Citations Affected: IC 36-7-14.
Synopsis: Redevelopment district housing programs. Permits
redevelopment commissions to establish a housing program and a tax
increment funding allocation area for that program. (Current law allows
only Marion County to establish such a program.)
Effective: July 1, 2006.
January 10, 2006, read first time and referred to Committee on Local Government.
A BILL FOR AN ACT to amend the Indiana Code concerning local
application of project funds, as well as all other provisions, are valid
and binding on the unit or its executive departments and officers, as
well as the commission, notwithstanding any other provision of this
(b) The redevelopment commission may issue and sell bonds, notes, or warrants to the federal government to evidence short term or long term loans made under this section, without notice of sale being given or a public offering being made.
(c) Notwithstanding the provisions of this or any other chapter, bonds, notes, or warrants issued by the redevelopment commission under this section may:
(1) be in the amounts, form, or denomination;
(2) be either coupon or registered;
(3) carry conversion or other privileges;
(4) have a rank or priority;
(5) be of such description;
(6) be secured (subject to other provisions of this section) in such manner;
(7) bear interest at a rate or rates;
(8) be payable as to both principal and interest in a medium of payment, at a time or times (which may be upon demand) and at a place or places;
(9) be subject to terms of redemption (with or without premium);
(10) contain or be subject to any covenants, conditions, and provisions; and
(11) have any other characteristics;
that the commission considers reasonable and appropriate.
(d) Bonds, notes, or warrants issued under this section are not an indebtedness of the unit or taxing district within the meaning of any constitutional or statutory limitation of indebtedness. The bonds, notes, or warrants are not payable from or secured by a levy of taxes, but are payable only from and secured only by income, funds, and properties of the project becoming available to the redevelopment commission under this chapter, as the commission specifies in the resolution authorizing their issuance.
(e) Bonds, notes, or warrants issued under this section are exempt from taxation for all purposes.
(f) Bonds, notes, or warrants issued under this section must be executed by the appropriate officers of the unit in the name of the "City (or Town or County) of ____________, Department of Redevelopment", and must be attested by the appropriate officers of the unit.
redevelopment of housing within blighted, deteriorated, or
deteriorating areas are public and governmental functions
that cannot be accomplished through the ordinary operations
of private enterprise because of:
(A) the necessity for requiring the proper use of the land so as to best serve the interests of the city and its citizens; and
(B) the costs of these functions.
(3) The provision of affordable housing for persons of low or moderate income does not compete with the ordinary operation of private enterprise.
(4) It is in the public interest that work on the provision of housing be commenced as soon as possible to relieve the need for this housing, which is an emergency.
(5) The absence of affordable housing in blighted, deteriorated, or deteriorating areas requires excessive and disproportionate expenditures of public funds for crime prevention, public health and safety, fire and accident prevention, and other public services and facilities.
(6) The planning, replanning, development, and redevelopment of housing within blighted, deteriorated, or deteriorating areas will do the following:
(A) Benefit the health, safety, morals, and welfare of the city.
(B) Serve to protect and increase property values in the city.
(C) Benefit persons of low and moderate income by making affordable housing available to them.
(D) Reduce public expenditures required for governmental functions such as police and fire protection and other services.
(7) The planning, replanning, development, and redevelopment of housing within blighted, deteriorated, or deteriorating areas under this section and sections 46 through 49 of this chapter are:
(A) necessary to the public interest; and
(B) public uses and purposes for which public money may be spent and private property may be acquired.
(b) This section and sections 46 through 49 of this chapter shall be liberally construed to carry out the purposes of this chapter.
housing by resolution. The program, which may include any
elements the commission considers appropriate, may be adopted as
part of a redevelopment plan or amendment to a redevelopment
plan, and must establish an allocation area for purposes of sections
39 and 49 of this chapter for the accomplishment of the program.
(b) The notice and hearing provisions of sections 17 and 17.5 of this chapter apply to the resolution adopted under subsection (a). Judicial review of the resolution may be made under section 18 of this chapter.
(c) Before formal submission of any housing program to the commission, the department of redevelopment:
(1) shall consult with persons interested in or affected by the proposed program;
(2) shall provide the affected neighborhood associations, residents, and township assessors with an adequate opportunity to participate in an advisory role in planning, implementing, and evaluating the proposed program; and
(3) may hold public meetings in the affected neighborhood to obtain the views of neighborhood associations and residents.
in the resolution adopting a housing program under section 46 of
(1) The program meets the purposes of section 45 of this chapter.
(2) The program cannot be accomplished by regulatory processes or by the ordinary operation of private enterprise because of:
(A) lack of public improvements;
(B) existence of improvements or conditions that lower the value of the land below that of nearby land; or
(C) other similar conditions.
