chapter, "community development corporation" based organization"
14 has the meaning set forth in IC 4-4-28-2.
15 SECTION 20. IC 6-3.1-18-2 IS AMENDED TO READ AS
16 FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 2. As used in this
17 chapter, "fund" refers to an individual development account fund
18 established by a community development corporation based
19 organization under IC 4-4-28-13.
20 SECTION 21. IC 6-3.1-18-4.5, AS ADDED BY P.L.50-2016,
21 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
22 JULY 1, 2023]: Sec. 4.5. As used in this chapter, "qualified
23 contribution" means a contribution to a fund for which a community
24 development corporation based organization has received an
25 allocation of tax credits under IC 4-4-28-13.
26 SECTION 22. IC 24-4.4-1-202, AS AMENDED BY P.L.103-2014,
27 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
28 JULY 1, 2023]: Sec. 202. (a) As used in this section, "balloon
29 payment", with respect to a mortgage transaction, means any payment:
30 (1) that the creditor requires the debtor to make at any time during
31 the term of the mortgage;
32 (2) that represents the entire amount of the outstanding balance
33 with respect to the mortgage; and
34 (3) the entire amount of which is due as of a specified date or at
35 the end of a specified period;
36 if the aggregate amount of the minimum periodic payments required
37 under the mortgage would not fully amortize the outstanding balance
38 by the specified date or at the end of the specified period. The term
39 does not include a payment required by a creditor under a due-on-sale
40 clause (as defined in 12 U.S.C. 1701j-3(a)) or a payment required by
41 a creditor under a provision in the mortgage that permits the creditor
42 to accelerate the debt upon the debtor's default or failure to abide by the
2023 IN 1535—LS 6967/DI 129 13
1 material terms of the mortgage.
2 (b) This article does not apply to the following:
3 (1) Extensions of credit to government or governmental agencies
4 or instrumentalities.
5 (2) A first lien mortgage transaction in which the debt is incurred
6 primarily for a purpose other than a personal, family, or
7 household purpose.
8 (3) An extension of credit primarily for a business, a commercial,
9 or an agricultural purpose.
10 (4) Except for IC 24-4.4-2-401(2), IC 24-4.4-2-402.3,
11 IC 24-4.4-2-405(4), and IC 24-4.4-2-405(5), a first lien mortgage
12 transaction made:
13 (a) in compliance with the requirements of; and
14 (b) by a community development corporation based
15 organization (as defined in IC 4-4-28-2) acting as a
16 subrecipient of funds from;
17 the Indiana housing and community development authority
18 established by IC 5-20-1-3.
19 (5) Except for IC 24-4.4-2-401(2), IC 24-4.4-2-402.3,
20 IC 24-4.4-2-405(4), and IC 24-4.4-2-405(5), a first lien mortgage
21 transaction made by an entity that exclusively uses funds provided
22 by the United States Department of Housing and Urban
23 Development under Title 1 of the federal Housing and
24 Community Development Act of 1974, Public Law 93-383, as
25 amended (42 U.S.C. 5301 et seq.).
26 (6) An extension of credit originated by the following:
27 (a) A depository institution. However, a federal savings bank
28 may voluntarily register with the department for the purpose
29 of sponsoring, under an exclusive written agreement,
30 individuals who are licensed as mortgage loan originators
31 under this article and 750 IAC 9-3, who perform mortgage
32 loan origination activities as independent agents under the
33 federal savings bank's direct supervision and control, who hold
34 a current, valid insurance producer license under IC 27-1-15.6,
35 and who sell, solicit, or negotiate insurance under an exclusive
36 written agreement for a licensed insurance company that is a
37 subsidiary of a company that also owns or controls the federal
38 savings bank, if the federal savings bank does the following:
39 (i) Assumes responsibility for and reasonably supervises the
40 activities of all licensed mortgage loan originators sponsored
41 by the federal savings bank under this clause.
