January 20, 2006
HOUSE BILL No. 1261
_____
DIGEST OF HB 1261
(Updated January 19, 2006 12:00 pm - DI 73)
Citations Affected: IC 4-4; IC 4-6; IC 4-12; IC 5-10; IC 5-20;
IC 6-1.1; IC 6-2.5; IC 6-3.1; IC 8-1; IC 8-9.5; IC 12-7; IC 12-8;
IC 12-13; IC 12-20; IC 23-2; IC 24-4.5; IC 24-9; IC 34-30; IC 36-1;
noncode.
Synopsis: Housing and community development authority. Changes
references to the Indiana housing finance authority to the Indiana
housing and community development authority. Specifies additional
powers of the authority. Renames the low income housing trust fund
the affordable housing and community development fund. Expands the
uses of the fund. Changes the membership and name of the advisory
committee. Repeals the law concerning the Indiana affordable housing
fund. Limits the neighborhood assistance tax credit to persons who
contribute to neighborhood organizations that provide neighborhood
assistance. (Current law permits tax credits for persons who engage in
providing assistance.) Changes many definitions in the neighborhood
assistance tax credit to specifically include services provided to
economically disadvantaged households that may be located outside
economically disadvantaged areas. Moves the following programs from
the family and social services administration to the lieutenant governor:
(1) The housing assistance act of 1937. (2) Community services block
grant. (3) Home energy assistance programs; (4) Weatherization
assistance. (5) Food and nutrition programs. (6) Migrant and farm
worker programs. (7) Emergency shelter grant programs. (8) Shelter
plus care programs.
Effective: July 1, 2006.
Burton, Koch
January 10, 2006, read first time and referred to Committee on Government and Regulatory
Reform.
January 19, 2006, amended, reported _ Do Pass.
January 20, 2006
Second Regular Session 114th General Assembly (2006)
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
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Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in
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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 2005 Regular Session of the General Assembly.
HOUSE BILL No. 1261
A BILL FOR AN ACT to amend the Indiana Code concerning
human services.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 4-4-11-15; (06)HB1261.1.1. -->
SECTION 1. IC 4-4-11-15, AS AMENDED BY P.L.232-2005,
SECTION 3, AND AS AMENDED BY P.L.235-2005, SECTION 19,
IS CORRECTED AND AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2006]: Sec. 15. (a) The authority is granted all
powers necessary or appropriate to carry out and effectuate its public
and corporate purposes under
this chapter, IC 4-4-21, and IC 15-7-5,
the affected statutes, including but not limited to the following:
(1) Have perpetual succession as a body politic and corporate and
an independent instrumentality exercising essential public
functions.
(2) Without complying with IC 4-22-2, adopt, amend, and repeal
bylaws, rules,
guidelines, and
regulations policies not
inconsistent with
this chapter, IC 4-4-21, and IC 15-7-5, the
affected statutes, and necessary or convenient to regulate its
affairs and to carry into effect the powers, duties, and purposes of
the authority and conduct its business
under the affected statutes.
These bylaws, rules, guidelines, and policies must be made by a
resolution of the authority introduced at one (1) meeting and
approved at a subsequent meeting of the authority.
(3) Sue and be sued in its own name.
(4) Have an official seal and alter it at will.
(5) Maintain an office or offices at a place or places within the
state as it may designate.
(6) Make, and execute, and enforce contracts and all other
instruments necessary, or convenient, or desirable for the
performance of its duties and the exercise of its powers and
functions under this chapter, IC 4-4-21, and IC 15-7-5. purposes
of the authority or pertaining to:
(A) a purchase, acquisition, or sale of securities or other
investments; or
(B) the performance of the authority's duties and execution of
any of the authority's powers under the affected statutes.
(7) Employ architects, engineers, attorneys, inspectors,
accountants, agriculture experts, silviculture experts, aquaculture
experts, and financial experts, and such other advisors,
consultants, and agents as may be necessary in its judgment and
to fix their compensation.
(8) Procure insurance against any loss in connection with its
property and other assets, including loans and loan notes in
amounts and from insurers as it may consider advisable.
(9) Borrow money, make guaranties, issue bonds, and otherwise
incur indebtedness for any of the authority's purposes, and issue
debentures, notes, or other evidences of indebtedness, whether
secured or unsecured, to any person, as provided by this chapter,
IC 4-4-21, IC 4-4-11.4 and IC 15-7-5, the affected statutes.
Notwithstanding any other law, the:
(A) issuance by the authority of any indebtedness that
establishes a procedure for the authority or a person acting
on behalf of the authority to certify to the general assembly
the amount needed to restore a debt service reserve fund or
another fund to required levels; or
(B) execution by the authority of any other agreement that
creates a moral obligation of the state to pay all or part of any
indebtedness issued by the authority;
is subject to review by the budget committee and approval by the
budget director.
(10) Procure insurance or guaranties from any public or private
entities, including any department, agency, or instrumentality of
the United States, for payment of any bonds issued by the
authority or for reinsurance on amounts paid from the industrial
development project guaranty fund, including the power to pay
premiums on any insurance or reinsurance.
(11) Purchase, receive, take by grant, gift, devise, bequest, or
otherwise, and accept, from any source, aid or contributions of
money, property, labor, or other things of value to be held, used,
and applied to carry out the purposes of this chapter, IC 4-4-21,
and IC 15-7-5, the affected statutes, subject to the conditions
upon which the grants or contributions are made, including but
not limited to gifts or grants from any department, agency, or
instrumentality of the United States, and lease or otherwise
acquire, own, hold, improve, employ, use, and otherwise deal in
and with real or personal property or any interest in real or
personal property, wherever situated, for any purpose consistent
with this chapter, IC 4-4-21, or IC 15-7-5, the affected statutes.
(12) Enter into agreements with any department, agency, or
instrumentality of the United States or this state and with lenders
and enter into loan agreements, sales contracts, and leases with
contracting parties, including participants (as defined in
IC 13-11-2-151.1) for any purpose permitted under IC 13-18-13
or IC 13-18-21, borrowers, lenders, developers, or users, for the
purpose of planning, regulating, and providing for the financing
and refinancing of any agricultural enterprise (as defined in
IC 15-7-4.9-2), rural development project (as defined in
IC 15-7-4.9-19.5), industrial development project, purpose
permitted under IC 13-18-13 and IC 13-18-21, or international
exports, and distribute data and information concerning the
encouragement and improvement of agricultural enterprises and
agricultural employment, rural development projects, industrial
development projects, international exports, and other types of
employment in the state undertaken with the assistance of the
authority under this chapter.
(13) Enter into contracts or agreements with lenders and lessors
for the servicing and processing of loans and leases pursuant to
this chapter, IC 4-4-21, and IC 15-7-5, the affected statutes.
(14) Provide technical assistance to local public bodies and to
profit and nonprofit entities in the development or operation of
agricultural enterprises, rural development projects, and industrial
development projects.
(15) To the extent permitted under its contract with the holders of
the bonds of the authority, consent to any modification with
respect to the rate of interest, time, and payment of any
installment of principal or interest, or any other term of any
contract, loan, loan note, loan note commitment, contract, lease,
or agreement of any kind to which the authority is a party.
(16) To the extent permitted under its contract with the holders of
bonds of the authority, enter into contracts with any lender
containing provisions enabling it to reduce the rental or carrying
charges to persons unable to pay the regular schedule of charges
when, by reason of other income or payment by any department,
agency, or instrumentality of the United States of America or of
this state, the reduction can be made without jeopardizing the
economic stability of the agricultural enterprise, rural
development project, or industrial development project being
financed.
(17) Notwithstanding IC 5-13, but subject to the requirements of
any trust agreement entered into by the authority, invest: any
funds not needed for immediate disbursement, including any
funds held in reserve, in direct and general obligations of or
obligations fully and unconditionally guaranteed by the United
States, obligations issued by agencies of the United States,
obligations of this state, or any obligations or securities which
may from time to time be legally purchased by governmental
subdivisions of this state pursuant to IC 5-13, or any obligations
or securities which are permitted investments for bond proceeds
or any construction, debt service, or reserve funds secured under
the trust indenture or resolution pursuant to which bonds are
issued.
(A) the authority's money, funds, and accounts;
(B) any money, funds, and accounts in the authority's custody;
and
(C) proceeds of bonds or notes;
in the manner provided by an investment policy established by
resolution of the authority.
(18) Fix and revise periodically, and charge and collect, fees and
charges as the authority determines to be reasonable in connection
with: its
(A) the authority's loans, guarantees, advances, insurance,
commitments, and servicing; and
(B) the use of the authority's services or facilities.
(19) Cooperate and exchange services, personnel, and information
with any federal, state, or local government agency, or
instrumentality of the United States or this state.
(20) Sell, at public or private sale, with or without public bidding,
any loan or other obligation held by the authority.
(21) Enter into agreements concerning, and acquire, hold, and
dispose by any lawful means, land or interests in land, building
improvements, structures, personal property, franchises, patents,
accounts receivable, loans, assignments, guarantees, and
insurance needed for the purposes of this chapter, IC 4-4-21, or
IC 15-7-5, the affected statutes.
(22) Take assignments of accounts receivable, loans, guarantees,
insurance, notes, mortgages, security agreements securing notes,
and other forms of security, attach, seize, or take title by
foreclosure or conveyance to any industrial development project
when a guaranteed loan thereon is clearly in default and when in
the opinion of the authority such acquisition is necessary to
safeguard the industrial development project guaranty fund, and
sell, or on a temporary basis, lease, or rent such industrial
development project for any use.
(23) Expend money, as the authority considers appropriate, from
the industrial development project guaranty fund created by
section 16 of this chapter.
(24) Purchase, lease as lessee, construct, remodel, rebuild,
enlarge, or substantially improve industrial development projects,
including land, machinery, equipment, or any combination
thereof.
(25) Lease industrial development projects to users or developers,
with or without an option to purchase.
(26) Sell industrial development projects to users or developers,
for consideration to be paid in installments or otherwise.
(27) Make direct loans from the proceeds of the bonds to users or
developers for:
(A) the cost of acquisition, construction, or installation of
industrial development projects, including land, machinery,
equipment, or any combination thereof; or
(B) eligible expenditures for an educational facility project
described in IC 4-4-10.9-6.2(a)(2);
with the loans to be secured by the pledge of one (1) or more
bonds, notes, warrants, or other secured or unsecured debt
obligations of the users or developers.
(28) Lend or deposit the proceeds of bonds to or with a lender for
the purpose of furnishing funds to such lender to be used for
making a loan to a developer or user for the financing of industrial
development projects under this chapter.
(29) Enter into agreements with users or developers to allow the
users or developers, directly or as agents for the authority, to
wholly or partially construct industrial development projects to be
leased from or to be acquired by the authority.
(30) Establish reserves from the proceeds of the sale of bonds,
other funds, or both, in the amount determined to be necessary by
the authority to secure the payment of the principal and interest on
the bonds.
(31) Adopt rules and guidelines governing its activities
authorized under this chapter, IC 4-4-21, and IC 15-7-5, the
affected statutes.
(32) Use the proceeds of bonds to make guaranteed participating
loans.
(33) Purchase, discount, sell, and negotiate, with or without
guaranty, notes and other evidences of indebtedness.
(34) Sell and guarantee securities.
(35) Make guaranteed participating loans under IC 4-4-21-26.
(36) Procure insurance to guarantee, insure, coinsure, and
reinsure against political and commercial risk of loss, and any
other insurance the authority considers necessary, including
insurance to secure the payment of principal and interest on notes
or other obligations of the authority.
(37) Provide performance bond guarantees to support eligible
export loan transactions, subject to the terms of this chapter or
IC 4-4-21. the affected statutes.
(38) Provide financial counseling services to Indiana exporters.
(39) Accept gifts, grants, or loans from, and enter into contracts
or other transactions with, any federal or state agency,
municipality, private organization, or other source.
(40) Sell, convey, lease, exchange, transfer, or otherwise dispose
of property or any interest in property, wherever the property is
located.
(41) Cooperate with other public and private organizations to
promote export trade activities in Indiana.
(42) Make guarantees and administer the agricultural loan and
rural development project guarantee fund established by
IC 15-7-5.
(43) Take assignments of notes and mortgages and security
agreements securing notes and other forms of security, and attach,
seize, or take title by foreclosure or conveyance to any
agricultural enterprise or rural development project when a
guaranteed loan to the enterprise or rural development project is
clearly in default and when in the opinion of the authority the
acquisition is necessary to safeguard the agricultural loan and
rural development project guarantee fund, and sell, or on a
temporary basis, lease or rent the agricultural enterprise or rural
development project for any use.
(44) Expend money, as the authority considers appropriate, from
the agricultural loan and rural development project guarantee
fund created by IC 15-7-5-19.5.