(3) The public health and welfare will be benefited by accomplishment of the program.
(4) The accomplishment of the program will be of public utility and benefit as measured by:
(A) the provision of adequate housing for low and moderate income persons;
(B) an increase in the property tax base; or
(C) other similar public benefits.
(5) At least one-third (1/3) of the parcels in the allocation area established by the program are vacant.
(6) At least three-fourths (3/4) of the allocation area is used for residential purposes or is planned to be used for residential purposes.
(7) At least one-third (1/3) of the residential units in the allocation area were constructed before 1941.
(8) At least one-third (1/3) of the parcels in the allocation area have at least one (1) of the following characteristics:
(A) The dwelling unit on the parcel is not permanently occupied.
(B) The parcel is the subject of a governmental order, issued under a statute or an ordinance, requiring the correction of a housing code violation or unsafe building condition.
(C) Two (2) or more property tax payments on the parcel are delinquent.
(D) The parcel is owned by local, state, or federal government.
(9) The total area within the allocation area does not exceed one hundred fifty (150) acres.
1, 2006]: Sec. 49. (a) Notwithstanding section 39(a) of this chapter,
with respect to the allocation and distribution of property taxes for
the accomplishment of a program adopted under section 46 of this
chapter, "base assessed value" means the net assessed value of all
of the land as finally determined for the assessment date
immediately preceding the effective date of the allocation
provision, as adjusted under section 39(h) of this chapter.
However, "base assessed value" does not include the value of real
property improvements to the land.
(b) The allocation fund established under section 39(b) of this chapter for the allocation area for a program adopted under section 46 of this chapter may be used only for purposes related to the accomplishment of the program, including the following:
(1) The construction, rehabilitation, or repair of residential units within the allocation area.
(2) The construction, reconstruction, or repair of any infrastructure (including streets, sidewalks, and sewers) within or serving the allocation area.
(3) The acquisition of real property and interests in real property within the allocation area.
(4) The demolition of real property within the allocation area.
(5) The provision of financial assistance to enable individuals and families to purchase or lease residential units within the allocation area. However, financial assistance may be provided only to those individuals and families whose income is at or below the county's median income for individuals and families, respectively.
(6) The provision of financial assistance to neighborhood development corporations to permit them to provide financial assistance for the purposes described in subdivision (5).
(7) Providing each taxpayer in the allocation area a credit for property tax replacement as determined under subsections (c) and (d). However, the commission may provide this credit only if the municipal legislative body establishes the credit by ordinance adopted in the year before the year in which the credit is provided.
(c) The maximum credit that may be provided under subsection (b)(7) to a taxpayer in a taxing district that contains all or part of an allocation area established for a program adopted under section 46 of this chapter shall be determined as follows:
STEP ONE: Determine that part of the sum of the amounts described in IC 6-1.1-21-2(g)(1)(A) and IC 6-1.1-21-2(g)(2)
through IC 6-1.1-21-2(g)(5) that is attributable to the taxing
STEP TWO: Divide:
(A) that part of each county's eligible property tax replacement amount (as defined in IC 6-1.1-21-2) for that year as determined under IC 6-1.1-21-4(a)(1) that is attributable to the taxing district; by
(B) the amount determined under STEP ONE.
STEP THREE: Multiply:
(A) the STEP TWO quotient; by
(B) the taxpayer's taxes (as defined in IC 6-1.1-21-2) levied in the taxing district allocated to the allocation fund, including the amount that would have been allocated but for the credit.
(d) The commission may determine to grant to taxpayers in an allocation area from its allocation fund a credit under this section, as calculated under subsection (c). Except as provided in subsection (g), one-half (1/2) of the credit shall be applied to each installment of taxes (as defined in IC 6-1.1-21-2) that under IC 6-1.1-22-9 are due and payable on May 10 and November 10 of a year. The commission must provide for the credit annually by a resolution and must find in the resolution the following:
(1) That the money to be collected and deposited in the allocation fund, based upon historical collection rates, after granting the credit will equal the amounts payable for contractual obligations from the fund, plus ten percent (10%) of those amounts.
(2) If bonds payable from the fund are outstanding, that there is a debt service reserve for the bonds that at least equals the amount of the credit to be granted.
(3) If bonds of a lessor under section 25.2 of this chapter or under IC 36-1-10 are outstanding and if lease rentals are payable from the fund, that there is a debt service reserve for those bonds that at least equals the amount of the credit to be granted.
If the tax increment is insufficient to grant the credit in full, the commission may grant the credit in part, prorated among all taxpayers.
(e) Notwithstanding section 39(b) of this chapter, the allocation fund established under section 39(b) of this chapter for the allocation area for a program adopted under section 46 of this chapter may be used only to do one (1) or both of the following: