1 | 1 | | |
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2 | 2 | | Introduced Version |
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3 | 3 | | SENATE BILL No. 277 |
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4 | 4 | | _____ |
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5 | 5 | | DIGEST OF INTRODUCED BILL |
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6 | 6 | | Citations Affected: IC 32-30-5-1; IC 32-31. |
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7 | 7 | | Synopsis: Residential landlord-tenant matters. Provides that the court |
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8 | 8 | | may appoint a receiver upon request by a county, city, or town when |
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9 | 9 | | the property owner of a multifamily residential property with more than |
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10 | 10 | | four dwelling units has failed to pay damages, costs, or attorney's fees |
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11 | 11 | | that have been incurred by the multifamily residential property in a |
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12 | 12 | | nuisance action brought by the county, city, or town. Allows a city, |
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13 | 13 | | county, or town to bring a nuisance action against a tenant or other |
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14 | 14 | | person responsible for a nuisance. Defines "essential services" as |
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15 | 15 | | certain services needed for the safe and habitable occupation by a |
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16 | 16 | | tenant of the tenant's rental unit. Defines "essential systems" as certain |
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17 | 17 | | systems used to deliver essential services to a rental unit. Requires a |
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18 | 18 | | landlord to provide and maintain a rental premises that is free from the |
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19 | 19 | | following: (1) Pests, including rodents and invasive insects. (2) Mold. |
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20 | 20 | | (3) Rot. Sets forth a procedure for a tenant to use to initiate a request |
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21 | 21 | | for repairs. Requires a landlord to repair or replace an essential system |
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22 | 22 | | not later than 72 hours after being notified by a tenant that the tenant's |
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23 | 23 | | rental unit is without essential services under certain circumstances. |
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24 | 24 | | Allows for certain remedies to the tenant for the landlord's |
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25 | 25 | | noncompliance, including a procedure for the deposit of rent that is due |
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26 | 26 | | with the clerk of the court if the landlord fails or refuses to make |
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27 | 27 | | repairs or take remedial action. Provides that, during the pendency of |
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28 | 28 | | a court action brought by a tenant, the court may order the tenant to |
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29 | 29 | | make the regular rental payments otherwise due under the rental |
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30 | 30 | | agreement to the clerk of the court or an attorney trust account, to be |
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31 | 31 | | held in trust for disbursal to the prevailing party, as ordered by the |
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32 | 32 | | court. Provides that a landlord may apply for release of rent deposits. |
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33 | 33 | | (Continued next page) |
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34 | 34 | | Effective: July 1, 2024. |
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35 | 35 | | Walker G |
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36 | 36 | | January 16, 2024, read first time and referred to Committee on Local Government. |
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37 | 37 | | 2024 IN 277—LS 6938/DI 129 Digest Continued |
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38 | 38 | | Provides that, after June 30, 2024, a landlord may not manage a rental |
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39 | 39 | | property in Indiana unless the landlord: (1) is authorized to do business |
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40 | 40 | | in Indiana; (2) maintains an office at one or more physical locations in |
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41 | 41 | | Indiana; or (3) appoints an Indiana licensed real estate broker or broker |
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42 | 42 | | company to manage the rental property. Makes conforming changes. |
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43 | 43 | | 2024 IN 277—LS 6938/DI 1292024 IN 277—LS 6938/DI 129 Introduced |
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44 | 44 | | Second Regular Session of the 123rd General Assembly (2024) |
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45 | 45 | | PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana |
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46 | 46 | | Constitution) is being amended, the text of the existing provision will appear in this style type, |
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47 | 47 | | additions will appear in this style type, and deletions will appear in this style type. |
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48 | 48 | | Additions: Whenever a new statutory provision is being enacted (or a new constitutional |
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49 | 49 | | provision adopted), the text of the new provision will appear in this style type. Also, the |
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50 | 50 | | word NEW will appear in that style type in the introductory clause of each SECTION that adds |
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51 | 51 | | a new provision to the Indiana Code or the Indiana Constitution. |
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52 | 52 | | Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts |
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53 | 53 | | between statutes enacted by the 2023 Regular Session of the General Assembly. |
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54 | 54 | | SENATE BILL No. 277 |
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55 | 55 | | A BILL FOR AN ACT to amend the Indiana Code concerning |
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56 | 56 | | property. |
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57 | 57 | | Be it enacted by the General Assembly of the State of Indiana: |
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58 | 58 | | 1 SECTION 1. IC 32-30-5-1, AS AMENDED BY P.L.5-2023, |
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59 | 59 | | 2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE |
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60 | 60 | | 3 JULY 1, 2024]: Sec. 1. (a) As used in this section, "utility" means a |