(45) Reimburse from bond proceeds expenditures for industrial
development projects under this chapter.
(46) Acquire, hold, use, and dispose of the authority's income,
revenues, funds, and money.
(47) Purchase, acquire, or hold debt securities or other
investments for the authority's own account at prices and in a
manner the authority considers advisable, and sell or otherwise
dispose of those securities or investments at prices without
relation to cost and in a manner the authority considers
advisable.
(48) Fix and establish terms and provisions with respect to:
(A) a purchase of securities by the authority, including dates
and maturities of the securities;
(B) redemption or payment before maturity; and
(C) any other matters that in connection with the purchase are
necessary, desirable, or advisable in the judgment of the
authority.
(49) To the extent permitted under the authority's contracts with
the holders of bonds or notes, amend, modify, and supplement
any provision or term of:
(A) a bond, a note, or any other obligation of the authority; or
(B) any agreement or contract of any kind to which the
authority is a party.
(50) Subject to the authority's investment policy, do any act and
enter into any agreement pertaining to a swap agreement (as
defined in IC 8-9.5-9-4) related to the purposes of the affected
statutes in accordance with IC 8-9.5-9-5 and IC 8-9.5-9-7,
whether the action is incidental to the issuance, carrying, or
securing of bonds or otherwise.
(46) (51) Do any act necessary or convenient to the exercise of the
powers granted by this chapter, IC 4-4-21, or IC 15-7-5, the
affected statutes, or reasonably implied from those statutes,
including but not limited to compliance with requirements of
federal law imposed from time to time for the issuance of bonds.
(b) The authority's powers under this chapter shall be interpreted
broadly to effectuate the purposes of this chapter and may not be
construed as a limitation of powers. The omission of a power from the
list in subsection (a) does not imply that the authority lacks that power.
The authority may exercise any power that is not listed in subsection
(a) but is consistent with the powers listed in subsection (a) to the
extent that the power is not expressly denied by the Constitution of the
State of Indiana or by another statute.
(c) This chapter does not authorize the financing of industrial
development projects for a developer unless any written agreement that
may exist between the developer and the user at the time of the bond
resolution is fully disclosed to and approved by the authority.
(d) The authority shall work with and assist the Indiana health and
educational facility financing authority established by IC 5-1-16-2, the
Indiana housing finance and community development authority
established by IC 5-20-1-3, the Indiana port commission established
under IC 8-10-1, and the state fair commission established by
IC 15-1.5-2-1 in the issuance of bonds, notes, or other indebtedness.
The Indiana health and educational facility financing authority, the
Indiana housing finance and community development authority, the
Indiana port commission, and the state fair commission shall work
with and cooperate with the authority in connection with the issuance
of bonds, notes, or other indebtedness.
SOURCE: IC 4-4-11.5-6.3; (06)HB1261.1.2. -->
SECTION 2. IC 4-4-11.5-6.3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 6.3. As used in this
chapter, "IHFA" "IHCDA" refers to the Indiana housing finance and
community development authority established by IC 5-20-1.
SOURCE: IC 4-4-11.5-7.5; (06)HB1261.1.3. -->
SECTION 3. IC 4-4-11.5-7.5, AS AMENDED BY P.L.235-2005,
SECTION 35, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]: Sec. 7.5. As used in this chapter, "issuer" means IFA,
IHFA, IHCDA, ISMEL, a local unit, or any other issuer of bonds that
must procure volume under the volume cap.
SOURCE: IC 4-4-11.5-18; (06)HB1261.1.4. -->
SECTION 4. IC 4-4-11.5-18, AS AMENDED BY P.L.235-2005,
SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]: Sec. 18. (a) The volume cap shall be allocated annually
among categories of bonds in accordance with section 19 of this
chapter. Those categories are as follows:
(1) Bonds issued by the IFA.
(2) Bonds issued by the IHFA. IHCDA.
(3) Bonds issued by the ISMEL.
(4) Bonds issued by local units or any other issuers not
specifically referred to in this section whose bonds are or may
become subject to the volume cap for projects described in:
(A) Division A - Agricultural, Forestry, and Fishing;
(B) Division B - Mining;
(C) Division C - Construction;
(D) Division D - Manufacturing;
(E) Division E - Transportation; and
(F) Division F - Wholesale Trade;
of the SIC Manual (or corresponding sector in the NAICS
Manual), and any projects described in Section 142(a)(3),
142(a)(4), 142(a)(5), 142(a)(6), 142(a)(8), 142(a)(9), or
142(a)(10) of the Internal Revenue Code.
(5) Bonds issued by local units or any other issuers not
specifically referred to in this section whose bonds are or may
become subject to the volume cap for projects described in:
(A) Division G - Retail Trade;
(B) Division H - Finance, Insurance, and Real Estate;
(C) Division I - Services;
(D) Division J - Public Administration; and
(E) Division K - Miscellaneous;
of the SIC Manual (or corresponding sector in the NAICS
Manual), and any projects described in Section 142(a)(7) or
144(c) of the Internal Revenue Code.
(b) For purposes of determining the SIC category of a facility, the
determination shall be based upon the type of activity engaged in by the
user of the facility within the facility in question, rather than upon the
ultimate enterprise in which the developer or user of the facility is
engaged.
SOURCE: IC 4-4-11.5-19; (06)HB1261.1.5. -->
SECTION 5. IC 4-4-11.5-19, AS AMENDED BY P.L.235-2005,
SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]: Sec. 19. (a) On or before January 1 of each year, the
IFA shall determine the dollar amount of the volume cap for that year.
(b) Each year the volume cap shall be allocated among the
categories specified in section 18 of this chapter as follows:
Percentage of
Type of Bonds Volume Cap
Bonds issued by the IFA 9%
Bonds issued by the IHFA IHCDA 28%
Bonds issued by the ISMEL 1%
Bonds issued by local units or other
issuers under section 18(a)(3)
of this chapter 42%
Bonds issued by local units or other
issuers under section 18(a)(4)
of this chapter 20%
(c) Except as provided in subsection (d), the amount allocated to a
category represents the maximum amount of the volume cap that will
be reserved for bonds included within that category.
(d) The IFA may adopt a resolution to alter the allocations made by
subsection (b) for a year if it determines that the change is necessary to
allow maximum usage of the volume cap and to promote the health and
well-being of the residents of Indiana by promoting the public purposes
served by the bond categories then subject to the volume cap.
(e) The governor may, by executive order, establish for a year a
different dollar amount for the volume cap, different bond categories,
and different allocations among the bond categories than those set forth
in or established under this section and section 18 of this chapter if it
becomes necessary to adopt a different volume cap and bond category
allocation system in order to allow maximum usage of the volume cap
among the bond categories then subject to the volume cap and to
promote the health, welfare, and well-being of the residents of Indiana
by promoting the public purposes served by the bond categories then
subject to the volume cap.
SOURCE: IC 4-4-28-1.5; (06)HB1261.1.6. -->
SECTION 6. IC 4-4-28-1.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2006]: Sec. 1.5. As used in this chapter, "authority" refers to the
Indiana housing and community development authority established
under IC 5-20-1.
SOURCE: IC 4-4-28-11; (06)HB1261.1.7. -->
SECTION 7. IC 4-4-28-11, AS AMENDED BY P.L.235-2005,
SECTION 46, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]: Sec. 11. (a) Each community development corporation
shall annually provide the Indiana housing finance authority with
information needed to determine:
(1) the number of accounts administered by the community
development corporation;
(2) the length of time each account under subdivision (1) has been
established; and
(3) the amount of money an individual has deposited into each
account under subdivision (1) during the preceding twelve (12)
months.
(b) The Indiana housing finance authority shall use the information
provided under subsection (a) to deposit the correct amount of money
into each account as provided in section 12 of this chapter.
SOURCE: IC 4-4-28-12; (06)HB1261.1.8. -->
SECTION 8. IC 4-4-28-12, AS AMENDED BY P.L.235-2005,
SECTION 47, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]: Sec. 12. (a) The
Indiana housing finance authority shall
allocate, for each account that has been established after June 30, 2001,
for not more than four (4) years, including any time in which an
individual held an individual development account under this chapter
before July 1, 2001, three dollars ($3) for each one dollar ($1) an
individual deposited into the individual's account during the preceding
twelve (12) months. However, the authority's allocation under this
subsection may not exceed nine hundred dollars ($900) for each
account described in this subsection.
(b) Not later than June 30 of each year, the Indiana housing finance
authority shall deposit into each account established under this chapter
the appropriate amount of money determined under this section.
However, if the individual deposits the maximum amount allowed
under this chapter on or before December 31 of each year, the
individual may request in writing that the authority allocate and deposit
the matched funds under subsection (a) into the individual's account
not later than forty-five (45) days after the authority receives the
written request.
(c) Money from a federal block grant program under Title IV-A of
the federal Social Security Act may be used by the state to provide
money under this section for deposit into an account held by an
individual who receives assistance under IC 12-14-2.
SOURCE: IC 4-4-28-15; (06)HB1261.1.9. -->
SECTION 9. IC 4-4-28-15, AS AMENDED BY P.L.235-2005,
SECTION 48, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]: Sec. 15. (a) An individual must request and receive
authorization from the community development corporation that
administers the individual's account before withdrawing money from
the account for any purpose.
(b) An individual who is denied authorization to withdraw money
under subsection (a) may appeal the community development
corporation's decision to the Indiana housing finance authority under
rules adopted by the authority under IC 4-22-2.
SOURCE: IC 4-4-28-18; (06)HB1261.1.10. -->
SECTION 10. IC 4-4-28-18, AS AMENDED BY P.L.235-2005,
SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]: Sec. 18. (a) Each community development corporation
shall annually:
(1) evaluate the individual development accounts administered by
the community development corporation; and
(2) submit a report containing the evaluation information to the
Indiana housing finance authority.
(b) Two (2) or more community development corporations may
work together in carrying out the purposes of this chapter.
SOURCE: IC 4-4-28-21; (06)HB1261.1.11. -->
SECTION 11. IC 4-4-28-21, AS AMENDED BY P.L.235-2005,
SECTION 50, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]: Sec. 21. The Indiana housing finance authority may
adopt rules under IC 4-22-2 to implement this chapter.
SOURCE: IC 4-4-33; (06)HB1261.1.12. -->
SECTION 12. IC 4-4-33 IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2006]:
Chapter 33. Miscellaneous Community Development Programs
Sec. 1. The lieutenant governor shall administer the following:
(1) The Housing Assistance Act of 1937 (42 U.S.C. 1437).
(2) Community services programs, including the Community
Services Block Grant under 42 U.S.C. 9901 et seq.
(3) Home energy assistance programs, including the Low
Income Home Energy Assistance Block Grant under 42 U.S.C.
8621 et seq.
(4) Weatherization programs, including weatherization
programs and money received under 42 U.S.C. 6851 et seq.
(5) Food and nutrition programs, including food and nutrition
programs and money received under 7 U.S.C. 612, 7 U.S.C.
7501 et seq., and 42 U.S.C. 9922 et seq.
(6) Migrant and farm worker programs and money under 20
U.S.C. 6391 et seq., 29 U.S.C. 49 et seq., and 42 U.S.C. 1397 et
seq.
(7) Emergency shelter grant programs and money under 42
U.S.C. 11371 et seq.
(8) Shelter plus care programs and money under 42 U.S.C.
11403 et seq.
SOURCE: IC 4-4-34; (06)HB1261.1.13. -->
SECTION 13. IC 4-4-34 IS ADDED TO THE INDIANA CODE AS
A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2006]:
Chapter 34. Home Energy Assistance Programs
Sec. 1. As used in this chapter, "eligible household" means a
household determined by the lieutenant governor to be eligible in
the state plan for the program period.
Sec. 2. As used in this chapter, "eligible individual" means:
(1) a person who was systematically persecuted for racial or
religious reasons by Nazi Germany or any other Axis regime;
or
(2) an heir of a person described in subdivision (1).
Sec. 3. As used in this chapter, "Holocaust victim's settlement
payment" means a payment received:
(1) as a result of the settlement of the action entitled "In re
Holocaust Victims' Asset Litigation", (E.D. NY) C.A. No.
96-4849;
(2) under the German Act Regulating Unresolved Property
Claims;
(3) under any other foreign law providing payments for
Holocaust claims; or
(4) as a result of the settlement of any other Holocaust claim,
including:
(A) insurance claims;
(B) claims relating to looted art;
(C) claims relating to looted financial assets; or
(D) claims relating to slave labor wages.
Sec. 4. As used in this chapter, "home energy" means electricity,
oil, gas, coal, propane, or any other fuel for use as the principal
source of heating or cooling in residential dwellings.
Sec. 5. As used in this chapter, "home energy supplier" means
a person, including a trustee or receiver appointed by a court,
engaged in the furnishing or selling of home energy in Indiana.
