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

Housing matters.

Sponsored By: Doug Miller (Republican)

Signed by Governor

local governmentthe senatejudiciary

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Bill Overview

Analyzed Economic Effects

11 provisions identified: 8 benefits, 0 costs, 3 mixed.

Clear size limits for backyard homes

Starting July 1, 2026, an accessory dwelling unit (ADU) is a self‑contained home on the same lot as a single‑family house. The ADU can be no larger than the smaller of 75% of the main home’s interior habitable area or 1,000 sq. ft. This gives homeowners a clear size limit when planning a backyard or attached unit.

Faster permits and refunds if late

Local permit reviews run on a clock. Within 30 days, the unit must flag defects or your application is complete. You get 30 days to fix issues, and a final yes/no comes within 90 days of the completeness date. Related official actions must happen within 60 days. If the unit misses required deadlines, it must refund your regulatory fees (unless the delay fits section 23). When you file a complete permit, today’s rules apply for at least 3 years; the protection ends if work is not finished within 10 years. If a state permit is also needed, apply to the state within 90 days of the local permit to get the same 3‑year protection. Some timing rules apply retroactive to July 1, 2025; vesting and refunds start July 1, 2026.

Limits on local building and zoning fees

Starting January 1, 2027, local fees for permits, plan reviews, and similar services cannot exceed the unit’s actual costs. A covered fee can rise only once every five years and by no more than the five‑year combined CPI‑U change, unless big cost shifts are proven at a public hearing. All fee money must go into a dedicated, non‑reverting fund used only for that fee’s costs. Beginning July 1, 2026, any ordinance that raises building permit fees must wait 180 days after publication before taking effect.

Local zoning review and housing reports

By January 1, 2027, every unit must hold a public hearing to review zoning and development rules to grow housing. The review should consider duplex‑to‑fourplex homes, accessory units, manufactured/modular homes, adaptive reuse, higher FAR, and at least a 15‑day faster permit path. By January 1, 2027, units must send a report with the hearing minutes, any ordinance changes, and prior housing studies. Starting January 1, 2027, units must file yearly housing progress and market reports. The state housing authority compiles the data, compares regions, and reviews 2026 housing laws.

More flexible costs and bond sales

Starting July 1, 2026, housing authorities can budget up to $4,000 per room for projects, or $15,000 per room for low‑income elderly or disabled housing. They may exceed these limits when needed to keep sound construction and meet an acute housing need. Authorities can also sell bonds by negotiated sale, including below par, to finance projects.

More housing funds for small towns

Beginning July 1, 2026, 70% of state housing infrastructure loans must support places under 50,000 people. The other 30% supports larger jurisdictions. The state housing authority applies this split when making loans.

Stricter rules for local impact fees

Beginning July 1, 2026, a unit may collect a new impact fee only if its ordinance meets the new law. Impact zones created after June 30, 2026 must be contiguous and closely tied to the infrastructure, or within 5 miles, or match the service line. At least 45 days before the public hearing, the unit must post the notice, fee summary, and improvement plan on its website and publish notice. Before adoption, a 5–10 member advisory committee must be formed, with at least 40% from building and real estate (including a single‑family builder, multifamily builder, and a realtor).

Caps on storm-water and floodplain mitigation

Starting July 1, 2026, governments cannot require more than a 3‑to‑1 compensatory storage ratio for filling in a flood plain. The state storm water manual also cannot require pond bank slopes steeper than 3:1, and it must require either a 10‑foot maintenance ledge or a 10‑foot safety ledge, not both. The department must update the manual by December 1, 2026.

Longer housing TIF programs and cleanup

Effective July 1, 2026, residential housing development programs can run up to 25 years after the first bond or lease obligation, or until obligations are paid, whichever is earlier. This replaces the prior 20‑year cap. On the same date, IC 36‑7‑14‑53.1 is repealed, removing a reinstatement provision from the redevelopment statutes.

Counties can post second notice online

Starting July 1, 2026, counties may publish the first weekly notice in a newspaper and the second on the county website, or both in a newspaper, when an ordinance requires publication. This adds a lower‑cost way to give the public notice.

No AFCI or ERCES mandates after 2026

For buildings built or renovated after June 30, 2026, governments cannot require arc‑fault circuit interrupters in Class 2 or R‑2 buildings. They also cannot require emergency responder communication enhancement systems in Class 1 buildings. Any earlier local rules that conflict are void to the extent of the conflict.

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

Roll Call 372 on HB1001.05.ENGS.CON01

Yes: 72 • No: 21 • Other: 5

Senate vote 2/24/2026

Roll Call 223 on HB1001.04.COMS

Yes: 35 • No: 13

House vote 1/27/2026

Roll Call 107 on HB1001.03.ENGH

Yes: 76 • No: 15 • Other: 4

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. Senator Niezgodski added as cosponsor

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

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

    2/24/2026Senate
  11. Returned to the House with amendments

    2/24/2026Senate
  12. Amendment #8 (Garten) prevailed; voice vote

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

    2/23/2026Senate
  14. Second reading: amended, ordered engrossed

    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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