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61 | 61 | | 4 utility, however organized, that: |
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62 | 62 | | 5 (1) provides electric, gas, water, or wastewater retail utility |
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63 | 63 | | 6 service to customers in Indiana; or |
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64 | 64 | | 7 (2) is owned, operated, or held in trust by a consolidated city. |
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65 | 65 | | 8 (b) A receiver may be appointed by the court in the following cases: |
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66 | 66 | | 9 (1) In an action by a vendor to vacate a fraudulent purchase of |
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67 | 67 | | 10 property or by a creditor to subject any property or fund to the |
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68 | 68 | | 11 creditor's claim. |
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69 | 69 | | 12 (2) In actions between partners or persons jointly interested in any |
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70 | 70 | | 13 property or fund. |
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71 | 71 | | 14 (3) In all actions when it is shown that the property, fund or rent, |
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72 | 72 | | 15 and profits in controversy are in danger of being lost, removed, or |
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73 | 73 | | 2024 IN 277—LS 6938/DI 129 2 |
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74 | 74 | | 1 materially injured. |
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75 | 75 | | 2 (4) In actions in which a mortgagee seeks to foreclose a mortgage. |
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76 | 76 | | 3 However, upon motion by the mortgagee, the court shall appoint |
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77 | 77 | | 4 a receiver if, at the time the motion is filed, the property is not |
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78 | 78 | | 5 occupied by the owner as the owner's principal residence and: |
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79 | 79 | | 6 (A) it appears that the property is in danger of being lost, |
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80 | 80 | | 7 removed, or materially injured; |
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81 | 81 | | 8 (B) it appears that the property may not be sufficient to |
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82 | 82 | | 9 discharge the mortgaged debt; |
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83 | 83 | | 10 (C) either the mortgagor or the owner of the property has |
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84 | 84 | | 11 agreed in the mortgage or in some other writing to the |
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85 | 85 | | 12 appointment of a receiver; |
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86 | 86 | | 13 (D) a person not personally liable for the debt secured by the |
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87 | 87 | | 14 mortgage has, or is entitled to, possession of all or a portion of |
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88 | 88 | | 15 the property; |
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89 | 89 | | 16 (E) the owner of the property is not personally liable for the |
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90 | 90 | | 17 debt secured by the mortgage; or |
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91 | 91 | | 18 (F) all or any portion of the property is being, or is intended to |
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92 | 92 | | 19 be, leased for any purpose. |
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93 | 93 | | 20 (5) When a corporation, professional corporation, nonprofit |
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94 | 94 | | 21 corporation, limited liability company, partnership, or another |
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95 | 95 | | 22 legal entity described in IC 23: |
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96 | 96 | | 23 (A) has been dissolved; |
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97 | 97 | | 24 (B) is insolvent; |
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98 | 98 | | 25 (C) is in imminent danger of insolvency; or |
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99 | 99 | | 26 (D) has forfeited its corporate rights. |
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100 | 100 | | 27 (6) To protect or preserve, during the time allowed for |
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101 | 101 | | 28 redemption, any real estate or interest in real estate sold on |
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102 | 102 | | 29 execution or order of sale, and to secure rents and profits to the |
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103 | 103 | | 30 person entitled to the rents and profits. |
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104 | 104 | | 31 (7) Upon request by a utility providing utility service to a |
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105 | 105 | | 32 multifamily residential property with more than four (4) dwelling |
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106 | 106 | | 33 units when the property owner has failed to pay: |
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107 | 107 | | 34 (A) invoiced utility bills for a period greater than ninety (90) |
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108 | 108 | | 35 days from the due date of the initial outstanding invoice; or |
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109 | 109 | | 36 (B) amounts due under a curative payment plan for a period of |
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110 | 110 | | 37 at least sixty (60) days from the initial due date prescribed |
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111 | 111 | | 38 under the payment plan; |
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112 | 112 | | 39 notwithstanding any other right the utility has to secure payment. |
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113 | 113 | | 40 (8) Upon request by a county, city, or town when the property |
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114 | 114 | | 41 owner of a multifamily residential property with more than |
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115 | 115 | | 42 four (4) dwelling units has failed to pay: |
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116 | 116 | | 2024 IN 277—LS 6938/DI 129 3 |
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117 | 117 | | 1 (A) damages; |
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118 | 118 | | 2 (B) costs; or |
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119 | 119 | | 3 (C) attorney's fees |
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120 | 120 | | 4 that the multifamily residential property has incurred in a |
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121 | 121 | | 5 nuisance action brought under IC 32-30-6-7 by the county, |
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122 | 122 | | 6 city, or town. |
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123 | 123 | | 7 (8) (9) In other cases as may be provided by law or where, in the |
