Indiana 2025 Regular Session

Indiana House Bill HB1519 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	~~HB1519.1~~
2		-	~~January 28, 2025~~
	1	+
	2	+	Introduced Version
3	3		HOUSE BILL No. 1519
4	4		_____
5		-	DIGEST OF ~~HB 1519 (Updated January 28, 2025 3:14 pm - DI 154)~~
6		-	Citations Affected: IC 5-20.
	5	+	DIGEST OF INTRODUCED BILL
	6	+	Citations Affected: IC 5-20-1-4; IC 5-20-11.5.
7	7		Synopsis: Workforce housing assistance program. Establishes the
8	8		workforce housing assistance program (program). Establishes the
9	9		workforce housing assistance revolving fund (fund) and continuously
10	10		appropriates money in the fund to provide loans to eligible borrowers
11	11		in connection with the purchase of residential property to be used for
12	12		any combination of the following expenses: (1) Down payment
13	13		assistance. (2) Payment of closing costs. (3) Payment for renovations.
14	14		(4) Funding a permanent interest rate buydown. Provides that the
15	15		Indiana housing and community development authority (IHCDA) shall
16	16		administer the program and the fund. Defines an "eligible borrower" as
17	17		a first time home buyer whose household income does not exceed
18	18		160% of the county's area median income in which the eligible
19	19		borrower intends to purchase residential property. Defines a "first time
20	20		home buyer" as an individual who has not, at any time during the three
21	21		years preceding the date of the mortgage loan closing, had a present
22	22		ownership interest in residential property. Defines "residential
23	23		property" as the real property, including a single family dwelling
24		-	(Continued next page)
25		-	Effective: July 1, 2025.
26		-	Miller D, Abbott, Moed
27		-	January 21, 2025, read first time and referred to Committee on Financial Institutions.
28		-	January 28, 2025, amended, reported — Do Pass. Referred to Committee on Ways and
29		-	Means pursuant to Rule 126.3.
30		-	HB 1519—LS 6957/DI 129 Digest Continued
31	24		together with any other improvements on the real property, sought to
32	25		be purchased, in part, with the proceeds of a loan made from the fund
33	26		by an eligible borrower for use as the eligible borrower's principal
34	27		residence. Allows the IHCDA to determine the amount of the loan that
35	28		may be made from the fund to an eligible borrower. Specifies the
36	29		criteria that the IHCDA must use in making loans from the fund to
37	30		eligible borrowers, including the term of the loan, the loan's status as
38	31		a second mortgage secured by a lien in favor of the IHCDA, and the
39	32		maximum rate of interest for the loan. Requires the executive director
	33	+	(Continued next page)
	34	+	Effective: July 1, 2025.
	35	+	Miller D
	36	+	January 21, 2025, read first time and referred to Committee on Financial Institutions.
	37	+	2025 IN 1519—LS 6957/DI 129 Digest Continued
40	38		of the IHCDA to prepare an annual report on the fund's activities for
41		-	the legislative council and the budget committee. Defines "community
42		-	development financial institution". Provides that at least 5% of the
43		-	money in the workforce housing assistance revolving fund must be set
44		-	aside to be used for down payment assistance by a person accessing a
45		-	first mortgage from an Indiana based community development financial
46		-	institution.
47		-	HB 1519—LS 6957/DI 129HB 1519—LS 6957/DI 129 January 28, 2025
	39	+	the legislative council and the budget committee. Makes an
	40	+	appropriation to the fund.
	41	+	2025 IN 1519—LS 6957/DI 1292025 IN 1519—LS 6957/DI 129 Introduced
48	42		First Regular Session of the 124th General Assembly (2025)
49	43		PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
50	44		Constitution) is being amended, the text of the existing provision will appear in this style type,
51	45		additions will appear in this style type, and deletions will appear in this style type.
52	46		Additions: Whenever a new statutory provision is being enacted (or a new constitutional
53	47		provision adopted), the text of the new provision will appear in this style type. Also, the
54	48		word NEW will appear in that style type in the introductory clause of each SECTION that adds
55	49		a new provision to the Indiana Code or the Indiana Constitution.
56	50		Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
57	51		between statutes enacted by the 2024 Regular Session of the General Assembly.
58	52		HOUSE BILL No. 1519
59	53		A BILL FOR AN ACT to amend the Indiana Code concerning state
60	54		offices and administration and to make an appropriation.