Sec. 6. The home energy assistance programs must provide
assistance, including emergency assistance, to low income
households in Indiana to:
(1) defray home energy costs; and
(2) provide assistance to low income households;
for home energy conservation measures.
Sec. 7. The lieutenant governor shall do the following:
(1) Administer an appropriation made for the purposes
specified in section 7 of this chapter.
(2) Receive and administer money that may be available to the
state for energy and conservation assistance from the federal
government.
(3) Establish criteria to determine eligibility for assistance
under this chapter.
Sec. 8. The lieutenant governor may determine the amount of
assistance that an eligible household may receive.
Sec. 9. (a) The criteria for determining the amount of assistance
may include the following:
(1) The age of an applicant for assistance.
(2) Whether the applicant is employed.
(3) Household income during the past one hundred eighty
(180) days.
(4) Household size.
(5) Type of fuel used for primary heating or cooling.
(6) The need for assistance.
(7) Residency.
(8) The age and energy efficiency of the applicant's dwelling
and heating plant.
(b) Unless prohibited by federal law, the criteria for
determining the amount of assistance must include a consideration
of an applicant's housing status. The lieutenant governor shall give
weight to an applicant's housing status in the following order, from
greatest weight to least weight:
(1) An applicant who resides in nonsubsidized housing.
(2) An applicant who resides in subsidized housing in which
home energy costs are not included in the rent.
(3) An applicant who resides in subsidized housing in which
home energy costs are included in the rent.
(c) The lieutenant governor shall annually:
(1) review the formula used by the lieutenant governor to
determine the amount of assistance awarded under this
chapter; and
(2) prepare a report that includes:
(A) the following information for the most recent federal
fiscal year:
(i) The number of applicants for assistance under this
chapter.
(ii) The number of assistance awards made under this
chapter.
(iii) The average amount of assistance awarded under
this chapter for all recipients and by category of housing
status; and
(B) a statement of:
(i) the formula that the lieutenant governor is currently
using to determine the amount of assistance under this
chapter; and
(ii) the lieutenant governor's intention regarding any
change in the formula described in item (i).
(d) The lieutenant governor shall file the report required under
subsection (c)(2) in an electronic format under IC 5-14-6 with the
legislative council before April 1 each year.
Sec. 10. Except as provided by federal law, if an individual
receives a state or federal higher education award that is paid
directly to an approved institution of higher learning (as defined in
IC 20-12-21-3) for that individual's benefit:
(1) the individual is not required to report the award as
income or as a resource of the individual when applying for
assistance under this chapter; and
(2) the award may not be considered as income or a resource
of the individual in determining initial or continuing eligibility
for assistance under this chapter.
Sec. 11. The lieutenant governor may require a home energy
supplier or an agency of state or local government or may contract
with another public or private agency to do the following:
(1) Disseminate information about the program.
(2) Receive or aid in the preparation of applications for
assistance.
(3) Assist in determining eligibility for assistance.
Sec. 12. An application must be made on standardized forms
provided by the lieutenant governor and in accordance with
procedures established by the lieutenant governor.
Sec. 13. The lieutenant governor shall establish methods for
providing assistance to eligible households. Methods may include
the following:
(1) Direct payments by cash or check to eligible households.
(2) Direct vendor payments.
(3) Lines of credit to home energy suppliers.
(4) The use of coupons and vouchers redeemable by the state.
Sec. 14. The lieutenant governor may require the following:
(1) A home energy supplier to accept vendor payments, lines
of credit, or coupons and vouchers as full or partial payment
for the cost of home energy consumed by eligible households.
(2) An operator of residential housing units to accept vendor
payments or coupons and vouchers as full or partial payment
of rent by eligible households making undesignated payments
for home energy costs in the form of rent payments.
Sec. 15. The lieutenant governor shall establish procedures for
the conduct of hearings and appeals upon request from applicants
who have been denied assistance.
Sec. 16. A recipient may not transfer or assign assistance under
this chapter except as allowed by the lieutenant governor.
Sec. 17. The lieutenant governor may recover from a recipient
the amount of assistance that the lieutenant governor determines
the recipient was not entitled to receive.
Sec. 18. If a recipient obtained excessive assistance fraudulently,
the recipient shall pay a penalty equal to twenty percent (20%) of
the excessive assistance.
Sec. 19. A claim under this chapter may be recovered from the
recipient or the recipient's estate by civil action and is a preferred
claim against the estate of a recipient under IC 29-1-14-9(6).
Sec. 20. A:
(1) home energy supplier;
(2) landlord; or
(3) building operator;
that uses the name of an applicant or a recipient or information
contained in applications made under this chapter for any purpose
other than as specified by the lieutenant governor commits a Class
B misdemeanor.
Sec. 21. The lieutenant governor may take actions necessary to
implement this chapter, including the establishment of conditions
regulating service termination to eligible households that the
lieutenant governor determines to be appropriate and necessary to
ensure the availability of federal financial assistance.
SOURCE: IC 4-6-12-4; (06)HB1261.1.14. -->
SECTION 14. IC 4-6-12-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 4. (a) The following
may cooperate with the unit to implement this chapter:
(1) The Indiana professional licensing agency and the appropriate
licensing boards with respect to persons licensed under IC 25.
(2) The department of financial institutions.
(3) The department of insurance with respect to the sale of
insurance in connection with mortgage lending.
(4) The securities division of the office of the secretary of state.
(5) The supreme court disciplinary commission with respect to
attorney misconduct.
(6) The Indiana housing finance and community development
authority.
(7) The department of state revenue.
(8) The state police department.
(9) A prosecuting attorney.
(10) Local law enforcement agencies.
(11) The department of commerce.
(b) Notwithstanding IC 5-14-3, the entities listed in subsection (a)
may share information with the unit.
SOURCE: IC 4-6-12-8; (06)HB1261.1.15. -->
SECTION 15. IC 4-6-12-8, AS AMENDED BY P.L.235-2005,
SECTION 51, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]: Sec. 8. The unit shall cooperate with the Indiana
housing and community development authority in the development
and implementation of the home ownership education programs
established under IC 5-20-1-4(g). IC 5-20-1-4(f).
SOURCE: IC 4-12-1-14.2; (06)HB1261.1.16. -->
SECTION 16. IC 4-12-1-14.2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 14.2. Notwithstanding
any other law, all oil overcharge funds received from the federal
government are annually appropriated to the division of family and
children lieutenant governor for the division's lieutenant governor's
use in carrying out the home energy assistance program. The amount
of this annual appropriation for a state fiscal year is equal to:
(1) the total amount necessary to carry out the program during
that fiscal year; minus
(2) the amount of federal low income energy assistance funds
available for the program during that state fiscal year.
SOURCE: IC 5-10-1.7-2; (06)HB1261.1.17. -->
SECTION 17. IC 5-10-1.7-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 2. In addition to any
other investment power given to a board, a board may invest as much
of its trust funds as are not required for current disbursements in
mortgage-backed bonds or notes issued by the Indiana housing finance
and community development authority under IC 5-20-1.
SOURCE: IC 5-20-1-2; (06)HB1261.1.18. -->
SECTION 18. IC 5-20-1-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 2. As used in this
chapter:
"Assisted" means, with respect to a loan:
(1) the payment by the United States or any duly authorized
agency of the United States of assistance payments, interest
payments, or mortgage reduction payments with respect to such
loan; or
(2) the provision of insurance, guaranty, security, collateral,
subsidies, or other forms of assistance or aid acceptable to the
authority for the making, holding, or selling of a loan from the
United States, any duly authorized agency of the United States, or
any entity or corporation acceptable to the authority, other than
the sponsor.
"Authority" means the Indiana housing
finance and community
development authority created
under by section 3 of this chapter.
"Bonds" or "notes" means the bonds or notes authorized to be issued
by the authority under this chapter.
"Development costs" means the costs approved by the authority as
appropriate expenditures and credits which may be incurred by
sponsors, builders, and developers of residential housing prior to
commitment and initial advance of the proceeds of a construction loan
or of a mortgage, including but not limited to:
(1) payments for options to purchase properties on the proposed
residential housing site, deposits on contracts of purchase, or,
with prior approval of the authority, payments for the purchase of
such properties;
(2) legal, organizational, and marketing expenses, including
payments of attorney's fees, project manager, clerical, and other
incidental expenses;
(3) payment of fees for preliminary feasibility studies and
advances for planning, engineering, and architectural work;
(4) expenses for surveys as to need and market analyses;
(5) necessary application and other fees;
(6) credits allowed by the authority to recognize the value of
service provided at no cost by the sponsors, builders, or
developers; and
(7) such other expenses as the authority deems appropriate for the
purposes of this chapter.
"Governmental agency" means any department, division, public
agency, political subdivision, or other public instrumentality of the
state of Indiana, the federal government, any other state or public
agency, or any two (2) or more thereof.
"Construction loan" means a loan to provide interim financing for
the acquisition or construction of single family residential housing,
including land development.
"Mortgage" or "mortgage loan" means a loan to provide permanent
financing for:
(1) the rehabilitation, acquisition, or construction of single family
residential housing, including land development; or
(2) the weatherization of single family residences.
"Mortgage lender" means a bank, trust company, savings bank,
savings association, credit union, national banking association, federal
savings association or federal credit union maintaining an office in this
state, a public utility (as defined in IC 8-1-2-1), a gas utility system
organized under IC 8-1-11.1, an insurance company authorized to do
business in this state, or any mortgage banking firm or mortgagee
authorized to do business in this state and approved by either the
authority or the Department of Housing and Urban Development.
"Land development" means the process of acquiring land primarily
for residential housing construction for persons and families of low and
moderate income and making, installing, or constructing nonresidential
housing improvements, including water, sewer, and other utilities,
roads, streets, curbs, gutters, sidewalks, storm drainage facilities, and
other installations or works, whether on or off the site, which the
authority deems necessary or desirable to prepare such land primarily
for residential housing construction.
"Obligations" means any bonds or notes authorized to be issued by
the authority under this chapter.
"Persons and families of low and moderate income" means persons
and families of insufficient personal or family income to afford
adequate housing as determined by the standards established by the
authority, and in determining such standards the authority shall take
into account the following:
(1) The amount of total income of such persons and families
available for housing needs.
(2) The size of the family.
(3) The cost and condition of housing facilities available in the
different geographic areas of the state.
(4) The ability of such persons and families to compete
successfully in the private housing market and to pay the amounts
at which private enterprise is providing sanitary, decent, and safe
housing.
The standards shall, however, comply with the applicable limitations
of section 4(b) of this chapter.
"Residential facility for children" means a facility:
(1) that provides residential services to individuals who are:
(A) under twenty-one (21) years of age; and
(B) adjudicated to be children in need of services under
IC 31-34 (or IC 31-6-4 before its repeal) or delinquent children
under IC 31-37 (or IC 31-6-4 before its repeal); and
(2) that is:
(A) a child caring institution that is or will be licensed under
IC 12-17.4;
(B) a residential facility that is or will be licensed under
IC 12-28-5; or
(C) a facility that is or will be certified by the division of
mental health and addiction under IC 12-23.
"Residential facility for the developmentally disabled" means a
facility that is approved for use in a community residential program for
the developmentally disabled under IC 12-11-1.1.
"Residential facility for the mentally ill" means a facility that is
approved by the division of mental health and addiction for use in a
community residential program for the mentally ill under
IC 12-22-2-3(1), IC 12-22-2-3(2), IC 12-22-2-3(3), or IC 12-22-2-3(4).
"Residential housing" means a specific work or improvement
undertaken primarily to provide single or multiple family housing for
rental or sale to persons and families of low and moderate income,
including the acquisition, construction, or rehabilitation of lands,
buildings, and improvements to the housing, and such other
nonhousing facilities as may be incidental or appurtenant to the
housing.
"Sponsors", "builders", or "developers" means corporations,
associations, partnerships, limited liability companies, or other entities
and consumer housing cooperatives organized pursuant to law for the
primary purpose of providing housing to low and moderate income
persons and families.
"State" means the state of Indiana.
"Tenant programs and services" means services and activities for
persons and families living in residential housing, including the
following:
(1) Counseling on household management, housekeeping,
budgeting, and money management.
(2) Child care and similar matters.
(3) Access to available community services related to job training
and placement, education, health, welfare, and other community
services.
(4) Guard and other matters related to the physical security of the
housing residents.
(5) Effective management-tenant relations, including tenant
participation in all aspects of housing administration,
management, and maintenance.
(6) Physical improvements of the housing, including buildings,
recreational and community facilities, safety measures, and
removal of code violations.
(7) Advisory services for tenants in the creation of tenant
organizations which will assume a meaningful and responsible
role in the planning and carrying out of housing affairs.
(8) Procedures whereby tenants, either individually or in a group,
may be given a hearing on questions relating to management
policies and practices either in general or in relation to an
individual or family.
