HB 1001

           Second Regular Session of the 124th General Assembly (2026)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
  Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2025 Regular Session of the General Assembly.
    HOUSE ENROLLED ACT No. 1001
    AN ACT to amend the Indiana Code concerning local government.
    Be it enacted by the General Assembly of the State of Indiana:
    SECTION 1. IC 5-1.2-15.5-10, AS AMENDED BY P.L.90-2024,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 10. Loans from the fund must be allocated and
made available to participants as follows: The authority shall set
aside (1) seventy percent (70%) of the money in the fund must be used
for housing infrastructure benefitting political subdivisions with a
population of less than fifty thousand (50,000). (2) Thirty percent
(30%) of the money in the fund must be used for housing infrastructure
in all other political subdivisions not described in subdivision (1).
    SECTION 2. IC 5-20-1-28.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]: Sec. 28.5. (a) This section applies to a local unit exercising
planning and zoning powers under IC 36-7-4.
    (b) As used in this section, "local unit" means a county, city, or
town.
    (c) Beginning January 1, 2027, and January 1 of each year
thereafter, a local unit shall submit a housing progress report to:
      (1) the authority; and
      (2) the executive director of the legislative services agency, in
      an electronic format under IC 5-14-6.
    (d) The housing progress report must provide the following
information for the immediately preceding year:
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     (1) The total number of proposed residential housing units
     submitted to the local unit.
     (2) The total number of proposed residential housing units
     that were approved by the local unit.
     (3) The total number of proposed residential units that were
     denied by the local unit.
     (4) The total number of net new residential housing units
     submitted to the local unit. The total number of net new
     residential housing units is determined by subtracting the
     number of residential housing units that the local unit lost in
     the immediately preceding year through:
          (A) demolition;
          (B) conversion to non-residential use; or
          (C) combining units;
     from the total number of proposed residential units submitted
     to the local unit under subdivision (1).
     (5) The total number of new residential housing units that:
          (A) are entitled;
          (B) have been platted;
          (C) have been issued a building permit; and
          (D) have received a certificate of occupancy or completion
          and compliance by the local unit.
     (6) The calendar days spent by the local unit in processing
     housing proposal applications.
   (e) If the number of proposed residential housing units reported
under subsection (d)(1) does not equal the sum of the number of
proposed residential housing units reported under subsection (d)(2)
and (d)(3), information must be provided to explain the
discrepancy.
   SECTION 3. IC 5-20-1-29 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]: Sec. 29. (a) As used in this section, "local unit" means a
county, city, or town.
   (b) Beginning January 1, 2027, and January 1 of each year
thereafter, a local unit shall report the following information to the
authority and the executive director of the legislative services
agency, in an electronic format under IC 5-14-6, regarding the
status of housing in the local unit for the prior calendar year:
     (1) The average and median home sale prices and the year
     over year change.
     (2) The median rent prices and year over year change.
     (3) The number of residential dwelling units constructed and
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     occupied in total and by type.
     (4) The percentage of new residential dwelling units
     constructed that are listed at each of the following:
        (A) Eighty percent (80%) or less of the local unit's median
        income.
        (B) Eighty-one percent (81%) to one hundred nineteen
        percent (119%) of the local unit's median income.
        (C) One hundred twenty percent (120%) or more of the
        local unit's median income.
   (c) A local unit shall use applicable data and information from
the 2025 calendar year as a reference point for the information
required for the January 1, 2027, report under subsection (b).
   (d) The authority must compile and publish on the authority's
website an annual report of the information reported by local units
under subsection (b) that includes at least the following:
     (1) Regional comparisons of the information provided under
     subsection (b).
     (2) An evaluation of the outcomes of housing legislation
     enacted during the 2026 legislative session.
   SECTION 4. IC 13-14-1-19 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]: Sec. 19. (a) Not later than December 1, 2026, the
department shall do the following:
     (1) Conduct a review of the Indiana Storm Water Quality
     Manual to determine whether:
        (A) the recommendations in the Indiana Storm Water
        Quality Manual are cost effective; and
        (B) any new or revised recommendations are necessary.
     (2) Submit a report of its findings and recommendations
     under subdivision (1) to the legislative council in an electronic
     format under IC 5-14-6.
   (b) The Indiana Storm Water Quality Manual with respect to
storm water management basins:
     (1) may not require a pond bank ratio greater than three (3)
     to one (1); and
     (2) must require a ten (10) foot maintenance ledge or a ten
     (10) foot safety ledge, but may not require both.
The department shall make changes to the Indiana Storm Water
Quality Manual to comply with this subsection not later than
December 1, 2026.
   SECTION 5. IC 14-8-2-50.2 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
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1, 2026]: Sec. 50.2. "Compensatory storage", for purposes of
IC 14-28-3-9, has the meaning set forth in IC 14-28-3-9.
    SECTION 6. IC 14-8-2-289, AS AMENDED BY P.L.35-2024,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 289. "Unit of local government", for purposes of
IC 14-12-1, IC 14-15-14, and IC 14-22-10, and IC 14-28-3-9, means
a:
      (1) county;
      (2) city;
      (3) town; or
      (4) township;
located in Indiana.
    SECTION 7. IC 14-28-3-9 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]: Sec. 9. (a) As used in this section, "compensatory storage"
includes artificial storage used to balance the loss of natural flood
storage capacity as a result of placing fill material or other
obstructions within a flood plain.
    (b) The state or a unit of local government may not require a
person who intends to fill land in a flood plain to provide
compensatory storage at a ratio greater than three (3) (mitigated
land) to one (1) (filled land).
    SECTION 8. IC 22-13-2-3.6 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]: Sec. 3.6. (a) The following may not adopt rules requiring
the installation of an arc-fault circuit interrupter (AFCI) in a Class
2 structure or a structure classified as an R-2 building occupancy
classification under the Indiana building code constructed after
June 30, 2026:
      (1) The commission.
      (2) Another state agency.
    (b) A political subdivision may not adopt an ordinance or other
regulation requiring the installation of an arc-fault circuit
interrupter (AFCI) in a Class 2 structure or a structure classified
as an R-2 building occupancy classification under the Indiana
building code constructed after June 30, 2026.
