LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7332 NOTE PREPARED: Jan 7, 2025
BILL NUMBER: HB 1662 BILL AMENDED:
SUBJECT: State and Local Policies on Homelessness.
FIRST AUTHOR: Rep. Davis BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill provides that any state funds available to the Indiana Housing and
Community Development Authority (IHCDA) for programs for individuals experiencing homelessness are
appropriated (subject to specified conditions and requirements) for the following purposes: (1) Parking areas.
(2) Camping facilities. (3) Individual shelters. (4) Congregate shelters. It specifies that state funds otherwise
used for permanent housing must be used to assist individuals with substance use, mental health treatment,
and other services, including short term housing. It also prohibits the use of state funds for the Indiana
Housing First program unless the expenditure is for a purpose allowed under the bill.
The bill provides that the IHCDA must award certain funds as performance payments for political
subdivisions or nonprofit organizations that reduce the number of individuals with days unhoused, days in
jail or prison, or days hospitalized.
Civil Liability: The bill specifies that a person who owns or operates a private camping facility funded under
the bill's provisions is immune from civil liability. It prohibits an individual from camping, sleeping, or using
for long term shelter land owned by the state or a political subdivision, unless the land has been authorized
for that use under the provisions added by the bill or another law.
Criminal Liability: The bill provides, if certain elements are met, that a person who knowingly or
intentionally uses land owned by the state or a political subdivision for unauthorized camping, sleeping, or
long term shelter commits a Class C misdemeanor. It establishes an affirmative defense to such a prosecution
and prohibits a political subdivision from adopting or enforcing any policy that prohibits or discourages the
enforcement of any order or ordinance prohibiting public camping, sleeping, or other obstruction of a
sidewalk. It also authorizes a resident of the political subdivision, an owner of a business located in the
political subdivision, or the Attorney General to bring a civil action to enjoin a political subdivision that
adopts or enforces such a policy.
The bill makes conforming changes and makes an appropriation.
Effective Date: July 1, 2025.
HB 1662 1 Explanation of State Expenditures: Indiana Community Development Authority (IHCDA): This bill would
prohibit local units from receiving funding from the IHCDA for the Indiana Housing First Program after June
30, 2025 until the IHCDA has verified that the local units are in compliance the parameters specified within
this bill. This provision will result in an increase in the administrative workload for the IHCDA since the
agency will have to do further due diligence of those local units that receive funding from Indiana Housing
First Program.
Office of the Attorney General (AG): The bill grants the Attorney General the discretion to bring civil action
against political subdivisions that discourage the enforcement of public camping prohibitions. The Attorney
General can implement the bill with existing staff and resources.
Additional Information: Currently, the IHCDA oversees the Indiana Housing First Program, which provides
rental assistance and supportive services to individuals and families with a serious and persistent mental
illness, a chronic chemical addiction, or a serious and persistent mental illness with a co-occurring chronic
chemical addiction who are also facing a housing crisis or exiting a residential treatment program. As part
of the state’s biennium budget enacted in 2023, $1 M was appropriated annually to this program for both FY
2024 and FY 2025.
Explanation of State Revenues: If the AG files a civil action against a political subdivision and prevails,
the AG may recover reasonable expenses, including court costs, reasonable attorney’s fees, investigative
costs, witness fees, and deposition costs.
Criminal Fee Revenue: If additional court cases occur and fines are collected, revenue to both the Common
School Fund and the state General Fund would increase. The maximum fine for a Class C misdemeanor is
$500. Criminal fines are deposited in the Common School Fund. The total fee revenue per case would range
between $113 and $135. The amount of court fees deposited will vary depending on whether the case is filed
in a court of record or a municipal court. The following linked document describes the fees and distribution
of the revenue: Court fees imposed in criminal, juvenile, and civil violation cases.
Civil Fee Revenue: If additional civil cases occur and court fees are collected, revenue to the state General
Fund will increase. The total revenue per case would range between $100 and $122. The amount deposited
will vary depending on whether the case is filed in a court of record or a municipal court. The following
linked document describes the fees and distribution of the revenue: Court fees imposed in civil, probate, and
small claims cases.
Explanation of Local Expenditures: Civil Actions: If civil actions are filed against a political subdivision,
local expenditures may increase to pay for the cost of litigation and court fees. The specific impact would
depend on local action.
Criminal Penalty: The bill provides that a person who knowingly or intentionally uses land owned by the
state or a political subdivision for unauthorized camping, sleeping, or for long-term shelter commits a Class
C misdemeanor. It also establishes a defense against prosecution to the extent there are no services or shelters
available within a certain amount of miles unspecified by the bill. It is unknown how many additional
convictions might occur as a result of the bill’s provisions.
A Class C misdemeanor is punishable by up to 60 days in jail. The average cost per day to incarcerate a
prisoner is approximately $64.53 based on the per diem payments reported by U.S. Marshals to house federal
prisoners in 11 county jails across Indiana during CY 2021
HB 1662 2 Explanation of Local Revenues: Grants: This bill’s provisions could provide grants to political
subdivisions to provide certain programs and services to address homelessness. The funds received by a
qualifying political subdivision will depend the allocation determined by the IHCDA and the effectiveness
of the program.
Criminal Fee Revenue: If additional court actions occur and a guilty verdict is entered, more revenue will
be collected by certain local units. If the case is filed in a court of record, the county general fund will receive
$47.40 and qualifying municipalities will receive a share of $3.60. If the case is filed in a municipal court,
the county receives $30, and the municipality will receive $46. The following linked document describes the
fees and distribution of the revenue: Court fees imposed in criminal, juvenile, and civil violation cases.
Civil Fee Revenue: If additional cases occur, revenue will be collected by certain local units. If the case is
filed in a court of record, the county will receive $32 and qualifying municipalities will receive a share of
$3. If the case is filed in a municipal court, the county receives $20, and the municipality will receive $37.
The following linked document describes the fees and distribution of the revenue: Court fees imposed in
civil, probate, and small claims cases.
State Agencies Affected: Indiana Housing and Community Development Authority; Office of the Attorney
General.
Local Agencies Affected: Trial courts, city and town courts; local units.
Information Sources: Indiana Supreme Court, Indiana Trial Court Fee Manual.
Fiscal Analyst: James Johnson, 317-232-9869.
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