Ind. Code § 5-1.2-15.5-1 Implementation
Sec. 1. The authority shall carry out the program established under this chapter.
As added by P.L.204-2023, SEC.5.
Ind. Code ch. 5-1.2-15.5
Ind. Code ch. 5-1.2-15.5
in effectInd. Code § 5-1.2-15.5-2 "Eligible project"
Sec. 2. As used in this chapter, "eligible project" means a project for housing infrastructure.
As added by P.L.204-2023, SEC.5.
Ind. Code § 5-1.2-15.5-3 "Fund"
Sec. 3. As used in this chapter, "fund" refers to the residential housing infrastructure assistance revolving fund established by section 9 of this chapter.
As added by P.L.204-2023, SEC.5.
Ind. Code § 5-1.2-15.5-4 "Housing infrastructure"
Sec. 4. As used in this chapter, "housing infrastructure" means the installation, replacement, upgrade, or improvement of public infrastructure for the support of residential housing.
As added by P.L.204-2023, SEC.5.
Ind. Code § 5-1.2-15.5-4.5 "Political subdivision"
Sec. 4.5. As used in this chapter, "political subdivision" has the meaning set forth in IC 5-1.2-2-57.
As added by P.L.90-2024, SEC.1.
Ind. Code § 5-1.2-15.5-5 "Program"
Sec. 5. As used in this chapter, "program" refers to the residential housing infrastructure assistance program established by section 8 of this chapter.
As added by P.L.204-2023, SEC.5.
Ind. Code § 5-1.2-15.5-6 "Public infrastructure"
Sec. 6. (a) As used in this chapter, "public infrastructure" means any of the following infrastructure that is or will be owned, maintained, or provided by a political subdivision:
(1) A water distribution system.
(2) A water treatment plant.
(3) A wastewater treatment plant.
(4) A sanitary sewer system.
(5) A storm sewer system.
(6) A lift station.
(7) A street, road, or bridge.
(8) A curb, gutter, or sidewalk.
(9) A traffic signal.
(10) A street light.
(11) An electric or gas distribution line.
(b) The term includes the purchase of land necessary to accommodate a project listed in this section, including any excavation and compaction.
(c) For purposes of subsection (a)(1) through (a)(4), a political subdivision is providing the infrastructure notwithstanding that, after completion of construction, the infrastructure is contributed by the political subdivision to a:
(1) public utility (as defined in IC 8-1-2-1(a));
(2) municipally owned utility (as defined in IC 8-1-2-1(h));
(3) not-for-profit utility (as defined in IC 8-1-2-125(a));
(4) cooperatively owned corporation;
(5) conservancy district established under IC 14-33; or
(6) regional water or sewer district established under IC 13-26.
As added by P.L.204-2023, SEC.5.
Ind. Code § 5-1.2-15.5-7 "Residential housing"
Sec. 7. As used in this chapter, "residential housing" means single family or multifamily housing for rent or sale. The term includes condominiums and townhouses located within an economic development target area that is designated under IC 6-1.1-12.1-7.
As added by P.L.204-2023, SEC.5.
Ind. Code § 5-1.2-15.5-8 Residential housing infrastructure assistance program; establishment
Sec. 8. The residential housing infrastructure assistance program is established.
As added by P.L.204-2023, SEC.5.
Ind. Code § 5-1.2-15.5-9 Residential housing infrastructure assistance revolving fund; use of money
Sec. 9. (a) The residential housing infrastructure assistance revolving fund is established. The fund is a revolving fund to provide money for loans under this chapter to or for the benefit of participants.
(b) The fund consists of:
(1) appropriations from the general assembly;
(2) grants and other gifts of money; and
(3) loan repayments, including interest, premiums, and penalties.
(c) The authority shall administer, hold, and manage the fund.
(d) The cost of administering the fund shall be paid from money in the fund.
(e) Money in the fund shall be used to make loans for public infrastructure for the support of residential housing.
(f) Money in the fund may not be used for any of the following purposes:
(1) Repayment of any debt incurred for a project other than an eligible project.
(2) Routine maintenance and repair projects.
(3) Upgrading utility poles.
(4) Fees for studies, reports, designs, or analyses prepared by consultants or engineers for an eligible project.
(g) Money in the fund is continuously appropriated for the purposes of this chapter.
(h) Money in the fund does not revert to the state general fund at the end of a state fiscal year.
As added by P.L.204-2023, SEC.5.
Ind. Code § 5-1.2-15.5-10 Allocation of loans
Sec. 10. The authority shall set aside seventy percent (70%) of the money in the fund for housing infrastructure benefitting political subdivisions with a population of less than fifty thousand (50,000).