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124 | 124 | | 8 discretion of the court, it may be necessary to secure ample justice |
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125 | 125 | | 9 to the parties. |
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126 | 126 | | 10 SECTION 2. IC 32-31-1-22, AS AMENDED BY P.L.86-2018, |
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127 | 127 | | 11 SECTION 227, IS AMENDED TO READ AS FOLLOWS |
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128 | 128 | | 12 [EFFECTIVE JULY 1, 2024]: Sec. 22. (a) The definitions in |
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129 | 129 | | 13 IC 32-31-3 apply throughout this section. |
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130 | 130 | | 14 (b) As used in this section, "penalty" refers to any of the following: |
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131 | 131 | | 15 (1) The assessment of a penalty, fine, or fee. |
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132 | 132 | | 16 (2) Actual or threatened eviction from a rental unit, or the causing |
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133 | 133 | | 17 of an actual or threatened eviction from a rental unit. |
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134 | 134 | | 18 (c) As used in this section, "political subdivision" has the meaning |
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135 | 135 | | 19 set forth in IC 36-1-2-13. |
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136 | 136 | | 20 (d) Except as provided in subsection (e), a political subdivision may |
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137 | 137 | | 21 not adopt or enforce any ordinance, rule, or regulation that imposes a |
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138 | 138 | | 22 penalty, or allows for the imposition of a penalty, against a tenant, an |
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139 | 139 | | 23 owner, or a landlord for a contact made to request law enforcement |
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140 | 140 | | 24 assistance or other emergency assistance for one (1) or more rental |
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141 | 141 | | 25 units if: |
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142 | 142 | | 26 (1) the contact is made by or on behalf of: |
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143 | 143 | | 27 (A) a victim or potential victim of abuse; |
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144 | 144 | | 28 (B) a victim or potential victim of a crime; or |
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145 | 145 | | 29 (C) an individual in an emergency; and |
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146 | 146 | | 30 (2) either of the following applies: |
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147 | 147 | | 31 (A) At the time the contact is made, the person making the |
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148 | 148 | | 32 contact reasonably believes that law enforcement assistance or |
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149 | 149 | | 33 other emergency assistance is necessary to prevent the |
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150 | 150 | | 34 perpetration or escalation of abuse, a crime, or an emergency. |
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151 | 151 | | 35 (B) If abuse, a crime, or an emergency occurs, the law |
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152 | 152 | | 36 enforcement assistance or other emergency assistance was |
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153 | 153 | | 37 needed. |
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154 | 154 | | 38 (e) Subject to subsections (f) and (g), this section does not prohibit |
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155 | 155 | | 39 a political subdivision from adopting or enforcing an ordinance, a rule, |
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156 | 156 | | 40 or a regulation that imposes a penalty for a contact that: |
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157 | 157 | | 41 (1) is made to request law enforcement assistance or other |
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158 | 158 | | 42 emergency assistance; and |
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159 | 159 | | 2024 IN 277—LS 6938/DI 129 4 |
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160 | 160 | | 1 (2) is not made by or on behalf of: |
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161 | 161 | | 2 (A) a victim or potential victim of abuse; |
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162 | 162 | | 3 (B) a victim or potential victim of a crime; or |
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163 | 163 | | 4 (C) an individual in an emergency. |
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164 | 164 | | 5 (f) If: |
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165 | 165 | | 6 (1) a political subdivision imposes a penalty under an ordinance, |
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166 | 166 | | 7 a rule, or a regulation authorized by subsection (e); and |
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167 | 167 | | 8 (2) the prohibited contact to request law enforcement assistance |
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168 | 168 | | 9 or other emergency assistance is made by a tenant in a rental unit; |
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169 | 169 | | 10 the penalty imposed must be assessed against the tenant of the rental |
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170 | 170 | | 11 unit and not against the landlord or owner of the rental unit. |
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171 | 171 | | 12 (g) Any penalty that is assessed under an ordinance, a rule, or a |
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172 | 172 | | 13 regulation authorized by subsection (e) may not exceed two hundred |
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173 | 173 | | 14 fifty dollars ($250). |
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174 | 174 | | 15 (h) Nothing in this section shall be construed to prevent a housing |
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175 | 175 | | 16 authority established under IC 36-7-18 from enforcing rights or |
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176 | 176 | | 17 remedies established by contract or federal law against a landlord or |
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177 | 177 | | 18 owner of a rental unit. |
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178 | 178 | | 19 (i) Nothing in this section shall be construed to prevent an attorney |
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179 | 179 | | 20 representing a city, county, or town from: |
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180 | 180 | | 21 (1) bringing a nuisance action described under IC 32-30-6-7(b) |
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181 | 181 | | 22 against a landlord, tenant, or owner of a rental unit, or other |
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182 | 182 | | 23 person responsible for the nuisance; or |
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183 | 183 | | 24 (2) recovering damages, fees, and costs that are permitted |
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184 | 184 | | 25 under IC 32-30-6-7 and IC 32-30-6-8. |