SOURCE: IC 5-20-1-4; (06)HB1261.1.19. -->
SECTION 19. IC 5-20-1-4, AS AMENDED BY P.L.235-2005,
SECTION 88, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]: Sec. 4. (a) The authority has all of the powers
necessary or convenient to carry out and effectuate the purposes and
provisions of this chapter, including the power:
(1) to make or participate in the making of construction loans to
sponsors of multiple family residential housing that is federally
assisted or assisted by a government sponsored enterprise, such
as the Federal National Mortgage Association, the Federal Home
Loan Mortgage Corporation, or the Federal Agricultural Mortgage
Corporation, the Federal Home Loan Bank, and other similar
entities approved by the authority;
(2) to make or participate in the making of mortgage loans to
sponsors of multiple family residential housing that is federally
assisted or assisted by a government sponsored enterprise, such
as the Federal National Mortgage Association, the Federal Home
Loan Mortgage Corporation, or the Federal Agricultural Mortgage
Corporation, the Federal Home Loan Bank, and other similar
entities approved by the authority;
(3) to purchase or participate in the purchase from mortgage
lenders of mortgage loans made to persons of low and moderate
income for residential housing;
(4) to make loans to mortgage lenders for the purpose of
furnishing funds to such mortgage lenders to be used for making
mortgage loans for persons and families of low and moderate
income. However, the obligation to repay loans to mortgage
lenders shall be general obligations of the respective mortgage
lenders and shall bear such date or dates, shall mature at such
time or times, shall be evidenced by such note, bond, or other
certificate of indebtedness, shall be subject to prepayment, and
shall contain such other provisions consistent with the purposes
of this chapter as the authority shall by rule or resolution
determine;
(5) to collect and pay reasonable fees and charges in connection
with making, purchasing, and servicing of its loans, notes, bonds,
commitments, and other evidences of indebtedness;
(6) to acquire real property, or any interest in real property, by
conveyance, including purchase in lieu of foreclosure, or
foreclosure, to own, manage, operate, hold, clear, improve, and
rehabilitate such real property and sell, assign, exchange, transfer,
convey, lease, mortgage, or otherwise dispose of or encumber
such real property where such use of real property is necessary or
appropriate to the purposes of the authority;
(7) to sell, at public or private sale, all or any part of any mortgage
or other instrument or document securing a construction loan, a
land development loan, a mortgage loan, or a loan of any type
permitted by this chapter;
(8) to procure insurance against any loss in connection with its
operations in such amounts and from such insurers as it may deem
necessary or desirable;
(9) to consent, subject to the provisions of any contract with
noteholders or bondholders which may then exist, whenever it
deems it necessary or desirable in the fulfillment of its purposes
to the modification of the rate of interest, time of payment of any
installment of principal or interest, or any other terms of any
mortgage loan, mortgage loan commitment, construction loan,
loan to lender, or contract or agreement of any kind to which the
authority is a party;
(10) to enter into agreements or other transactions with any
federal, state, or local governmental agency for the purpose of
providing adequate living quarters for such persons and families
in cities and counties where a need has been found for such
housing;
(11) to include in any borrowing such amounts as may be deemed
necessary by the authority to pay financing charges, interest on
the obligations (for a period not exceeding the period of
construction and a reasonable time thereafter or if the housing is
completed, two (2) years from the date of issue of the
obligations), consultant, advisory, and legal fees and such other
expenses as are necessary or incident to such borrowing;
(12) to make and publish rules respecting its lending programs
and such other rules as are necessary to effectuate the purposes of
this chapter;
(13) to provide technical and advisory services to sponsors,
builders, and developers of residential housing and to residents
and potential residents, including housing selection and purchase
procedures, family budgeting, property use and maintenance,
household management, and utilization of community resources;
(14) to promote research and development in scientific methods
of constructing low cost residential housing of high durability;
(15) to encourage community organizations to participate in
residential housing development;
(16) to make, execute, and effectuate any and all agreements or
other documents with any governmental agency or any person,
corporation, association, partnership, limited liability company,
or other organization or entity necessary or convenient to
accomplish the purposes of this chapter;
(17) to accept gifts, devises, bequests, grants, loans,
appropriations, revenue sharing, other financing and assistance
and any other aid from any source whatsoever and to agree to, and
to comply with, conditions attached thereto;
(18) to sue and be sued in its own name, plead and be impleaded;
(19) to maintain an office in the city of Indianapolis and at such
other place or places as it may determine;
(20) to adopt an official seal and alter the same at pleasure;
(21) to adopt and from time to time amend and repeal bylaws for
the regulation of its affairs and the conduct of its business and to
prescribe rules and policies in connection with the performance
of its functions and duties;
(22) to employ fiscal consultants, engineers, attorneys, real estate
counselors, appraisers, and such other consultants and employees
as may be required in the judgment of the authority and to fix and
pay their compensation from funds available to the authority
therefor;
(23) notwithstanding IC 5-13, but subject to the requirements of
any trust agreement entered into by the authority, to invest:
(A) the authority's money, funds, and accounts;
(B) any money, funds, and accounts in the authority's custody;
and
(C) proceeds of bonds or notes;
in the manner provided by an investment policy established by
resolution of the authority;
(24) to make or participate in the making of construction loans,
mortgage loans, or both, to individuals, partnerships, limited
liability companies, corporations, and organizations for the
construction of residential facilities for the developmentally
disabled or for the mentally ill or for the acquisition or renovation,
or both, of a facility to make it suitable for use as a new
residential facility for the developmentally disabled or for the
mentally ill;
(25) to make or participate in the making of construction and
mortgage loans to individuals, partnerships, corporations, limited
liability companies, and organizations for the construction,
rehabilitation, or acquisition of residential facilities for children;
(26) to purchase or participate in the purchase of mortgage loans
from:
(A) public utilities (as defined in IC 8-1-2-1); or
(B) municipally owned gas utility systems organized under
IC 8-1.5;
if those mortgage loans were made for the purpose of insulating
and otherwise weatherizing single family residences in order to
conserve energy used to heat and cool those residences;
(27) to provide financial assistance to mutual housing
associations (IC 5-20-3) in the form of grants, loans, or a
combination of grants and loans for the development of housing
for low and moderate income families;
(28) to service mortgage loans made or acquired by the authority
and to impose and collect reasonable fees and charges in
connection with such servicing; and
(29) subject to the authority's investment policy, to enter into
swap agreements (as defined in IC 8-9.5-9-4) in accordance with
IC 8-9.5-9-5 and IC 8-9.5-9-7;
(30) to promote and foster low income housing, the
rehabilitation of communities and the creation of commercial
development to promote social welfare through the relief of
the poor and distressed or of the underprivileged, and to
combat community deterioration;
(31) to provide a range of services and activities having a
measurable and potentially major impact on the cause of
poverty;
(32) to provide activities designed to assist low income
participants, including the elderly poor, to:
(A) secure and retain meaningful employment;
(B) attain an adequate education;
(C) make better use of available income;
(D) obtain and maintain adequate housing and a suitable
living environment;
(E) obtain emergency assistance through loans or grants to
meet immediate and urgent individual and family needs,
including the need for health services, energy assistance,
nutritious food, housing, and employment related
assistance;
(F) remove obstacles and solve problems that block the
achievement of self-sufficiency;
(G) achieve greater participation in the affairs of the
community; and
(H) make more effective use of other programs related to
the purposes of this chapter;
(33) to provide on an emergency basis for the provision of
supplies, nutritious foodstuffs, and related services that are
necessary to counteract conditions of starvation and
malnutrition among the poor;
(34) to coordinate and establish linkages between
governmental and other social services programs to ensure
the effective delivery of services to low income individuals;
(35) to encourage the use of entities in the private sector of the
community in efforts to ameliorate poverty in the community;
(36) to coordinate the provision of available services for
migrant farmworkers;
(37) to study housing conditions and needs throughout
Indiana to determine in what areas congested and unsanitary
housing conditions constitute a menace to the health, safety,
welfare, and reasonable comfort of citizens;
(38) to recommend programs for correcting the causes of
poverty;
(39) to collect and distribute information relative to housing;
(40) to investigate all matters affecting the cost of
construction or production of dwellings;
(41) to study means of lowering rents of dwellings through
economy in the construction and arrangement of buildings;
(42) to recommend the areas within which or adjacent to
which the construction of housing projects by housing
authorities may be undertaken;
(43) to cooperate with local housing officials and plan
commissions in the development of projects that the officials
or commissions have under consideration;
(44) to make special studies and recommendations for the
rehabilitation of areas affected by floods or other disasters;
(45) to administer energy assistance programs and any
appropriation made for the purpose of providing energy
assistance;
(46) to receive and administer money that may be available to
the state for energy and conservation assistance from the
federal government;
(47) to establish criteria to determine eligibility for energy
assistance;
(48) to administer the low income home weatherization
programs;
(49) to provide community services, crime prevention, and job
training (as defined in IC 6-3.1-9-1);
(50) to take actions necessary to implement its powers that the
authority determines to be appropriate and necessary to
ensure the availability of state or federal financial assistance;
and
(51) to administer any program or money designated by the
state or available from the federal government or other
sources that is consistent with the authority's powers and
duties.
The omission of a power from the list in this subsection does not imply
that the authority lacks that power. The authority may exercise any
power that is not listed in this subsection but is consistent with the
powers listed in this subsection to the extent that the power is not
expressly denied by the Constitution of the State of Indiana or by
another statute.
(b) The authority shall structure and administer any program
conducted under subsection (a)(3) or (a)(4) in order to assure that no
mortgage loan shall knowingly be made to a person whose adjusted
family income shall exceed one hundred twenty-five percent (125%)
of the median income for the geographic area within which the person
resides and at least forty percent (40%) of the mortgage loans so
financed shall be for persons whose adjusted family income shall be
below eighty percent (80%) of the median income for such area.
(c) In addition to the powers set forth in subsection (a), the authority
may, with the proceeds of bonds and notes sold to retirement plans
covered by IC 5-10-1.7, structure and administer a program of
purchasing or participating in the purchasing from mortgage lenders of
mortgage loans made to qualified members of retirement plans and
other individuals. The authority shall structure and administer any
program conducted under this subsection to assure that:
(1) each mortgage loan is made as a first mortgage loan for real
property:
(A) that is a single family dwelling, including a condominium
or townhouse, located in Indiana;
(B) for a purchase price of not more than ninety-five thousand
dollars ($95,000);
(C) to be used as the purchaser's principal residence; and
(D) for which the purchaser has made a down payment in an
amount determined by the authority;
(2) no mortgage loan exceeds seventy-five thousand dollars
($75,000);
(3) any bonds or notes issued which are backed by mortgage loans
purchased by the authority under this subsection shall be offered
for sale to the retirement plans covered by IC 5-10-1.7; and
(4) qualified members of a retirement plan shall be given
preference with respect to the mortgage loans that in the
aggregate do not exceed the amount invested by their retirement
plan in bonds and notes issued by the authority that are backed by
mortgage loans purchased by the authority under this subsection.
(d) As used in this section, "a qualified member of a retirement
plan" means an active or retired member:
(1) of a retirement plan covered by IC 5-10-1.7 that has invested
in bonds and notes issued by the authority that are backed by
mortgage loans purchased by the authority under subsection (c);
and
(2) who for a minimum of two (2) years preceding the member's
application for a mortgage loan has:
(A) been a full-time state employee, teacher, judge, police
officer, or firefighter;
(B) been a full-time employee of a political subdivision
participating in the public employees' retirement fund;
(C) been receiving retirement benefits from the retirement
plan; or
(D) a combination of employment and receipt of retirement
benefits equaling at least two (2) years.
(e) Beginning with the 1991 program year, The authority, when
directed by the governor, shall administer
(1) the rental rehabilitation program established by the Housing
Assistance Act of 1937 (42 U.S.C. 1437o); and
(2) federal funds allocated to the rental rehabilitation program
under the Housing Assistance Act of 1937 (42 U.S.C. 1437o).
programs and funds under 42 U.S.C. 1437 et seq.
(f) The authority may contract with the division of family and
children and the department of commerce so that the authority may
administer the program and funds described under subsection (e) for
program years before 1991.
(g) (f) Beginning May 15, 2005, The authority shall identify,
promote, assist, and fund home ownership education programs
conducted throughout Indiana by nonprofit counseling agencies
certified by the authority using funds appropriated under section 27 of
this chapter. The attorney general and the entities listed in
IC 4-6-12-4(a)(1) through IC 4-6-12-4(a)(10) shall cooperate with the
authority in implementing this subsection.
SOURCE: IC 5-20-1-7; (06)HB1261.1.20. -->
SECTION 20. IC 5-20-1-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 7.
