February 15, 2013





HOUSE BILL No. 1132

_____


DIGEST OF HB 1132 (Updated February 13, 2013 2:45 pm - DI 101)



Citations Affected: IC 32-29; IC 36-7.

Synopsis: Real property and housing matters. Allows an officer or agent of a title insurance company, on behalf of a mortgagor or a person who has a lien against all or part of the mortgaged property, to execute and record a certificate of release in each county in which the mortgage is recorded if the company, officer, or agent has received, before executing and recording the certificate of release, written consent from the mortgagee or from the mortgage servicer or mortgage servicer's successor in interest. Provides that the company, officer, or agent may use to record the certificate of release any recording fee collected if the company, officer, or agent has received the required consent to the recording from the mortgagee or from the mortgage servicer or mortgage servicer's successor in interest. Provides that a certificate of release must contain: (1) a statement that the payoff amount of the mortgage was an amount of not more than $1,000,000 instead of a statement that the mortgage was in the original principal amount of not more than $1,000,000; and (2) a statement that the mortgagee or mortgage servicer provided a written payoff statement that was used to make payment in full of the unpaid balance of the loan secured by the mortgage. Allows the resources of the Indianapolis housing trust fund to be used to fund 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 individuals, individuals with disabilities, and homeless individuals.

Effective: July 1, 2013.





Burton, Speedy




    January 10, 2013, read first time and referred to Committee on Financial Institutions.
    February 14, 2013, amended, reported _ Do Pass.






February 15, 2013

First Regular Session 118th General Assembly (2013)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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HOUSE BILL No. 1132



    A BILL FOR AN ACT to amend the Indiana Code concerning property.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 32-29-6-5; (13)HB1132.1.1. -->     SECTION 1. IC 32-29-6-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 5. As used in this chapter, "payoff statement" means a written statement of the amount of:
        (1) the unpaid balance of a loan secured by a mortgage, including principal, interest, and any other charges properly due under or secured by the mortgage; and
        (2) interest on a per day basis for the unpaid balance.
SOURCE: IC 32-29-6-9; (13)HB1132.1.2. -->     SECTION 2. IC 32-29-6-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 9. (a) An officer or appointed agent of a title insurance company may, on behalf of a mortgagor or a person who acquired from the mortgagor a lien against all or part of the property described in a mortgage, execute a certificate of release that complies with the requirements of this chapter and record the certificate of release in the real property records of each county in which the mortgage is recorded if
        (1) a satisfaction or release of the mortgage has not been executed

and recorded within sixty (60) days after the date payment in full of the loan secured by the mortgage was sent in accordance with a payoff statement furnished by the mortgagee or the mortgage servicer; and
        (2) the title insurance company, an officer of the title insurance company, or an agent of the title insurance company has sent to the last known address of the mortgagee or the mortgage servicer, at least thirty (30) days before executing the certificate of release, written notice of its intention to execute and record a certificate of release in accordance with this section after the expiration of the sixty (60) day period. received, before executing and recording the certificate of release, written consent to the recording of the certificate of release from the:
        (1) mortgagee; or
        (2) mortgage servicer or mortgage servicer's successor in interest.
    (b) If the title insurance company, officer of the title insurance company, or agent of the title insurance company has received the written consent required under subsection (a) from a person described in subsection (a)(1) or (a)(2), the title insurance company, officer of the title insurance company, or agent of the title insurance company may use any recording fee the company, officer, or agent collected for the:
        (1) recording of the certificate of release; or
        (2) satisfaction of the mortgage;
to record the certificate of release.