61	55		Be it enacted by the General Assembly of the State of Indiana:
62	56		1 SECTION 1. IC 5-20-1-4, AS AMENDED BY P.L.73-2020,
63	57		2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
64	58		3 JULY 1, 2025]: Sec. 4. (a) The authority has all of the powers
65	59		4 necessary or convenient to carry out and effectuate the purposes and
66	60		5 provisions of this chapter, including the power:
67	61		6 (1) to make or participate in the making of construction loans for
68	62		7 multiple family residential housing under terms that are approved
69	63		8 by the authority;
70	64		9 (2) to make or participate in the making of mortgage loans for
71	65		10 multiple family residential housing under terms that are approved
72	66		11 by the authority;
73	67		12 (3) to purchase or participate in the purchase from mortgage
74	68		13 lenders of mortgage loans made to persons of low and moderate
75	69		14 income for residential housing;
76	70		15 (4) to make loans to mortgage lenders for the purpose of
77		-	HB 1519—LS 6957/DI 129 2
	71	+	2025 IN 1519—LS 6957/DI 129 2
78	72		1 furnishing funds to such mortgage lenders to be used for making
79	73		2 mortgage loans for persons and families of low and moderate
80	74		3 income. However, the obligation to repay loans to mortgage
81	75		4 lenders shall be general obligations of the respective mortgage
82	76		5 lenders and shall bear such date or dates, shall mature at such
83	77		6 time or times, shall be evidenced by such note, bond, or other
84	78		7 certificate of indebtedness, shall be subject to prepayment, and
85	79		8 shall contain such other provisions consistent with the purposes
86	80		9 of this chapter as the authority shall by rule or resolution
87	81		10 determine;
88	82		11 (5) to collect and pay reasonable fees and charges in connection
89	83		12 with making, purchasing, and servicing of its loans, notes, bonds,
90	84		13 commitments, and other evidences of indebtedness;
91	85		14 (6) to acquire real property, or any interest in real property, by
92	86		15 conveyance, including purchase in lieu of foreclosure, or
93	87		16 foreclosure, to own, manage, operate, hold, clear, improve, and
94	88		17 rehabilitate such real property and sell, assign, exchange, transfer,
95	89		18 convey, lease, mortgage, or otherwise dispose of or encumber
96	90		19 such real property where such use of real property is necessary or
97	91		20 appropriate to the purposes of the authority;
98	92		21 (7) to sell, at public or private sale, all or any part of any mortgage
99	93		22 or other instrument or document securing a construction loan, a
100	94		23 land development loan, a mortgage loan, or a loan of any type
101	95		24 permitted by this chapter;
102	96		25 (8) to procure insurance against any loss in connection with its
103	97		26 operations in such amounts and from such insurers as it may deem
104	98		27 necessary or desirable;
105	99		28 (9) to consent, subject to the provisions of any contract with
106	100		29 noteholders or bondholders which may then exist, whenever it
107	101		30 deems it necessary or desirable in the fulfillment of its purposes
108	102		31 to the modification of the rate of interest, time of payment of any
109	103		32 installment of principal or interest, or any other terms of any
110	104		33 mortgage loan, mortgage loan commitment, construction loan,
111	105		34 loan to lender, or contract or agreement of any kind to which the
112	106		35 authority is a party;
113	107		36 (10) to enter into agreements or other transactions with any
114	108		37 federal, state, or local governmental agency for the purpose of
115	109		38 providing adequate living quarters for such persons and families
116	110		39 in cities and counties where a need has been found for such
117	111		40 housing;
118	112		41 (11) to include in any borrowing such amounts as may be deemed
119	113		42 necessary by the authority to pay financing charges, interest on
120		-	HB 1519—LS 6957/DI 129 3
	114	+	2025 IN 1519—LS 6957/DI 129 3
121	115		1 the obligations (for a period not exceeding the period of
122	116		2 construction and a reasonable time thereafter or if the housing is
123	117		3 completed, two (2) years from the date of issue of the
124	118		4 obligations), consultant, advisory, and legal fees and such other
125	119		5 expenses as are necessary or incident to such borrowing;
126	120		6 (12) to make and publish rules respecting its lending programs
127	121		7 and such other rules as are necessary to effectuate the purposes of
128	122		8 this chapter;
129	123		9 (13) to provide technical and advisory services to sponsors,
130	124		10 builders, and developers of residential housing and to residents
131	125		11 and potential residents, including housing selection and purchase
132	126		12 procedures, family budgeting, property use and maintenance,
133	127		13 household management, and utilization of community resources;
134	128		14 (14) to promote research and development in scientific methods
135	129		15 of constructing low cost residential housing of high durability;
136	130		16 (15) to encourage community organizations to participate in
137	131		17 residential housing development;
138	132		18 (16) to make, execute, and effectuate any and all agreements or
139	133		19 other documents with any governmental agency or any person,
140	134		20 corporation, association, partnership, limited liability company,
141	135		21 or other organization or entity necessary or convenient to
142	136		22 accomplish the purposes of this chapter;