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185 | 185 | | 26 SECTION 3. IC 32-31-8-5 IS AMENDED TO READ AS |
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186 | 186 | | 27 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 5. (a) As used in this |
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187 | 187 | | 28 section, "essential services" means: |
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188 | 188 | | 29 (1) electricity; |
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189 | 189 | | 30 (2) gas; |
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190 | 190 | | 31 (3) heat; |
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191 | 191 | | 32 (4) water; or |
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192 | 192 | | 33 (5) doors and windows that lock securely; |
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193 | 193 | | 34 needed for the safe and habitable occupation by a tenant of the |
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194 | 194 | | 35 tenant's rental unit. |
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195 | 195 | | 36 (b) As used in this section, "essential system" means a system, |
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196 | 196 | | 37 or one (1) or more parts or components of a system, that is: |
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197 | 197 | | 38 (1) used for; or |
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198 | 198 | | 39 (2) necessary to; |
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199 | 199 | | 40 the delivery of one (1) or more essential services to a rental unit. |
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200 | 200 | | 41 (c) A landlord shall do the following: |
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201 | 201 | | 42 (1) Deliver the rental premises to a tenant in compliance with the |
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202 | 202 | | 2024 IN 277—LS 6938/DI 129 5 |
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203 | 203 | | 1 rental agreement, and in a safe, clean, and habitable condition. |
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204 | 204 | | 2 (2) Comply with all health and housing codes applicable to the |
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205 | 205 | | 3 rental premises. |
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206 | 206 | | 4 (3) Make all reasonable efforts to keep common areas of a rental |
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207 | 207 | | 5 premises in a clean and proper condition. |
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208 | 208 | | 6 (4) Provide and maintain all essential systems. |
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209 | 209 | | 7 (4) (5) Provide and maintain the following items in a rental |
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210 | 210 | | 8 premises in good and safe working condition, if provided on the |
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211 | 211 | | 9 premises at the time the rental agreement is entered into: |
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212 | 212 | | 10 (A) Electrical systems. |
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213 | 213 | | 11 (B) Plumbing systems sufficient to accommodate a reasonable |
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214 | 214 | | 12 supply of hot and cold running water at all times. |
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215 | 215 | | 13 (C) Sanitary systems. |
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216 | 216 | | 14 (D) Heating, ventilating, and air conditioning systems. A |
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217 | 217 | | 15 heating system must be sufficient to adequately supply heat at |
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218 | 218 | | 16 all times. |
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219 | 219 | | 17 (E) Elevators, if provided. |
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220 | 220 | | 18 (F) Appliances supplied as an inducement to the rental |
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221 | 221 | | 19 agreement. |
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222 | 222 | | 20 (6) Provide and maintain a rental premises that is free from |
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223 | 223 | | 21 the following: |
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224 | 224 | | 22 (A) Pests, including rodents and invasive insects. |
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225 | 225 | | 23 (B) Mold. |
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226 | 226 | | 24 (C) Rot. |
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227 | 227 | | 25 (d) Subsection (c)(4) does not: |
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228 | 228 | | 26 (1) prohibit a landlord from interrupting, shutting off, or |
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229 | 229 | | 27 terminating one (1) or more essential services to a rental unit |
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230 | 230 | | 28 as needed: |
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231 | 231 | | 29 (A) in an emergency; |
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232 | 232 | | 30 (B) to make good faith repairs; or |
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233 | 233 | | 31 (C) for construction; or |
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234 | 234 | | 32 (2) require a landlord to pay for one (1) or more essential |
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235 | 235 | | 33 services provided to a rental unit if the landlord has not |
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236 | 236 | | 34 agreed to do so under the rental agreement. |
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237 | 237 | | 35 (e) To initiate a request for a repair of an essential system, an |
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238 | 238 | | 36 essential service, or a repair under subsection (c), a tenant shall use |
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239 | 239 | | 37 the procedure set forth in this subsection. A tenant shall first make |
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240 | 240 | | 38 a written or electronic repair request to a landlord. Upon receipt |
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241 | 241 | | 39 of a tenant's repair request under this subsection, a landlord shall |
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242 | 242 | | 40 provide a written or electronic acknowledgment of the request |
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243 | 243 | | 41 within twenty-four (24) hours of the receipt of the request. A |
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244 | 244 | | 42 tenant's written or electronic request for a repair and a landlord's |
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245 | 245 | | 2024 IN 277—LS 6938/DI 129 6 |
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246 | 246 | | 1 written or electronic acknowledgment of a repair request may |
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247 | 247 | | 2 include a text message, email, certified mail, or another written |
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248 | 248 | | 3 communication that allows for verification of delivery. |
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249 | 249 | | 4 (f) Subject to subsection (g), a landlord shall repair or replace |
