Indiana 2024 Regular Session

Indiana Senate Bill SB0277 Compare Versions

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22 Introduced Version
33 SENATE BILL No. 277
44 _____
55 DIGEST OF INTRODUCED BILL
66 Citations Affected: IC 32-30-5-1; IC 32-31.
77 Synopsis: Residential landlord-tenant matters. Provides that the court
88 may appoint a receiver upon request by a county, city, or town when
99 the property owner of a multifamily residential property with more than
1010 four dwelling units has failed to pay damages, costs, or attorney's fees
1111 that have been incurred by the multifamily residential property in a
1212 nuisance action brought by the county, city, or town. Allows a city,
1313 county, or town to bring a nuisance action against a tenant or other
1414 person responsible for a nuisance. Defines "essential services" as
1515 certain services needed for the safe and habitable occupation by a
1616 tenant of the tenant's rental unit. Defines "essential systems" as certain
1717 systems used to deliver essential services to a rental unit. Requires a
1818 landlord to provide and maintain a rental premises that is free from the
1919 following: (1) Pests, including rodents and invasive insects. (2) Mold.
2020 (3) Rot. Sets forth a procedure for a tenant to use to initiate a request
2121 for repairs. Requires a landlord to repair or replace an essential system
2222 not later than 72 hours after being notified by a tenant that the tenant's
2323 rental unit is without essential services under certain circumstances.
2424 Allows for certain remedies to the tenant for the landlord's
2525 noncompliance, including a procedure for the deposit of rent that is due
2626 with the clerk of the court if the landlord fails or refuses to make
2727 repairs or take remedial action. Provides that, during the pendency of
2828 a court action brought by a tenant, the court may order the tenant to
2929 make the regular rental payments otherwise due under the rental
3030 agreement to the clerk of the court or an attorney trust account, to be
3131 held in trust for disbursal to the prevailing party, as ordered by the
3232 court. Provides that a landlord may apply for release of rent deposits.
3333 (Continued next page)
3434 Effective: July 1, 2024.
3535 Walker G
3636 January 16, 2024, read first time and referred to Committee on Local Government.
3737 2024 IN 277—LS 6938/DI 129 Digest Continued
3838 Provides that, after June 30, 2024, a landlord may not manage a rental
3939 property in Indiana unless the landlord: (1) is authorized to do business
4040 in Indiana; (2) maintains an office at one or more physical locations in
4141 Indiana; or (3) appoints an Indiana licensed real estate broker or broker
4242 company to manage the rental property. Makes conforming changes.
4343 2024 IN 277—LS 6938/DI 1292024 IN 277—LS 6938/DI 129 Introduced
4444 Second Regular Session of the 123rd General Assembly (2024)
4545 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
4646 Constitution) is being amended, the text of the existing provision will appear in this style type,
4747 additions will appear in this style type, and deletions will appear in this style type.
4848 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
4949 provision adopted), the text of the new provision will appear in this style type. Also, the
5050 word NEW will appear in that style type in the introductory clause of each SECTION that adds
5151 a new provision to the Indiana Code or the Indiana Constitution.
5252 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
5353 between statutes enacted by the 2023 Regular Session of the General Assembly.
5454 SENATE BILL No. 277
5555 A BILL FOR AN ACT to amend the Indiana Code concerning
5656 property.
5757 Be it enacted by the General Assembly of the State of Indiana:
5858 1 SECTION 1. IC 32-30-5-1, AS AMENDED BY P.L.5-2023,
5959 2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6060 3 JULY 1, 2024]: Sec. 1. (a) As used in this section, "utility" means a
6161 4 utility, however organized, that:
6262 5 (1) provides electric, gas, water, or wastewater retail utility
6363 6 service to customers in Indiana; or
6464 7 (2) is owned, operated, or held in trust by a consolidated city.
6565 8 (b) A receiver may be appointed by the court in the following cases:
6666 9 (1) In an action by a vendor to vacate a fraudulent purchase of
6767 10 property or by a creditor to subject any property or fund to the
6868 11 creditor's claim.
6969 12 (2) In actions between partners or persons jointly interested in any
7070 13 property or fund.
7171 14 (3) In all actions when it is shown that the property, fund or rent,
7272 15 and profits in controversy are in danger of being lost, removed, or
7373 2024 IN 277—LS 6938/DI 129 2
7474 1 materially injured.
7575 2 (4) In actions in which a mortgagee seeks to foreclose a mortgage.
7676 3 However, upon motion by the mortgagee, the court shall appoint
7777 4 a receiver if, at the time the motion is filed, the property is not
7878 5 occupied by the owner as the owner's principal residence and:
7979 6 (A) it appears that the property is in danger of being lost,
8080 7 removed, or materially injured;
8181 8 (B) it appears that the property may not be sufficient to
8282 9 discharge the mortgaged debt;
8383 10 (C) either the mortgagor or the owner of the property has
8484 11 agreed in the mortgage or in some other writing to the
8585 12 appointment of a receiver;
8686 13 (D) a person not personally liable for the debt secured by the
8787 14 mortgage has, or is entitled to, possession of all or a portion of
8888 15 the property;
8989 16 (E) the owner of the property is not personally liable for the
9090 17 debt secured by the mortgage; or
9191 18 (F) all or any portion of the property is being, or is intended to
9292 19 be, leased for any purpose.
9393 20 (5) When a corporation, professional corporation, nonprofit
9494 21 corporation, limited liability company, partnership, or another
9595 22 legal entity described in IC 23:
9696 23 (A) has been dissolved;
9797 24 (B) is insolvent;
9898 25 (C) is in imminent danger of insolvency; or
9999 26 (D) has forfeited its corporate rights.
100100 27 (6) To protect or preserve, during the time allowed for
101101 28 redemption, any real estate or interest in real estate sold on
102102 29 execution or order of sale, and to secure rents and profits to the
103103 30 person entitled to the rents and profits.
104104 31 (7) Upon request by a utility providing utility service to a
105105 32 multifamily residential property with more than four (4) dwelling
106106 33 units when the property owner has failed to pay:
107107 34 (A) invoiced utility bills for a period greater than ninety (90)
108108 35 days from the due date of the initial outstanding invoice; or
109109 36 (B) amounts due under a curative payment plan for a period of
110110 37 at least sixty (60) days from the initial due date prescribed
111111 38 under the payment plan;
112112 39 notwithstanding any other right the utility has to secure payment.
113113 40 (8) Upon request by a county, city, or town when the property
114114 41 owner of a multifamily residential property with more than
115115 42 four (4) dwelling units has failed to pay:
116116 2024 IN 277—LS 6938/DI 129 3
117117 1 (A) damages;
118118 2 (B) costs; or
119119 3 (C) attorney's fees
120120 4 that the multifamily residential property has incurred in a
121121 5 nuisance action brought under IC 32-30-6-7 by the county,
122122 6 city, or town.
123123 7 (8) (9) In other cases as may be provided by law or where, in the
124124 8 discretion of the court, it may be necessary to secure ample justice
125125 9 to the parties.
126126 10 SECTION 2. IC 32-31-1-22, AS AMENDED BY P.L.86-2018,
127127 11 SECTION 227, IS AMENDED TO READ AS FOLLOWS
128128 12 [EFFECTIVE JULY 1, 2024]: Sec. 22. (a) The definitions in
129129 13 IC 32-31-3 apply throughout this section.
130130 14 (b) As used in this section, "penalty" refers to any of the following:
131131 15 (1) The assessment of a penalty, fine, or fee.
132132 16 (2) Actual or threatened eviction from a rental unit, or the causing
133133 17 of an actual or threatened eviction from a rental unit.
134134 18 (c) As used in this section, "political subdivision" has the meaning
135135 19 set forth in IC 36-1-2-13.