143	137		23 (17) to accept gifts, devises, bequests, grants, loans,
144	138		24 appropriations, revenue sharing, other financing and assistance
145	139		25 and any other aid from any source whatsoever and to agree to, and
146	140		26 to comply with, conditions attached thereto;
147	141		27 (18) to sue and be sued in its own name, plead and be impleaded;
148	142		28 (19) to maintain an office in the city of Indianapolis and at such
149	143		29 other place or places as it may determine;
150	144		30 (20) to adopt an official seal and alter the same at pleasure;
151	145		31 (21) to adopt and from time to time amend and repeal bylaws for
152	146		32 the regulation of its affairs and the conduct of its business and to
153	147		33 prescribe rules and policies in connection with the performance
154	148		34 of its functions and duties;
155	149		35 (22) to employ fiscal consultants, engineers, attorneys, real estate
156	150		36 counselors, appraisers, and such other consultants and employees
157	151		37 as may be required in the judgment of the authority and to fix and
158	152		38 pay their compensation from funds available to the authority
159	153		39 therefor;
160	154		40 (23) notwithstanding IC 5-13, but subject to the requirements of
161	155		41 any trust agreement entered into by the authority, to invest:
162	156		42 (A) the authority's money, funds, and accounts;
163		-	HB 1519—LS 6957/DI 129 4
	157	+	2025 IN 1519—LS 6957/DI 129 4
164	158		1 (B) any money, funds, and accounts in the authority's custody;
165	159		2 and
166	160		3 (C) proceeds of bonds or notes;
167	161		4 in the manner provided by an investment policy established by
168	162		5 resolution of the authority;
169	163		6 (24) to make or participate in the making of construction loans,
170	164		7 mortgage loans, or both, to individuals, partnerships, limited
171	165		8 liability companies, corporations, and organizations for the
172	166		9 construction of residential facilities for individuals with a
173	167		10 developmental disability or for individuals with a mental illness
174	168		11 or for the acquisition or renovation, or both, of a facility to make
175	169		12 it suitable for use as a new residential facility for individuals with
176	170		13 a developmental disability or for individuals with a mental illness;
177	171		14 (25) to make or participate in the making of construction and
178	172		15 mortgage loans to individuals, partnerships, corporations, limited
179	173		16 liability companies, and organizations for the construction,
180	174		17 rehabilitation, or acquisition of residential facilities for children;
181	175		18 (26) to purchase or participate in the purchase of mortgage loans
182	176		19 from:
183	177		20 (A) public utilities (as defined in IC 8-1-2-1); or
184	178		21 (B) municipally owned gas utility systems organized under
185	179		22 IC 8-1.5;
186	180		23 if those mortgage loans were made for the purpose of insulating
187	181		24 and otherwise weatherizing single family residences in order to
188	182		25 conserve energy used to heat and cool those residences;
189	183		26 (27) to provide financial assistance to mutual housing
190	184		27 associations (IC 5-20-3) in the form of grants, loans, or a
191	185		28 combination of grants and loans for the development of housing
192	186		29 for low and moderate income families;
193	187		30 (28) to service mortgage loans made or acquired by the authority
194	188		31 and to impose and collect reasonable fees and charges in
195	189		32 connection with such servicing;
196	190		33 (29) subject to the authority's investment policy, to enter into
197	191		34 swap agreements (as defined in IC 8-9.5-9-4) in accordance with
198	192		35 IC 8-9.5-9-5 and IC 8-9.5-9-7;
199	193		36 (30) to promote and foster community revitalization through
200	194		37 community services and real estate development;
201	195		38 (31) to coordinate and establish linkages between governmental
202	196		39 and other social services programs to ensure the effective delivery
203	197		40 of services to low income individuals and families, including
204	198		41 individuals or families facing or experiencing homelessness;
205	199		42 (32) to cooperate with local housing officials and plan
206		-	HB 1519—LS 6957/DI 129 5
	200	+	2025 IN 1519—LS 6957/DI 129 5
207	201		1 commissions in the development of projects that the officials or
208	202		2 commissions have under consideration;
209	203		3 (33) to prescribe, in accordance with IC 32-30-10.5-10(i), a list of
210	204		4 documents that must be included under IC 32-30-10.5 as part of
211	205		5 a debtor's loss mitigation package in a foreclosure action filed
212	206		6 after June 30, 2011;
213	207		7 (34) to take actions necessary to implement its powers that the
214	208		8 authority determines to be appropriate and necessary to ensure the
215	209		9 availability of state or federal financial assistance; and
216	210		10 (35) to administer any program or money designated by the state
217	211		11 or available from the federal government or other sources that is
218	212		12 consistent with the authority's powers and duties.
219	213		13 The omission of a power from the list in this subsection does not imply
220	214		14 that the authority lacks that power. The authority may exercise any
221	215		15 power that is not listed in this subsection but is consistent with the
222	216		16 powers listed in this subsection to the extent that the power is not
223	217		17 expressly denied by the Constitution of the State of Indiana or by
224	218		18 another statute.
