Indiana 2023 Regular Session

Indiana Senate Bill SB0202 Compare Versions

OldNewDifferences
1-*SB0202.1*
2-February 17, 2023
1+
2+Introduced Version
33 SENATE BILL No. 202
44 _____
5-DIGEST OF SB 202 (Updated February 15, 2023 7:01 pm - DI 149)
6-Citations Affected: Noncode.
7-Synopsis: Study committee. Urges the legislative council to assign the
8-topic of various housing matters to the appropriate interim study
9-committee.
5+DIGEST OF INTRODUCED BILL
6+Citations Affected: IC 32-31.
7+Synopsis: Various housing matters. Allows a city, county, or town to
8+bring a nuisance action against a tenant or other person responsible for
9+a nuisance. Defines "essential services" as certain utility services
10+needed for the safe and habitable occupation by a tenant of the tenant's
11+rental unit. Defines "essential systems" as certain systems used to
12+deliver essential services to a rental unit. Requires a landlord to repair
13+or replace an essential system not later than 24 hours after being
14+notified by a tenant that the tenant's rental unit is without essential
15+services under certain circumstances. Allows for certain remedies to
16+the tenant for the landlord's noncompliance. Provides that, during the
17+pendency of a court action brought by a tenant, the court may order the
18+tenant to make the regular rental payments otherwise due under the
19+rental agreement to the clerk of the court or an attorney trust account,
20+to be held in trust for disbursal to the prevailing party, as ordered by the
21+court. Provides that a landlord may apply for release of rent deposits.
22+Provides that, after June 30, 2023, a landlord may not manage a rental
23+property in Indiana unless: (1) the landlord resides, is domiciled, or is
24+authorized to do business in Indiana; (2) the landlord maintains an
25+office at one or more physical locations in Indiana; or (3) the landlord
26+has appointed a licensed real estate broker or broker company to
27+manage the rental property. Makes conforming changes.
1028 Effective: July 1, 2023.
11-Qaddoura, Walker G
29+Qaddoura
1230 January 10, 2023, read first time and referred to Committee on Judiciary.
13-February 16, 2023, amended, reported favorably — Do Pass.
14-SB 202—LS 6821/DI 148 February 17, 2023
31+2023 IN 202—LS 6821/DI 148 Introduced
1532 First Regular Session of the 123rd General Assembly (2023)
1633 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
1734 Constitution) is being amended, the text of the existing provision will appear in this style type,
1835 additions will appear in this style type, and deletions will appear in this style type.
1936 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
2037 provision adopted), the text of the new provision will appear in this style type. Also, the
2138 word NEW will appear in that style type in the introductory clause of each SECTION that adds
2239 a new provision to the Indiana Code or the Indiana Constitution.
2340 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
2441 between statutes enacted by the 2022 Regular Session of the General Assembly.
2542 SENATE BILL No. 202
26-A BILL FOR AN ACT concerning property.
43+A BILL FOR AN ACT to amend the Indiana Code concerning
44+property.
2745 Be it enacted by the General Assembly of the State of Indiana:
28-1 SECTION 1. [EFFECTIVE JULY 1, 2023] (a) The legislative
29-2 council is urged to assign to the appropriate interim study
30-3 committee the task of studying the following topics:
31-4 (1) The implementation of a rent escrow program for tenants
32-5 in single and multifamily units.
33-6 (2) Protections for a tenant against a negligent out of state
34-7 landlord.
35-8 (3) Habitability and living condition standards for tenants in
36-9 single and multifamily units.
37-10 (4) Addressing the root causes of housing instability, including
38-11 evictions and lack of affordable housing.
39-12 (5) An examination of unsafe building and nuisance laws and
40-13 remedies available to local units of government for violations
41-14 by residential landlords.
42-15 (b) This SECTION expires July 1, 2024.