136136 20 (d) Except as provided in subsection (e), a political subdivision may
137137 21 not adopt or enforce any ordinance, rule, or regulation that imposes a
138138 22 penalty, or allows for the imposition of a penalty, against a tenant, an
139139 23 owner, or a landlord for a contact made to request law enforcement
140140 24 assistance or other emergency assistance for one (1) or more rental
141141 25 units if:
142142 26 (1) the contact is made by or on behalf of:
143143 27 (A) a victim or potential victim of abuse;
144144 28 (B) a victim or potential victim of a crime; or
145145 29 (C) an individual in an emergency; and
146146 30 (2) either of the following applies:
147147 31 (A) At the time the contact is made, the person making the
148148 32 contact reasonably believes that law enforcement assistance or
149149 33 other emergency assistance is necessary to prevent the
150150 34 perpetration or escalation of abuse, a crime, or an emergency.
151151 35 (B) If abuse, a crime, or an emergency occurs, the law
152152 36 enforcement assistance or other emergency assistance was
153153 37 needed.
154154 38 (e) Subject to subsections (f) and (g), this section does not prohibit
155155 39 a political subdivision from adopting or enforcing an ordinance, a rule,
156156 40 or a regulation that imposes a penalty for a contact that:
157157 41 (1) is made to request law enforcement assistance or other
158158 42 emergency assistance; and
159159 2024 IN 277—LS 6938/DI 129 4
160160 1 (2) is not made by or on behalf of:
161161 2 (A) a victim or potential victim of abuse;
162162 3 (B) a victim or potential victim of a crime; or
163163 4 (C) an individual in an emergency.
164164 5 (f) If:
165165 6 (1) a political subdivision imposes a penalty under an ordinance,
166166 7 a rule, or a regulation authorized by subsection (e); and
167167 8 (2) the prohibited contact to request law enforcement assistance
168168 9 or other emergency assistance is made by a tenant in a rental unit;
169169 10 the penalty imposed must be assessed against the tenant of the rental
170170 11 unit and not against the landlord or owner of the rental unit.
171171 12 (g) Any penalty that is assessed under an ordinance, a rule, or a
172172 13 regulation authorized by subsection (e) may not exceed two hundred
173173 14 fifty dollars ($250).
174174 15 (h) Nothing in this section shall be construed to prevent a housing
175175 16 authority established under IC 36-7-18 from enforcing rights or
176176 17 remedies established by contract or federal law against a landlord or
177177 18 owner of a rental unit.
178178 19 (i) Nothing in this section shall be construed to prevent an attorney
179179 20 representing a city, county, or town from:
180180 21 (1) bringing a nuisance action described under IC 32-30-6-7(b)
181181 22 against a landlord, tenant, or owner of a rental unit, or other
182182 23 person responsible for the nuisance; or
183183 24 (2) recovering damages, fees, and costs that are permitted
184184 25 under IC 32-30-6-7 and IC 32-30-6-8.
185185 26 SECTION 3. IC 32-31-8-5 IS AMENDED TO READ AS
186186 27 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 5. (a) As used in this
187187 28 section, "essential services" means:
188188 29 (1) electricity;
189189 30 (2) gas;
190190 31 (3) heat;
191191 32 (4) water; or
192192 33 (5) doors and windows that lock securely;
193193 34 needed for the safe and habitable occupation by a tenant of the
194194 35 tenant's rental unit.
195195 36 (b) As used in this section, "essential system" means a system,
196196 37 or one (1) or more parts or components of a system, that is:
197197 38 (1) used for; or
198198 39 (2) necessary to;
199199 40 the delivery of one (1) or more essential services to a rental unit.
200200 41 (c) A landlord shall do the following:
201201 42 (1) Deliver the rental premises to a tenant in compliance with the
202202 2024 IN 277—LS 6938/DI 129 5
203203 1 rental agreement, and in a safe, clean, and habitable condition.
204204 2 (2) Comply with all health and housing codes applicable to the
205205 3 rental premises.
206206 4 (3) Make all reasonable efforts to keep common areas of a rental
207207 5 premises in a clean and proper condition.
208208 6 (4) Provide and maintain all essential systems.
