AN ACT to amend the Indiana Code concerning human services.
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.
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.
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.
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
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.
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.
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.
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.
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.
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.
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.
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.
SECTION 13. 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.
SECTION 14. 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).
SECTION 15. 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.
SECTION 16. 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.
SECTION 17. 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.
SECTION 18. 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 community revitalization through
community services and real estate development;
(31) to coordinate and establish linkages between
governmental and other social services programs to ensure
the effective delivery of services to low income individuals;
(32) to cooperate with local housing officials and plan
commissions in the development of projects that the officials
or commissions have under consideration;
(33) 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
(34) 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.
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.
SECTION 21. 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.
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.
SECTION 23. 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.
SECTION 24. 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.
SECTION 25. 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.
SECTION 26. 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.
SECTION 27. 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.
SECTION 28. 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.
SECTION 29. 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.
SECTION 30. 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.
SECTION 31. 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.
SECTION 32. 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:
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.
SECTION 36. 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.
SECTION 37. 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).
SECTION 38. 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.
SECTION 39. 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.
SECTION 40. 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.
SECTION 41. 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.
SECTION 42. 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.
SECTION 43. IC 6-2.5-6-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 11. A retail merchant
who extends assistance to a heating assistance program
administered under IC 12-14-11 IC 4-4-33 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 to a heating assistance program administered under
IC 12-14-11 IC 4-4-33 during the reporting period for which the state
gross retail and use tax payment is made.
SECTION 44. 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.
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.
SECTION 47. 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 to a heating assistance program administered under
IC 12-14-11 IC 4-4-33 to persons eligible for that assistance.
SECTION 48. 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 from a heating assistance program
administered under IC 12-14-11. IC 4-4-33. 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.
SECTION 49. 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.
SECTION 50. 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.
SECTION 51. 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.
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 heating assistance are accepted by the division under
IC 12-14-11. lieutenant governor under IC 4-4-33. 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.
(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 4-4-33 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 4-4-33. 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 4-4-33, 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 4-4-33.
(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.
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.
SECTION 57. 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.).
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.
SECTION 62. 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.
SECTION 63. [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.
SECTION 64. [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.