State Not Liable for
Obligations of the Indiana Housing Finance Authority. (a) Obligations
issued under the provisions of this chapter do not constitute a debt,
liability or obligation of the state of Indiana or a pledge of the faith and
credit of the state of Indiana, but shall be payable solely from the
revenues or assets of the authority. Under any circumstances, general
fund revenues of the state of Indiana may not be used to pay all or part
of the obligations of the authority, and there is no moral obligation of
the state of Indiana to pay all or part of the obligations of the authority.
Each obligation issued under this chapter shall contain on the face
thereof a statement to the effect that the authority shall not be obligated
to pay the same nor the interest thereon except from the revenues or
assets pledged therefor and that neither the faith and credit nor the
taxing power of the state of Indiana is pledged to the payment of the
principal of or the interest on such obligation.
(b) Expenses incurred by the authority in carrying out the provisions
of this chapter may be made payable from funds provided pursuant to
this chapter, and no liability shall be incurred by the authority under
this chapter beyond the extent to which moneys shall have been so
provided.
SOURCE: IC 5-20-1-27; (06)HB1261.1.21. -->
SECTION 21. IC 5-20-1-27, AS ADDED BY P.L.235-2005,
SECTION 91, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]: Sec. 27. (a) The home ownership education account
within the state general fund is established to support the home
ownership education programs established under section 4(g) section
4(f) of this chapter. The account is administered by the authority.
(b) The home ownership education account consists of fees
collected under IC 24-9-9.
(c) The expenses of administering the home ownership education
account shall be paid from money in the fund.
(d) The treasurer of state shall invest the money in the home
ownership education account not currently needed to meet the
obligations of the account in the same manner as other public money
may be invested.
SOURCE: IC 5-20-2-2; (06)HB1261.1.22. -->
SECTION 22. IC 5-20-2-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 2. As used in this
chapter, each of the following shall have the meaning indicated unless
a different meaning clearly appears from the context:
(1) "Bonds" means the revenue bonds authorized to be issued
under this chapter and includes notes and any and all other
limited obligations of a county or municipality payable as
provided in this chapter.
(2) "Executive officer" of a county, city, or town has the meaning
set forth in IC 36-1-2-5.
(3) "Governing body" of a county, city, or town has the meaning
set forth in IC 36-1-2-9.
(4) "Home" means real property and improvements thereon
constructed for human habitation, located within the county or
municipality, consisting of not more than four (4) units, and
owned by one (1) mortgagor who occupies or intends to occupy
one (1) of such units.
(5) "Home mortgage" means an interest bearing loan for not to
exceed thirty (30) years to a mortgagor for the purpose of
purchasing or improving a home, evidenced by a promissory note
and secured by a mortgage on this home, but shall not include a
loan primarily for the purpose of refinancing an existing loan.
(6) "Lending institution" means any bank, trust company, savings
bank, national banking association, savings association, mortgage
banker, or other financing institution or governmental agency
which customarily provides service or otherwise aids in the
financing of mortgages on single family residential housing or
multifamily residential housing, which institution, for a county, is
located in that county, and for a municipality is located in the
county in which the municipality is located, or any holding
company for any of the foregoing.
(7) "Mortgagor" means an individual, or two (2) or more
individuals acting together, who have received a home mortgage
under this chapter.
(8) "Recording officer" means the clerk or clerk-treasurer of a
county or municipality.
(9) "Municipality" means a city or town.
(10) "Authority" refers to the Indiana housing and
community development authority created by IC 5-20-1-3.
SOURCE: IC 5-20-2-5; (06)HB1261.1.23. -->
SECTION 23. IC 5-20-2-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 5.
Other Limitations.
(a) Bonds shall not be issued by a county, city, town or consolidated
city for home mortgages under this chapter if at the time of issuance
and delivery there remains unexpended or uncommitted more than five
percent (5%) of the net proceeds of a prior bond issued by that county,
city, town or consolidated city under this chapter.
(b) Bonds shall not be issued under this chapter for home mortgages
in an amount in excess of twenty-five percent (25%) of the average
annual amount of mortgage lending in the county or municipality in the
most recent three (3) year period for which the governing body shall by
ordinance determine from the Home Mortgage Disclosure Act, Public
Law 94-200.
(c) No issue shall be approved by the
state housing finance authority
if the amount of the issue exceeds the total amount of bond issues
permissible under this chapter in the calendar year during which the
proposed bonds will be issued.
The total amount of bonds permissible under this chapter in any
calendar year shall be fifty dollars ($50) multiplied by the population
of the state of Indiana as determined by the most recent federal
decennial census.
(d) There is a five percent (5%) down payment requirement. An
issue meets this requirement only if seventy-five percent (75%) or more
of the owner-occupied financing provided by the issue is ninety-five
percent (95%) financing. For purposes of this subsection, financing of
a residence is ninety-five percent (95%) financing if such financing is
ninety-five percent (95%) or more of the acquisition cost of such
residence.
A larger down payment is permitted in the case of alternative
mortgage instruments as provided by law.
(e) No mortgage shall be made under this chapter the amount of
which exceeds two and one-half (2 1/2) times the amount of the annual
income of the prospective mortgager. mortgagor. In addition, no
financing shall be provided under this chapter to a prospective
mortgagor who is already a mortgagor with respect to an existing
mortgage financed under this chapter.
(f) The effective rate of interest on mortgages provided from a
particular bond issue under this chapter may not exceed the yield on the
issue by more than one (1) percentage point. For purposes of this
subsection, the effective rate of mortgage interest and the bond yield
shall be determined in accordance with reasonable procedures adopted
by the state housing finance authority. However, the state housing
finance authority may waive the restriction in this subsection if it
determines that:
(1) waiver of the restriction with respect to a proposed issue is in
the best interests of the citizens of the issuing jurisdiction and the
state of Indiana; and
(2) the proposed issue is not marketable without waiver of the
restriction.
(g) An issue meets the requirements of this section only if a
preliminary official statement of such issue has been submitted to the
state housing finance authority, and:
(1) such authority has, within thirty (30) days after the date of
such submission, issued an opinion that such issue meets the
requirements of sections 4 and 5 of this chapter; or
(2) thirty (30) days have elapsed since such submission and
during this thirty (30) day period the authority has not issued an
opinion that the issue does not meet the requirements of sections
4 and 5 of this chapter.
SOURCE: IC 5-20-3-4; (06)HB1261.1.24. -->
SECTION 24. IC 5-20-3-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 4. (a) A mutual housing
association may be established as a nonprofit corporation incorporated
under IC 23-7-1.1 (before its repeal on August 1, 1991) or IC 23-17 to
prevent and eliminate neighborhood deterioration and to preserve
neighborhood stability by:
(1) providing high quality, long term housing for families of low
and moderate income; and
(2) affording community and residential involvement in the
provision of that housing.
(b) The articles of incorporation of a mutual housing association
must meet the requirements of the Indiana housing finance and
community development authority under IC 5-20-1-6 and must be
approved by the authority.
(c) The articles of incorporation of a mutual housing association
must include a provision that provides that if the mutual housing
association dissolves, is involved in a bankruptcy proceeding, or
otherwise disposes of its physical properties, the association may only
transfer the assets to another entity that provides high quality long term
housing for families of low and moderate income.
SOURCE: IC 5-20-3-6; (06)HB1261.1.25. -->
SECTION 25. IC 5-20-3-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 6. The Indiana housing
finance and community development authority may enter into a
contract with a mutual housing association to provide financial
assistance for the construction, rehabilitation, ownership, or operation
of housing for families of low and moderate income. State financial
assistance may be in the form of grants, loans, or a combination of
grants and loans and may be used for the acquisition or development
of housing sites and for the costs incurred in the development of the
housing. Grants may not exceed the development cost of the housing
project.
SOURCE: IC 5-20-3-7; (06)HB1261.1.26. -->
SECTION 26. IC 5-20-3-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 7. A contract for state
financial assistance with a mutual housing association under section 6
of this chapter must include (for each housing site) the following
provisions:
(1) Each housing site must be managed in an efficient manner to
permit the fixing of the rentals at the lowest possible rates
consistent with providing decent, safe, and sanitary dwelling
accommodations.
(2) A mutual housing association may not construct or operate a
housing site for profit.
(3) Rental rates may not be fixed a level higher than necessary to
produce revenue that, together with other revenue, will be
sufficient to pay, as it becomes due, the principal and interest on
the loans made to the mutual housing authority, the maintenance
and operating expenses of a housing project (including insurance
and administrative costs), and an allowance for a reasonable
return on equity capital contributed to a housing project through
membership fees or nonstate grants. The rentals must be within
the financial reach of families of low income. The return on
equity capital must be used by the mutual housing association to
develop additional dwelling units.
(4) The mutual housing association, subject to the approval of the
Indiana housing finance and community development
authority, shall fix the maximum income limits for the admission
and continued occupancy of families in the housing. The
association shall define the income of a family to provide the
basis for determining eligibility for the admission, rent, and
continued occupancy of families under the maximum income
limits. In defining family income, the authority may provide for
the exclusion of any part of the income of family members that
the authority believes generally available to meet the cost of basic
living needs of the family.
(5) The mutual housing association may not refuse to rent a
dwelling accommodation to an otherwise qualified applicant
because one (1) or more of the proposed occupants are children
born out of wedlock.
(6) The mutual housing association shall provide each applicant
for admission to the housing project a receipt stating the time and
date of application and shall maintain a list of the applications
that must be available for public inspection. The Indiana housing
finance and community development authority shall adopt rules
governing the form and procedure for maintaining the list.
(7) The mutual housing association may require the payment of
a membership fee as a condition of eligibility of occupancy for a
dwelling unit. The fee must be refunded to a resident member,
with nominal interest, when the member vacates the dwelling
unit.
(8) The Indiana housing finance and community development
authority shall require and must approve an operation
management plan for each housing project from the mutual
housing association. The plan must provide for an income
adequate to pay debt service, administrative costs (including a
state service charge), operating costs, and adequate reserves for
repairs, maintenance, replacements, and vacancy and collection
losses. In addition, the mutual housing association shall adopt a
plan for the administration of a housing project that must be
approved by the tenants and the Indiana housing finance and
community development authority. The association shall provide
copies of the plan to each adult tenant and to the Indiana housing
finance and community development authority.
(9) The Indiana housing finance and community development
authority may inspect any housing during the period of the loan
or, in the case of a grant, during the period when a housing project
is used to house families of low and moderate income.
(10) The mutual housing association shall semiannually submit a
report to the Indiana housing finance and community
development authority with information on operating costs,
tenant information, rentals, and any other information that the
Indiana housing finance and community development authority
requires by rule.
(11) The mutual housing association may request permission of
the Indiana housing finance and community development
authority to allow the continued occupancy of dwelling units by
tenants whose annual income exceeds maximum limits or the
rental of vacant units to tenants whose income exceeds maximum
limits if the vacancies would result in the inability to pay debt
service, administrative costs (including state service charges),
operating costs, and reserve for repairs, maintenance,
replacements, and collection costs. The continued occupancy or
rental must be for a period of one (1) year, subject to subsequent
one (1) year renewals. The mutual housing association may,
subject to the approval of the Indiana housing finance and
community development authority, fix rent at a higher level for
tenants described in this subdivision.
(12) The difference between the increased rent and the normal
rent described in subdivision (11) must be used by the mutual
housing association to develop additional dwelling units or
credited against the rent owed by another low or moderate income
resident member of the association.
(13) The cost of options on housing sites, engineering and
architectural services, and preliminary construction expenses
may, subject to the approval of the Indiana housing finance and
community development authority, be included as part of the
cost of a project to be financed by a loan or grant.
(14) The mutual housing association may provide for variable
rents based on family income.
SOURCE: IC 5-20-3-8; (06)HB1261.1.27. -->
SECTION 27. IC 5-20-3-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 8. The Indiana housing
finance and community development authority may assess a mutual
housing association a service charge for each loan or grant provided to
the association.
SOURCE: IC 5-20-3-10; (06)HB1261.1.28. -->
SECTION 28. IC 5-20-3-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 10. The Indiana
housing finance and community development authority shall adopt
rules under IC 4-22-2 to carry out this chapter.
SOURCE: IC 5-20-4-1; (06)HB1261.1.29. -->
SECTION 29. IC 5-20-4-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 1. As used in this
chapter, "advisory committee" refers to the housing trust affordable
housing and community development fund advisory committee
established by section 15 of this chapter.
SOURCE: IC 5-20-4-3; (06)HB1261.1.30. -->
SECTION 30. IC 5-20-4-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 3. As used in this
chapter, "housing finance "authority" refers to the Indiana housing
finance and community development authority established under
IC 5-20-1.
SOURCE: IC 5-20-4-4; (06)HB1261.1.31. -->
SECTION 31. IC 5-20-4-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 4. As used in this
chapter, unless the context requires otherwise, "housing trust "fund"
refers to the affordable housing and community development fund
established by section 7 of this chapter.
