Citations Affected: IC 36-7-14.
Synopsis: Redevelopment commission housing programs. Permits
redevelopment commissions in counties other than Marion County to
establish a housing program and a tax increment funding allocation
area for that program. (Current law requires Marion County to establish
such a program.)
Effective: July 1, 2004.
January 12, 2004, read first time and referred to Committee on Finance.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
SECTION 1. IC 36-7-14-35 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 35. (a) In order to:
(1) undertake survey and planning activities under this chapter;
(2) undertake and carry out any redevelopment project, or urban
renewal project, or housing program;
(3) pay principal and interest on any advances;
(4) pay or retire any bonds and interest on them; or
(5) refund loans previously made under this section;
the redevelopment commission may apply for and accept advances,
short term and long term loans, grants, contributions, and any other
form of financial assistance from the federal government, or from any
of its agencies. The commission may also enter into and carry out
contracts and agreements in connection with that financial assistance
upon the terms and conditions that the commission considers
reasonable and appropriate, as long as those terms and conditions are
not inconsistent with the purposes of this chapter. The provisions of
such a contract or agreement in regard to the handling, deposit, and
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
chapter.
(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 the exercise of the power of eminent
domain;
(B) the necessity for requiring the proper use of the land so
as to best serve the interests of the county and its citizens;
and
(C) the costs of these projects.
(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 constitutes an emergency.
(5) The absence of affordable housing in blighted,
deteriorated, or deteriorating areas necessitates 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
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.
(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 in the public interest; and
(B) public uses and purposes for which public money may
be spent and private property may be acquired.
(8) This section and sections 46 through 49 of this chapter
shall be liberally construed to carry out the purposes of this
section and this chapter.
SECTION 3. IC 36-7-14-46 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2004]: Sec. 46. (a) The commission may establish a program for
housing. The program, which may include the 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 shall consult with persons interested
in or affected by the proposed program and 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.
The department may hold public meetings in the affected
neighborhood to obtain the views of neighborhood associations and
residents.
SECTION 4. IC 36-7-14-47 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2004]: Sec. 47. All the rights, powers, privileges, and immunities
that may be exercised by the commission in blighted, deteriorated,
or deteriorating areas may be exercised by the commission in
implementing its program for housing, including the following:
(1) The special tax levied in accordance with section 27 of this
chapter may be used to accomplish the housing program.
(2) Bonds may be issued under this chapter to accomplish the
housing program, but only one (1) issue of bonds may be
issued and payable from increments in any allocation area
except for refunding bonds or bonds issued in an amount
necessary to complete a housing program for which bonds
were previously issued.
(3) Leases may be entered into under this chapter to
accomplish the housing program.
(4) The tax exemptions set forth in section 37 of this chapter
are applicable.
(5) Property taxes may be allocated under section 39 of this
chapter.
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2004]: 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(g) 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
infrastructure (such as 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) To provide 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) To provide financial assistance to neighborhood
development corporations to permit them to provide financial
assistance for the purposes described in subdivision (5).
(7) To provide each taxpayer in the allocation area a credit
for property tax replacement as determined under subsections
(c) and (d). However, this credit may be provided by the
commission only if the municipal legislative body (in the case
of a redevelopment commission established by a municipality)
or the county executive (in the case of a redevelopment
commission established by a county) 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
district.
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.