SOURCE: IC 32-29-6-10; (13)HB1132.1.3. -->     SECTION 3. IC 32-29-6-10 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 10. A certificate of release executed under this chapter must contain substantially all of the following:
        (1) The name of the mortgagor, the name of the original mortgagee and, if applicable, the name of the mortgage servicer, the date of the mortgage, the date of recording of the mortgage, and the volume and page or instrument number for the mortgage in the real property records where the mortgage is recorded, together with similar information for the last recorded assignment of the mortgage.
        (2) A statement that the payoff amount of the mortgage was in the original principal an amount of not more than one million dollars ($1,000,000).
        (3) A statement that the person executing the certificate of release is an officer or a duly appointed agent of a title insurance

company authorized and licensed to transact the business of insuring titles to interests in real property in Indiana under IC 27.
        (4) A statement that the certificate of release is made on behalf of the mortgagor or a person who acquired a lien from the mortgagor against all or part of the property described in the mortgage.
        (5) A statement that the mortgagee or mortgage servicer provided a written payoff statement that was used to make payment in full of the unpaid balance of the loan secured by the mortgage.
        (6) A statement that payment in full of the unpaid balance of the loan secured by the mortgage was made in accordance with the written or verbal payoff statement and received by the mortgagee or mortgage servicer, as evidenced in the records of the title insurance company or its agents by:
            (A) a bank check;
            (B) a certified check;
            (C) an escrow account check from the title company or title insurance agent;
            (D) an attorney trust account check that has been negotiated by the mortgagee or mortgage servicer; or
            (E) any other documentary evidence of payment to the mortgagee or mortgage servicer.
        (7) A statement indicating that more than sixty (60) days have elapsed since the date payment in full was sent.
        (8) A statement that after the expiration of the sixty (60) day period referred to in section 9 of this chapter, the title insurance company, its officers, or its agent sent to the last known address of the mortgagee or mortgage servicer, at least thirty (30) days before executing the certificate of release, notice in writing of its intention to execute and record a certificate of release as required under this section, with an unexecuted copy of the proposed certificate of release attached to the written notice.
        (9) (7) A statement that neither the title insurance company nor its officers or agent have received notification in writing of any reason why the certificate of release should not be executed and recorded. after the expiration of the thirty (30) day notice period referred to in section 9 of this chapter.

SOURCE: IC 36-7-15.1-35.5; (13)HB1132.1.4. -->     SECTION 4. IC 36-7-15.1-35.5, AS AMENDED BY P.L.211-2007, SECTION 48, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 35.5. (a) The general assembly finds the following:
        (1) Federal law permits the sale of a multiple family housing project that is or has been covered, in whole or in part, by a

contract for project based assistance from the United States Department of Housing and Urban Development without requiring the continuation of that project based assistance.
        (2) Such a sale displaces the former residents of a multiple family housing project described in subdivision (1) and increases the shortage of safe and affordable housing for persons of low and moderate income within the county.
        (3) The displacement of families and individuals from affordable housing requires increased expenditures of public funds for crime prevention, public health and safety, fire and accident prevention, and other public services and facilities.
        (4) The establishment of a supplemental housing program under this section will do the following:
            (A) Benefit the health, safety, morals, and welfare of the county and the state.
            (B) Serve to protect and increase property values in the county and the state.
            (C) Benefit persons of low and moderate income by making affordable housing available to them.
        (5) The establishment of a supplemental housing program under this section and sections 32 through 35 of this chapter is:
            (A) necessary in the public interest; and
            (B) a public use and purpose for which public money may be spent and private property may be acquired.
    (b) In addition to its other powers with respect to a housing program under sections 32 through 35 of this chapter, the commission may establish a supplemental housing program. Except as provided by this section, the commission has the same powers and duties with respect to the supplemental housing program that the commission has under sections 32 through 35 of this chapter with respect to the housing program.
    (c) One (1) allocation area may be established for the supplemental housing program. The commission is not required to make the findings required under section 34(5) through 34(8) of this chapter with respect to the allocation area. However, the commission must find that the property contained within the boundaries of the allocation area consists solely of one (1) or more multiple family housing projects that are or have been covered, in whole or in part, by a contract for project based assistance from the United States Department of Housing and Urban Development or have been owned at one time by a public housing agency. The allocation area need not be contiguous. The definition of "base assessed value" set forth in section 35(a) of this chapter applies