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250 | 250 | | 5 an essential system not later than seventy-two (72) hours after |
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251 | 251 | | 6 being notified by a tenant in accordance with subsection (e) that |
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252 | 252 | | 7 the tenant's rental unit is without one (1) or more essential services |
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253 | 253 | | 8 as a result of: |
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254 | 254 | | 9 (1) a malfunction in the essential system; or |
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255 | 255 | | 10 (2) the landlord's failure to otherwise maintain the essential |
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256 | 256 | | 11 system in good and safe working condition. |
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257 | 257 | | 12 (g) The seventy-two (72) hour period set forth in subsection (f) |
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258 | 258 | | 13 does not apply if: |
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259 | 259 | | 14 (1) the tenant's rental unit is without one (1) or more essential |
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260 | 260 | | 15 services because of a malfunction in an essential system, and |
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261 | 261 | | 16 the malfunction is the direct result of the tenant's commission |
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262 | 262 | | 17 of waste to the essential system or the rental unit; or |
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263 | 263 | | 18 (2) the landlord makes a good faith attempt within the |
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264 | 264 | | 19 seventy-two (72) hour period set forth in subsection (f) to |
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265 | 265 | | 20 undertake the needed repairs to, or the replacement of, an |
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266 | 266 | | 21 essential system through: |
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267 | 267 | | 22 (A) the landlord's own efforts; or |
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268 | 268 | | 23 (B) the services of: |
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269 | 269 | | 24 (i) a contractor; or |
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270 | 270 | | 25 (ii) an employee or agent of the landlord; |
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271 | 271 | | 26 and the landlord or person described in clause (B) is unable to |
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272 | 272 | | 27 begin or complete the needed repairs or replacement within |
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273 | 273 | | 28 the seventy-two (72) hour period set forth in subsection (f). |
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274 | 274 | | 29 (h) To demonstrate a good faith attempt to address a tenant's |
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275 | 275 | | 30 repair request under subsection (e) or for purposes of subsection |
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276 | 276 | | 31 (g)(2), a landlord shall provide proof of intention to repair within |
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277 | 277 | | 32 seventy-two (72) hours of the tenant's repair request. Proof of |
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278 | 278 | | 33 intention to repair may include a quote, confirmation of scheduled |
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279 | 279 | | 34 maintenance from a vendor, or confirmation of scheduled |
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280 | 280 | | 35 maintenance from the landlord if the landlord performs the repair. |
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281 | 281 | | 36 (i) A landlord that knowingly or intentionally violates this |
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282 | 282 | | 37 section commits a deceptive act that is subject to the remedies and |
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283 | 283 | | 38 penalties under IC 24-5-0.5. |
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284 | 284 | | 39 SECTION 4. IC 32-31-8-5.5 IS ADDED TO THE INDIANA CODE |
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285 | 285 | | 40 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY |
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286 | 286 | | 41 1, 2024]: Sec. 5.5. (a) To use the procedure established by this |
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287 | 287 | | 42 section, a tenant must: |
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288 | 288 | | 2024 IN 277—LS 6938/DI 129 7 |
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289 | 289 | | 1 (1) be current on rent payments and have a history of on-time |
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290 | 290 | | 2 payments on the same rental premises for the last six (6) |
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291 | 291 | | 3 months; or |
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292 | 292 | | 4 (2) have a history of on-time payments since the beginning of |
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293 | 293 | | 5 the lease if the tenant has rented for less than six (6) months. |
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294 | 294 | | 6 (b) In addition to, or instead of, bringing an action under section |
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295 | 295 | | 7 6 of this chapter, a tenant may enforce an obligation of a landlord |
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296 | 296 | | 8 under this chapter by doing the following: |
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297 | 297 | | 9 (1) Notify the landlord, in writing or electronically, after a |
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298 | 298 | | 10 seventy-two (72) hour waiting period that: |
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299 | 299 | | 11 (A) the landlord has failed to make necessary repairs |
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300 | 300 | | 12 under this chapter; and |
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301 | 301 | | 13 (B) if the landlord fails to make the necessary repairs |
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302 | 302 | | 14 before the tenant's next regular rental payment is due |
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303 | 303 | | 15 under the rental agreement, the tenant may petition the |
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304 | 304 | | 16 court to deposit rental payments with the clerk of the |
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305 | 305 | | 17 court. |
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306 | 306 | | 18 The court shall notify the landlord not later than thirty (30) |
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307 | 307 | | 19 days after the date the tenant's petition is approved or before |
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308 | 308 | | 20 the date that the next rental payment is due, whichever is |
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309 | 309 | | 21 earlier. |
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310 | 310 | | 22 (2) Subject to subsection (c), deposit all rent that is due with |