209209 7 (4) (5) Provide and maintain the following items in a rental
210210 8 premises in good and safe working condition, if provided on the
211211 9 premises at the time the rental agreement is entered into:
212212 10 (A) Electrical systems.
213213 11 (B) Plumbing systems sufficient to accommodate a reasonable
214214 12 supply of hot and cold running water at all times.
215215 13 (C) Sanitary systems.
216216 14 (D) Heating, ventilating, and air conditioning systems. A
217217 15 heating system must be sufficient to adequately supply heat at
218218 16 all times.
219219 17 (E) Elevators, if provided.
220220 18 (F) Appliances supplied as an inducement to the rental
221221 19 agreement.
222222 20 (6) Provide and maintain a rental premises that is free from
223223 21 the following:
224224 22 (A) Pests, including rodents and invasive insects.
225225 23 (B) Mold.
226226 24 (C) Rot.
227227 25 (d) Subsection (c)(4) does not:
228228 26 (1) prohibit a landlord from interrupting, shutting off, or
229229 27 terminating one (1) or more essential services to a rental unit
230230 28 as needed:
231231 29 (A) in an emergency;
232232 30 (B) to make good faith repairs; or
233233 31 (C) for construction; or
234234 32 (2) require a landlord to pay for one (1) or more essential
235235 33 services provided to a rental unit if the landlord has not
236236 34 agreed to do so under the rental agreement.
237237 35 (e) To initiate a request for a repair of an essential system, an
238238 36 essential service, or a repair under subsection (c), a tenant shall use
239239 37 the procedure set forth in this subsection. A tenant shall first make
240240 38 a written or electronic repair request to a landlord. Upon receipt
241241 39 of a tenant's repair request under this subsection, a landlord shall
242242 40 provide a written or electronic acknowledgment of the request
243243 41 within twenty-four (24) hours of the receipt of the request. A
244244 42 tenant's written or electronic request for a repair and a landlord's
245245 2024 IN 277—LS 6938/DI 129 6
246246 1 written or electronic acknowledgment of a repair request may
247247 2 include a text message, email, certified mail, or another written
248248 3 communication that allows for verification of delivery.
249249 4 (f) Subject to subsection (g), a landlord shall repair or replace
250250 5 an essential system not later than seventy-two (72) hours after
251251 6 being notified by a tenant in accordance with subsection (e) that
252252 7 the tenant's rental unit is without one (1) or more essential services
253253 8 as a result of:
254254 9 (1) a malfunction in the essential system; or
255255 10 (2) the landlord's failure to otherwise maintain the essential
256256 11 system in good and safe working condition.
257257 12 (g) The seventy-two (72) hour period set forth in subsection (f)
258258 13 does not apply if:
259259 14 (1) the tenant's rental unit is without one (1) or more essential
260260 15 services because of a malfunction in an essential system, and
261261 16 the malfunction is the direct result of the tenant's commission
262262 17 of waste to the essential system or the rental unit; or
263263 18 (2) the landlord makes a good faith attempt within the
264264 19 seventy-two (72) hour period set forth in subsection (f) to
265265 20 undertake the needed repairs to, or the replacement of, an
266266 21 essential system through:
267267 22 (A) the landlord's own efforts; or
268268 23 (B) the services of:
269269 24 (i) a contractor; or
270270 25 (ii) an employee or agent of the landlord;
271271 26 and the landlord or person described in clause (B) is unable to
272272 27 begin or complete the needed repairs or replacement within
273273 28 the seventy-two (72) hour period set forth in subsection (f).
274274 29 (h) To demonstrate a good faith attempt to address a tenant's
275275 30 repair request under subsection (e) or for purposes of subsection
276276 31 (g)(2), a landlord shall provide proof of intention to repair within
277277 32 seventy-two (72) hours of the tenant's repair request. Proof of
278278 33 intention to repair may include a quote, confirmation of scheduled
279279 34 maintenance from a vendor, or confirmation of scheduled
280280 35 maintenance from the landlord if the landlord performs the repair.
