IndianaHB 1001Second Regular Session 124th General Assembly (2026)HouseWALLET

Housing matters.

Sponsored By: Doug Miller (Republican)

Signed by Governor

Summary

Revises the allocation of money available for making loans from the residential housing infrastructure assistance revolving fund. Adds requirements regarding the location of impact zones designated by a county, city, or town (unit) after June 30, 2026. Requires a unit to approve a project that complies with the legal restrictions in effect on the date the project's permit application is submitted. After December 31, 2026, restricts a unit's ability to impose and increase fees related to building approvals and permits. Delays the implementation of building permit increases to 180 days after publication of the ordinance. Beginning January 1, 2027, requires a unit to annually report the unit's housing status to the Indiana housing and community development authority. Requires the department of environmental management to review and update its Indiana Storm Water Quality Manual not later than December 1, 2026. Prohibits the state or local government from requiring a person intending to fill land in a flood plain to provide compensatory storage at a ratio greater than three (mitigated land) to one (filled land). Requires a unit to forfeit or refund regulatory fees if the unit fails to meet statutory deadlines for issuing a Class 2 building permit. After June 30, 2026, prohibits a state agency or political subdivision from requiring the installation of the following: (1) An arc-fault circuit interrupter in Class 2 structure or structure classified as an R-2 building occupancy classification. (2) An emergency responder communications enhancement system in a Class 1 structure. Repeals a provision that would have reinstated on July 1, 2027, the statute in effect before its amendment in the 2023 regular session of the general assembly setting forth the authorization and procedures for establishing a residential housing development program (program). Amends the current statute for establishing a program to provide that a program terminates: (1) 25 years (instead of 20 years) after the date on which the first obligation was incurred to pay principal and interest on obligations payable from tax increment revenues from the program; or (2) on the date on which the bond obligations or lease rentals are satisfied. Requires a unit not later than January 1, 2027 to: (1) review its unified development ordinance in a public hearing with the purpose of increasing housing development; and (2) report to the executive director of legislative services agency. Urges assignment of the topic of housing developments by religious institutions to an interim study committee. Resolves conflicts for IC 36-2-4-8, which was amended by both P.L.22-2021 and P.L.152-2021. Increases the average construction cost allowable for certain housing projects to be completed by a housing authority. Provides that bonds, notes, or warrants of a housing authority may be sold at less than par value at a negotiated sale.

local governmentthe senatejudiciary

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Bill Overview

Analyzed Economic Effects

12 provisions identified: 6 benefits, 0 costs, 6 mixed.

Permit applicants gain approval and refund protections

Beginning January 1, 2027, local authorities must approve complete applications for projects meeting legal restrictions in effect when submitted. These include zoning and subdivision rules. Beginning July 1, 2026, local governments must waive unpaid regulatory fees and refund paid fees when they miss covered deadlines. This refund rule excludes delays described in section 23 of the law.

Limits and delays on building fees

Beginning January 1, 2027, covered building and land-use application fees generally cannot exceed reasonable processing and review costs. Unless another law applies, increases are limited to once every five years and the prior five years’ cumulative consumer inflation. Substantial cost changes allow an adjustment after a public hearing. Fee money must stay in dedicated funds, appear separately in budgets, and pay only related costs—not general government expenses. Beginning July 1, 2026, building permit fee increases require publication within 30 days of adoption, then a 180-day wait, up from 90 days.

Higher construction caps for housing authorities

Beginning July 1, 2026, housing authorities’ average construction-cost cap rises from $2,000 to $4,000 per room. For housing designed for low-income people qualifying by age for Social Security old-age benefits or by disability, it rises from $10,000 to $15,000. These caps exclude land, demolition, and nondwelling facilities. Authorities can exceed them only when an acute housing need exists and compliance sacrifices sound construction, design, and livability. The exception replaces a $750-per-room allowance with the amount needed for financial feasibility.

Local governments must review housing barriers

By January 1, 2027, each local government must hold a public hearing to review zoning and land-development rules. The review must consider multiplexes in single-family zones, accessory homes, manufactured or modular homes, and reuse of buildings for apartments. It must also consider more floor space, simpler regulations, infrastructure fee zones, and faster permitting. Tax abatements and vacant-land donations for denser, mixed-income housing are also part of the review. The law requires consideration, not adoption, of these changes.

More financing options for housing authorities

Beginning July 1, 2026, housing authorities can sell bonds, notes, and warrants through negotiated sales, including below face value. This expands an option previously limited to federal government sales. The change adds financing choices but does not guarantee lower borrowing costs or rents.

Smaller communities get housing infrastructure priority

Beginning July 1, 2026, 70% of the housing infrastructure fund is reserved for projects benefiting communities with fewer than 50,000 people. The remaining 30% goes to other political subdivisions. The law does not state the fund’s total dollar amount or provide a direct household payment.

County lawmaking and publication rules change

Beginning July 1, 2026, covered counties adopt ordinances, orders, and resolutions when the presiding officer signs them. The law removes the special county executive approval, veto, and override process. It also ends an urgent-necessity exception allowing penalty ordinances to take effect without publication when copies were publicly posted.