43-SB 202—LS 6821/DI 148 2
44-COMMITTEE REPORT
45-Madam President: The Senate Committee on Judiciary, to which
46-was referred Senate Bill No. 202, has had the same under consideration
47-and begs leave to report the same back to the Senate with the
48-recommendation that said bill be AMENDED as follows:
49-Delete the title and insert the following:
50-A BILL FOR AN ACT concerning property.
51-Page 1, delete lines 1 through 17, begin a new paragraph and insert:
52-"SECTION 1. [EFFECTIVE JULY 1, 2023] (a) The legislative
53-council is urged to assign to the appropriate interim study
54-committee the task of studying the following topics:
55-(1) The implementation of a rent escrow program for tenants
56-in single and multifamily units.
57-(2) Protections for a tenant against a negligent out of state
58-landlord.
59-(3) Habitability and living condition standards for tenants in
60-single and multifamily units.
61-(4) Addressing the root causes of housing instability, including
62-evictions and lack of affordable housing.
63-(5) An examination of unsafe building and nuisance laws and
64-remedies available to local units of government for violations
65-by residential landlords.
66-(b) This SECTION expires July 1, 2024.".
67-Delete pages 2 through 9.
68-and when so amended that said bill do pass.
69-(Reference is to SB 202 as introduced.)
70-BROWN L, Chairperson
71-Committee Vote: Yeas 11, Nays 0.
72-SB 202—LS 6821/DI 148
46+1 SECTION 1. IC 32-31-1-22, AS AMENDED BY P.L.86-2018,
47+2 SECTION 227, IS AMENDED TO READ AS FOLLOWS
48+3 [EFFECTIVE JULY 1, 2023]: Sec. 22. (a) The definitions in
49+4 IC 32-31-3 apply throughout this section.
50+5 (b) As used in this section, "penalty" refers to any of the following:
51+6 (1) The assessment of a penalty, fine, or fee.
52+7 (2) Actual or threatened eviction from a rental unit, or the causing
53+8 of an actual or threatened eviction from a rental unit.
54+9 (c) As used in this section, "political subdivision" has the meaning
55+10 set forth in IC 36-1-2-13.
56+11 (d) Except as provided in subsection (e), a political subdivision may
57+12 not adopt or enforce any ordinance, rule, or regulation that imposes a
58+13 penalty, or allows for the imposition of a penalty, against a tenant, an
59+14 owner, or a landlord for a contact made to request law enforcement
60+15 assistance or other emergency assistance for one (1) or more rental
61+16 units if:
62+17 (1) the contact is made by or on behalf of:
63+2023 IN 202—LS 6821/DI 148 2
64+1 (A) a victim or potential victim of abuse;
65+2 (B) a victim or potential victim of a crime; or
66+3 (C) an individual in an emergency; and
67+4 (2) either of the following applies:
68+5 (A) At the time the contact is made, the person making the
69+6 contact reasonably believes that law enforcement assistance or
70+7 other emergency assistance is necessary to prevent the
71+8 perpetration or escalation of abuse, a crime, or an emergency.
72+9 (B) If abuse, a crime, or an emergency occurs, the law
73+10 enforcement assistance or other emergency assistance was
74+11 needed.
75+12 (e) Subject to subsections (f) and (g), this section does not prohibit
76+13 a political subdivision from adopting or enforcing an ordinance, a rule,
77+14 or a regulation that imposes a penalty for a contact that:
78+15 (1) is made to request law enforcement assistance or other
79+16 emergency assistance; and
80+17 (2) is not made by or on behalf of:
81+18 (A) a victim or potential victim of abuse;
82+19 (B) a victim or potential victim of a crime; or
83+20 (C) an individual in an emergency.
84+21 (f) If:
85+22 (1) a political subdivision imposes a penalty under an ordinance,
86+23 a rule, or a regulation authorized by subsection (e); and
87+24 (2) the prohibited contact to request law enforcement assistance
88+25 or other emergency assistance is made by a tenant in a rental unit;
89+26 the penalty imposed must be assessed against the tenant of the rental
90+27 unit and not against the landlord or owner of the rental unit.