    (c) A ordinance or other regulation adopted before July 1, 2026,
is void to the extent the ordinance or regulation conflicts with this
section.
    SECTION 9. IC 22-13-2-3.7 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]: Sec. 3.7. (a) A state agency or a political subdivision (as
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defined in IC 36-1-2-13) may not require an emergency responder
communications enhancement system (ERCES) or similar system
to be installed in:
     (1) a new Class 1 structure constructed; or
     (2) an existing Class 1 structure that is reconstructed,
     remodeled, or renovated;
after June 30, 2026.
   (b) An ordinance or other regulation adopted by a political
subdivision before July 1, 2026, is void to the extent the ordinance
or regulation conflicts with this section.
   SECTION 10. IC 36-2-4-8, AS AMENDED BY P.L.22-2021,
SECTION 5, AND AS AMENDED BY P.L.152-2021, SECTION 39,
IS CORRECTED AND AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 8. (a) An ordinance, order, or
resolution is considered adopted when it is signed by the presiding
officer. If required, an adopted ordinance, order, or resolution must be
promulgated or published according to statute before it takes effect.
   (b) An ordinance prescribing a penalty or forfeiture for a violation
must, before it takes effect, be published once each week for two (2)
consecutive weeks, according to IC 5-3-1:
     (1) with each publication of notice in a newspaper in accordance
     with IC 5-3-1; or
     (2) with the first publication of notice in a newspaper described
     in subdivision (1) and the second publication of notice:
          (A) in accordance with IC 5-3-5; and
          (B) on the official web site website of the county.
However, if such an ordinance is adopted by the legislative body of a
county subject to IC 36-2-3.5 and there is an urgent necessity
requiring its immediate effectiveness, it need not be published if:
     (1) the county executive proclaims the urgent necessity; and
     (2) copies of the ordinance are posted in three (3) public places
     in each of the districts of the county before it takes effect.
   (c) The following apply in addition to the other requirements of this
section:
     (1) An ordinance or resolution passed by the legislative body of
     a county subject to IC 36-2-3.5 is considered adopted only if it is:
          (A) approved by signature of a majority of the county
          executive (in the case of a county subject to IC 36-2-3.5);
          (B) neither approved nor vetoed by a majority of the executive
          (in the case of a county subject to IC 36-2-3.5) within ten (10)
          days after passage by the legislative body; or
          (C) passed over the veto of the executive by a two-thirds (2/3)
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          vote of the legislative body, within sixty (60) days after
          presentation of the ordinance or resolution to the executive.
      (2) (1) Subject to subsection (g), (f), the legislative body of a
      county shall:
          (A) subject to subdivision (3), (2), give written notice to the
          department of environmental management not later than sixty
          (60) days before amendment or repeal of an environmental
          restrictive ordinance; and
          (B) give written notice to the department of environmental
          management not later than thirty (30) days after passage,
          amendment, or repeal of an environmental restrictive
          ordinance.
      (3) (2) Upon written request by the legislative body, the
      department of environmental management may waive the notice
      requirement of subdivision (2)(A). (1)(A).
      (4) (3) An environmental restrictive ordinance passed or amended
      after 2009 by the legislative body must state the notice
      requirements of subdivision (2). (1).
      (5) (4) The failure of an environmental restrictive ordinance to
      comply with subdivision (4) (3) does not void the ordinance.
   (d) After an ordinance or resolution passed by the legislative body
of a county subject to IC 36-2-3.5 has been signed by the presiding
officer, the county auditor shall present it to the county executive, and
record the time of the presentation. Within ten (10) days after an
ordinance or resolution is presented to it, the executive shall:
      (1) approve the ordinance or resolution, by signature of a majority
      of the executive (in the case of a county subject to IC 36-2-3.5),
      and send the legislative body a message announcing its approval;
      or
      (2) veto the ordinance or resolution, by returning it to the
      legislative body with a message announcing its veto and stating
      its reasons for the veto.
   (e) (d) This section (other than subsection (c)(2)) (c)(1)) does not
apply to a zoning ordinance or amendment to a zoning ordinance, or a
resolution approving a comprehensive plan, that is adopted under
IC 36-7.
   (f) (e) An ordinance increasing a building permit fee on new
development must:
      (1) be published:
          (A) one (1) time in accordance with IC 5-3-1; and
          (B) not later than thirty (30) days after the ordinance is
          adopted by the legislative body in accordance with IC 5-3-1;
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          and
      (2) delay the implementation of the fee increase for ninety (90)
      one hundred eighty (180) days after the date the ordinance is
      published under subdivision (1).
    (g) (f) The notice requirements of subsection (c)(2) (c)(1) apply only
if the municipal corporation received under IC 13-25-5-8.5(f) written
notice that the department is relying on the environmental restrictive
ordinance referred to in subsection (c)(2) (c)(1) as part of a risk based
remediation proposal:
      (1) approved by the department; and
      (2) conducted under IC 13-22, IC 13-23, IC 13-24, IC 13-25-4, or
      IC 13-25-5.
    SECTION 11. IC 36-4-6-14, AS AMENDED BY P.L.159-2011,
SECTION 46, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 14. (a) An ordinance, order, or resolution passed
by the legislative body is considered adopted when it is:
      (1) signed by the presiding officer; and
      (2) either approved by the city executive or passed over the
      executive's veto by the legislative body, under section 16 of this
      chapter.
If required by statute, an adopted ordinance, order, or resolution must
be promulgated or published before it takes effect.
    (b) An ordinance prescribing a penalty or forfeiture for a violation
must, before it takes effect, be published in the manner prescribed by
IC 5-3-1, unless:
      (1) it is published under subsection (c); or
      (2) there is an urgent necessity requiring its immediate
      effectiveness, the city executive proclaims the urgent necessity,
      and copies of the ordinance are posted in three (3) public places
      in each of the districts from which members are elected to the
      legislative body.
    (c) Except as provided in subsection (e), if a city publishes any of
its ordinances in book or pamphlet form, no other publication is
required. If an ordinance prescribing a penalty or forfeiture for a
violation is published under this subsection, it takes effect two (2)
weeks after the publication of the book or pamphlet. Publication under
this subsection, if authorized by the legislative body, constitutes
presumptive evidence:
      (1) of the ordinances in the book or pamphlet;
      (2) of the date of adoption of the ordinances; and
      (3) that the ordinances have been properly signed, attested,
      recorded, and approved.