SOURCE: IC 5-20-4-7; (06)HB1261.1.32. -->
SECTION 32. IC 5-20-4-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 7. (a) There is
established the affordable housing trust and community development
fund. The fund shall be administered by the Indiana housing finance
authority under the direction of the Indiana housing finance authority's
board.
(b) The fund consists of the following resources:
(1) Appropriations from the general assembly.
(2) Gifts, and grants, to the fund. and donations of any tangible
or intangible property from public or private sources.
(3) Investment income earned on the fund's assets.
(4) Repayments of loans from the fund.
(5) Funds borrowed from the board for depositories insurance
fund (IC 5-13-12-7).
(c) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public funds may be invested.
(d) The money remaining in the fund at the end of a fiscal year does
not revert to the state general fund.
(e) Interest earned on the fund may be used by the Indiana housing
finance authority to pay expenses incurred in the administration of the
fund.
SOURCE: IC 5-20-4-8; (06)HB1261.1.33. -->
SECTION 33. IC 5-20-4-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 8. (a) The money in the
fund shall be used to provide financial assistance in the form of:
(1) grants;
(2) rent supplements;
(3) loans; and
(4) loan guarantees.
In addition, money from the fund may be used to provide technical
assistance to nonprofit developers of low income housing.
(b) The financial assistance described in subsection (a) shall be used
for:
(1) the development, rehabilitation, or financing of affordable
housing for acquisition, construction, rehabilitation,
development, operation, and insurance of, and education
concerning, affordable housing and community economic
development; or
(2) other programs considered appropriate to meet the
affordable housing and community development needs of
lower income families and very low income families, including
lower income elderly, persons with disabilities, and homeless
individuals.
(c) At least fifty percent (50%) of the dollars allocated for
production, rehabilitation, or purchase of housing must be used for
units to be occupied by to serve very low income households.
SOURCE: IC 5-20-4-9; (06)HB1261.1.34. -->
SECTION 34. IC 5-20-4-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 9. The board for
depositories shall determine the terms of the loan from the board for
depositories insurance fund under section 8 of this chapter that must
include the following:
(1) That the duration of the loan may not exceed twenty (20) years
from the date of the execution of the agreement between the
Indiana housing finance authority and the public deposit
insurance fund operated by the board for depositories.
(2) The repayment schedule of the loan that:
(A) shall not require repayment of any principal; and
(B) must allow any principal to be repaid by the housing trust
fund at any time;
before the end of the term for the loan.
(3) That no interest may be charged.
(4) The amount of the loan, which may not exceed five million
dollars ($5,000,000).
SOURCE: IC 5-20-4-10.1; (06)HB1261.1.35. -->
SECTION 35. IC 5-20-4-10.1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 10.1. The Indiana
housing finance authority and the board for depositories shall establish
procedures to insure repayment of the loan principal at the end of the
loan term. The procedures may include purchase of a zero coupon bond
to insure the loan principal, a requirement that a percentage of the
loans issued by the Indiana housing finance authority be made through
a linked deposit program in certificates of deposit, or other procedures
that the Indiana housing finance authority and the board for
depositories may determine appropriate.
SOURCE: IC 5-20-4-11; (06)HB1261.1.36. -->
SECTION 36. IC 5-20-4-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 11. (a) At least fifty
percent (50%) of the resources of the fund shall be allocated to
recognized nonprofit corporations under Section 501(c) of the Internal
Revenue Code.
(b) The resources of the fund that are not allocated under subsection
(a) may be allocated to private developers of housing and private
development entities as determined by the Indiana housing finance
authority.
SOURCE: IC 5-20-4-12; (06)HB1261.1.37. -->
SECTION 37. IC 5-20-4-12 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 12. Rental housing that
is developed with money from the housing trust fund shall be made
available for occupancy to low income families or very low income
families for at least fifteen (15) years. In the event of foreclosure or
equivalent action, the remaining affordability period may be waived by
the Indiana housing finance authority.
SOURCE: IC 5-20-4-13; (06)HB1261.1.38. -->
SECTION 38. IC 5-20-4-13 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 13. A developer of
housing that uses funds from the housing trust fund shall certify to the
Indiana housing finance authority that the developer will comply with
the following:
(1) The federal Civil Rights Act of 1968 (P.L. 90-284).
(2) The federal Fair Housing Amendments of 1988 (P.L.
100-430).
(3) The Indiana Civil Rights Law (IC 22-9-1).
SOURCE: IC 5-20-4-14; (06)HB1261.1.39. -->
SECTION 39. IC 5-20-4-14 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 14. The
Indiana
housing finance authority shall establish written policies and
procedures to implement this chapter. These policies and procedures
shall include the following:
(1) The development of an application process for requesting
financial assistance under this chapter.
(2) The establishment of a procedure for disbursing financial
assistance under this chapter.
(3) The establishment of a rate of interest for a loan under this
chapter.
(4) The establishment of loan underwriting criteria to protect the
assets of the fund. The Indiana housing finance authority shall
require a lien or other security when appropriate and in the
amounts the authority determines appropriate.
(5) A requirement that a financial institution holding an obligation
that is guaranteed under this chapter must adequately secure the
obligation.
(6) Standards requiring a local match for any assistance under this
chapter and establishing the level of local match required.
(7) The establishment of a cap on the amount of financial
assistance that any recipient may receive.
(8) The establishment of procedures to do the following:
(A) Ensure that an equitable part of all funds are
distributed to rural areas of Indiana.
(B) Enable the authority to use the fund to provide
matching funds to local housing trust funds in Indiana.
(C) Promote community economic development.
SOURCE: IC 5-20-4-15; (06)HB1261.1.40. -->
SECTION 40. IC 5-20-4-15 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 15. (a) The housing
trust affordable housing and community development fund advisory
committee is established.
(b) The advisory committee consists of sixteen (16) members to be
appointed by the governor as follows:
(1) One (1) member of the division of mental health and
addiction. office of the secretary of family and social services.
(2) One (1) member of the division of family and children.
Indiana economic development corporation.
(3) One (1) member of the division of disability, aging, and
rehabilitative services. to represent home builders.
(4) One (1) member of the department of commerce. office of
rural affairs established by IC 4-4-9.7-4.
(5) One (1) member to represent residential real estate developers.
(6) One (1) member to represent construction trades.
(7) One (1) member to represent banks and other lending
institutions. mortgage lenders.
(8) One (1) member to represent the interests of persons with
disabilities.
(9) One (1) member to represent service providers.
(10) Two (2) members to represent neighborhood groups.
(11) One (1) member to represent low income families.
(12) One (1) member to represent nonprofit community based
organizations and community development corporations.
(13) One (1) member to represent real estate brokers or
salespersons.
(14) One (1) member to represent the Indiana Apartment Owner's
Association.
(15) One (1) member to represent the manufactured housing
industry.
At least three (3) members of the advisory committee shall be from a
city with a population of less than thirty-five thousand (35,000), a
town, or a rural area.
(c) Members of the advisory committee shall serve a term of three
(3) years. However, the governor may remove for cause an appointed
member of the advisory committee and fill vacancies of appointed
members on the advisory committee.
(d) The advisory committee shall make recommendations to the
housing finance authority regarding:
(1) the development of policies and procedures under section 14
of this chapter; and
(2) long term sources to capitalize the housing trust fund,
including the following:
(A) Revenue from development ordinances, fees, or taxes.
(B) Market based or private revenue.
(C) Revenue generated from government programs,
foundations, private individuals, or corporations.
(e) The advisory committee shall prepare and present an annual
report that:
(1) describes disbursements under the housing trust fund; and
(2) makes recommendations to the board of the Indiana housing
finance authority regarding long term sources to capitalize the
housing trust fund.
SOURCE: IC 5-20-5-2; (06)HB1261.1.41. -->
SECTION 41. IC 5-20-5-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 2. As used in this
chapter, "authority" means the Indiana housing finance and
community development authority created by IC 5-20-1-3.
SOURCE: IC 5-20-5-8; (06)HB1261.1.42. -->
SECTION 42. IC 5-20-5-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 8. The
purpose of the
fund is to authority may provide grants and loans to eligible entities
for programs that do any of the following:
(1) Provide financial assistance to lower income families for the
purchase of affordable housing in the form of grants, loans, and
loan guarantees.
(2) Provide rent and rent supplements to lower income families.
(3) Provide loans or grants for the acquisition, construction,
rehabilitation, development, operation, and insurance of
affordable housing for lower income families.
SOURCE: IC 6-1.1-10-16.7; (06)HB1261.1.43. -->
SECTION 43. IC 6-1.1-10-16.7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 16.7. All or part of real
property is exempt from property taxation if:
(1) the improvements on the real property were constructed,
rehabilitated, or acquired for the purpose of providing housing to
income eligible persons under the federal low income housing tax
credit program under 26 U.S.C. 42;
(2) the real property is subject to an extended use agreement
under 26 U.S.C. 42 as administered by the Indiana housing
finance and community development authority; and
(3) the owner of the property has entered into an agreement to
make payments in lieu of taxes under IC 36-1-8-14.2,
IC 36-2-6-22, or IC 36-3-2-11.
SOURCE: IC 6-2.5-6-11; (06)HB1261.1.44. -->
SECTION 44. IC 6-2.5-6-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 11. A retail merchant
who extends assistance under IC 12-14-11 IC 4-4-34 may deduct from
his the retail merchant's state gross retail and use tax payment an
amount equal to all or part of the aggregate assistance extended by the
retail merchant under IC 12-14-11 IC 4-4-34 during the reporting
period for which the state gross retail and use tax payment is made.
SOURCE: IC 6-3.1-9-1; (06)HB1261.1.45. -->
SECTION 45. IC 6-3.1-9-1, AS AMENDED BY P.L.235-2005,
SECTION 95, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]: Sec. 1.
(a) As used in this chapter, "authority"
means the Indiana housing and community development authority
established by IC 5-20-1-3.
(b) As used in this chapter, "business firm" means any business
entity authorized to do business in the state of Indiana that has state tax
liability.
(c) As used in this chapter, "community services" means any type
of:
(1) counseling and advice;
(2) emergency assistance;
(3) medical care;
(4) recreational facilities;
(5) housing facilities; or
(6) economic development assistance;
provided to individuals,
economically disadvantaged households,
groups, or neighborhood organizations in an economically
disadvantaged area.
(d) As used in this chapter, "crime prevention" means any activity
which aids in the reduction of crime in an economically disadvantaged
area or an economically disadvantaged household.
(e) As used in this chapter, "economically disadvantaged area"
means an enterprise zone, or any area in Indiana that is certified as an
other federally or locally designated economically disadvantaged
area by the Indiana housing finance authority after consultation with
the community services agency. in Indiana. The certification shall be
made on the basis of current indices of social and economic conditions,
which shall include but not be limited to the median per capita income
of the area in relation to the median per capita income of the state or
standard metropolitan statistical area in which the area is located.
(f) As used in this chapter, "economically disadvantaged
household" means a household with an annual income that is at or
below eighty percent (80%) of the area median income or any
other federally designated target population.
(g) As used in this chapter, "education" means any type of
scholastic instruction or scholarship assistance to an individual who
resides in an economically disadvantaged area that enables the
individual to prepare for better life opportunities.
(h) As used in this chapter, "enterprise zone" means an enterprise
zone created under IC 5-28-15.
(i) As used in this chapter, "job training" means any type of
instruction to an individual who resides in:
(1) an economically disadvantaged area; or
(2) an economically disadvantaged household;
that enables the individual to acquire vocational skills so that the
individual can become employable or be able to seek a higher grade of
employment.
(j) As used in this chapter, "neighborhood assistance" means
either:
(1) furnishing financial assistance, labor, material, and technical
advice to aid in the physical or economic improvement of any part
or all of an economically disadvantaged area; or
(2) furnishing technical advice to promote higher employment in
any neighborhood in Indiana.
(k) As used in this chapter, "neighborhood organization" means
any organization, including but not limited to a nonprofit development
corporation doing both of the following:
(1) Performing community services:
(A) in an economically disadvantaged area;
and or
(B) for an economically disadvantaged household.
(2) Holding a ruling:
(A) from the Internal Revenue Service of the United States
Department of the Treasury that the organization is exempt
from income taxation under the provisions of the Internal
Revenue Code; and
(B) from the department of state revenue that the organization
is exempt from income taxation under IC 6-2.5-5-21.
(l) As used in this chapter, "person" means any individual subject
to Indiana gross or adjusted gross income tax.
(m) As used in this chapter, "state fiscal year" means a twelve (12)
month period beginning on July 1 and ending on June 30.
(n) As used in this chapter, "state tax liability" means the
taxpayer's total tax liability that is incurred under:
(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax); and
(2) IC 6-5.5 (the financial institutions tax);
as computed after the application of the credits that, under
IC 6-3.1-1-2, are to be applied before the credit provided by this
chapter.