225	219		19 (b) This subsection does not apply to a loan made under
226	220		20 IC 5-20-11.5. The authority shall ensure that a mortgage loan acquired
227	221		21 by the authority under subsection (a)(3) or made by a mortgage lender
228	222		22 with funds provided by the authority under subsection (a)(4) is not
229	223		23 knowingly made to a person whose adjusted family income, as
230	224		24 determined by the authority, exceeds one hundred twenty-five percent
231	225		25 (125%) of the median income for the geographic area involved.
232	226		26 However, if the authority determines that additional encouragement is
233	227		27 needed for the development of the geographic area involved, a
234	228		28 mortgage loan acquired or made under subsection (a)(3) or (a)(4) may
235	229		29 be made to a person whose adjusted family income, as determined by
236	230		30 the authority, does not exceed one hundred forty percent (140%) of the
237	231		31 median income for the geographic area involved. The authority shall
238	232		32 establish procedures that the authority determines are appropriate to
239	233		33 structure and administer any program conducted under subsection
240	234		34 (a)(3) or (a)(4) for the purpose of acquiring or making mortgage loans
241	235		35 to persons of low or moderate income. In determining what constitutes
242	236		36 low income, moderate income, or median income for purposes of any
243	237		37 program conducted under subsection (a)(3) or (a)(4), the authority shall
244	238		38 consider:
245	239		39 (1) the appropriate geographic area in which to measure income
246	240		40 levels; and
247	241		41 (2) the appropriate method of calculating low income, moderate
248	242		42 income, or median income levels including:
249		-	HB 1519—LS 6957/DI 129 6
	243	+	2025 IN 1519—LS 6957/DI 129 6
250	244		1 (A) sources of;
251	245		2 (B) exclusions from; and
252	246		3 (C) adjustments to;
253	247		4 income.
254	248		5 (c) The authority, when directed by the governor, shall administer
255	249		6 programs and funds under 42 U.S.C. 1437 et seq.
256	250		7 (d) The authority shall identify, promote, assist, and fund:
257	251		8 (1) home ownership education programs; and
258	252		9 (2) mortgage foreclosure counseling and education programs
259	253		10 under IC 5-20-6;
260	254		11 conducted throughout Indiana by nonprofit counseling agencies that the
261	255		12 authority has certified, or by any other public, private, or nonprofit
262	256		13 entity in partnership with a nonprofit agency that the authority has
263	257		14 certified, using funds appropriated under section 27 of this chapter. The
264	258		15 attorney general and the entities listed in IC 4-6-12-4(a)(1) through
265	259		16 IC 4-6-12-4(a)(10) shall cooperate with the authority in implementing
266	260		17 this subsection.
267	261		18 (e) The authority shall:
268	262		19 (1) oversee and encourage a regional homeless delivery system
269	263		20 that:
270	264		21 (A) considers the need for housing and support services;
271	265		22 (B) implements strategies to respond to gaps in the delivery
272	266		23 system; and
273	267		24 (C) ensures individuals and families are matched with optimal
274	268		25 housing solutions;
275	269		26 (2) facilitate the dissemination of information to assist individuals
276	270		27 and families accessing local resources, programs, and services
277	271		28 related to homelessness, housing, and community development;
278	272		29 and
279	273		30 (3) each year, estimate and reasonably determine the number of
280	274		31 the following:
281	275		32 (A) Individuals in Indiana who are homeless.
282	276		33 (B) Individuals in Indiana who are homeless and less than
283	277		34 eighteen (18) years of age.
284	278		35 (C) Individuals in Indiana who are homeless and not residents
285	279		36 of Indiana.
286	280		37 SECTION 2. IC 5-20-11.5 IS ADDED TO THE INDIANA CODE
287	281		38 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
288	282		39 JULY 1, 2025]:
289	283		40 Chapter 11.5. Workforce Housing Assistance Program
290	284		41 Sec. 1. As used in this chapter, "AMI" refers to the area median
291	285		42 income for a county in which an eligible borrower seeks to
292		-	HB 1519—LS 6957/DI 129 7
	286	+	2025 IN 1519—LS 6957/DI 129 7
293	287		1 purchase residential property.
294	288		2 Sec. 2. As used in this chapter, "authority" refers to the Indiana
295	289		3 housing and community development authority created by
296	290		4 IC 5-20-1-3.
297		-	5 Sec. 3. As used in this chapter, "community development
298		-	6 financial institution" means an organization that has been certified
299		-	7 as a community development financial institution by the federal
300		-	8 Community Development Financial Institutions Fund, in
301		-	9 accordance with the Riegle Community Development and
302		-	10 Regulatory Improvement Act of 1994 (108 Stat. 2160, 12 U.S.C.
303		-	11 4701 et seq.).