42 (ii) Registers with and maintains a valid unique identifier
2023 IN 1535—LS 6967/DI 129 14
1 issued by the NMLSR as required by IC 24-4.4-2-401(2),
2 maintains a surety bond in accordance with
3 IC 24-4.4-2-402.3, submits to the NMLSR reports of
4 condition in accordance with IC 24-4.4-2-405(4) (subject to
5 IC 24-4.4-2-402.4), and files financial statements with the
6 department in accordance with IC 24-4.4-2-405(5).
7 (iii) Cooperates with the department, and provides access to
8 records and documents, as required by the department in
9 carrying out examinations of the activities of the licensed
10 mortgage loan originators sponsored by the federal savings
11 bank under this clause, as described in IC 24-4.4-2-405(1).
12 (iv) Agrees to comply with all law, rules, directives, and
13 orders in connection with the activities of the licensed
14 mortgage loan originators sponsored by the federal savings
15 bank, as the director determines necessary to ensure
16 compliance with the federal Secure and Fair Enforcement
17 for Mortgage Licensing Act of 2008 (12 U.S.C. 5101 et seq.)
18 and with Indiana law.
19 (b) Subsidiaries that are not licensed under this article and that
20 are:
21 (i) owned and controlled by a depository institution; and
22 (ii) regulated by a federal banking agency.
23 (c) An institution regulated by the Farm Credit Administration.
24 (7) Except for IC 24-4.4-2-401(2), IC 24-4.4-2-402.3,
25 IC 24-4.4-2-405(4), and IC 24-4.4-2-405(5), a credit union service
26 organization that is majority owned, directly or indirectly, by one
27 (1) or more credit unions.
28 (8) A first lien mortgage transaction originated by a registered
29 mortgage loan originator, when acting for an entity described in
30 subsection (6). However, a privately insured state chartered credit
31 union shall comply with the system of mortgage loan originator
32 registration developed by the Federal Financial Institutions
33 Examinations Council under Section 1507 of the federal Secure
34 and Fair Enforcement for Mortgage Licensing Act of 2008
35 (SAFE).
36 (9) An individual who offers or negotiates terms of a mortgage
37 transaction with or on behalf of an immediate family member of
38 the individual.
39 (10) An individual who offers or negotiates terms of a mortgage
40 transaction secured by a dwelling that served as the individual's
41 residence.
42 (11) Unless the attorney is compensated by:
2023 IN 1535—LS 6967/DI 129 15
1 (a) a lender;
2 (b) a mortgage broker;
3 (c) another mortgage loan originator; or
4 (d) any agent of the lender, mortgage broker, or other
5 mortgage loan originator described in clauses (a) through (c);
6 a licensed attorney who negotiates the terms of a mortgage
7 transaction on behalf of a client as an ancillary matter to the
8 attorney's representation of the client.
9 (12) The United States, any state or local government, or any
10 agency or instrumentality of any governmental entity, including
11 United States government sponsored enterprises.
12 (13) A person in whose name a tablefunded transaction is closed,
13 as described in section 301(34)(a) of this chapter. However, the
14 exemption provided by this subsection does not apply if:
15 (a) the transaction:
16 (i) is secured by a dwelling that is a mobile home, a
17 manufactured home, or a trailer; and
18 (ii) is not also secured by an interest in land; and
19 (b) the person in whose name the transaction is closed, as
20 described in section 301(34)(a) of this chapter, sells the
21 dwelling to the debtor through a retail installment contract or
22 other similar transaction.
23 (14) A bona fide nonprofit organization not operating in a
24 commercial context, as determined by the director, if the
25 following criteria are satisfied:
26 (a) Subject to clause (b), the organization originates only one
27 (1) or both of the following types of mortgage transactions:
28 (i) Zero (0) interest first lien mortgage transactions.
29 (ii) Zero (0) interest subordinate lien mortgage transactions.
30 (b) The organization does not require, under the terms of the
31 mortgage or otherwise, balloon payments with respect to the
32 mortgage transactions described in clause (a).