91+28 (g) Any penalty that is assessed under an ordinance, a rule, or a
92+29 regulation authorized by subsection (e) may not exceed two hundred
93+30 fifty dollars ($250).
94+31 (h) Nothing in this section shall be construed to prevent a housing
95+32 authority established under IC 36-7-18 from enforcing rights or
96+33 remedies established by contract or federal law against a landlord or
97+34 owner of a rental unit.
98+35 (i) Nothing in this section shall be construed to prevent an attorney
99+36 representing a city, county, or town from:
100+37 (1) bringing a nuisance action described under IC 32-30-6-7(b)
101+38 against a landlord, or owner of a rental unit, tenant, or other
102+39 person responsible for the nuisance; or
103+40 (2) recovering damages, fees, and costs that are permitted
104+41 under IC 32-30-6-7 and IC 32-30-6-8.
105+42 SECTION 2. IC 32-31-8-5 IS AMENDED TO READ AS
106+2023 IN 202—LS 6821/DI 148 3
107+1 FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 5. (a) As used in this
108+2 section, "essential services" means:
109+3 (1) electricity;
110+4 (2) gas;
111+5 (3) heat;
112+6 (4) water; or
113+7 (5) other services;
114+8 needed for the safe and habitable occupation by a tenant of the
115+9 tenant's rental unit.
116+10 (b) As used in this section, "essential system" means a system,
117+11 or one (1) or more parts or components of a system, that is:
118+12 (1) used for; or
119+13 (2) necessary to;
120+14 the delivery of one (1) or more essential services to a rental unit.
121+15 (c) A landlord shall do the following:
122+16 (1) Deliver the rental premises to a tenant in compliance with the
123+17 rental agreement, and in a safe, clean, and habitable condition.
124+18 (2) Comply with all health and housing codes applicable to the
125+19 rental premises.
126+20 (3) Make all reasonable efforts to keep common areas of a rental
127+21 premises in a clean and proper condition.
128+22 (4) Provide and maintain all essential systems.
129+23 (5) Provide and maintain the following items in a rental premises
130+24 in good and safe working condition, if provided on the premises
131+25 at the time the rental agreement is entered into:
132+26 (A) Other electrical systems.
133+27 (B) Other plumbing systems. sufficient to accommodate a
134+28 reasonable supply of hot and cold running water at all times.
135+29 (C) Other sanitary systems.
136+30 (D) Other heating, ventilating, and air conditioning systems.
137+31 A heating system must be sufficient to adequately supply heat
138+32 at all times.
139+33 (E) Elevators, if provided.
140+34 (F) Appliances supplied as an inducement to the rental
141+35 agreement.
142+36 (d) Subsection (c)(4) does not:
143+37 (1) prohibit a landlord from interrupting, shutting off, or
144+38 terminating one (1) or more essential services to a rental unit
145+39 as needed:
146+40 (A) in an emergency;
147+41 (B) to make good faith repairs; or
148+42 (C) for construction; or
149+2023 IN 202—LS 6821/DI 148 4
150+1 (2) require a landlord to pay for one (1) or more essential
151+2 services provided to a rental unit if the landlord has not
152+3 agreed to do so under the rental agreement.
153+4 (e) Subject to subsection (f), a landlord shall repair or replace
154+5 an essential system not later than twenty-four (24) hours after
155+6 being notified by a tenant that the tenant's rental unit is without
156+7 one (1) or more essential services as a result of:
157+8 (1) a malfunction in the essential system; or
158+9 (2) the landlord's failure to otherwise maintain the essential
159+10 system in good and safe working condition.
160+11 (f) The twenty-four (24) hour period set forth in subsection (e)
161+12 does not apply if:
162+13 (1) the tenant's rental unit is without one (1) or more essential
163+14 services because of a malfunction in an essential system, and
164+15 the malfunction is the direct result of the tenant's commission
165+16 of waste to the essential system or the rental unit; or
166+17 (2) the landlord makes a good faith attempt within the
167+18 twenty-four (24) hour period set forth in subsection (e) to
168+19 undertake the needed repairs to, or replacement of, an
169+20 essential system through:
170+21 (A) the landlord's own efforts; or
171+22 (B) the services of:
172+23 (i) a contractor; or
173+24 (ii) an employee or agent of the landlord;
174+25 and the landlord or person described in clause (B) is unable to
175+26 begin or complete the needed repairs or replacement within
176+27 the twenty-four (24) hour period set forth in subsection (e).