304		-	12 Sec. 4. As used in this chapter, "eligible borrower" means a first
305		-	13 time home buyer whose household income does not exceed one
306		-	14 hundred sixty percent (160%) of the county's AMI in which the
307		-	15 eligible borrower intends to purchase residential property.
308		-	16 Sec. 5. As used in this chapter, "first time home buyer" means
309		-	17 an individual who has not, at any time during the three (3) years
310		-	18 preceding the date of the mortgage loan closing, had a present
311		-	19 ownership interest in residential property.
312		-	20 Sec. 6. As used in this chapter, "fund" refers to the workforce
313		-	21 housing assistance revolving fund established by section 10 of this
314		-	22 chapter.
315		-	23 Sec. 7. As used in this chapter, "program" refers to the
316		-	24 workforce housing assistance program established by section 9 of
317		-	25 this chapter.
318		-	26 Sec. 8. As used in this chapter, "residential property" means the
319		-	27 real property, including a single family dwelling together with any
320		-	28 other improvements on the real property, sought to be purchased,
321		-	29 in part, with the proceeds of a loan made from the fund by an
322		-	30 eligible borrower for use as the eligible borrower's principal
323		-	31 residence.
324		-	32 Sec. 9. The workforce housing assistance program is established
325		-	33 for the purposes set forth in this chapter.
326		-	34 Sec. 10. (a) The workforce housing assistance revolving fund is
327		-	35 established to make loans under this chapter to or for the benefit
328		-	36 of eligible borrowers.
329		-	37 (b) The fund consists of the following:
330		-	38 (1) Appropriations to the fund from the general assembly.
331		-	39 (2) Grants and gifts of money to the fund.
332		-	40 (3) Repayments of loans from the fund, including interest,
333		-	41 premiums, and penalties.
334		-	42 (c) The authority shall administer, hold, and manage the fund.
335		-	HB 1519—LS 6957/DI 129 8
336		-	1 (d) The cost of administering the fund, in an amount not to
337		-	2 exceed two percent (2%) of the money in the fund at the beginning
338		-	3 of a state fiscal year, shall be paid from money in the fund.
339		-	4 (e) Money in the fund shall be used to make loans, in an amount
340		-	5 determined by the authority, to eligible borrowers. An eligible
341		-	6 borrower who receives a loan from the fund in connection with the
342		-	7 purchase of residential property may use the proceeds for any
343		-	8 combination of the following expenses:
344		-	9 (1) Down payment assistance.
345		-	10 (2) Payment of closing costs.
346		-	11 (3) Payment for renovations.
347		-	12 (4) Funding a permanent interest rate buydown.
348		-	13 (f) Loans from the fund must meet each of the following
349		-	14 criteria:
350		-	15 (1) The loan must be used in conjunction with a first mortgage
351		-	16 loan issued by a mortgage lender that is purchased by the
352		-	17 authority.
353		-	18 (2) The loan shall be provided to the eligible borrower when
354		-	19 the eligible borrower obtains a first mortgage loan as
355		-	20 described in subdivision (1).
356		-	21 (3) The loan is a second mortgage that is subordinate to the
357		-	22 first mortgage providing security for the eligible borrower's
358		-	23 purchase of the residential property. The authority shall
359		-	24 secure the amount of the loan from the fund by a lien on the
360		-	25 eligible borrower's residential property as provided in section
361		-	26 15 of this chapter.
362		-	27 (4) The interest rate of the loan may not exceed six percent
363		-	28 (6%) or the interest rate of the first mortgage, whichever is
364		-	29 lower.
365		-	30 (g) At least five percent (5%) of the money in the fund must be
366		-	31 set aside to be used for down payment assistance by a person
367		-	32 accessing a first mortgage from an Indiana based community
368		-	33 development financial institution. If money in the fund is used for
369		-	34 down payment assistance under this subsection, the following
370		-	35 apply:
371		-	36 (1) The loan shall be distributed from the authority to the
372		-	37 Indiana based community development financial institution
373		-	38 to administer to their loan purchaser.
374		-	39 (2) The loan shall revolve back to the Indiana based
375		-	40 community development financial institution and be
376		-	41 maintained by that community development financial
377		-	42 institution.
378		-	HB 1519—LS 6957/DI 129 9
379		-	1 (h) Money in the fund may not be used to provide a loan to an
380		-	2 eligible borrower for the purchase of property other than
381		-	3 residential property.
382		-	4 (i) Money in the fund is continuously appropriated for the
383		-	5 purposes of this chapter.
384		-	6 (j) Money in the fund at the end of a state fiscal year does not
385		-	7 revert to the state general fund.
386		-	8 Sec. 11. (a) The authority shall invest the money in the fund in
387		-	9 accordance with an investment policy adopted by the authority.