33 (c) The organization is exempt from federal income taxation
34 under Section 501(c)(3) of the Internal Revenue Code.
35 (d) The organization's primary purpose is to serve the public
36 by helping low income individuals and families build, repair,
37 and purchase housing.
38 (e) The organization uses only:
39 (i) unpaid volunteers; or
40 (ii) employees whose compensation is not based on the
41 number or size of any mortgage transactions that the
42 employees originate;
2023 IN 1535—LS 6967/DI 129 16
1 to originate the mortgage transactions described in clause (a).
2 (f) The organization does not charge loan origination fees in
3 connection with the mortgage transactions described in clause
4 (a).
5 (15) A bona fide nonprofit organization (as defined in section
6 301(37) of this chapter) if the following criteria are satisfied:
7 (a) For each calendar year that the organization seeks the
8 exemption provided by this subdivision, the organization
9 certifies, not later than December 31 of the preceding calendar
10 year and on a form prescribed by the director and accompanied
11 by such documentation as required by the director, that the
12 organization is a bona fide nonprofit organization (as defined
13 in section 301(37) of this chapter).
14 (b) The director determines that the organization originates
15 only mortgage transactions that are favorable to the debtor. For
16 purposes of this clause, a mortgage transaction is favorable to
17 the debtor if the director determines that the terms of the
18 mortgage transaction are consistent with terms of mortgage
19 transactions made in a public or charitable context, rather than
20 in a commercial context.
21 SECTION 23. IC 24-4.5-1-202, AS AMENDED BY P.L.176-2019,
22 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
23 JULY 1, 2023]: Sec. 202. (a) As used in this section, "balloon
24 payment", with respect to a mortgage transaction, means any payment
25 that:
26 (1) the creditor requires the debtor to make at any time during the
27 term of the mortgage;
28 (2) represents the entire amount of the outstanding balance with
29 respect to the mortgage; and
30 (3) the entire amount of which is due as of a specified date or at
31 the end of a specified period;
32 if the aggregate amount of the minimum periodic payments required
33 under the mortgage would not fully amortize the outstanding balance
34 by the specified date or at the end of the specified period. The term
35 does not include a payment required by a creditor under a due-on-sale
36 clause (as defined in 12 U.S.C. 1701j-3(a)) or a payment required by
37 a creditor under a provision in the mortgage that permits the creditor
38 to accelerate the debt upon the debtor's default or failure to abide by the
39 material terms of the mortgage.
40 (b) This article does not apply to the following:
41 (1) Extensions of credit to or by a government or governmental
42 agencies or instrumentalities.
2023 IN 1535—LS 6967/DI 129 17
1 (2) The sale of insurance by an insurer, except as otherwise
2 provided in the chapter on insurance (IC 24-4.5-4).
3 (3) Transactions under public utility, municipal utility, or
4 common carrier tariffs if a subdivision or agency of this state or
5 of the United States regulates the charges for the services
6 involved, the charges for delayed payment, and any discount
7 allowed for early payment.
8 (4) The rates and charges and the disclosure of rates and charges
9 of a licensed pawnbroker established in accordance with a statute
10 or ordinance concerning these matters.
11 (5) A sale of goods, services, or an interest in land in which the
12 goods, services, or interest in land are purchased primarily for a
13 purpose other than a personal, family, or household purpose.
14 (6) A loan in which the debt is incurred primarily for a purpose
15 other than a personal, family, or household purpose.
16 (7) An extension of credit primarily for a business, a commercial,
17 or an agricultural purpose.
18 (8) An installment agreement for the purchase of home fuels in
19 which a finance charge is not imposed.