177+28 (g) A landlord that knowingly or intentionally violates this
178+29 section commits a deceptive act that is actionable by the attorney
179+30 general and is subject to the remedies and penalties under
180+31 IC 24-5-0.5 if the landlord is a legal entity.
181+32 SECTION 3. IC 32-31-8-5.5 IS ADDED TO THE INDIANA CODE
182+33 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
183+34 1, 2023]: Sec. 5.5. (a) In addition to, or instead of, bringing an
184+35 action under section 6 of this chapter, a tenant may enforce an
185+36 obligation of a landlord under this chapter by doing the following:
186+37 (1) Notify the landlord, at least thirty (30) days before the
187+38 tenant's next regular rental payment is due under the rental
188+39 agreement, that:
189+40 (A) the landlord has failed to make necessary repairs
190+41 under this chapter; and
191+42 (B) if the landlord fails to make the necessary repairs
192+2023 IN 202—LS 6821/DI 148 5
193+1 before the tenant's next regular rental payment is due
194+2 under the rental agreement, the tenant intends to deposit
195+3 rental payments with the clerk of the court.
196+4 (2) Subject to subsection (b), deposit all rent that is due with
197+5 the clerk of the court having jurisdiction in the county where
198+6 the rental premises is located if the landlord fails or refuses
199+7 to:
200+8 (A) make the repairs; or
201+9 (B) take the actions necessary to remedy the condition
202+10 described in the tenant's notice under subdivision (1);
203+11 before the due date of the tenant's next regular rental
204+12 payment following delivery of the notice under subdivision
205+13 (1).
206+14 (3) Apply to the court for an order that does one (1) or more
207+15 of the following:
208+16 (A) Direct the landlord to remedy the condition.
209+17 (B) Reduce the rent due until the landlord remedies the
210+18 condition.
211+19 (C) Release rent deposited with the clerk to the tenant for
212+20 the tenant to remedy the condition.
213+21 (4) Terminate the rental agreement.
214+22 (b) A tenant may not take any action described in subsection
215+23 (a)(2), (a)(3), or (a)(4) if the:
216+24 (1) tenant prevents the landlord from having reasonable
217+25 access to the rental premises to make any repairs or take any
218+26 action necessary to remedy the condition described in the
219+27 tenant's notice before the due date of the tenant's next regular
220+28 rental payment following delivery of the notice under
221+29 subsection (a)(1); or
222+30 (2) landlord:
223+31 (A) owns not more than three (3) single family houses at
224+32 one (1) time; or
225+33 (B) occupies one (1) of the living quarters of the rental
226+34 premises in a dwelling containing living quarters that are
227+35 intended to be occupied by not more than four (4) families
228+36 living independently of each other.
229+37 SECTION 4. IC 32-31-8-6.5 IS ADDED TO THE INDIANA CODE
230+38 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
231+39 1, 2023]: Sec. 6.5. (a) This section applies to an action that is filed
232+40 under section 6 of this chapter after June 30, 2023.
233+41 (b) During the pendency of an action to which this section
234+42 applies, if the tenant continues to occupy the rental unit upon
235+2023 IN 202—LS 6821/DI 148 6
236+1 which the action is based, the court may issue a provisional order
237+2 that requires the tenant to make regular rental payments otherwise
238+3 due to the landlord under the rental agreement to:
239+4 (1) the clerk of the court, who shall hold the payments in trust
240+5 for the parties; or
241+6 (2) an attorney trust account;
242+7 as directed by the court. The funds held by the clerk or in an
243+8 attorney trust account under this subsection may not be disbursed
244+9 unless the court issues an order for their disbursement.