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   (d) This section (other than subsection (f)) does not apply to a
zoning ordinance or amendment to a zoning ordinance, or a resolution
approving a comprehensive plan, that is adopted under IC 36-7.
   (e) An ordinance increasing a building permit fee on new
development must:
      (1) be published:
         (A) one (1) time in accordance with IC 5-3-1; and
         (B) not later than thirty (30) days after the ordinance is
         adopted by the legislative body in accordance with IC 5-3-1;
         and
      (2) delay the implementation of the fee increase for ninety (90)
      one hundred eighty (180) days after the date the ordinance is
      published under subdivision (1).
   (f) Subject to subsection (j), the legislative body shall:
      (1) subject to subsection (g), give written notice to the department
      of environmental management not later than sixty (60) days
      before amendment or repeal of an environmental restrictive
      ordinance; and
      (2) give written notice to the department of environmental
      management not later than thirty (30) days after passage,
      amendment, or repeal of an environmental restrictive ordinance.
   (g) Upon written request by the legislative body, the department of
environmental management may waive the notice requirement of
subsection (f)(1).
   (h) An environmental restrictive ordinance passed or amended after
2009 by the legislative body must state the notice requirements of
subsection (f).
   (i) The failure of an environmental restrictive ordinance to comply
with subsection (h) does not void the ordinance.
   (j) The notice requirements of subsection (f) apply only if the
municipal corporation received under IC 13-25-5-8.5(f) written notice
that the department is relying on the environmental restrictive
ordinance referred to in subsection (f) as part of a risk based
remediation proposal:
      (1) approved by the department; and
      (2) conducted under IC 13-22, IC 13-23, IC 13-24, IC 13-25-4, or
      IC 13-25-5.
   SECTION 12. IC 36-5-2-10, AS AMENDED BY P.L.105-2013,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 10. (a) An ordinance, order, or resolution passed
by the legislative body is considered adopted when it is signed by the
executive. If required by statute, an adopted ordinance, order, or
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resolution must be promulgated or published before it takes effect.
    (b) An ordinance prescribing a penalty or forfeiture for a violation
must, before it takes effect, be published in the manner prescribed by
IC 5-3-1, unless:
       (1) it is published under subsection (c); or
       (2) it declares an emergency requiring its immediate effectiveness
       and is posted in:
           (A) one (1) public place in each district in the town; or
           (B) a number of public places in the town equal to the number
           of town legislative body members, if the town has abolished
           legislative body districts under section 4.1 of this chapter.
    (c) Except as provided in subsection (e), if a town publishes any of
its ordinances in book or pamphlet form, no other publication is
required. If an ordinance prescribing a penalty or forfeiture for a
violation is published under this subsection, it takes effect two (2)
weeks after the publication of the book or pamphlet. Publication under
this subsection, if authorized by the legislative body, constitutes
presumptive evidence:
       (1) of the ordinances in the book or pamphlet;
       (2) of the date of adoption of the ordinances; and
       (3) that the ordinances have been properly signed, attested,
       recorded, and approved.
    (d) This section (other than subsection (f)) does not apply to a
zoning ordinance or amendment to a zoning ordinance, or a resolution
approving a comprehensive plan, that is adopted under IC 36-7.
    (e) An ordinance increasing a building permit fee on new
development must:
       (1) be published:
           (A) one (1) time in accordance with IC 5-3-1; and
           (B) not later than thirty (30) days after the ordinance is
           adopted by the legislative body in accordance with IC 5-3-1;
           and
       (2) delay the implementation of the fee increase for ninety (90)
       one hundred eighty (180) days after the date the ordinance is
       published under subdivision (1).
    (f) Subject to subsection (j), the legislative body shall:
       (1) subject to subsection (g), give written notice to the department
       of environmental management not later than sixty (60) days
       before amendment or repeal of an environmental restrictive
       ordinance; and
       (2) give written notice to the department of environmental
       management not later than thirty (30) days after passage,
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       amendment, or repeal of an environmental restrictive ordinance.
    (g) Upon written request by the legislative body, the department of
environmental management may waive the notice requirement of
subsection (f)(1).
    (h) An environmental restrictive ordinance passed or amended after
2009 by the legislative body must state the notice requirements of
subsection (f).
    (i) The failure of an environmental restrictive ordinance to comply
with subsection (h) does not void the ordinance.
    (j) The notice requirements of subsection (f) apply only if the
municipal corporation received under IC 13-25-5-8.5(f) written notice
that the department is relying on the environmental restrictive
ordinance referred to in subsection (f) as part of a risk based
remediation proposal:
       (1) approved by the department; and
       (2) conducted under IC 13-22, IC 13-23, IC 13-24, IC 13-25-4, or
       IC 13-25-5.
    SECTION 13. IC 36-7-1-1.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]: Sec. 1.5. "Accessory dwelling unit" means a self-contained
living unit internal to or on the same lot or parcel as a single family
dwelling that:
       (1) does not exceed the lesser of:
           (A) seventy-five percent (75%) of the interior habitable
           area (gross floor area) of the single family dwelling; or
           (B) one thousand (1,000) square feet;
       (2) includes its own cooking, sleeping, and sanitation facilities;
       and
       (3) complies with or is otherwise exempt from any applicable
       building codes, fire safety codes, and other public health and
       safety laws.
The term does not include a manufactured home (as defined in
IC 36-7-4-1106(b)) that is subject to the standards and
requirements set forth in IC 36-7-4-1106.
    SECTION 14. IC 36-7-1-4.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]: Sec. 4.5. As used in this chapter, "Class 1 structure" has
the meaning set forth in IC 22-12-1-4.
    SECTION 15. IC 36-7-1-4.7 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]: Sec. 4.7. As used in this chapter, "Class 2 structure" has
the meaning set forth in IC 22-12-1-5.
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    SECTION 16. IC 36-7-1-6.8 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]: Sec. 6.8. "Homeowners association" has the meaning set
forth in IC 32-25.5-2-4.