281281 36 (i) A landlord that knowingly or intentionally violates this
282282 37 section commits a deceptive act that is subject to the remedies and
283283 38 penalties under IC 24-5-0.5.
284284 39 SECTION 4. IC 32-31-8-5.5 IS ADDED TO THE INDIANA CODE
285285 40 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
286286 41 1, 2024]: Sec. 5.5. (a) To use the procedure established by this
287287 42 section, a tenant must:
288288 2024 IN 277—LS 6938/DI 129 7
289289 1 (1) be current on rent payments and have a history of on-time
290290 2 payments on the same rental premises for the last six (6)
291291 3 months; or
292292 4 (2) have a history of on-time payments since the beginning of
293293 5 the lease if the tenant has rented for less than six (6) months.
294294 6 (b) In addition to, or instead of, bringing an action under section
295295 7 6 of this chapter, a tenant may enforce an obligation of a landlord
296296 8 under this chapter by doing the following:
297297 9 (1) Notify the landlord, in writing or electronically, after a
298298 10 seventy-two (72) hour waiting period that:
299299 11 (A) the landlord has failed to make necessary repairs
300300 12 under this chapter; and
301301 13 (B) if the landlord fails to make the necessary repairs
302302 14 before the tenant's next regular rental payment is due
303303 15 under the rental agreement, the tenant may petition the
304304 16 court to deposit rental payments with the clerk of the
305305 17 court.
306306 18 The court shall notify the landlord not later than thirty (30)
307307 19 days after the date the tenant's petition is approved or before
308308 20 the date that the next rental payment is due, whichever is
309309 21 earlier.
310310 22 (2) Subject to subsection (c), deposit all rent that is due with
311311 23 the clerk of the court having jurisdiction in the county where
312312 24 the rental premises is located if the landlord fails or refuses
313313 25 to:
314314 26 (A) make the repairs; or
315315 27 (B) take the actions necessary to remedy the condition
316316 28 described in the tenant's notice under subdivision (1);
317317 29 before the due date of the tenant's next regular rental
318318 30 payment following delivery of the notice under subdivision
319319 31 (1).
320320 32 (3) Apply to the court for an order that directs the landlord to
321321 33 remedy the condition.
322322 34 (4) Terminate the rental agreement.
323323 35 (c) A tenant may not take any action described in subsection
324324 36 (b)(2), (b)(3), or (b)(4) if the:
325325 37 (1) tenant does not satisfy the condition required by
326326 38 subsection (a);
327327 39 (2) tenant prevents the landlord from having reasonable
328328 40 access to the rental premises to make any repairs or take any
329329 41 action necessary to remedy the condition described in the
330330 42 tenant's notice before the due date of the tenant's next regular
331331 2024 IN 277—LS 6938/DI 129 8
332332 1 rental payment following delivery of the notice under
333333 2 subsection (a)(1); or
334334 3 (3) landlord:
335335 4 (A) owns not more than four (4) single family houses at one
336336 5 (1) time; or
337337 6 (B) occupies one (1) of the living quarters of the rental
338338 7 premises in a dwelling containing living quarters that are
339339 8 intended to be occupied by not more than four (4) families
340340 9 living independently of each other.
341341 10 (d) A proceeding under this section does not preclude the tenant
342342 11 or the landlord from enforcing any obligations listed in the rental
343343 12 agreement.
344344 13 SECTION 5. IC 32-31-8-6.5 IS ADDED TO THE INDIANA CODE
345345 14 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
346346 15 1, 2024]: Sec. 6.5. (a) This section applies to an action that is filed
347347 16 under section 6 of this chapter after June 30, 2024.
348348 17 (b) During the pendency of an action to which this section
349349 18 applies, if the tenant continues to occupy the rental unit upon
350350 19 which the action is based, the court may issue a provisional order
351351 20 that requires the tenant to make regular rental payments otherwise
352352 21 due to the landlord under the rental agreement to:
353353 22 (1) the clerk of the court, who shall hold the payments in trust
354354 23 for the parties; or
355355 24 (2) an attorney trust account;
356356 25 as directed by the court. The funds held by the clerk or in an
357357 26 attorney trust account under this subsection may not be disbursed
358358 27 unless the court issues an order for their disbursement.