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311 | 311 | | 23 the clerk of the court having jurisdiction in the county where |
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312 | 312 | | 24 the rental premises is located if the landlord fails or refuses |
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313 | 313 | | 25 to: |
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314 | 314 | | 26 (A) make the repairs; or |
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315 | 315 | | 27 (B) take the actions necessary to remedy the condition |
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316 | 316 | | 28 described in the tenant's notice under subdivision (1); |
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317 | 317 | | 29 before the due date of the tenant's next regular rental |
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318 | 318 | | 30 payment following delivery of the notice under subdivision |
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319 | 319 | | 31 (1). |
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320 | 320 | | 32 (3) Apply to the court for an order that directs the landlord to |
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321 | 321 | | 33 remedy the condition. |
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322 | 322 | | 34 (4) Terminate the rental agreement. |
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323 | 323 | | 35 (c) A tenant may not take any action described in subsection |
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324 | 324 | | 36 (b)(2), (b)(3), or (b)(4) if the: |
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325 | 325 | | 37 (1) tenant does not satisfy the condition required by |
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326 | 326 | | 38 subsection (a); |
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327 | 327 | | 39 (2) tenant prevents the landlord from having reasonable |
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328 | 328 | | 40 access to the rental premises to make any repairs or take any |
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329 | 329 | | 41 action necessary to remedy the condition described in the |
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330 | 330 | | 42 tenant's notice before the due date of the tenant's next regular |
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331 | 331 | | 2024 IN 277—LS 6938/DI 129 8 |
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332 | 332 | | 1 rental payment following delivery of the notice under |
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333 | 333 | | 2 subsection (a)(1); or |
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334 | 334 | | 3 (3) landlord: |
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335 | 335 | | 4 (A) owns not more than four (4) single family houses at one |
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336 | 336 | | 5 (1) time; or |
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337 | 337 | | 6 (B) occupies one (1) of the living quarters of the rental |
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338 | 338 | | 7 premises in a dwelling containing living quarters that are |
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339 | 339 | | 8 intended to be occupied by not more than four (4) families |
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340 | 340 | | 9 living independently of each other. |
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341 | 341 | | 10 (d) A proceeding under this section does not preclude the tenant |
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342 | 342 | | 11 or the landlord from enforcing any obligations listed in the rental |
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343 | 343 | | 12 agreement. |
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344 | 344 | | 13 SECTION 5. IC 32-31-8-6.5 IS ADDED TO THE INDIANA CODE |
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345 | 345 | | 14 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY |
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346 | 346 | | 15 1, 2024]: Sec. 6.5. (a) This section applies to an action that is filed |
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347 | 347 | | 16 under section 6 of this chapter after June 30, 2024. |
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348 | 348 | | 17 (b) During the pendency of an action to which this section |
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349 | 349 | | 18 applies, if the tenant continues to occupy the rental unit upon |
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350 | 350 | | 19 which the action is based, the court may issue a provisional order |
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351 | 351 | | 20 that requires the tenant to make regular rental payments otherwise |
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352 | 352 | | 21 due to the landlord under the rental agreement to: |
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353 | 353 | | 22 (1) the clerk of the court, who shall hold the payments in trust |
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354 | 354 | | 23 for the parties; or |
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355 | 355 | | 24 (2) an attorney trust account; |
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356 | 356 | | 25 as directed by the court. The funds held by the clerk or in an |
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357 | 357 | | 26 attorney trust account under this subsection may not be disbursed |
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358 | 358 | | 27 unless the court issues an order for their disbursement. |
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359 | 359 | | 28 (c) Subject to subsection (e), if the tenant is the prevailing party |
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360 | 360 | | 29 in the action under section 6 of this chapter, the tenant is entitled |
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361 | 361 | | 30 to a refund of payments made under an order issued by the court |
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362 | 362 | | 31 under subsection (b). The amount of the refund: |
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363 | 363 | | 32 (1) shall be determined by the court after taking into |
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364 | 364 | | 33 consideration: |
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365 | 365 | | 34 (A) the estimated cost of any repairs or other action |
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366 | 366 | | 35 necessary to remedy the condition that was the basis of the |
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367 | 367 | | 36 tenant's action under section 6 of this chapter; |
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368 | 368 | | 37 (B) efforts undertaken by the landlord before or after the |
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369 | 369 | | 38 filing of the tenant's action under section 6 of this chapter |
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370 | 370 | | 39 to remedy the condition that was the basis of the tenant's |
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371 | 371 | | 40 action under section 6 of this chapter; and |
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372 | 372 | | 41 (C) any other factors that justice may require; and |