20 (9) Loans made, insured, or guaranteed under a program
21 authorized by Title IV of the Higher Education Act of 1965 (20
22 U.S.C. 1070 et seq.).
23 (10) Transactions in securities or commodities accounts in which
24 credit is extended by a broker-dealer registered with the Securities
25 and Exchange Commission or the Commodity Futures Trading
26 Commission.
27 (11) Except for IC 24-4.5-3-502.1(4), IC 24-4.5-3-503.3,
28 IC 24-4.5-3-505(4), and IC 24-4.5-3-505(5), a loan made:
29 (A) in compliance with the requirements of; and
30 (B) by a community development corporation based
31 organization (as defined in IC 4-4-28-2) acting as a
32 subrecipient of funds from;
33 the Indiana housing and community development authority
34 established by IC 5-20-1-3.
35 (12) Except for IC 24-4.5-3-502.1(4), IC 24-4.5-3-503.3,
36 IC 24-4.5-3-505(4), and IC 24-4.5-3-505(5), a subordinate lien
37 mortgage transaction made by an entity that exclusively uses
38 funds provided by the United States Department of Housing and
39 Urban Development under Title 1 of the Housing and Community
40 Development Act of 1974, Public Law 93-383, as amended (42
41 U.S.C. 5301 et seq.).
42 (13) The United States, any state or local government, or any
2023 IN 1535—LS 6967/DI 129 18
1 agency or instrumentality of any governmental entity, including
2 United States government sponsored enterprises and state
3 educational institutions (as defined in IC 21-7-13-32). For
4 purposes of this subdivision, an "instrumentality" of a
5 governmental entity includes a foundation, a corporate or
6 nonprofit subsidiary, or an affiliate (as defined in
7 IC 24-4.5-1-301.5(1)) of the governmental entity.
8 (14) A bona fide nonprofit organization not operating in a
9 commercial context, as determined by the director, if the
10 following criteria are satisfied:
11 (A) Subject to clause (B), the organization originates only one
12 (1) or both of the following types of mortgage transactions:
13 (i) Zero (0) interest first lien mortgage transactions.
14 (ii) Zero (0) interest subordinate lien mortgage transactions.
15 (B) The organization does not require, under the terms of the
16 mortgage or otherwise, balloon payments with respect to the
17 mortgage transactions described in clause (A).
18 (C) The organization is exempt from federal income taxation
19 under Section 501(c)(3) of the Internal Revenue Code.
20 (D) The organization's primary purpose is to serve the public
21 by helping low income individuals and families build, repair,
22 and purchase housing.
23 (E) The organization uses only:
24 (i) unpaid volunteers; or
25 (ii) employees whose compensation is not based on the
26 number or size of any mortgage transactions that the
27 employees originate;
28 to originate the mortgage transactions described in clause (A).
29 (F) The organization does not charge loan origination fees in
30 connection with the mortgage transactions described in clause
31 (A).
32 (15) A bona fide nonprofit organization (as defined in section
33 301.5 of this chapter) if the following criteria are satisfied:
34 (A) For each calendar year that the organization seeks the
35 exemption provided by this subdivision, the organization
36 certifies, not later than December 31 of the preceding calendar
37 year and on a form prescribed by the director and accompanied
38 by such documentation as required by the director, that the
39 organization is a bona fide nonprofit organization (as defined
40 in section 301.5(45) of this chapter).
41 (B) The director determines that the organization originates
42 only mortgage transactions that are favorable to the debtor. For
2023 IN 1535—LS 6967/DI 129 19
1 purposes of this clause, a mortgage transaction is favorable to
2 the debtor if the director determines that the terms of the
3 mortgage transaction are consistent with terms of mortgage
4 transactions made in a public or charitable context, rather than
5 in a commercial context.
6 SECTION 24. IC 36-7-14-22.2, AS AMENDED BY P.L.146-2018,
7 SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2023]: Sec. 22.2. (a) The commission may sell or grant, at no
9 cost, title to real property to an urban enterprise association for the
10 purpose of developing the real property if the following requirements
11 are met:
12 (1) The urban enterprise association has incorporated as a
13 nonprofit corporation under IC 5-28-15-14(b)(2).