As added by P.L.204-2023, SEC.5. Amended by P.L.90-2024, SEC.2; P.L.73-2026, SEC.1.
Ind. Code § 5-1.2-15.5-11 Investment of money
Sec. 11. (a) The authority shall invest the money in the fund in accordance with an investment policy adopted by the authority. Interest, premiums, gains, or other earnings from the investments shall be credited to and deposited in the fund.
(b) As an alternative to subsection (a), the authority may invest or cause to be invested all or a part of the fund in a fiduciary account or accounts with a trustee that is a financial institution. Notwithstanding any other law, any investment may be made by the trustee in accordance with one (1) or more trust agreements or indentures. A trust agreement or indenture may permit disbursements by the trustee to:
(1) a participant;
(2) the authority; or
(3) any person to which the authority or a participant is obligated, as provided in the trust agreement or indenture.
As added by P.L.204-2023, SEC.5.
Ind. Code § 5-1.2-15.5-12 Discretion of authority
Sec. 12. This chapter does not require the authority to provide a loan to any participant to the extent the authority determines the loan is not in the best interests of the program and the authority.
As added by P.L.204-2023, SEC.5.
Ind. Code § 5-1.2-15.5-13 Duties
Sec. 13. The authority shall do the following under this chapter:
(1) Manage the program.
(2) Prepare and provide program information to participants.
(3) Negotiate the negotiable aspects of each financial assistance agreement.
(4) Prepare or cause to be prepared each financial assistance agreement.
(5) Sign each financial assistance agreement.
(6) Conduct or cause to be conducted an evaluation as to the financial ability of each participant to pay the loan and other obligations evidencing the loans, if required to be paid, and comply with the financial assistance agreement.
(7) Review each proposed eligible project and financial assistance agreement to determine if the project meets the credit, economic, or fiscal criteria established by guidelines of the authority.
As added by P.L.204-2023, SEC.5.
Ind. Code § 5-1.2-15.5-14 Priority ranking system for awarding loans; criteria
Sec. 14. (a) The authority shall develop and use a priority ranking system in making loans from the fund.
(b) The ranking system must prioritize making loans for eligible projects to participants that have adopted and implemented a majority of the following policies for residential housing:
(1) Have:
(A) invested in a housing study within the last five (5) years;
(B) had a housing study performed by a region's local economic development organization; or
(C) demonstrated the need for housing inventory as indicated by the Indiana state housing dashboard.
(2) Have voluntarily revised unified development ordinances, zoning regulations, or other land development rules to allow for:
(A) higher density development of duplexes, triplexes, and fourplexes in areas designated for single family homes;
(B) construction of other housing types including accessory dwelling units and manufactured and modular housing;
(C) adaptive reuse of commercial buildings for residential use such as allowing multifamily development in retail, office, and light manufacturing zones;
(D) increasing the allowable floor area ratio in multifamily housing areas; or
(E) waiver or elimination of regulations such as requirements for:
(i) garage size and placement;
(ii) steeper roof pitch;
(iii) minimum lot size and square footage;
(iv) greater setbacks;
(v) off-street parking;
(vi) design standards that restrict or prohibit the use of code compliant products; or
(vii) property height limitations.
(3) Have streamlined or shortened the permitting processes and timelines, including through one stop and parallel process permitting.
(4) Do not have impact fee ordinances.
(5) Have secured private, local, state, or federal funds to contribute to the eligible project.
(6) Have secured a letter of support from an employer stipulating that the public infrastructure will support residential housing that is in reasonable proximity to employment.
(7) Assist homeowners to age in place through restoration or renovation of existing homes.
(8) Have established density bonuses.
(9) Use property tax abatements to enable higher density and mixed income communities.
(10) Have donated vacant land for affordable housing development.
As added by P.L.204-2023, SEC.5. Amended by P.L.90-2024, SEC.3; P.L.146-2025, SEC.1.
Ind. Code § 5-1.2-15.5-15 Loan terms and conditions
Sec. 15. The authority shall establish the terms and conditions that the authority considers necessary or convenient to make loans under this chapter.
As added by P.L.204-2023, SEC.5.
Ind. Code § 5-1.2-15.5-16 Loan application; necessary documents
Sec. 16. (a) An application for a loan from the fund must be accompanied by all papers and opinions required by the authority.
(b) The authority may require that an application for a loan from the fund be accompanied by the following:
(1) A certification and guarantee of signatures.
(2) A certification that, as of the date of the loan, no litigation is pending challenging the validity of or entry into:
(A) the loan; or
(B) any security for the loan.
(3) Any other certifications, agreements, security, or requirements that the authority requests.
(4) An approving opinion of nationally recognized bond counsel.
As added by P.L.204-2023, SEC.5.
Ind. Code § 5-1.2-15.5-17 Financial assistance agreement
Sec. 17. A participant receiving a loan from the fund shall enter into a financial assistance agreement. A financial assistance agreement related to the program is a valid, binding, and enforceable agreement of the participant.
As added by P.L.204-2023, SEC.5.
Ind. Code § 5-1.2-15.5-18 Pledging of loans
Sec. 18. (a) The authority may pledge loans and other obligations of participants evidencing the loans from the fund to secure other loans from the fund to or for the benefit of participants.
(b) The authority must approve the terms of a pledge under this section.
(c) Notwithstanding any other law, a pledge of property made by the authority under this section is binding from the time the pledge is made. Revenues, other money, or other property pledged and that is received after the pledge is immediately subject to the lien of the pledge without any other act. The lien of a pledge is binding against all parties having claims of any kind in tort, contract, or otherwise against:
(1) the fund; or
(2) the authority;
regardless of whether the parties have notice of any lien.
(d) A resolution, an indenture, or another instrument by which a pledge is created does not have to be filed or recorded, except in the records of the authority.
(e) Action taken to:
(1) enforce a pledge under this section; and
(2) realize the benefits of the pledge;
is limited to the property pledged.
(f) A pledge under this section does not create a liability or indebtedness of the state.
As added by P.L.204-2023, SEC.5.
Ind. Code § 5-1.2-15.5-19 Guidelines; interest rate or parameters
Sec. 19. (a) The authority shall establish the interest rate or parameters for establishing the interest rate on each loan made under this chapter, including parameters for establishing the amount of interest subsidies.
(b) The authority, in setting the interest rate or parameters for establishing the interest rate on each loan, may take into account the following:
(1) Credit risk.
(2) Affordability.
(3) Other fiscal factors the authority considers relevant, including the program's cost of funds and whether the financial assistance provided to a particular participant is taxable or tax exempt under federal law.
Based on the factors set forth in subdivisions (1) through (3), more than one (1) interest rate may be established and used for loans to different participants or for different loans to the same participants.
As added by P.L.204-2023, SEC.5.
Ind. Code § 5-1.2-15.5-20 Alternative of providing leveraged loan program
Sec. 20. (a) As an alternative to making loans to participants, the authority may use the money in the fund to provide a leveraged loan program to or for the benefit of participants, including using money in the fund to enhance the obligations of participants issued for the purposes of this chapter by:
(1) granting money to:
(A) be deposited in:
(i) a capital fund or reserve fund established under IC 5-1.2-4 or another statute or a trust agreement or indenture as contemplated by this chapter; or
(ii) an account established within a fund described in item (i); or
(B) provide interest subsidies;
(2) paying bond insurance premiums, reserve insurance premiums, or credit enhancement, liquidity support, remarketing, or conversion fees, or other similar fees or costs for obligations of a participant or for bonds issued by the authority, if credit market access is improved or interest rates are reduced; or
(3) guaranteeing all or a part of obligations issued by participants or bonds issued by the authority.
(b) A guarantee of obligations or bonds under subsection (a)(3) must be limited to money in the fund. A guarantee under subsection (a)(3) does not create a liability or indebtedness of the state.
As added by P.L.204-2023, SEC.5.
Ind. Code § 5-1.2-15.5-21 Use of money in fund to establish leveraged loan program
Sec. 21. Notwithstanding any other law, money in the fund, together with loan repayments to be deposited in the fund, may be used to establish a leveraged loan program in connection with the fund.
As added by P.L.204-2023, SEC.5.
Ind. Code § 5-1.2-15.5-22 Guidelines
Sec. 22. The authority may adopt guidelines, without complying with IC 4-22-2, to govern the administration of this chapter.
As added by P.L.204-2023, SEC.5.
Ind. Code § 5-1.2-15.5-23 Report
Sec. 23. Not later than August 1 of each year, the public finance director shall prepare for the budget committee established by IC 4-12-1-3 and the legislative council a report that includes the following:
(1) Information concerning the loans made available to participants from the fund during each fiscal year.
(2) Any other information requested by the budget committee and the legislative council.
The report to the legislative council must be submitted in an electronic format under IC 5-14-6.
As added by P.L.204-2023, SEC.5.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/5Fetched: 10/17/2026