LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6957 NOTE PREPARED: Dec 29, 2024
BILL NUMBER: HB 1519 BILL AMENDED:
SUBJECT: Workforce Housing Assistance Program.
FIRST AUTHOR: Rep. Miller D BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: This bill establishes the Workforce Housing Assistance Program (program) and
the Workforce Housing Assistance Revolving Fund (fund) and continuously appropriates money in the fund
to provide loans to eligible borrowers in connection with the purchase of residential property to be used for
any combination of the following expenses: (1) Down payment assistance. (2) Payment of closing costs. (3)
Payment for renovations. (4) Funding a permanent interest rate buydown. It provides that the Indiana
Housing and Community Development Authority (IHCDA) shall administer the program and the fund.
The bill defines an "eligible borrower" as a first time home buyer whose household income does not exceed
160% of the county's area median income in which the eligible borrower intends to purchase residential
property. It defines a "first time home buyer" as an individual who has not, at any time during the three years
preceding the date of the mortgage loan closing, had a present ownership interest in residential property. It
also defines "residential property" as the real property, including a single family dwelling together with any
other improvements on the real property, sought to be purchased, in part, with the proceeds of a loan made
from the fund by an eligible borrower for use as the eligible borrower's principal residence.
The bill allows the IHCDA to determine the amount of the loan that may be made from the fund to an eligible
borrower. It specifies the criteria that the IHCDA must use in making loans from the fund to eligible
borrowers, including the term of the loan, the loan's status as a second mortgage secured by a lien in favor
of the IHCDA, and the maximum rate of interest for the loan.
The bill requires the executive director of the IHCDA to prepare an annual report on the fund's activities for
the Legislative Council and the State Budget Committee.
The bill makes an appropriation to the fund.
Effective Date: July 1, 2025.
Explanation of State Expenditures: Workforce Housing Assistance Program and Fund: This bill
establishes the Workforce Housing Assistance Program and the Workforce Housing Assistance Revolving
HB 1519 1 Fund. The bill appropriates from the state General Fund $50 M to the nonreverting Workforce Housing
Assistance Revolving Fund in FY 2026, as well as $50 M in FY 2027. The IHCDA may award loans to
qualified eligible borrowers in connection with the purchase of residential property. A loan provided by the
IHCDA to a qualified eligible borrower may not exceed 1% of the most recent average area purchase prices
for mortgage revenue bonds as published by the Internal Revenue Service. Additionally, the interest rate of
loan provided by the IHCDA under this program may not exceed 6% or the interest rate of the first mortgage,
whichever is lower.
IHCDA: The bill would increase the workload of the IHCDA to administer the Workforce Housing
Assistance Program and Fund, which includes establishing criteria for the application process to receive
funding, as well as administering loans to eligible borrowers. Additionally, starting in 2026, the IHCDA
would be required to report on an annual basis to the Legislative Council and to the State Budget Committee,
by no later than August 1, information concerning the loans made available to eligible borrowers from the
fund during each fiscal year. The IHCDA should be able to implement this program within existing
resources.
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Indiana Housing and Community Development Authority.
Local Agencies Affected:
Information Sources:
Fiscal Analyst: James Johnson, 317-232-9869.
HB 1519 2