    SECTION 17. IC 36-7-2.3 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]:
    Chapter 2.3. Limits on Building and Construction Related Fees
    Sec. 1. This chapter applies to a fee imposed by a unit for
approval of an application related to:
      (1) construction or reconstruction of:
         (A) residential buildings;
         (B) commercial buildings;
         (C) industrial buildings;
         (D) any other building or building space; or
         (E) an appurtenance to a building described in clauses (A)
         through (D); or
      (2) zoning, development, subdivision, classification, or
      reclassification of land;
including a fee designated as a permit fee (including a fee for a
permit under IC 36-7-4-1109(f)), application fee, inspection fee,
processing fee, or by another name.
    Sec. 2. As used in this chapter, "applicant" means a person who
submits an application that requires a fee described in section 1 of
this chapter.
    Sec. 3. After December 31, 2026:
      (1) Unless otherwise provided by law and subject to
      subdivision (2), a unit may not assess a fee in an amount that
      is more than is reasonably necessary to cover the applicable
      cost to the unit to:
         (A) process an application;
         (B) inspect and review an applicant's plans; or
         (C) prepare detailed statements for an applicant.
      (2) Except as otherwise provided in this subdivision, any fee,
      including a fee adopted before January 1, 2027, may be
      increased:
         (A) once every five (5) years; and
         (B) by an amount not to exceed the combined annual
         percentage change in the Consumer Price Index for all
         Urban Consumers, as published by the United States
         Bureau of Labor Statistics, for the preceding five (5) years.
      However, if the cost to the unit substantially changes from the
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      amount described in subdivision (1), the legislative body of the
      unit may adjust the fee to accurately reflect the cost to the
      unit after conducting a public hearing.
      (3) Any fee assessed and collected by a unit must be
      maintained in a special fund dedicated solely to reimbursing
      the costs actually incurred by the unit relating to the
      imposition and amount of the fee. Each fund shall be
      maintained as a separate line item in the unit's budget. Money
      in the fund may not at any time revert to the general fund or
      any other fund of the unit.
    SECTION 18. IC 36-7-2.5-23.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 23.5. (a) If a unit fails to meet the
deadlines set forth in this chapter, the unit shall:
      (1) forfeit any regulatory fee owed by the applicant; and
      (2) refund any regulatory fee that has been paid by the
      applicant;
to the unit.
    (b) This section does not apply if a unit fails to meet a deadline
set forth in this chapter as a result of a delay described in section
23 of this chapter.
    SECTION 19. IC 36-7-4-1109, AS AMENDED BY P.L.223-2025,
SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 1109. (a) As used in this section, "applicant"
means a person that applies to a local authority for a permit or
approval.
    (b) As used in this section, "development agreement" means a
contract that is entered into between a person and a local authority
regarding the development of property and that is executed after June
30, 2025.
    (c) As used in this section, "development standards" includes the
following:
      (1) Project elements including:
          (A) permitted uses;
          (B) residential densities;
          (C) nonresidential densities and intensities;
          (D) building sizes;
          (E) impact fees, inspection fees, or dedications;
          (F) mitigation measures, development conditions, and other
          requirements;
          (G) design standards;
          (H) affordable housing;
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          (I) parks and open space preservation;
          (J) phasing; and
          (K) review procedures and standards for implementing
          decisions.
       (2) Any other development requirement or procedure.
    (d) As used in this section, "legal restrictions" means statutes,
ordinances, rules, development standards, policies, and regulations.
The term does not include building codes under IC 22-13.
    (e) As used in this section, "local authority" includes any agency,
officer, board, or commission of a local unit of government that may
issue:
       (1) a permit; or
       (2) an approval:
          (A) of a land use; or
          (B) for the construction of a development, a building, or
          another structure.
    (f) As used in this section, "permit" means any of the following:
       (1) An improvement location permit.
       (2) A building permit.
       (3) A certificate of occupancy.
       (4) Approval of a site-specific development plan.
       (5) Approval of a primary or secondary plat.
       (6) Approval of a variance, contingent use, conditional use,
       special exception, or special use.
       (7) Approval of a planned unit development.
    (g) If a person files with the appropriate local authority a complete
application for a permit, as required by the legal restrictions of a local
unit of government or a local authority, the granting of:
       (1) the permit; and
       (2) any secondary, additional, or related permits or approvals
       required from the same local authority with respect to the general
       subject matter of the application for the first permit;
are governed, for a period of at least three (3) years after the date the
person files a complete permit application, by the legal restrictions in
effect and applicable to the property at the time the complete
application is filed.
    (h) Subsection (g) applies even if the legal restrictions governing the
granting of the permit or approval are changed by the general assembly
or the applicable local legislative body or regulatory body:
       (1) before the issuance of the permit;
       (2) while the permit approval process is pending;
       (3) before the issuance of any secondary, additional, or related
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      permits or approvals; or
      (4) while the secondary, additional, or related permit or approval
      process is pending.
Subsection (g) applies regardless of whether the changes to the legal
restrictions are part of a zoning ordinance, a subdivision control
ordinance, or a statute, ordinance, or regulation that is based on the
general police powers of the local unit of government. However, after
the issuance or approval of a permit subsection (g) does not apply if the
development or other activity to which the permit relates is not
completed within ten (10) years after the development or activity is
commenced.
   (i) Subsection (j) applies if:
      (1) either:
          (A) a local authority issues to a person a permit or grants a
          person approval for the construction of a development, a
          building, or another structure; or
          (B) a permit or approval is not required from the local
          authority for the construction of the development, building, or
          structure;
      (2) before beginning the construction of the development,
      building, or structure, the person must obtain a permit or approval
      for the construction of the development, building, or structure
      from a state governmental agency; and
      (3) the person has applied for the permit or requested the approval
      for the construction of the development, building, or structure
      from the state governmental agency within ninety (90) days of
      issuance of the permit or the granting of approval by the local
      authority, as applicable.
   (j) Subject to subsection (l), if the conditions of subsection (i) are
satisfied:
      (1) a permit or approval issued or granted to a person by the local
      authority for the construction of the development, building, or
      structure; or
      (2) the person's right to construct the development, building, or
      structure without a permit or approval from the local authority;
is governed, for a period of at least three (3) years after the person
applies to the state governmental agency for the permit, by the legal
restrictions in effect and applicable to the property when the person
applies for the permit or requests approval from the state governmental
agency for the construction of the development, building, or structure.