14 (2) The parcel of property to be sold or granted is located entirely
15 within the enterprise zone for which the urban enterprise
16 association was created under IC 5-28-15-13.
17 (3) The urban enterprise association agrees to cause development
18 on the parcel of property within a specified period that may not
19 exceed five (5) years from the date of the sale or grant.
20 (4) The urban enterprise association agrees to rehabilitate or
21 otherwise develop the property in a manner that is similar to and
22 consistent with the use of the other properties in the enterprise
23 zone.
24 (b) The commission may sell or grant, at no cost, title to real
25 property to a community development corporation based organization
26 (as defined in IC 4-4-28-2) for the purpose of providing low or
27 moderate income housing or other development that will benefit or
28 serve low or moderate income families if the following requirements
29 are met:
30 (1) The community development corporation based organization
31 has as a major corporate purpose and function the provision of
32 housing for low and moderate income families within the
33 geographic area in which the parcel of real property is located.
34 (2) The community development corporation based organization
35 agrees to cause development that will serve or benefit low or
36 moderate income families on the parcel of real property within a
37 specified period, which may not exceed five (5) years from the
38 date of the sale or grant.
39 (3) The community development corporation based organization
40 agrees that the community development corporation based
41 organization and each applicant, recipient, contractor, or
42 subcontractor undertaking work in connection with the real
2023 IN 1535—LS 6967/DI 129 20
1 property will:
2 (A) use lower income project area residents as trainees and as
3 employees; and
4 (B) contract for work with business concerns located in the
5 project area or owned in substantial part by persons residing
6 in the project area;
7 to the greatest extent feasible, as determined under the standards
8 specified in 24 CFR 135.
9 (4) The community development corporation based organization
10 agrees to rehabilitate or otherwise develop the property in a
11 manner that is similar to and consistent with the use of the other
12 properties in the area served by the community development
13 corporation. based organization.
14 (c) To carry out the purposes of this section, the commission may
15 secure from the county under IC 6-1.1-25-9(e) parcels of property
16 acquired by the county under IC 6-1.1-24 and IC 6-1.1-25.
17 (d) Before offering any parcel of property for sale or grant, the fair
18 market value of the parcel of property must be determined by an
19 appraiser, who may be an employee of the department. However, if the
20 commission has obtained the parcel in the manner described in
21 subsection (c), an appraisal is not required. An appraisal under this
22 subsection is solely for the information of the commission and is not
23 available for public inspection.
24 (e) The commission must decide at a public meeting whether the
25 commission will sell or grant the parcel of real property. In making this
26 decision, the commission shall give substantial weight to the extent to
27 which and the terms under which the urban enterprise association or
28 community development corporation based organization will cause
29 development on the property.
30 (f) Before conducting a meeting under subsection (g), the
31 commission shall publish a notice in accordance with IC 5-3-1
32 indicating that at a designated time the commission will consider
33 selling or granting the parcel of real property under this section. The
34 notice must state the general location of the property, including the
35 street address, if any, or a common description of the property other
36 than the legal description.
37 (g) If the county agrees to transfer a parcel of real property to the
38 commission to be sold or granted under this section, the commission
39 may conduct a meeting to sell or grant the parcel to an urban enterprise
40 zone or to a community development corporation based organization
41 even though the parcel has not yet been transferred to the commission.
42 After the hearing, the commission may adopt a resolution directing the
2023 IN 1535—LS 6967/DI 129 21
1 department to take appropriate steps necessary to acquire the parcel
2 from the county and to transfer the parcel to the urban enterprise
3 association or to the community development corporation. based
4 organization.
5 (h) A conveyance of property under this section shall be made in
6 accordance with section 22(i) of this chapter.
7 (i) An urban enterprise association that purchases or receives real
8 property under this section shall report the terms of the conveyance to
9 the board of the Indiana economic development corporation not later
10 than thirty (30) days after the date the conveyance of the property is
11 made.
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