(o) As used in this chapter, "tax credit" means a deduction from
any tax otherwise due and payable under IC 6-3 or IC 6-5.5.
SOURCE: IC 6-3.1-9-2; (06)HB1261.1.46. -->
SECTION 46. IC 6-3.1-9-2, AS AMENDED BY P.L.235-2005,
SECTION 96, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]: Sec. 2. (a) A business firm or a person who contributes
to a neighborhood organization or who that engages in the activities of
providing neighborhood assistance, job training or education for
individuals not employed by the business firm or person, or for
community services or crime prevention in an economically
disadvantaged area shall receive a tax credit as provided in section 3 of
this chapter if the Indiana housing finance authority approves the
proposal of the business firm or person, setting forth the program to be
conducted, the area selected, the estimated amount to be invested in the
program, and the plans for implementing the program.
(b) The Indiana housing finance authority, after consultation with
the community services agency and the commissioner of revenue, may
adopt rules for the approval or disapproval of these proposals.
SOURCE: IC 6-3.1-9-4; (06)HB1261.1.47. -->
SECTION 47. IC 6-3.1-9-4, AS AMENDED BY P.L.235-2005,
SECTION 97, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]: Sec. 4. (a) Any business firm or person which desires
to claim a tax credit as provided in this chapter shall file with the
department, in the form that the department may prescribe, an
application stating the amount of the contribution or investment which
it proposes to make which would qualify for a tax credit, and the
amount sought to be claimed as a credit. The application shall include
a certificate evidencing approval of the contribution or program by the
Indiana housing finance authority.
(b) The Indiana housing finance authority shall give priority in
issuing certificates to applicants whose contributions or programs
directly benefit enterprise zones.
(c) The department shall promptly notify an applicant whether, or
the extent to which, the tax credit is allowable in the state fiscal year in
which the application is filed, as provided in section 5 of this chapter.
If the credit is allowable in that state fiscal year, the applicant shall
within thirty (30) days after receipt of the notice file with the
department of state revenue a statement, in the form and accompanied
by the proof of payment as the department may prescribe, setting forth
that the amount to be claimed as a credit under this chapter has been
paid to an organization for an approved program or purpose, or
permanently set aside in a special account to be used solely for an
approved program or purpose.
(d) The department may disallow any credit claimed under this
chapter for which the statement or proof of payment is not filed within
the thirty (30) day period.
SOURCE: IC 8-1-2-105; (06)HB1261.1.48. -->
SECTION 48. IC 8-1-2-105 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 105. (a) No public
utility may make or give any undue or unreasonable preference or
advantage to any person, or subject any person to any undue or
unreasonable prejudice or disadvantage in any respect. A person who
violates this section commits a Class B infraction.
(b) Nothing in this chapter shall prevent any public utility from
furnishing service free or at reduced rates to any of its employees and
officers or retired employees and officers or from providing energy
assistance under IC 12-14-11 IC 4-4-34 to persons eligible for that
assistance.
SOURCE: IC 8-1-2-121; (06)HB1261.1.49. -->
SECTION 49. IC 8-1-2-121 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 121. (a)
Notwithstanding any other provision of law, from December 1 through
March 15 of any year, no electric or gas utility, including a municipally
owned, privately owned, or cooperatively owned utility, shall terminate
residential electric or gas service for persons who are eligible for and
have applied for assistance under
IC 12-14-11. IC 4-4-34. The
commission shall implement procedures to ensure that electric or gas
utility service is continued while eligibility for such persons is being
determined.
(b) Any electric or gas utility, including a municipally owned,
privately owned, or cooperatively owned utility, shall provide any
residential customer whose account is delinquent an opportunity to
enter into a reasonable amortization agreement with such company to
pay the delinquent account. Such an amortization agreement must
provide the customer with adequate opportunity to apply for and
receive the benefits of any available public assistance program. An
amortization agreement is subject to amendment on the customer's
request if there is a change in the customer's financial circumstances.
(c) The commission may establish a reasonable rate of interest
which a utility may charge on the unpaid balance of a customer's
delinquent bill that may not exceed the rate established by the
commission under section 34.5 of this chapter.
(d) The commission shall adopt rules under IC 4-22-2 to carry out
the provisions of this section.
(e) This section does not prohibit an electric or gas utility from
terminating residential utility service upon a request of a customer or
under the following circumstances:
(1) If a condition dangerous or hazardous to life, physical safety,
or property exists.
(2) Upon order by any court, the commission, or other duly
authorized public authority.
(3) If fraudulent or unauthorized use of electricity or gas is
detected and the utility has reasonable grounds to believe the
affected customer is responsible for such use.
(4) If the utility's regulating or measuring equipment has been
tampered with and the utility has reasonable grounds to believe
that the affected customer is responsible for such tampering.
SOURCE: IC 8-9.5-9-2; (06)HB1261.1.50. -->
SECTION 50. IC 8-9.5-9-2, AS AMENDED BY P.L.214-2005,
SECTION 50, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]: Sec. 2. As used in this chapter, "authority" means:
(1) an authority or agency established under IC 8-1-2.2 or
IC 8-9.5 through IC 8-23;
(2) when acting under an affected statute (as defined in
IC 4-4-10.9-1.2), the Indiana finance authority established by
IC 4-4-11;
(3) only in connection with a program established under
IC 13-18-13 or IC 13-18-21, the bank established under IC 5-1.5;
(4) a fund or program established under IC 13-18-13 or
IC 13-18-21;
(5) the Indiana health and educational facility financing authority
established by IC 5-1-16;
(6) the Indiana housing finance and community development
authority established by IC 5-20-1;
(7) the authority established under IC 4-4-11; or
(8) the authority established under IC 5-1-17.
SOURCE: IC 12-7-2-34; (06)HB1261.1.51. -->
SECTION 51. IC 12-7-2-34 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 34. "Commission"
means the following:
(1) For purposes of IC 12-10-2, the meaning set forth in
IC 12-10-2-1.
(2) For purposes of IC 12-11-7, the meaning set forth in
IC 12-11-7-1.
(3) For purposes of IC 12-12-2, the meaning set forth in
IC 12-12-2-1.
(4) For purposes of IC 12-13-14, the meaning set forth in
IC 12-13-14-1.
(5) For purposes of IC 12-14-12, the meaning set forth in
IC 12-14-12-1.
(6) (5) For purposes of IC 12-28-1, the meaning set forth in
IC 12-28-1-3.
SOURCE: IC 12-8-10-1; (06)HB1261.1.52. -->
SECTION 52. IC 12-8-10-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 1. This chapter applies
only to the indicated money of the following state agencies to the extent
that the money is used by the agency to obtain services from grantee
agencies to carry out the program functions of the agency:
(1) Money appropriated or allocated to a state agency from money
received by the state under the Social Services Block Grant Act
(42 U.S.C. 1397 et seq.).
(2) The division of disability, aging, and rehabilitative services,
except this chapter does not apply to money expended under the
following:
(A) The following statutes, unless application of this chapter
is required by another subdivision of this section:
(i) IC 12-10-6.
(ii) IC 12-10-12.
(B) Epilepsy services.
(3) The division of family and children, for money expended
under the following programs:
(A) The following statutes:
(i) IC 12-14-10.
(ii) IC 12-14-11.
(iii) IC 12-14-12.
(B) The following programs:
(i) (A) The child development associate scholarship program.
(ii) (B) The dependent care program.
(iii) (C) Migrant day care.
(iv) (D) The youth services bureau.
(v) (E) The project safe program.
(vi) (F) The commodities program.
(vii) (G) The migrant nutrition program.
(viii) (H) Any emergency shelter program.
(ix) (I) The energy weatherization program.
(x) (J) Programs for individuals with developmental
disabilities.
(4) The state department of health, for money expended under the
following statutes:
(A) IC 16-19-10.
(B) IC 16-38-3.
(5) The group.
(6) All state agencies, for any other money expended for the
purchase of services if all the following apply:
(A) The purchases are made under a contract between the state
agency and the office of the secretary.
(B) The contract includes a requirement that the office of the
secretary perform the duties and exercise the powers described
in this chapter.
(C) The contract is approved by the budget agency.
(7) The division of mental health and addiction.
SOURCE: IC 12-8-10-9; (06)HB1261.1.53. -->
SECTION 53. IC 12-8-10-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 9. (a) Each grantee
agency receiving money under a contract covered by this chapter shall
maintain sufficient records to show the following:
(1) The actual cost of services provided under the contract.
(2) The nature and amount of services provided under the
contract.
(b) At least every two (2) years the group shall, in the manner
prescribed by the state board of accounts, conduct audits of all grantee
agencies that, under a contract under this chapter, receive payment
from any of the money described in section 1(2) or
1(3)(B)(x) 1(3)(J)
of this chapter. These audits must include an investigation of the
records of the grantee agencies to determine whether the services
rendered under the contracts have been in compliance with the terms
of the contracts.
(c) This section does not prohibit the state board of accounts from
auditing grantee agencies under the board's own authority. The office
of the secretary may do either of the following:
(1) Contract with the state board of accounts to conduct audits of
grantee agencies.
(2) Require grantee agencies to obtain independent audits of their
agencies.
(d) A contract between a state agency and the office of the secretary
under section (1)(6) of this chapter may include a provision requiring
the group to perform or arrange for the audits described by this section.
SOURCE: IC 12-13-5-2; (06)HB1261.1.54. -->
SECTION 54. IC 12-13-5-2, AS AMENDED BY P.L.234-2005,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]: Sec. 2. The division shall administer the following:
(1) Any sexual offense services.
(2) A child development associate scholarship program.
(3) Any school age dependent care program.
(4) Migrant day care services.
(5) Prevention services to high risk youth.
(6) Any commodities program.
(7) (6) The migrant nutrition program.
(8) Any emergency shelter programs.
(9) Any weatherization programs.
(10) The Housing Assistance Act of 1937 (42 U.S.C. 1437).
(11) (7) The home visitation and social services program.
(12) (8) The educational consultants program.
(13) (9) Community restitution or service programs.
(14) (10) The crisis nursery program.
(15) Energy assistance programs.
(16) (11) Domestic violence programs.
(17) (12) Social services programs.
(18) Assistance to migrants and seasonal farmworkers.
(19) (13) The step ahead comprehensive early childhood grant
program.
(20) (14) Any other program:
(A) designated by the general assembly; or
(B) administered by the federal government under grants
consistent with the duties of the division.
SOURCE: IC 12-13-7-1; (06)HB1261.1.55. -->
SECTION 55. IC 12-13-7-1, AS AMENDED BY P.L.234-2005,
SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]: Sec. 1. The division shall administer the following:
(1) The Community Services Block Grant under 42 U.S.C. 9901
et seq.
(2) The Low Income Home Energy Assistance Block Grant under
42 U.S.C. 8621 et seq.
(3) The United States Department of Energy money under 42
U.S.C. 6851 et seq.
(4) (1) The domestic violence prevention and treatment fund
under IC 12-18-4.
(5) (2) The Child Care and Development Block Grant under 42
U.S.C. 9858 et seq.
(6) (3) The federal Food Stamp Program under 7 U.S.C. 2011 et
seq.
(7) (4) Title IV-A of the federal Social Security Act.
(8) (5) Any other funding source:
(A) designated by the general assembly; or
(B) available from the federal government under grants that
are consistent with the duties of the division.
SOURCE: IC 12-20-16-3; (06)HB1261.1.56. -->
SECTION 56. IC 12-20-16-3, AS AMENDED BY P.L.73-2005,
SECTION 71, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]: Sec. 3. (a) The township trustee may, in cases of
necessity, authorize the payment from township assistance money for
essential utility services, including the following:
(1) Water services.
(2) Gas services.
(3) Electric services.
(4) Fuel oil services for fuel oil used for heating or cooking.
(5) Coal, wood, or liquid propane used for heating or cooking.
(b) The township trustee may authorize the payment of delinquent
bills for the services listed in subsection (a)(1) through (a)(5) when
necessary to prevent the termination of the services or to restore
terminated service if the delinquency has lasted not longer than
twenty-four (24) months. The township trustee has no obligation to pay
a delinquent bill for the services or materials listed in subsection (a)(1)
through (a)(5) if the delinquency has lasted longer than twenty-four
(24) months.
(c) The township trustee is not required to pay for any utility
service:
(1) that is not properly charged to:
(A) an adult member of a household;
(B) an emancipated minor who is head of the household; or
(C) a landlord or former member of the household if the
applicant proves that the applicant:
(i) received the services as a tenant residing at the service
address at the time the cost was incurred; and
(ii) is responsible for payment of the bill;
(2) received as a result of a fraudulent act by any adult member of
a household requesting township assistance; or
(3) that includes the use of township assistance funds for the
payment of:
(A) a security deposit; or
(B) damages caused by a township assistance applicant to
utility company property.