Emergency radio systems no longer required

Beginning July 1, 2026, state and local agencies cannot require emergency responder radio-enhancement systems in newly built Class 1 structures. The ban also covers existing Class 1 structures reconstructed, remodeled, or renovated after June 30, 2026. Earlier conflicting local rules are void to the extent they conflict. The law removes a potential construction expense and limits government authority over emergency communication equipment.

Boundaries limit where infrastructure fees apply

Beginning July 1, 2026, infrastructure fee zones follow different geographic rules based on when they were designated. Zones designated earlier remain subject to rules on infrastructure relationships, reasonably uniform benefits, and connected areas. Zones designated after June 30, 2026, must also be connected and receive reasonably uniform infrastructure benefits. New zones must meet the applicable utility-service, distribution-line, or five-mile location criteria.

Limits on floodplain and stormwater requirements

Beginning July 1, 2026, state and local governments cannot demand more than three units of floodplain storage per unit filled. The stormwater manual cannot require a pond bank ratio above 3:1. It must require either a 10-foot maintenance ledge or a 10-foot safety ledge, but not both. The environmental agency must review recommendations for cost effectiveness and revise the manual by December 1, 2026. These limits ease development requirements but also restrict the mitigation measures governments can demand.

Local housing financing can last longer

Beginning July 1, 2026, qualifying residential housing programs funded by tax increment revenue get a longer maximum term. The limit rises from 20 to 25 years after the first qualifying bond or lease obligation. Programs must end sooner when those obligations are satisfied. The law also cancels the June 30, 2027, expiration of the amended program rules. This prevents older low-construction eligibility limits and affected school corporations’ approval requirements from returning on July 1, 2027.

New safeguards for development infrastructure fees

Beginning July 1, 2026, local governments can collect newly imposed infrastructure impact fees only under ordinances meeting state requirements. Fees imposed before that date remain unaffected, even if unpaid. Before adopting an ordinance, a government must form a 5–10-member committee, with at least 40% from development, building, or real estate. It must include single-family and multifamily builders and a realtor, selected on recommendations from their statewide trade associations. Adoption, renewal, amendments, and scheduled increases require a hearing, notice at least 45 days ahead, plan-review information, and website posting if available.

Sponsors & Cosponsors

Sponsor

  • Doug Miller

    Republican • House

Cosponsors

  • Blake Doriot

    Republican • Senate

  • Chris Garten

    Republican • Senate

  • David Niezgodski

    Democratic • Senate

  • Timothy O'Brien

    Republican • House

  • Tony Isa

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 183 • No: 49

House vote • 2/25/2026

House concurred with Senate amendments

Yes: 72 • No: 21

Senate vote • 2/24/2026

Third reading: passed

Yes: 35 • No: 13

House vote • 1/27/2026

Third reading: passed

Yes: 76 • No: 15

Actions Timeline

  1. Signed by the Governor

    3/4/2026House
  2. Public Law 73

    3/4/2026House
  3. Signed by the President Pro Tempore

    2/27/2026Senate
  4. Signed by the President of the Senate

    2/27/2026Senate
  5. Signed by the Speaker

    2/26/2026House
  6. House concurred with Senate amendments; Roll Call 372: yeas 72, nays 21

    2/25/2026House
  7. Motion to concur filed

    2/25/2026House
  8. Returned to the House with amendments

    2/24/2026Senate
  9. Senator Niezgodski added as cosponsor

    2/24/2026Senate
  10. Senator Doriot added as second sponsor

    2/24/2026Senate
  11. Third reading: passed; Roll Call 223: yeas 35, nays 13

    2/24/2026Senate
  12. Second reading: amended, ordered engrossed

    2/23/2026Senate
  13. Amendment #6 (Garten) prevailed; voice vote

    2/23/2026Senate
  14. Amendment #8 (Garten) prevailed; voice vote

    2/23/2026Senate
  15. Committee report: amend do pass, adopted

    2/19/2026Senate
  16. First reading: referred to Committee on Judiciary

    2/5/2026Senate
  17. Referred to the Senate

    1/28/2026House
  18. Third reading: passed; Roll Call 107: yeas 76, nays 15

    1/27/2026House
  19. Senate sponsor: Senator Garten

    1/27/2026House
  20. Amendment #2 (Miller D) prevailed; voice vote

    1/22/2026House
  21. Second reading: amended, ordered engrossed

    1/22/2026House
  22. Amendment #1 (Johnson B) prevailed; voice vote

    1/22/2026House
  23. Committee report: amend do pass, adopted

    1/20/2026House
  24. First reading: referred to Committee on Local Government

    1/8/2026House
  25. Authored by Representative Miller D

    1/8/2026House

Bill Text

  • Engrossed House Bill (H)

  • Engrossed House Bill (S)

  • Enrolled House Bill (H)

  • House Bill (H)

  • House Bill (S)

  • Introduced House Bill (H)

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