359359 28 (c) Subject to subsection (e), if the tenant is the prevailing party
360360 29 in the action under section 6 of this chapter, the tenant is entitled
361361 30 to a refund of payments made under an order issued by the court
362362 31 under subsection (b). The amount of the refund:
363363 32 (1) shall be determined by the court after taking into
364364 33 consideration:
365365 34 (A) the estimated cost of any repairs or other action
366366 35 necessary to remedy the condition that was the basis of the
367367 36 tenant's action under section 6 of this chapter;
368368 37 (B) efforts undertaken by the landlord before or after the
369369 38 filing of the tenant's action under section 6 of this chapter
370370 39 to remedy the condition that was the basis of the tenant's
371371 40 action under section 6 of this chapter; and
372372 41 (C) any other factors that justice may require; and
373373 42 (2) shall be disbursed to the tenant upon order of the court.
374374 2024 IN 277—LS 6938/DI 129 9
375375 1 (d) Subject to subsection (e), if the tenant is not the prevailing
376376 2 party in the action under section 6 of this chapter, the tenant is not
377377 3 entitled to a refund of any rental payments made under an order
378378 4 issued by the court under subsection (b), and any amounts held in
379379 5 trust by the clerk of the court or in an attorney trust account shall,
380380 6 upon order of the court, be disbursed to the landlord and credited
381381 7 against the amount of the regular rental payments due to the
382382 8 landlord under the rental agreement during the pendency of the
383383 9 action.
384384 10 (e) The court may reduce the amount to be disbursed to a
385385 11 landlord in an order under subsection (d), if the court determines
386386 12 that the landlord's failure to comply with one (1) or more of the
387387 13 requirements of this chapter contributed in any way to the
388388 14 necessity of repairs or other action needed to remedy the condition
389389 15 that was the basis of the tenant's action under section 6 of this
390390 16 chapter as justice may require.
391391 17 SECTION 6. IC 32-31-8-8 IS ADDED TO THE INDIANA CODE
392392 18 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
393393 19 1, 2024]: Sec. 8. (a) If rent is being deposited with the clerk of the
394394 20 court under section 5.5 or 6.5 of this chapter, the landlord may
395395 21 apply for the release of rent deposits to the:
396396 22 (1) clerk of the court on the basis that the condition contained
397397 23 in the notice is remedied; or
398398 24 (2) court on the basis that the:
399399 25 (A) tenant:
400400 26 (i) did not comply with the notice requirement in section
401401 27 5.5 of this chapter; or
402402 28 (ii) was not current on rent payments under the rental
403403 29 agreement at the time the tenant initiated the rent
404404 30 deposits with the clerk of the court, as required by
405405 31 section 5.5(a) of this chapter; or
406406 32 (B) landlord:
407407 33 (i) did not violate an obligation under this chapter;
408408 34 (ii) does not own more than four (4) single family houses
409409 35 at any one (1) time; or
410410 36 (iii) occupies one (1) of the living quarters of the rental
411411 37 premises in a dwelling containing living quarters that are
412412 38 intended to be occupied by not more than four (4)
413413 39 families living independently of each other.
414414 40 (b) The landlord shall name the tenant as a party to an
415415 41 application filed under this section.
416416 42 (c) The court shall hold a hearing not more than sixty (60) days
417417 2024 IN 277—LS 6938/DI 129 10
418418 1 after the application is filed unless, for good cause shown, the court
419419 2 continues the hearing.
420420 3 (d) If the court continues a hearing under this section, the court
421421 4 may, upon the landlord's request, order a release of partial rent
422422 5 deposits for the following operating costs arising from the rental
423423 6 premises that is the subject of a proceeding under this chapter:
424424 7 (1) Mortgage payments, including periodic interest payments
425425 8 on the mortgage.