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373 | 373 | | 42 (2) shall be disbursed to the tenant upon order of the court. |
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374 | 374 | | 2024 IN 277—LS 6938/DI 129 9 |
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375 | 375 | | 1 (d) Subject to subsection (e), if the tenant is not the prevailing |
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376 | 376 | | 2 party in the action under section 6 of this chapter, the tenant is not |
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377 | 377 | | 3 entitled to a refund of any rental payments made under an order |
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378 | 378 | | 4 issued by the court under subsection (b), and any amounts held in |
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379 | 379 | | 5 trust by the clerk of the court or in an attorney trust account shall, |
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380 | 380 | | 6 upon order of the court, be disbursed to the landlord and credited |
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381 | 381 | | 7 against the amount of the regular rental payments due to the |
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382 | 382 | | 8 landlord under the rental agreement during the pendency of the |
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383 | 383 | | 9 action. |
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384 | 384 | | 10 (e) The court may reduce the amount to be disbursed to a |
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385 | 385 | | 11 landlord in an order under subsection (d), if the court determines |
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386 | 386 | | 12 that the landlord's failure to comply with one (1) or more of the |
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387 | 387 | | 13 requirements of this chapter contributed in any way to the |
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388 | 388 | | 14 necessity of repairs or other action needed to remedy the condition |
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389 | 389 | | 15 that was the basis of the tenant's action under section 6 of this |
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390 | 390 | | 16 chapter as justice may require. |
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391 | 391 | | 17 SECTION 6. IC 32-31-8-8 IS ADDED TO THE INDIANA CODE |
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392 | 392 | | 18 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY |
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393 | 393 | | 19 1, 2024]: Sec. 8. (a) If rent is being deposited with the clerk of the |
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394 | 394 | | 20 court under section 5.5 or 6.5 of this chapter, the landlord may |
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395 | 395 | | 21 apply for the release of rent deposits to the: |
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396 | 396 | | 22 (1) clerk of the court on the basis that the condition contained |
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397 | 397 | | 23 in the notice is remedied; or |
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398 | 398 | | 24 (2) court on the basis that the: |
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399 | 399 | | 25 (A) tenant: |
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400 | 400 | | 26 (i) did not comply with the notice requirement in section |
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401 | 401 | | 27 5.5 of this chapter; or |
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402 | 402 | | 28 (ii) was not current on rent payments under the rental |
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403 | 403 | | 29 agreement at the time the tenant initiated the rent |
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404 | 404 | | 30 deposits with the clerk of the court, as required by |
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405 | 405 | | 31 section 5.5(a) of this chapter; or |
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406 | 406 | | 32 (B) landlord: |
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407 | 407 | | 33 (i) did not violate an obligation under this chapter; |
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408 | 408 | | 34 (ii) does not own more than four (4) single family houses |
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409 | 409 | | 35 at any one (1) time; or |
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410 | 410 | | 36 (iii) occupies one (1) of the living quarters of the rental |
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411 | 411 | | 37 premises in a dwelling containing living quarters that are |
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412 | 412 | | 38 intended to be occupied by not more than four (4) |
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413 | 413 | | 39 families living independently of each other. |
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414 | 414 | | 40 (b) The landlord shall name the tenant as a party to an |
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415 | 415 | | 41 application filed under this section. |
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416 | 416 | | 42 (c) The court shall hold a hearing not more than sixty (60) days |
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417 | 417 | | 2024 IN 277—LS 6938/DI 129 10 |
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418 | 418 | | 1 after the application is filed unless, for good cause shown, the court |
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419 | 419 | | 2 continues the hearing. |
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420 | 420 | | 3 (d) If the court continues a hearing under this section, the court |
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421 | 421 | | 4 may, upon the landlord's request, order a release of partial rent |
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422 | 422 | | 5 deposits for the following operating costs arising from the rental |
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423 | 423 | | 6 premises that is the subject of a proceeding under this chapter: |
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424 | 424 | | 7 (1) Mortgage payments, including periodic interest payments |
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425 | 425 | | 8 on the mortgage. |
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426 | 426 | | 9 (2) Insurance premiums. |
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427 | 427 | | 10 (3) Real estate taxes. |
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428 | 428 | | 11 (4) Utility services. |
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429 | 429 | | 12 (5) Repairs. |
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430 | 430 | | 13 (e) If the court finds in the landlord's favor after a hearing |
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431 | 431 | | 14 under this section, the court shall order the full release of rent |
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432 | 432 | | 15 deposits, minus costs, to the landlord. |
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433 | 433 | | 16 (f) If the court finds after a hearing under this section that the: |
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434 | 434 | | 17 (1) tenant's act or omission caused the condition; or |