(d) The amount paid by the township trustee, as administrator of
township assistance, and the amount charged for water services may
not exceed the minimum rate charged for the service as fixed by the
Indiana utility regulatory commission.
(e) This subsection applies only during the part of each year when
applications for assistance are accepted by the
division under
IC 12-14-11. lieutenant governor under IC 4-4-34. A township
trustee may not provide assistance to make any part of a payment for
heating fuel or electric services for more than thirty (30) days unless
the individual files an application with the township trustee that
includes the following:
(1) Evidence of application for assistance for heating fuel or
electric services from the
division under IC 12-14-11. lieutenant
governor under IC 4-4-34.
(2) The amount of assistance received or the reason for denial of
assistance.
The township trustee shall inform an applicant for assistance for
heating fuel or electric services that assistance for heating fuel and
electric services may be available from the
division under IC 12-14-11
lieutenant governor under IC 4-4-34 and that the township trustee
may not provide assistance to make any part of a payment for those
services for more than thirty (30) days unless the individual files an
application for assistance for heating fuel or electric services under
IC 12-14-11. IC 4-4-34. However, if the applicant household is eligible
under criteria established by the
division of disability, aging, and
rehabilitative services lieutenant governor for energy assistance under
IC 12-14-11, IC 4-4-34, the trustee may certify the applicant as eligible
for that assistance by completing an application form prescribed by the
state board of accounts and forwarding the eligibility certificate to the
division of disability, aging, and rehabilitative services lieutenant
governor within the period established for the acceptance of
applications. If the trustee follows this certification procedure, no other
application is required for assistance under
IC 12-14-11. IC 4-4-34.
(f) If an individual or a member of an individual's household has
received assistance under subsection (b), the individual must, before
the individual or the member of the individual's household may receive
further assistance under subsection (b), certify whether the individual's
or household's income, resources, or household size has changed since
the individual filed the most recent application for township assistance.
If the individual or a member of the individual's household certifies that
the income, resources, or household size has changed, the township
trustee shall review the individual's or household's eligibility and may
make any necessary adjustments in the level of assistance provided to
the individual or to a member of the individual's household.
SOURCE: IC 23-2-5-19; (06)HB1261.1.57. -->
SECTION 57. IC 23-2-5-19 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 19. (a) The following
persons are exempt from the requirements of sections 4, 5, 6, 9, 17, 18,
and 21 of this chapter:
(1) Any attorney while engaging in the practice of law.
(2) Any certified public accountant, public accountant, or
accountant practitioner holding a certificate or registered under
IC 25-2.1 while performing the practice of accountancy (as
defined by IC 25-2.1-1-10).
(3) Any person licensed as a real estate broker or salesperson
under IC 25-34.1 to the extent that the person is rendering loan
related services in the ordinary course of a transaction in which a
license as a real estate broker or salesperson is required.
(4) Any broker-dealer, agent, or investment advisor registered
under IC 23-2-1.
(5) Any person that:
(A) procures;
(B) promises to procure; or
(C) assists in procuring;
a loan that is not subject to the Truth in Lending Act (15 U.S.C.
1601 through 1667e).
(6) Any community development corporation (as defined in
IC 4-4-28-2) acting as a subrecipient of funds from the Indiana
housing
finance and community development authority
established by IC 5-20-1-3.
(7) The Indiana housing
finance and community development
authority.
(8) Any person authorized to:
(A) sell and service a loan for the Federal National Mortgage
Association or the Federal Home Loan Mortgage Association;
(B) issue securities backed by the Government National
Mortgage Association;
(C) make loans insured by the United States Department of
Housing and Urban Development or the United States
Department of Agriculture Rural Housing Service;
(D) act as a supervised lender or nonsupervised automatic
lender of the United States Department of Veterans Affairs; or
(E) act as a correspondent of loans insured by the United
States Department of Housing and Urban Development.
(9) Any person who is a creditor, or proposed to be a creditor, for
any loan.
(b) As used in this chapter, "bona fide third party fee" includes fees
for the following:
(1) Credit reports, investigations, and appraisals performed by a
person who holds a license or certificate as a real estate appraiser
under IC 25-34.1-8.
(2) If the loan is to be secured by real property, title examinations,
an abstract of title, title insurance, a property survey, and similar
purposes.
(3) The services provided by a loan broker in procuring possible
business for a lending institution if the fees are paid by the
lending institution.
(c) As used in this section, "successful procurement of a loan"
means that a binding commitment from a creditor to advance money
has been received and accepted by the borrower.
(d) The burden of proof of any exemption or classification provided
in this chapter is on the party claiming the exemption or classification.
SOURCE: IC 24-4.5-1-202; (06)HB1261.1.58. -->
SECTION 58. IC 24-4.5-1-202 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 202. This article does
not apply to the following:
(1) Extensions of credit to government or governmental agencies
or instrumentalities.
(2) The sale of insurance by an insurer, except as otherwise
provided in the chapter on insurance (IC 24-4.5-4).
(3) Transactions under public utility, municipal utility, or
common carrier tariffs if a subdivision or agency of this state or
of the United States regulates the charges for the services
involved, the charges for delayed payment, and any discount
allowed for early payment.
(4) The rates and charges and the disclosure of rates and charges
of a licensed pawnbroker established in accordance with a statute
or ordinance concerning these matters.
(5) A sale of goods, services, or an interest in land in which the
goods, services, or interest in land are purchased primarily for a
purpose other than a personal, family, or household purpose.
(6) A loan in which the debt is incurred primarily for a purpose
other than a personal, family, or household purpose.
(7) An extension of credit primarily for a business, a commercial,
or an agricultural purpose.
(8) An installment agreement for the purchase of home fuels in
which a finance charge is not imposed.
(9) Loans made, insured, or guaranteed under a program
authorized by Title IV of the Higher Education Act of 1965 (20
U.S.C. 1070 et seq.).
(10) Transactions in securities or commodities accounts in which
credit is extended by a broker-dealer registered with the Securities
and Exchange Commission or the Commodity Futures Trading
Commission.
(11) A loan made:
(A) in compliance with the requirements of; and
(B) by a community development corporation (as defined in
IC 4-4-28-2) acting as a subrecipient of funds from;
the Indiana housing finance and community development
authority established by IC 5-20-1-3.
SOURCE: IC 24-9-1-1; (06)HB1261.1.59. -->
SECTION 59. IC 24-9-1-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 1. Except for
IC 24-9-3-7(3), this article does not apply to:
(1) a loan made or acquired by a person organized or chartered
under the laws of this state, any other state, or the United States
relating to banks, trust companies, savings associations, savings
banks, credit unions, or industrial loan and investment companies;
or
(2) a loan:
(A) that can be purchased by the Federal National Mortgage
Association, the Federal Home Loan Mortgage Association, or
the Federal Home Loan Bank;
(B) to be insured by the United States Department of Housing
and Urban Development;
(C) to be guaranteed by the United States Department of
Veterans Affairs;
(D) to be made or guaranteed by the United States Department
of Agriculture Rural Housing Service;
(E) to be funded by the Indiana housing finance and
community development authority; or
(F) with a principal amount that exceeds the conforming loan
size limit for a single family dwelling as established by the
Federal National Mortgage Association.
SOURCE: IC 24-9-7-2; (06)HB1261.1.60. -->
SECTION 60. IC 24-9-7-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 2. Political subdivisions
may not:
(1) enact, issue, or enforce ordinances, resolutions, regulations,
orders, requests for proposals, or requests for bids pertaining to
financial or lending activities, including ordinances, resolutions,
and rules that disqualify persons from doing business with a
municipality and that are based upon lending terms or practices;
or
(2) impose reporting requirements or any other obligations upon
persons regarding financial services or lending practices or upon
subsidiaries or affiliates that:
(A) are subject to the jurisdiction of the department of
financial institutions;
(B) are subject to the jurisdiction or regulatory supervision of
the Board of Governors of the Federal Reserve System, the
Office of the Comptroller of the Currency, the Office of Thrift
Supervision, the National Credit Union Administration, the
Federal Deposit Insurance Corporation, the Federal Trade
Commission, or the United States Department of Housing and
Urban Development;
(C) are chartered by the United States Congress to engage in
secondary market mortgage transactions;
(D) are created by the Indiana housing finance and
community development authority; or
(E) originate, purchase, sell, assign, securitize, or service
property interests or obligations created by financial
transactions or loans made, executed, originated, or purchased
by persons referred to in clauses (A), (B), (C), or (D).
SOURCE: IC 34-30-2-15; (06)HB1261.1.61. -->
SECTION 61. IC 34-30-2-15 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 15. IC 5-20-1-19
(Concerning members and officers of the Indiana housing finance and
community development authority).
SOURCE: IC 36-1-8-14.2; (06)HB1261.1.62. -->
SECTION 62. IC 36-1-8-14.2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 14.2. (a) As used in this
section, the following terms have the meanings set forth in IC 6-1.1-1:
(1) Assessed value.
(2) Exemption.
(3) Owner.
(4) Person.
(5) Property taxation.
(6) Real property.
(7) Township assessor.
(b) As used in this section, "PILOTS" means payments in lieu of
taxes.
(c) As used in this section, "property owner" means the owner of
real property described in IC 6-1.1-10-16.7.
(d) Subject to the approval of a property owner, the governing body
of a political subdivision may adopt an ordinance to require the
property owner to pay PILOTS at times set forth in the ordinance with
respect to real property that is subject to an exemption under
IC 6-1.1-10-16.7, if the improvements that qualify the real property for
an exemption were begun or acquired after December 31, 2001. The
ordinance remains in full force and effect until repealed or modified by
the governing body, subject to the approval of the property owner.
(e) The PILOTS must be calculated so that the PILOTS are in an
amount equal to the amount of property taxes that would have been
levied by the governing body for the political subdivision upon the real
property described in subsection (d) if the property were not subject to
an exemption from property taxation.
(f) PILOTS shall be imposed as are property taxes and shall be
based on the assessed value of the real property described in subsection
(d). The township assessors shall assess the real property described in
subsection (d) as though the property were not subject to an exemption.
(g) PILOTS collected under this section shall be deposited in the
unit's affordable housing fund established under IC 5-20-5-15.5 and
used for any purpose for which the affordable housing fund may be
used.
(h) PILOTS shall be due as set forth in the ordinance and bear
interest, if unpaid, as in the case of other taxes on property. PILOTS
shall be treated in the same manner as taxes for purposes of all
procedural and substantive provisions of law.
(i) This section does not apply to a county that contains a
consolidated city or to a political subdivision of the county.
SOURCE: IC 5-20-5-5; IC 5-20-5-7; IC 5-20-5-9; IC 5-20-5-10; IC
5-20-5-11; IC 5-20-5-12; IC 5-20-5-13; IC 5-20-5-14; IC 5-20-5-15;
IC 5-20-5-19; IC 12-7-2-75; IC 12-7-2-106; IC 12-7-2-107; IC 12-14-
10; IC 12-14-11; IC 12-14-12.
; (06)HB1261.1.63. -->
SECTION 63. THE FOLLOWING ARE REPEALED [EFFECTIVE
JULY 1, 2006]: IC 5-20-5-5; IC 5-20-5-7; IC 5-20-5-9; IC 5-20-5-10;
IC 5-20-5-11; IC 5-20-5-12; IC 5-20-5-13; IC 5-20-5-14; IC 5-20-5-15;
IC 5-20-5-19; IC 12-7-2-75; IC 12-7-2-106; IC 12-7-2-107;
IC 12-14-10; IC 12-14-11; IC 12-14-12.
SOURCE: ; (06)HB1261.1.64. -->
SECTION 64. [EFFECTIVE JULY 1, 2006] (a) A member serving
on the housing trust fund advisory committee on July 1, 2006, may
remain a member of the committee until the expiration of the
member's term notwithstanding a change in the qualifications for
the member's position under IC 5-20-4-15, as amended by this act.
(b) This SECTION expires July 1, 2009.
SOURCE: ; (06)HB1261.1.65. -->
SECTION 65. [EFFECTIVE JULY 1, 2006]
(a) Notwithstanding
the repeal of IC 5-20-5-7 by this act, the Indiana affordable
housing fund established by IC 5-20-5-7 shall remain in existence
after June 30, 2006, if any money remains in the fund on June 30,
2006.
(b) Money remaining in the Indiana affordable housing fund on
June 30, 2006, must be transferred to the affordable housing and
community development fund established by IC 5-20-4-7, as
amended by this act, before August 1, 2006.
(c) If money in the Indiana affordable housing fund is
transferred under subsection (b), the fund is abolished after the
transfer under subsection (b) is completed.
(d) This SECTION expires August 1, 2006.