388		-	10 Interest, premiums, gains, or other earnings from the investments
389		-	11 shall be credited to and deposited in the fund.
390		-	12 (b) As an alternative to subsection (a), the authority may invest
391		-	13 or cause to be invested all or a part of the fund in a fiduciary
392		-	14 account or accounts with a trustee that is a financial institution.
393		-	15 Notwithstanding any other law, any investment may be made by
394		-	16 the trustee in accordance with one (1) or more trust agreements or
395		-	17 indentures. A trust agreement or indenture may permit
396		-	18 disbursement by the trustee to:
397		-	19 (1) an eligible borrower;
398		-	20 (2) the authority; or
399		-	21 (3) any person to which the authority or an eligible borrower
400		-	22 is obligated, as provided in the trust agreement or indenture.
401		-	23 Sec. 12. This chapter does not require the authority to provide
402		-	24 a loan to any eligible borrower to the extent the authority
403		-	25 determines the loan is not in the best interests of the program and
404		-	26 the authority.
405		-	27 Sec. 13. The authority shall do the following under this chapter:
406		-	28 (1) Administer and manage the program.
407		-	29 (2) Prepare and provide program information or program
408		-	30 guides to eligible borrowers and mortgage lenders.
409		-	31 (3) Conduct or cause to be conducted an evaluation as to the
410		-	32 financial ability of each eligible borrower to pay the loan.
411		-	33 Sec. 14. The authority shall prescribe the form on which a
412		-	34 prospective borrower may apply for a loan from the fund in
413		-	35 connection with the purchase of residential property. The form
414		-	36 prescribed under this section must include all information and
415		-	37 documents that the authority considers necessary to determine
416		-	38 whether the borrower is an eligible borrower.
417		-	39 Sec. 15. The authority may also establish any other terms and
418		-	40 conditions that the authority considers necessary or convenient to
419		-	41 make loans under this chapter.
420		-	42 Sec. 16. The authority shall secure the amount of the loan made
421		-	HB 1519—LS 6957/DI 129 10
422		-	1 from the fund to an eligible borrower by a lien on the eligible
423		-	2 borrower's residential property for a period of at least fifteen (15)
424		-	3 years and not more than thirty (30) years. The lien shall attach,
425		-	4 and may be perfected, collected, and enforced in the same manner
426		-	5 as a first mortgage on the eligible borrower's residential property,
427		-	6 and shall otherwise have the same force and effect as a first
428		-	7 mortgage lien.
429		-	8 Sec. 17. Not later than August 1, 2026, and not later than August
430		-	9 1 of each year thereafter, the executive director of the authority
431		-	10 shall prepare for the budget committee established by IC 4-12-1-3
432		-	11 and the legislative council a report that includes the following:
433		-	12 (1) Information concerning the loans made available to
434		-	13 eligible borrowers from the fund during each fiscal year.
435		-	14 (2) Any other information requested by the budget committee
436		-	15 and the legislative council.
437		-	16 The report to the legislative council must be in an electronic format
438		-	17 under IC 5-14-6.
439		-	HB 1519—LS 6957/DI 129 11
440		-	COMMITTEE REPORT
441		-	Mr. Speaker: Your Committee on Financial Institutions, to which
442		-	was referred House Bill 1519, has had the same under consideration
443		-	and begs leave to report the same back to the House with the
444		-	recommendation that said bill be amended as follows:
445		-	Page 7, between lines 4 and 5, begin a new paragraph and insert:
446		-	"Sec. 3. As used in this chapter, "community development
447		-	financial institution" means an organization that has been certified
448		-	as a community development financial institution by the federal
449		-	Community Development Financial Institutions Fund, in
450		-	accordance with the Riegle Community Development and
451		-	Regulatory Improvement Act of 1994 (108 Stat. 2160, 12 U.S.C.
452		-	4701 et seq.).".
453		-	Page 7, line 5, delete "3." and insert "4.".
454		-	Page 7, line 9, delete "4." and insert "5.".
455		-	Page 7, line 13, delete "5." and insert "6.".
456		-	Page 7, line 14, delete "9" and insert "10".
457		-	Page 7, line 16, delete "6." and insert "7.".
458		-	Page 7, line 17, delete "8" and insert "9".
459		-	Page 7, line 19, delete "7." and insert "8.".
460		-	Page 7, line 25, delete "8." and insert "9.".
461		-	Page 7, line 27, delete "9." and insert "10.".
462		-	Page 8, line 9, delete "not".
463		-	Page 8, between lines 22 and 23, begin a new paragraph and insert:
464		-	"(g) At least five percent (5%) of the money in the fund must be
465		-	set aside to be used for down payment assistance by a person
466		-	accessing a first mortgage from an Indiana based community
467		-	development financial institution. If money in the fund is used for
468		-	down payment assistance under this subsection, the following
469		-	apply:
470		-	(1) The loan shall be distributed from the authority to the
471		-	Indiana based community development financial institution
472		-	to administer to their loan purchaser.