   (k) Subsection (j) applies even if the legal restrictions governing the
granting of the permit or approval from the local authority are changed
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                                   15
by the general assembly or the applicable local legislative body or
regulatory body:
      (1) before the commencement of the construction; or
      (2) while the permit application or approval request is pending
      with the state governmental agency.
Subsection (j) applies regardless of whether the changes to the legal
restrictions are part of a zoning ordinance, a subdivision control
ordinance, or a statute, ordinance, or regulation that is based on the
general police powers of the local unit of government. However,
subsection (j) does not apply if the development or other activity to
which the permit or approval request relates is not completed within
ten (10) years after the development or activity is commenced.
   (l) Subsection (j) does not apply to property when it is demonstrated
by the local authority or state governmental agency that the
construction of the development, building, or structure would cause
imminent peril to life or property.
   (m) A development agreement entered into by a local authority must
set forth the legal restrictions, including development standards and
any other provisions applying to and governing the use and
development of the real property for the period specified in the
development agreement. A development agreement must:
      (1) reserve authority for the local authority to impose new or
      different legal restrictions to the extent required by a serious
      threat to public health and safety; and
      (2) be consistent with applicable legal restrictions adopted by the
      local authority.
   (n) Subject to subsection (j), the local authority's legal restrictions
governing the development of the real property at the time the
development agreement is executed govern the development of the real
property for the period specified in the development agreement.
   (o) This section does not authorize the impairment of any vested
right or abrogate any rights vested under common law. Without
limiting the time in which rights might vest, an applicant's rights are
considered vested in land use when the applicant obtains a permit or
reasonably relies on existing law regarding development of a specific
project. Rights considered vested under this subsection are not affected
by a subsequent amendment to a zoning ordinance.
   (p) This section does not apply to building codes under IC 22-13.
   (q) The following provision is considered to be included in any
regulation adopted under section 601(d)(2)(B) of this chapter that sets
forth requirements for signs:
      "The owner of any sign that is otherwise allowed by this
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                                   16
      regulation may substitute noncommercial copy in place of any
      other commercial or noncommercial copy. This substitution of
      copy may be made without the issuance of any additional permit
      by a local authority. The purpose of this provision is to prevent
      any inadvertent favoring of commercial speech over
      noncommercial speech, or the favoring of any particular
      noncommercial message over any other noncommercial message.
      This provision prevails over any more specific provision in this
      regulation to the contrary.".
    (r) After December 31, 2025, this subsection does not apply to a
permit to which IC 36-7-2.5 applies. A local authority must, not later
than twelve (12) business days after a person has filed a complete
application for a permit for which approval is ministerial under
IC 36-7-4-402 or an improvement location permit issued under the 800
series of this chapter and meets all conditions required under this
chapter and any other statute, issue the permit to the person.
    (s) This subsection applies after December 31, 2026. If a person
files with the appropriate local authority a complete application for
a permit or approval, the permit or approval must be granted, if
the project that is the subject of the application satisfies the legal
restrictions, including the zoning ordinance, zone maps, or
subdivision control ordinance in effect on the date the permit
application is submitted.
    SECTION 20. IC 36-7-4-1109.4, AS AMENDED BY P.L.223-2025,
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025 (RETROACTIVE)]: Sec. 1109.4. (a) This section does
not apply to the issuance of:
      (1) a design release or a plan review under IC 22-15;
      (2) a Class 2 permit according to the timeline set forth in
      IC 36-2-7.5 IC 36-7-2.5 (after December 31, 2025); or
      (3) a permit according to the timeline set forth in section 1109(r)
      of this chapter.
    (b) A local authority shall review a permit application for
completeness. If a local authority determines that an application is
incomplete, the local authority must, not later than thirty (30) days after
receipt of the application, notify the applicant in writing of all defects
in the application. If a local authority fails to notify an applicant as
required under this subsection, the local authority shall consider the
permit application to be complete.
    (c) An applicant that receives a timely written notice that an
application is incomplete under subsection (b) may:
      (1) cure the defects in the application; and
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       (2) resubmit the corrected application to the local authority;
not later than thirty (30) days after receiving the notice. If an applicant
is unable to cure the defects within the thirty (30) day period, the
applicant shall notify the local authority of the additional time the
applicant requires to cure the defects.
    (d) Subject to subsection (e), not more than ninety (90) days after
making an initial determination of completeness under subsection (b),
a local authority shall:
       (1) review the application to determine if it complies with all
       applicable requirements; and
       (2) notify the applicant in writing whether the application is
       approved or denied.
The local authority shall provide to the applicant the local authority's
written determination and findings of fact.
    (e) If an applicant requested additional time under subsection (c) to
cure defects in the application, the ninety (90) day period set forth in
subsection (d) is extended for a corresponding amount of time.
    (f) Any official action on a previously approved permit application,
including an extension of specific conditions set forth in the permit,
must be made not later than sixty (60) days after the applicant's filing
that initiated the official action. The local authority shall provide to the
applicant the local authority's written determination and findings of fact
with respect to the official action.
    SECTION 21. IC 36-7-4-1311, AS AMENDED BY P.L.149-2016,
SECTION 97, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 1311. (a) The legislative body of a unit may adopt
an ordinance imposing an impact fee on new development in the
geographic area over which the unit exercises planning and zoning
jurisdiction. The ordinance must aggregate the portions of the impact
fee attributable to the infrastructure types covered by the ordinance so
that a single and unified impact fee is imposed on each new
development.
    (b) If the legislative body of a unit has planning and zoning
jurisdiction over the entire geographic area covered by the impact fee
ordinance, an ordinance adopted under this section shall be adopted in
the same manner that zoning ordinances are adopted under the 600
SERIES of this chapter.
