*HB1387.1*
January 23, 2024
HOUSE BILL No. 1387
_____
DIGEST OF HB 1387 (Updated January 23, 2024 11:06 am - DI 140)
Citations Affected: IC 5-1.2; IC 36-7.
Synopsis: Housing development. Makes various changes to the
residential housing infrastructure assistance program. Expands the
definition of "economic development facilities" applicable to the
economic development and pollution control statutes to include
facilities for housing for purposes of redevelopment commission
programs outside Indianapolis for age-restricted housing or residential
housing development. Makes a technical correction.
Effective: July 1, 2024.
Miller D, O'Brien
January 11, 2024, read first time and referred to Committee on Government and Regulatory
Reform.
January 23, 2024, reported — Do Pass. Referred to Committee on Ways and Means
pursuant to Rule 127.
HB 1387—LS 7059/DI 129 January 23, 2024
Second Regular Session of the 123rd General Assembly (2024)
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 2023 Regular Session of the General Assembly.
HOUSE BILL No. 1387
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 5-1.2-15.5-4.5 IS ADDED TO THE INDIANA
2 CODE AS A NEW SECTION TO READ AS FOLLOWS
3 [EFFECTIVE JULY 1, 2024]: Sec. 4.5. As used in this chapter,
4 "political subdivision" has the meaning set forth in IC 5-1.2-2-57.
5 SECTION 2. IC 5-1.2-15.5-10, AS ADDED BY P.L.204-2023,
6 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7 JULY 1, 2024]: Sec. 10. Loans from the fund must be allocated and
8 made available to participants as follows:
9 (1) Seventy percent (70%) of the money in the fund must be used
10 for housing infrastructure in municipalities benefitting political
11 subdivisions with a population of less than fifty thousand
12 (50,000).
13 (2) Thirty percent (30%) of the money in the fund must be used
14 for housing infrastructure in all other political subdivisions not
15 described in subdivision (1).
16 SECTION 3. IC 5-1.2-15.5-14, AS ADDED BY P.L.204-2023,
17 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
HB 1387—LS 7059/DI 129 2
1 JULY 1, 2024]: Sec. 14. (a) The authority shall develop and use a
2 priority ranking system in making loans from the fund.
3 (b) The ranking system must prioritize making loans for eligible
4 projects to participants that:
5 (1) have:
6 (A) invested in a housing study within the last five (5) years;
7 (B) had a housing study performed by a region's local
8 economic development organization; or
9 (C) demonstrated the need for housing inventory as indicated
10 by the Indiana state housing dashboard;
11 (2) have voluntarily revised unified development ordinances,
12 zoning regulations, or other land development rules to allow for:
13 (A) higher density development;
14 (B) construction of other housing types including accessory
15 dwelling units and manufactured and modular housing;
16 (C) adaptive reuse of commercial buildings for residential use;
17 or
18 (D) waiver or elimination of regulations such as requirements
19 for:
20 (i) garage size and placement;
21 (ii) steeper roof pitch;
22 (iii) minimum lot size and square footage;
23 (iv) greater setbacks;
24 (v) off-street parking; or
25 (vi) design standards that restrict or prohibit the use of code
26 compliant products;
27 (3) do not have impact fee ordinances;
28 (4) have secured private, local, state, or federal funds to
29 contribute to the eligible project;
30 (5) have secured a letter of support from an employer stipulating
31 that the public infrastructure will support residential housing that
32 is in reasonable proximity to employment; or
33 (6) assist
34 (A) homeowners to age in place through restoration or
35 renovation of existing homes. or
36 (B) communities in preparing for shovel ready housing.
37 SECTION 4. IC 36-7-11.9-3, AS AMENDED BY P.L.131-2008,
38 SECTION 53, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JULY 1, 2024]: Sec. 3. (a) "Economic development facilities" includes
40 land; interests in land; site improvements; infrastructure improvements;
41 buildings; structures; rehabilitation, renovation, and enlargement of
42 buildings and structures; economic improvement projects under
HB 1387—LS 7059/DI 129 3
1 IC 36-7-22; machinery; equipment; and furnishings for the following:
2 (1) Facilities for manufacturing, warehousing, distribution, or
3 processing of tangible or intangible property.
4 (2) Facilities for commercial, business, health care, or recreational
5 activities (whether for profit or not-for-profit), except for any of
6 the following:
7 (A) Private or commercial golf course.
8 (B) Country club.
9 (C) Massage parlor.
10 (D) Tennis club.
11 (E) Skating facility (including roller skating, skateboarding, or
12 ice skating).
13 (F) Racquet sports facility (including any handball or
14 racquetball court).
15 (G) Hot tub facility.
16 (H) Suntan facility.
17 (I) Racetrack.
18 (J) Airplane.
19 (K) Skybox or other private luxury box.
20 (L) Health club.
21 (M) Any facility primarily used for gambling.
22 (N) Any store the principal business of which is the sale of
23 alcoholic beverages for consumption off premises.
24 (3) Facilities for housing under either or both of the following
25 statutes:
26 (A) IC 36-7-14-52.
27 (B) IC 36-7-14-56.
HB 1387—LS 7059/DI 129 4
COMMITTEE REPORT
Mr. Speaker: Your Committee on Government and Regulatory
Reform, to which was referred House Bill 1387, has had the same
under consideration and begs leave to report the same back to the
House with the recommendation that said bill do pass.
(Reference is to HB 1387 as introduced.)
O'BRIEN
Committee Vote: Yeas 10, Nays 0
HB 1387—LS 7059/DI 129