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435 | 435 | | 18 (2) tenant intentionally acted in bad faith; |
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436 | 436 | | 19 the tenant is liable for damages caused to the landlord and costs, |
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437 | 437 | | 20 including reasonable attorney's fees. |
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438 | 438 | | 21 SECTION 7. IC 32-31-9-8, AS ADDED BY P.L.22-2007, |
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439 | 439 | | 22 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE |
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440 | 440 | | 23 JULY 1, 2024]: Sec. 8. (a) A landlord may not terminate a lease, refuse |
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441 | 441 | | 24 to renew a lease, refuse to enter into a lease, or retaliate against a tenant |
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442 | 442 | | 25 solely because: |
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443 | 443 | | 26 (1) a tenant; |
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444 | 444 | | 27 (2) an applicant; or |
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445 | 445 | | 28 (3) an individual who is a member of the tenant's or applicant's |
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446 | 446 | | 29 household; |
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447 | 447 | | 30 is a protected individual. |
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448 | 448 | | 31 (b) A landlord may not refuse to enter into a lease with an applicant |
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449 | 449 | | 32 or retaliate against a tenant solely because: |
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450 | 450 | | 33 (1) the tenant; |
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451 | 451 | | 34 (2) the applicant; or |
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452 | 452 | | 35 (3) an individual who is a member of the tenant's or applicant's |
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453 | 453 | | 36 household; |
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454 | 454 | | 37 has terminated a rental agreement as a protected individual under |
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455 | 455 | | 38 section 12 of this chapter. |
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456 | 456 | | 39 (c) Except as otherwise provided in subsection (b), evidence that |
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457 | 457 | | 40 a tenant engaged in a protected activity not more than six (6) |
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458 | 458 | | 41 months before the landlord's alleged retaliatory conduct creates a |
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459 | 459 | | 42 rebuttable presumption that the purpose of the landlord's conduct |
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460 | 460 | | 2024 IN 277—LS 6938/DI 129 11 |
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461 | 461 | | 1 was retaliation. |
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462 | 462 | | 2 (d) A presumption does not arise under subsection (c) if the |
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463 | 463 | | 3 tenant engaged in a protected activity after the landlord gave the |
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464 | 464 | | 4 tenant notice of the landlord's intent to: |
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465 | 465 | | 5 (1) increase the rent or fees; |
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466 | 466 | | 6 (2) decrease services, increase the tenant's obligations, impose |
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467 | 467 | | 7 different rules on, or selectively enforce the landlord's rules |
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468 | 468 | | 8 against, the tenant or the tenant's immediate family member, |
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469 | 469 | | 9 or otherwise materially alter the terms of the lease; |
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470 | 470 | | 10 (3) bring an action for possession on a ground other than |
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471 | 471 | | 11 nonpayment of rent; |
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472 | 472 | | 12 (4) refuse to renew a tenancy for a fixed term under a lease |
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473 | 473 | | 13 containing a renewal option that is exercisable by the tenant |
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474 | 474 | | 14 without negotiation with the landlord, for any period after the |
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475 | 475 | | 15 lease would otherwise terminate; or |
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476 | 476 | | 16 (5) terminate a periodic tenancy. |
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477 | 477 | | 17 (e) A landlord may rebut a presumption under subsection (c) by |
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478 | 478 | | 18 a preponderance of evidence showing that the landlord: |
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479 | 479 | | 19 (1) had sufficient justification for engaging in the conduct that |
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480 | 480 | | 20 created the presumption; and |
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481 | 481 | | 21 (2) would have engaged in the conduct in the same manner |
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482 | 482 | | 22 and at the same time whether or not the tenant engaged in a |
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483 | 483 | | 23 protected activity. |
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484 | 484 | | 24 SECTION 8. IC 32-31-12 IS ADDED TO THE INDIANA CODE |
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485 | 485 | | 25 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE |
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486 | 486 | | 26 JULY 1, 2024]: |
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487 | 487 | | 27 Chapter 12. Landlord's Required Nexus |
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488 | 488 | | 28 Sec. 1. As used in this chapter, "landlord" has the meaning set |
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489 | 489 | | 29 forth in IC 32-31-3-3. |
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490 | 490 | | 30 Sec. 2. After June 30, 2024, a landlord may not manage a rental |
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491 | 491 | | 31 property in Indiana unless one (1) or more of the following apply: |
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492 | 492 | | 32 (1) The landlord is authorized to do business in Indiana. |
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493 | 493 | | 33 (2) The landlord maintains an office at one (1) or more |
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494 | 494 | | 34 physical locations in Indiana. |
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495 | 495 | | 35 (3) The landlord appoints an Indiana licensed real estate |
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496 | 496 | | 36 broker or broker company to manage the rental property. |
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497 | 497 | | 2024 IN 277—LS 6938/DI 129 |
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