245+10 (c) Subject to subsection (e), if the tenant is the prevailing party
246+11 in the action under section 6 of this chapter, the tenant is entitled
247+12 to a refund of payments made under an order issued by the court
248+13 under subsection (b). The amount of the refund:
249+14 (1) shall be determined by the court after taking into
250+15 consideration:
251+16 (A) the estimated cost of any repairs or other action
252+17 necessary to remedy the condition that was the basis of the
253+18 tenant's action under section 6 of this chapter;
254+19 (B) expenses incurred by the tenant in undertaking any
255+20 repairs or other action necessary to remedy the condition
256+21 that was the basis of the tenant's action under section 6 of
257+22 this chapter;
258+23 (C) efforts undertaken by the landlord before or after the
259+24 filing of the tenant's action under section 6 of this chapter
260+25 to remedy the condition that was the basis of the tenant's
261+26 action under section 6 of this chapter; and
262+27 (D) any other factors that justice may require; and
263+28 (2) shall be disbursed to the tenant upon order of the court.
264+29 (d) Subject to subsection (e), if the tenant is not the prevailing
265+30 party in the action under section 6 of this chapter, the tenant is not
266+31 entitled to a refund of any rental payments made under an order
267+32 issued by the court under subsection (b), and any amounts held in
268+33 trust by the clerk of the court or in an attorney trust account shall,
269+34 upon order of the court, be disbursed to the landlord and credited
270+35 against the amount of the regular rental payments due to the
271+36 landlord under the rental agreement during the pendency of the
272+37 action.
273+38 (e) The court may reduce the amount of:
274+39 (1) a refund to be disbursed to a tenant in an order under
275+40 subsection (c), if the court determines that the tenant
276+41 contributed in any way to the necessity of repairs or other
277+42 action needed to remedy the condition that was the basis of
278+2023 IN 202—LS 6821/DI 148 7
279+1 the tenant's action under section 6 of this chapter; or
280+2 (2) any amounts to be disbursed to a landlord in an order
281+3 under subsection (d), if the court determines that the
282+4 landlord's failure to comply with one (1) or more of the
283+5 requirements of this chapter contributed in any way to the
284+6 necessity of repairs or other action needed to remedy the
285+7 condition that was the basis of the tenant's action under
286+8 section 6 of this chapter;
287+9 as justice may require.
288+10 SECTION 5. IC 32-31-8-8 IS ADDED TO THE INDIANA CODE
289+11 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
290+12 1, 2023]: Sec. 8. (a) If rent is being deposited with the clerk of the
291+13 court under section 5.5 or 6.5 of this chapter, the landlord may
292+14 apply for the release of rent deposits to the:
293+15 (1) clerk of the court on the basis that the condition contained
294+16 in the notice is remedied; or
295+17 (2) court on the basis that the:
296+18 (A) tenant:
297+19 (i) did not comply with the notice requirement in section
298+20 5.5 of this chapter; or
299+21 (ii) was not current on rent payments under the rental
300+22 agreement at the time the tenant initiated the rent
301+23 deposits with the clerk of the court; or
302+24 (B) landlord:
303+25 (i) did not violate an obligation under this chapter;
304+26 (ii) does not own more than three (3) single family houses
305+27 at any one (1) time; or
306+28 (iii) occupies one (1) of the living quarters of the rental
307+29 premises in a dwelling containing living quarters that are
308+30 intended to be occupied by not more than four (4)
309+31 families living independently of each other.
310+32 (b) The landlord shall name the tenant as a party to an
311+33 application filed under this section.
312+34 (c) The court shall hold a hearing not more than sixty (60) days
313+35 after the application is filed unless, for good cause shown, the court
314+36 continues the hearing.
315+37 (d) If the court continues a hearing under this section, the court
316+38 may, upon the landlord's request, order a release of partial rent
317+39 deposits for the following operating costs arising from the rental
318+40 premises that is the subject of a proceeding under this chapter:
319+41 (1) Mortgage payments, including periodic interest payments
320+42 on the mortgage.