to the special fund established under section 26(b) of this chapter for the allocation area.
    (d) The special fund established under section 26(b) of this chapter for the allocation area established under this section may be used only for the following purposes:
        (1) Subject to subdivision (2), on January 1 and July 1 of each year the balance of the special fund shall be transferred to the housing trust fund established under subsection (e).
        (2) The commission may provide each taxpayer in the allocation area a credit for property tax replacement in the manner provided by section 35(b)(7) of this chapter. Transfers made under subdivision (1) shall be reduced by the amount necessary to provide the credit.
    (e) The commission shall, by resolution, establish a housing trust fund to be administered, subject to the terms of the resolution, by:
        (1) the housing division of the consolidated city; or
        (2) the department, division, or agency that has been designated to perform the public housing function by an ordinance adopted under IC 36-7-18-1.
    (f) The housing trust fund consists of:
        (1) amounts transferred to the fund under subsection (d);
        (2) payments in lieu of taxes deposited in the fund under IC 36-3-2-11;
        (3) gifts and grants to the fund;
        (4) investment income earned on the fund's assets;
        (5) money deposited in the fund under IC 36-2-7-10(j); and
        (6) other funds from sources approved by the commission.
    (g) The commission shall, by resolution, establish uses for the housing trust fund. However, the uses must be limited to:
        (1) providing financial assistance to those individuals and families whose income is at or below eighty percent (80%) of the county's median income for individuals and families, respectively, to enable those individuals and families to purchase or lease residential units within the county;
        (2) paying expenses of administering the fund;
        (3) making grants, loans, and loan guarantees for the development, rehabilitation, or financing of affordable housing for individuals and families whose income is at or below eighty percent (80%) of the county's median income for individuals and families, respectively, including the elderly, persons with disabilities, and homeless individuals and families; and
        (4) providing technical assistance to nonprofit developers of

affordable housing; and
         (5) funding other programs considered appropriate to meet the affordable housing and community development needs of lower income families (as defined in IC 5-20-4-5) and very low income families (as defined in IC 5-20-4-6), including lower income elderly individuals, individuals with disabilities, and homeless individuals.
    (h) 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 individuals and families whose income is at or below fifty percent (50%) of the county's area median income for individuals and families, respectively.
    (i) The low income housing trust fund advisory committee is established. The low-income housing trust fund advisory committee consists of eleven (11) members. The membership of the low income housing trust fund advisory committee is comprised of:
        (1) one (1) member appointed by the mayor, to represent the interests of low income families;
        (2) one (1) member appointed by the mayor, to represent the interests of owners of subsidized, multifamily housing communities;
        (3) one (1) member appointed by the mayor, to represent the interests of banks and other financial institutions;
        (4) one (1) member appointed by the mayor, of the department of metropolitan development;
        (5) three (3) members representing the community at large appointed by the commission, from nominations submitted to the commission as a result of a general call for nominations from neighborhood associations, community based organizations, and other social services agencies;
        (6) one (1) member appointed by and representing the Coalition for Homeless Intervention and Prevention of Greater Indianapolis;
        (7) one (1) member appointed by and representing the Local Initiatives Support Corporation;
        (8) one (1) member appointed by and representing the Indianapolis Coalition for Neighborhood Development; and
        (9) one (1) member appointed by and representing the Indianapolis Neighborhood Housing Partnership.
Members of the low income housing trust fund advisory committee serve for a term of four (4) years, and are eligible for reappointment. If a vacancy exists on the committee, the appointing authority who appointed the former member whose position has become vacant shall

appoint an individual to fill the vacancy. A committee member may be removed at any time by the appointing authority who appointed the committee member.
    (j) The low income housing trust fund advisory committee shall make recommendations to the commission regarding:
        (1) the development of policies and procedures for the uses of the low income housing trust fund; and
        (2) long term sources of capital for the low income housing trust fund, including:
            (A) revenue from:
                (i) development ordinances;
                (ii) fees; or
                (iii) taxes;
            (B) financial market based income;
            (C) revenue derived from private sources; and
            (D) revenue generated from grants, gifts, donations, or income in any other form, from a:
                (i) government program;
                (ii) foundation; or
                (iii) corporation.
    (k) The county treasurer 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.