473		-	(2) The loan shall revolve back to the Indiana based
474		-	community development financial institution and be
475		-	maintained by that community development financial
476		-	institution.".
477		-	Page 8, line 23, delete "(g)" and insert "(h)".
478		-	Page 8, line 26, delete "(h)" and insert "(i)".
479		-	Page 8, line 28, delete "(i)" and insert "(j)".
480		-	Page 8, line 30, delete "10." and insert "11.".
481		-	HB 1519—LS 6957/DI 129 12
482		-	Page 9, line 3, delete "11." and insert "12.".
483		-	Page 9, line 7, delete "12." and insert "13.".
484		-	Page 9, line 13, delete "13." and insert "14.".
485		-	Page 9, line 19, delete "14." and insert "15.".
486		-	Page 9, line 22, delete "15." and insert "16.".
487		-	Page 9, line 30, delete "16." and insert "17.".
488		-	Page 9, delete lines 40 through 42.
489		-	Delete page 10.
490		-	and when so amended that said bill do pass.
491		-	(Reference is to HB 1519 as introduced.)
492		-	TESHKA
493		-	Committee Vote: yeas 11, nays 1.
494		-	HB 1519—LS 6957/DI 129
	291	+	5 Sec. 3. As used in this chapter, "eligible borrower" means a first
	292	+	6 time home buyer whose household income does not exceed one
	293	+	7 hundred sixty percent (160%) of the county's AMI in which the
	294	+	8 eligible borrower intends to purchase residential property.
	295	+	9 Sec. 4. As used in this chapter, "first time home buyer" means
	296	+	10 an individual who has not, at any time during the three (3) years
	297	+	11 preceding the date of the mortgage loan closing, had a present
	298	+	12 ownership interest in residential property.
	299	+	13 Sec. 5. As used in this chapter, "fund" refers to the workforce
	300	+	14 housing assistance revolving fund established by section 9 of this
	301	+	15 chapter.
	302	+	16 Sec. 6. As used in this chapter, "program" refers to the
	303	+	17 workforce housing assistance program established by section 8 of
	304	+	18 this chapter.
	305	+	19 Sec. 7. As used in this chapter, "residential property" means the
	306	+	20 real property, including a single family dwelling together with any
	307	+	21 other improvements on the real property, sought to be purchased,
	308	+	22 in part, with the proceeds of a loan made from the fund by an
	309	+	23 eligible borrower for use as the eligible borrower's principal
	310	+	24 residence.
	311	+	25 Sec. 8. The workforce housing assistance program is established
	312	+	26 for the purposes set forth in this chapter.
	313	+	27 Sec. 9. (a) The workforce housing assistance revolving fund is
	314	+	28 established to make loans under this chapter to or for the benefit
	315	+	29 of eligible borrowers.
	316	+	30 (b) The fund consists of the following:
	317	+	31 (1) Appropriations to the fund from the general assembly.
	318	+	32 (2) Grants and gifts of money to the fund.
	319	+	33 (3) Repayments of loans from the fund, including interest,
	320	+	34 premiums, and penalties.
	321	+	35 (c) The authority shall administer, hold, and manage the fund.
	322	+	36 (d) The cost of administering the fund, in an amount not to
	323	+	37 exceed two percent (2%) of the money in the fund at the beginning
	324	+	38 of a state fiscal year, shall be paid from money in the fund.
	325	+	39 (e) Money in the fund shall be used to make loans, in an amount
	326	+	40 determined by the authority, to eligible borrowers. An eligible
	327	+	41 borrower who receives a loan from the fund in connection with the
	328	+	42 purchase of residential property may use the proceeds for any
	329	+	2025 IN 1519—LS 6957/DI 129 8
	330	+	1 combination of the following expenses:
	331	+	2 (1) Down payment assistance.
	332	+	3 (2) Payment of closing costs.
	333	+	4 (3) Payment for renovations.
	334	+	5 (4) Funding a permanent interest rate buydown.
	335	+	6 (f) Loans from the fund must meet each of the following
	336	+	7 criteria:
	337	+	8 (1) The loan must be used in conjunction with a first mortgage
	338	+	9 loan issued by a mortgage lender that is not purchased by the
	339	+	10 authority.
	340	+	11 (2) The loan shall be provided to the eligible borrower when
	341	+	12 the eligible borrower obtains a first mortgage loan as
	342	+	13 described in subdivision (1).
	343	+	14 (3) The loan is a second mortgage that is subordinate to the
	344	+	15 first mortgage providing security for the eligible borrower's
	345	+	16 purchase of the residential property. The authority shall
	346	+	17 secure the amount of the loan from the fund by a lien on the
	347	+	18 eligible borrower's residential property as provided in section
	348	+	19 15 of this chapter.