    (c) If the legislative body of a unit does not have planning and
zoning jurisdiction over the entire geographic area covered by the
impact fee ordinance but does have jurisdiction over one (1) or more
infrastructure types in the area, the legislative body shall establish the
portion of the impact fee schedule or formula for the infrastructure
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                                   18
types over which the legislative body has jurisdiction. The legislative
body of the unit having planning and zoning jurisdiction shall adopt an
impact fee ordinance containing that portion of the impact fee schedule
or formula if:
      (1) a public hearing has been held before the legislative body
      having planning and zoning jurisdiction; and
      (2) each plan commission that has planning jurisdiction over any
      part of the geographic area in which the impact fee is to be
      imposed has approved the proposed impact fee ordinance by
      resolution.
    (d) An ordinance adopted under this section is the exclusive means
for a unit to impose an impact fee. Except as provided in subsection
(e), an impact fee imposed on new development to pay for
infrastructure may not be collected after January 1, 1992, unless the
impact fee is imposed under an impact fee ordinance adopted under
this chapter.
    (e) This section applies to an impact fee imposed by a unit after
June 30, 2026. An impact fee imposed on new development to pay
for infrastructure may not be collected after June 30, 2026, unless
the impact fee is imposed under an impact fee ordinance that
complies with:
      (1) section 1316.5 of this chapter; and
      (2) any other applicable provision;
of this chapter. This subsection, in accordance with section 1109 of
this chapter, does not affect an impact fee that was imposed and
not collected by the unit before July 1, 2026.
    (e) (f) Notwithstanding any other provision of this chapter, the
following charges are not impact fees and may continue to be imposed
by units:
      (1) Fees, charges, or assessments imposed for infrastructure
      services under statutes in existence on January 1, 1991, if:
          (A) the fee, charge, or assessment is imposed upon all users
          whether they are new users or users requiring additional
          capacity or services;
          (B) the fee, charge, or assessment is not used to fund
          construction of new infrastructure unless the new
          infrastructure is of the same type for which the fee, charge, or
          assessment is imposed and will serve the payer; and
          (C) the fee, charge, or assessment constitutes a reasonable
          charge for the services provided in accordance with
          IC 36-1-3-8(a)(6) or other governing statutes requiring that
          any fees, charges, or assessments bear a reasonable
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                                   19
         relationship to the infrastructure provided.
      (2) Fees, charges, and assessments agreed upon under a
      contractual agreement entered into before April 1, 1991, or fees,
      charges, and assessments agreed upon under a contractual
      agreement, if the fees, charges, and assessments are treated as
      impact deductions under section 1321(d) of this chapter if an
      impact fee ordinance is in effect.
   SECTION 22. IC 36-7-4-1312 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 1312. (a) A unit may
not adopt an impact fee ordinance under section 1311 of this series
unless the unit has adopted a comprehensive plan under the 500
SERIES of this chapter for the geographic area over which the unit
exercises planning and zoning jurisdiction.
   (b) Before the adoption of an impact fee ordinance under section
1311 of this chapter, a unit shall establish an impact fee advisory
committee. The advisory committee shall:
      (1) be appointed by the executive of the unit;
      (2) be composed of not less than five (5) and not more than ten
      (10) members with at least forty percent (40%) of the membership
      representing the development, building, or real estate industries,
      including community members representing:
         (A) a single-family builder;
         (B) a multifamily builder; and
         (C) a realtor;
      who must be selected based upon the recommendation of the
      statewide trade association representing each industry; and
      (3) serve in an advisory capacity to assist and advise the unit with
      regard to the adoption of an impact fee ordinance under section
      1311 of this chapter.
   (c) A planning commission or other committee in existence before
the adoption of an impact fee ordinance that meets the membership
requirements of subsection (b) may serve as the advisory committee
that subsection (b) requires.
   (d) Action of an advisory committee established under subsection
(b) is not required as a prerequisite for the unit in adopting an impact
fee ordinance under section 1311 of this chapter.
   SECTION 23. IC 36-7-4-1316 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 1316. (a) This section
only applies to an impact zone designated under section 1315 of
this chapter before July 1, 2026.
   (b) A unit must include in an impact zone designated under section
1315 of this chapter the geographical area necessary to ensure that:
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                                  20
     (1) there is a functional relationship between the components of
     the infrastructure type in the impact zone;
     (2) the infrastructure type provides a reasonably uniform benefit
     throughout the impact zone; and
     (3) all areas included in the impact zone are contiguous.
   SECTION 24. IC 36-7-4-1316.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 1316.5. (a) This section only
applies to an impact zone designated under section 1315 of this
chapter after June 30, 2026.
   (b) Subject to subsection (c), a unit must include in an impact
zone the geographical area necessary to ensure that:
     (1) there is a functional relationship between the components
     of the infrastructure type in the impact zone;
     (2) the infrastructure type provides a reasonably uniform
     benefit throughout the impact zone;
     (3) all areas included in the impact zone are contiguous; and
     (4) the impact zone is:
         (A) contiguous to the new development;
         (B) coterminous with a:
           (i) utility service; or
           (ii) distribution line of a type described in section 1309(1)
           or 1309(5) of this chapter, that may be necessary for the
           new development to interconnect with existing utility
           infrastructure; or
         (C) located not more than five (5) miles from the
         infrastructure type described in section 1309(3) and
         1309(4) of this chapter.
   (c) If a unit:
     (1) adopts an ordinance to adopt, renew, or amend an impact
     fee; or
     (2) has an existing impact fee ordinance that provides for an
     increase in the amount of an impact fee after a period of time;
Then before a unit may adopt an ordinance under subdivision (1),
or collect the increased impact fee under subdivision (2), the unit
must comply with subsection (d).
   (d) The unit must hold a public hearing. Not less than forty-five
(45) days before the date of the public hearing, the unit must do the
following:
     (1) If the unit has a website, post on the website:
         (A) notice of the public hearing;
         (B) a summary of the impact fee proposed for adoption,
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                                21
        renewal, amendment or subject to increase under an
        existing ordinance; and
        (C) the impact zone improvement plan.
     (2) Publish notice of the public hearing under IC 5-3-1
     providing:
        (A) a summary of the impact fee proposed for adoption,
        renewal, amendment or subject to increase under an
        existing ordinance;
        (B) the web address (if any) where the information posted
        under subdivision (1) is located; and
        (C) the location where the public may inspect and copy the
        zone improvement plan.