321+2023 IN 202—LS 6821/DI 148 8
322+1 (2) Insurance premiums.
323+2 (3) Real estate taxes.
324+3 (4) Utility services.
325+4 (5) Repairs.
326+5 (e) If the court finds in the landlord's favor after a hearing
327+6 under this section, the court shall order the full release of rent
328+7 deposits, minus costs, to the landlord.
329+8 (f) If the court finds after a hearing under this section that the:
330+9 (1) tenant's act or omission caused the condition; or
331+10 (2) tenant intentionally acted in bad faith;
332+11 the tenant is liable for damages caused to the landlord and costs,
333+12 including reasonable attorney's fees.
334+13 SECTION 6. IC 32-31-9-8, AS ADDED BY P.L.22-2007,
335+14 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
336+15 JULY 1, 2023]: Sec. 8. (a) A landlord may not terminate a lease, refuse
337+16 to renew a lease, refuse to enter into a lease, or retaliate against a tenant
338+17 solely because:
339+18 (1) a tenant;
340+19 (2) an applicant; or
341+20 (3) an individual who is a member of the tenant's or applicant's
342+21 household;
343+22 is a protected individual.
344+23 (b) A landlord may not refuse to enter into a lease with an applicant
345+24 or retaliate against a tenant solely because:
346+25 (1) the tenant;
347+26 (2) the applicant; or
348+27 (3) an individual who is a member of the tenant's or applicant's
349+28 household;
350+29 has terminated a rental agreement as a protected individual under
351+30 section 12 of this chapter.
352+31 (c) Except as otherwise provided in subsection (b), evidence that
353+32 a tenant engaged in a protected activity not more than six (6)
354+33 months before the landlord's alleged retaliatory conduct creates a
355+34 rebuttable presumption that the purpose of the landlord's conduct
356+35 was retaliation.
357+36 (d) A presumption does not arise under subsection (c) if the
358+37 tenant engaged in a protected activity after the landlord gave the
359+38 tenant notice of the landlord's intent to:
360+39 (1) increase the rent or fees;
361+40 (2) decrease services, increase the tenant's obligations, impose
362+41 different rules on, or selectively enforce the landlord's rules
363+42 against, the tenant or immediate family member, or otherwise
364+2023 IN 202—LS 6821/DI 148 9
365+1 materially alter the terms of the lease;
366+2 (3) bring an action for possession on a ground other than
367+3 nonpayment of rent;
368+4 (4) refuse to renew a tenancy for a fixed term under a lease
369+5 containing a renewal option that is exercisable by the tenant
370+6 without negotiation with the landlord, for any period after the
371+7 lease would otherwise terminate; or
372+8 (5) terminate a periodic tenancy.
373+9 (e) A landlord may rebut a presumption under subsection (c) by
374+10 a preponderance of evidence showing that the landlord:
375+11 (1) had sufficient justification for engaging in the conduct that
376+12 created the presumption; and
377+13 (2) would have engaged in the conduct in the same manner
378+14 and at the same time whether or not the tenant engaged in a
379+15 protected activity.
380+16 SECTION 7. IC 32-31-12 IS ADDED TO THE INDIANA CODE
381+17 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
382+18 JULY 1, 2023]:
383+19 Chapter 12. Landlord's Required Nexus
384+20 Sec. 1. As used in this chapter, "landlord" has the same meaning
385+21 as in IC 32-31-3-3.
386+22 Sec. 2. After June 30, 2023, a landlord may not manage a rental
387+23 property in Indiana unless one (1) or more of the following apply:
388+24 (1) The landlord resides, is domiciled, or is authorized to do
389+25 business in Indiana.
390+26 (2) The landlord maintains an office at one (1) or more
391+27 physical locations in Indiana.
392+28 (3) The landlord appoints a licensed real estate broker or
393+29 broker company to manage the rental property.
394+2023 IN 202—LS 6821/DI 148