	349	+	20 (4) The interest rate of the loan may not exceed six percent
	350	+	21 (6%) or the interest rate of the first mortgage, whichever is
	351	+	22 lower.
	352	+	23 (g) Money in the fund may not be used to provide a loan to an
	353	+	24 eligible borrower for the purchase of property other than
	354	+	25 residential property.
	355	+	26 (h) Money in the fund is continuously appropriated for the
	356	+	27 purposes of this chapter.
	357	+	28 (i) Money in the fund at the end of a state fiscal year does not
	358	+	29 revert to the state general fund.
	359	+	30 Sec. 10. (a) The authority shall invest the money in the fund in
	360	+	31 accordance with an investment policy adopted by the authority.
	361	+	32 Interest, premiums, gains, or other earnings from the investments
	362	+	33 shall be credited to and deposited in the fund.
	363	+	34 (b) As an alternative to subsection (a), the authority may invest
	364	+	35 or cause to be invested all or a part of the fund in a fiduciary
	365	+	36 account or accounts with a trustee that is a financial institution.
	366	+	37 Notwithstanding any other law, any investment may be made by
	367	+	38 the trustee in accordance with one (1) or more trust agreements or
	368	+	39 indentures. A trust agreement or indenture may permit
	369	+	40 disbursement by the trustee to:
	370	+	41 (1) an eligible borrower;
	371	+	42 (2) the authority; or
	372	+	2025 IN 1519—LS 6957/DI 129 9
	373	+	1 (3) any person to which the authority or an eligible borrower
	374	+	2 is obligated, as provided in the trust agreement or indenture.
	375	+	3 Sec. 11. This chapter does not require the authority to provide
	376	+	4 a loan to any eligible borrower to the extent the authority
	377	+	5 determines the loan is not in the best interests of the program and
	378	+	6 the authority.
	379	+	7 Sec. 12. The authority shall do the following under this chapter:
	380	+	8 (1) Administer and manage the program.
	381	+	9 (2) Prepare and provide program information or program
	382	+	10 guides to eligible borrowers and mortgage lenders.
	383	+	11 (3) Conduct or cause to be conducted an evaluation as to the
	384	+	12 financial ability of each eligible borrower to pay the loan.
	385	+	13 Sec. 13. The authority shall prescribe the form on which a
	386	+	14 prospective borrower may apply for a loan from the fund in
	387	+	15 connection with the purchase of residential property. The form
	388	+	16 prescribed under this section must include all information and
	389	+	17 documents that the authority considers necessary to determine
	390	+	18 whether the borrower is an eligible borrower.
	391	+	19 Sec. 14. The authority may also establish any other terms and
	392	+	20 conditions that the authority considers necessary or convenient to
	393	+	21 make loans under this chapter.
	394	+	22 Sec. 15. The authority shall secure the amount of the loan made
	395	+	23 from the fund to an eligible borrower by a lien on the eligible
	396	+	24 borrower's residential property for a period of at least fifteen (15)
	397	+	25 years and not more than thirty (30) years. The lien shall attach,
	398	+	26 and may be perfected, collected, and enforced in the same manner
	399	+	27 as a first mortgage on the eligible borrower's residential property,
	400	+	28 and shall otherwise have the same force and effect as a first
	401	+	29 mortgage lien.
	402	+	30 Sec. 16. Not later than August 1, 2026, and not later than August
	403	+	31 1 of each year thereafter, the executive director of the authority
	404	+	32 shall prepare for the budget committee established by IC 4-12-1-3
	405	+	33 and the legislative council a report that includes the following:
	406	+	34 (1) Information concerning the loans made available to
	407	+	35 eligible borrowers from the fund during each fiscal year.
	408	+	36 (2) Any other information requested by the budget committee
	409	+	37 and the legislative council.
	410	+	38 The report to the legislative council must be in an electronic format
	411	+	39 under IC 5-14-6.
	412	+	40 SECTION 3. [EFFECTIVE JULY 1, 2025] (a) The following
	413	+	41 amounts are appropriated from the state general fund to the
	414	+	42 Indiana housing and community development authority for deposit
	415	+	2025 IN 1519—LS 6957/DI 129 10
	416	+	1 in the workforce housing assistance revolving fund established by
	417	+	2 IC 5-20-11.5-9, as added by this act:
	418	+	3 (1) For the state fiscal year beginning July 1, 2025, and ending
	419	+	4 June 30, 2026, fifty million dollars ($50,000,000).
	420	+	5 (2) For the state fiscal year beginning July 1, 2026, and ending
	421	+	6 June 30, 2027, fifty million dollars ($50,000,000).
	422	+	7 (b) This SECTION expires July 1, 2027.
	423	+	2025 IN 1519—LS 6957/DI 129