   SECTION 25. IC 36-7-4.3 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]:
   Chapter 4.3. Increasing Housing Development
   Sec. 1. As used in this chapter, "unit" means a county, city, or
town.
   Sec. 2. As used in this chapter, "UDO" means a unified
development ordinance.
   Sec. 3. Not later than January 1, 2027, a unit conduct a public
hearing to review the UDO and any zoning regulations and land
development rules, with the goal of increasing housing
development by using the following factors:
     (1) Providing for higher density development of duplexes,
     triplexes, and fourplexes in areas designated for single family
     homes.
     (2) Constructing other housing types including accessory
     dwelling units and manufactured and modular housing.
     (3) Adaptive reuse of commercial buildings for residential use
     such as allowing multifamily development in retail, office, and
     light manufacturing zones.
     (4) Increasing the allowable floor area ratio in multifamily
     housing areas.
     (5) Waiving or eliminating regulations such as requirements
     for:
        (A) garage size and placement;
        (B) steeper roof pitch;
        (C) minimum lot size and square footage;
        (D) greater setbacks;
        (E) off-street parking;
        (F) design standards that restrict or prohibit the use of
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                                   22
          code compliant products; or
          (G) property height limitations.
      (6) Reviewing impact fee zones with zone advisory committee
      for improvements.
      (7) Streamlining or shortening the permitting processes and
      timelines, including through one stop and parallel process
      permitting by fifteen (15) days or more.
      (8) Using property tax abatements to enable higher density
      and mixed income communities.
      (9) Donating vacant land for affordable housing development.
   Sec. 4. Not later than January 1, 2027, the unit shall submit a
report to the executive director of legislative services agency by
electronic means under IC 5-14-6 that contains the following:
      (1) If the unit:
          (A) invested in a housing study in 2021, 2022, 2023, 2024,
          or 2025; or
          (B) had a housing study performed by a region's local
          economic development organization;
      a copy of the housing study.
      (2) The minutes from the public hearing conducted under
      section 4 of this chapter.
      (3) Any newly developed or amended UDO as a result of the
      review under section 3 of this chapter. The unit must provide
      a written description of the ways in which the UDO was
      changed to support increased housing development by using
      some or all of the factors set forth in section 3 of this chapter.
   SECTION 26. IC 36-7-14-53, AS AMENDED BY P.L.204-2023,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 53. (a) A commission may establish a residential
housing development program by resolution for the construction of new
residential housing or the renovation of existing residential housing in
an area within the jurisdiction of the commission.
   (b) The program, which may include any relevant elements the
commission considers appropriate, may be adopted as part of a
redevelopment plan or amendment to a redevelopment plan, and must
establish an allocation area for purposes of sections 39 and 56 of this
chapter for the accomplishment of the program. The program must be
approved by the municipal legislative body or county executive as
specified in section 17 of this chapter.
   (c) The notice and hearing provisions of sections 17 and 17.5 of this
chapter, including notice under section 17(c) of this chapter to a taxing
unit that is wholly or partly located within an allocation area, apply to
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                                   23
the resolution adopted under subsection (b). Judicial review of the
resolution may be made under section 18 of this chapter.
   (d) Before formal submission of any residential housing
development program to the commission, the department of
redevelopment shall:
      (1) consult with persons interested in or affected by the proposed
      program, including the superintendents and governing body
      presidents of all school corporations located within the proposed
      allocation area;
      (2) provide the affected neighborhood associations, residents, and
      township assessors with an adequate opportunity to participate in
      an advisory role in planning, implementing, and evaluating the
      proposed program; and
      (3) hold at least one (1) public meeting to obtain the views of
      neighborhood associations and residents of the affected
      neighborhood. The department of redevelopment shall send notice
      thirty (30) days prior to the public meeting to the fiscal officer of
      all affected taxing units and to the superintendents and governing
      body presidents of all school corporations located within the
      proposed allocation area.
   (e) A residential housing development program established under
this section must terminate not later than the earlier of:
      (1) twenty (20) twenty-five (25) years after the date on which the
      first obligation was incurred to pay principal and interest on
      bonds or lease rentals on leases payable from tax increment
      revenues from the program; or
      (2) the date on which the bond obligations or lease rentals
      described in subdivision (1) are satisfied.
   (f) A county or municipality may request from the department of
local government finance a report, if it exists, describing the effect of
current assessed value allocated to tax increment financing allocation
areas on the amount of the tax levy or proceeds and the credit for
excessive property taxes under IC 6-1.1-20.6 for the taxing units within
the boundaries of the residential housing development program.
   SECTION 27. IC 36-7-14-53.1 IS REPEALED [EFFECTIVE JULY
1, 2026]. Sec. 53.1. (a) Section 53 of this chapter as amended by the
general assembly in the 2023 session or subsequent session expires
June 30, 2027.
   (b) This section applies beginning July 1, 2027, and is intended to
reinstate section 53 of this chapter as it was in effect on January 1,
2023.
   (c) Subject to subsection (i), a commission may establish a
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                                   24
residential housing development program by resolution for the
construction of new residential housing or the renovation of existing
residential housing in an area within the jurisdiction of the commission
if:
       (1) for a commission established by a county, the average of new,
       single family residential houses constructed within the township
       in which the area is located during the preceding three (3)
       calendar years is less than one percent (1%) of the total number
       of single family residential houses within that township on
       January 1 of the year in which the resolution is adopted; or
       (2) for a commission established by a municipality, the average
       of new, single family residential houses constructed within the
       municipal boundaries during the preceding three (3) calendar
       years is less than one percent (1%) of the total number of single
       family residential houses within the boundaries of the
       municipality on January 1 of the year in which the resolution is
       adopted.
However, the calculations described in subdivisions (1) and (2) and the
provisions of subsection (h) do not apply for purposes of establishing
a residential housing development program within an economic
development target area designated under IC 6-1.1-12.1-7.
    (d) The program, which may include any relevant elements the
commission considers appropriate, may be adopted as part of a
redevelopment plan or amendment to a redevelopment plan, and must
establish an allocation area for purposes of sections 39 and 56 of this
chapter for the accomplishment of the program. The program must be
approved by the municipal legislative body or county executive as
specified in section 17 of this chapter.