426426 9 (2) Insurance premiums.
427427 10 (3) Real estate taxes.
428428 11 (4) Utility services.
429429 12 (5) Repairs.
430430 13 (e) If the court finds in the landlord's favor after a hearing
431431 14 under this section, the court shall order the full release of rent
432432 15 deposits, minus costs, to the landlord.
433433 16 (f) If the court finds after a hearing under this section that the:
434434 17 (1) tenant's act or omission caused the condition; or
435435 18 (2) tenant intentionally acted in bad faith;
436436 19 the tenant is liable for damages caused to the landlord and costs,
437437 20 including reasonable attorney's fees.
438438 21 SECTION 7. IC 32-31-9-8, AS ADDED BY P.L.22-2007,
439439 22 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
440440 23 JULY 1, 2024]: Sec. 8. (a) A landlord may not terminate a lease, refuse
441441 24 to renew a lease, refuse to enter into a lease, or retaliate against a tenant
442442 25 solely because:
443443 26 (1) a tenant;
444444 27 (2) an applicant; or
445445 28 (3) an individual who is a member of the tenant's or applicant's
446446 29 household;
447447 30 is a protected individual.
448448 31 (b) A landlord may not refuse to enter into a lease with an applicant
449449 32 or retaliate against a tenant solely because:
450450 33 (1) the tenant;
451451 34 (2) the applicant; or
452452 35 (3) an individual who is a member of the tenant's or applicant's
453453 36 household;
454454 37 has terminated a rental agreement as a protected individual under
455455 38 section 12 of this chapter.
456456 39 (c) Except as otherwise provided in subsection (b), evidence that
457457 40 a tenant engaged in a protected activity not more than six (6)
458458 41 months before the landlord's alleged retaliatory conduct creates a
459459 42 rebuttable presumption that the purpose of the landlord's conduct
460460 2024 IN 277—LS 6938/DI 129 11
461461 1 was retaliation.
462462 2 (d) A presumption does not arise under subsection (c) if the
463463 3 tenant engaged in a protected activity after the landlord gave the
464464 4 tenant notice of the landlord's intent to:
465465 5 (1) increase the rent or fees;
466466 6 (2) decrease services, increase the tenant's obligations, impose
467467 7 different rules on, or selectively enforce the landlord's rules
468468 8 against, the tenant or the tenant's immediate family member,
469469 9 or otherwise materially alter the terms of the lease;
470470 10 (3) bring an action for possession on a ground other than
471471 11 nonpayment of rent;
472472 12 (4) refuse to renew a tenancy for a fixed term under a lease
473473 13 containing a renewal option that is exercisable by the tenant
474474 14 without negotiation with the landlord, for any period after the
475475 15 lease would otherwise terminate; or
476476 16 (5) terminate a periodic tenancy.
477477 17 (e) A landlord may rebut a presumption under subsection (c) by
478478 18 a preponderance of evidence showing that the landlord:
479479 19 (1) had sufficient justification for engaging in the conduct that
480480 20 created the presumption; and
481481 21 (2) would have engaged in the conduct in the same manner
482482 22 and at the same time whether or not the tenant engaged in a
483483 23 protected activity.
484484 24 SECTION 8. IC 32-31-12 IS ADDED TO THE INDIANA CODE
485485 25 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
486486 26 JULY 1, 2024]:
487487 27 Chapter 12. Landlord's Required Nexus
488488 28 Sec. 1. As used in this chapter, "landlord" has the meaning set
489489 29 forth in IC 32-31-3-3.
490490 30 Sec. 2. After June 30, 2024, a landlord may not manage a rental
491491 31 property in Indiana unless one (1) or more of the following apply:
492492 32 (1) The landlord is authorized to do business in Indiana.
493493 33 (2) The landlord maintains an office at one (1) or more
494494 34 physical locations in Indiana.
495495 35 (3) The landlord appoints an Indiana licensed real estate
496496 36 broker or broker company to manage the rental property.
497497 2024 IN 277—LS 6938/DI 129