    (e) The notice and hearing provisions of sections 17 and 17.5 of this
chapter, including notice under section 17(c) of this chapter to a taxing
unit that is wholly or partly located within an allocation area, apply to
the resolution adopted under subsection (d). Judicial review of the
resolution may be made under section 18 of this chapter.
    (f) Before formal submission of any residential housing
development program to the commission, the department of
redevelopment shall:
       (1) consult with persons interested in or affected by the proposed
       program, including the superintendents and governing body
       presidents of all school corporations located within the proposed
       allocation area;
       (2) provide the affected neighborhood associations, residents, and
       township assessors with an adequate opportunity to participate in
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                                   25
      an advisory role in planning, implementing, and evaluating the
      proposed program; and
      (3) hold at least one (1) public meeting to obtain the views of
      neighborhood associations and residents of the affected
      neighborhood. The department of redevelopment shall send notice
      thirty (30) days prior to the public meeting to the fiscal officer of
      all affected taxing units and to the superintendents and governing
      body presidents of all school corporations located within the
      proposed allocation area.
   (g) A residential housing development program established under
this section must terminate not later than twenty-five (25) years after
the date on which the first obligation was incurred to pay principal and
interest on bonds or lease rentals on leases payable from tax increment
revenues from the program.
   (h) The department of local government finance in cooperation with
either the appropriate county agency or the appropriate municipal
agency, or both, shall determine whether a county or municipality
meets the threshold requirements under subsection (c). In making the
determination, the department of local government finance may request
information necessary to make the determination. A county or
municipality may request from the department of local government
finance a report, if it exists, describing the effect of current assessed
value allocated to tax increment financing allocation areas on the
amount of the tax levy or proceeds and the credit for excessive property
taxes under IC 6-1.1-20.6 for the taxing units within the boundaries of
the residential housing development program.
   (i) A program established under subsection (c) may not take effect
until the governing body of each school corporation affected by the
program passes a resolution approving the program.
   SECTION 28. [EFFECTIVE UPON PASSAGE] (a) The legislative
council is urged to assign to the appropriate interim study
committee the task of studying the topic of making residential
affordable housing a permitted use in an area zoned for residential
or commercial use if:
      (1) a religious institution is the developer of the property or a
      developer working on behalf of a religious institution;
      (2) the development is located on property owned by the
      religious institution; and
      (3) the development exclusively contains affordable housing.
   (b) This section expires December 31, 2026.
   SECTION 29. IC 36-7-18-16 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 16. (a) A housing
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                                   26
authority may:
      (1) prepare, carry out, acquire, lease, and operate housing
      projects; and
      (2) provide for the construction, reconstruction, improvement,
      alteration, or repair of all or part of a housing project.
    (b) Notwithstanding subsection (a), a housing project may not be
built if the average construction cost, exclusive of the cost of land,
demolition, and nondwelling facilities, is more than:
      (1) two four thousand dollars ($2,000) ($4,000) per room;
      (2) ten fifteen thousand dollars ($10,000) ($15,000) per room, if
      the accommodations are designed specifically for persons of low
      income who:
          (A) have attained the age at which they may elect to receive
          old age benefits under Title 2 of the Social Security Act (42
          U.S.C. 401-433); or
          (B) are under disability (as defined in Section 223 of that Act
          (42 U.S.C. 423)); or
      (3) any greater amount established by the federal government as
      the basis for computing any of its annual contributions.
    (c) Notwithstanding subsection (b), if the housing authority finds
that:
      (1) compliance with the cost limitations in subsection (b) would
      require the sacrifice of sound standards of construction, design,
      and livability in a project; and
      (2) there is an acute need for the proposed housing;
it may exceed the cost limitation that would otherwise be applicable
under subsection (b) by not more than seven hundred fifty dollars
($750) per room. an amount necessary to make the project
financially feasible.
    SECTION 30. IC 36-7-18-31, AS AMENDED BY P.L.230-2025,
SECTION 144, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 31. (a) Issues of bonds, notes, or
warrants of a housing authority must be approved by the fiscal body of
the unit after a public hearing, with notice of the time, place, and
purpose of the hearing given by publication in accordance with
IC 5-3-1. The bonds, notes, or warrants must then be authorized by
resolution of the authority.
    (b) After the bonds, notes, or warrants have been approved under
subsection (a), they may be issued in one (1) or more series, with the:
      (1) dates;
      (2) maturities;
      (3) denominations;
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                                   27
       (4) form, either coupon or registered;
       (5) conversion or registration privileges;
       (6) rank or priority;
       (7) manner of execution;
       (8) medium of payment;
       (9) places of payment; and
       (10) terms of redemption, with or without premium;
provided by the resolution or its trust indenture or mortgage.
    (c) Except as provided in subsection (g), the bonds, notes, or
warrants shall be sold at a public sale under IC 5-1-11, for not less than
par value, after notice published in accordance with IC 5-3-1. However,
they may be sold at not less than par value to the federal government:
       (1) at private sale without any public advertisement; or
       (2) alternatively, at a negotiated sale.
    (d) If any of the commissioners or officers of the housing authority
whose signatures appear on any bonds, notes, or warrants or coupons
cease to be commissioners or officers before the delivery, exchange, or
substitution of the bonds, notes, or warrants, their signatures remain
valid and sufficient for all purposes, as if they had remained in office
until the delivery, exchange, or substitution.
    (e) Subject to provision for registration and notwithstanding any
other law, any bonds, notes, or warrants issued under this chapter are
fully negotiable.
    (f) In any proceedings involving the validity or enforceability of any
bond, note, or warrant of a housing authority or of its security, if the
instrument states that it has been issued by the authority to aid in
financing a housing project to provide dwelling accommodations for
persons of low income, it shall be conclusively presumed to have been
issued for that purpose and the project shall be conclusively presumed
to have been planned, located, and constructed in accordance with this
chapter.
    (g) Notwithstanding subsection (c), the bonds, notes, or
warrants of a housing authority may be sold at a negotiated sale
and may be sold at less than par value at a negotiated sale.
    SECTION 31. An emergency is declared for this act.
HEA 1001 — Concur
Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date:  Time:
HEA 1001 — Concur