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Monday is Home Builders Day at the State Capitol
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IBA's Home Builders Day at the Indiana Statehouse is Monday, February 4 in Indianapolis. This event offers an opportunity to meet face to face with lawmakers to discuss issues of importance to the homebuilding industry and to network with other business owners. Members from around the state are invited to join us for a briefing at Columbia Club on current state legislative proposals then for lunch with state lawmakers at the Indiana Statehouse. Register to attend here.
Special thanks to our event sponsors Indiana Affordable Housing Council, CREA, Shoopman Homes, Indiana Electric Cooperatives and SuperFleet Fuel Program. For more information on sponsorship opportunities, please contact Reagan Van Cleave at Reagan@buildindiana.org. |
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One Month Down, Three to Go
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As the Indiana General Assembly wraps up its first month in the four-month legislative session, IBA's Governmental Affairs Team continues to analyze the 1270 bills that have been posted, testify in committee on bills with an impact to housing, and share comments and concerns with legislators. Bills that IBA has targeted to track this year- AKA Builders Bill Track- are attached. A list of all bills that have been filed and posted is available here. Please contact IBA's Governmental Affairs Team if you have questions or comments about any legislation.
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Housing Impact Analysis Bill Clears Committee 11-0
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House Bill 1625, authored by Rep. Clere (R-New Albany), is a priority bill for IBA and would require all units of local and state government to prepare a housing impact analysis for administrative rules that have an impact on the development, construction, cost or availability of housing in the state.
IBA staff testified in support of the bill in the House Committee on Government and Regulatory Reform along with others from the coalition including the Indiana Association of Realtors®, Indiana Apartment Association, Habitat for Humanity, Indiana Manufacturers Association, National Federation of Independent Business, Indiana Manufactured Housing Association, and the Indiana Chamber. The Indiana Association of Counties testified in opposition to the bill calling it an unfunded mandate. HB 1625 passed committee 11-0 and heads to the House floor for further debate.
Additional IBA-supported bills that address the workforce housing shortage include:
- House Bill 1234, authored by Rep. Pressel (R-Rolling Prairie), provides an affordable and workforce housing state tax credit against state tax liability to a taxpayer for each taxable year in the state tax credit period of a qualified project in an aggregate amount that does not exceed the product of a percentage between 40% and 100% and the amount of the taxpayer's aggregate federal tax credit for the qualified project. Provides that an eligible applicant must apply to the Indiana Housing and Community Development Authority for an award of affordable and workforce housing state tax credits. Provides that a holder of an affordable and workforce housing state tax credit may transfer, sell, or assign all or part of the holder's right to claim the state tax credit for a taxable year. HB 1234 is assigned to the House Ways and Means Committee, but has not been scheduled for a hearing.
- House Bill 1263, authored by Rep. Pressel (R-Rolling Prairie), establishes the workforce housing development revolving loan fund (fund) to provide funding for loans to counties, cities, or towns for workforce housing development projects. Appropriates $1,000,000 to the fund for the 2019-2020 state fiscal year. Provides that the Indiana Housing and Community Development Authority shall administer the fund. Specifies the purposes for which money loaned from the fund must be used. Permits redevelopment commissions in counties other than Marion County to establish a program for workforce housing development and a tax increment funding allocation area for that program. Defines "workforce housing" for purposes of both the fund and the program as housing that consists of single family dwelling units that have a sales price of not more than $250,000. HB 1263 is assigned to the House Ways and Means Committee, but has not been scheduled for a hearing.
- Senate Bill 566, authored by Sen. Raatz (R-Richmond), pertains to residential tax increment financing. The bill permits redevelopment commissions in counties having a population of not more than 100,000 to establish a program for residential housing development and a tax increment funding allocation area for that program. Defines "residential housing" as housing that consists of single family dwelling units. SB 566 is assigned to Senate Tax and Fiscal Policy Committee.
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Stormwater Bill Moves to House Floor
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House Bill 1266, authored by Rep. Miller (R-Elkhart), deals with sediment and erosion control on construction sites. A variation of this bill passed the House last year but stalled out in the Senate. Various stakeholders worked over the past summer to develop a piece of legislation that addresses concerns heard across the state of more restrictive regulations from MS4 communities than what is required from IDEM and Rule 5. The bill was amended to 1) require the review authority to make a preliminary determination whether the construction plan is substantially complete before the end of the fifth working day after the day on which the construction plan is submitted to the review authority. 2) provide that an individual who has successfully completed either of two particular MS4 training programs may review and make determinations concerning construction plans submitted to an MS4 community 3) provides that if: (1) an MS4 community ha smade a conclusive favorable determination concerning a construction plan; and (2) work on the construction project has begun; the MS4 community may not order work on the construction project to stop on the grounds that the erosion and sediment control measures included in the construction plan are not adequate unless the project site owner is notified in writing of the inadequacies that the MS4 community perceives in the erosion and sediment control measures and the perceived inadequacies are not resolved within 72 hours after the project site owner receives the written notice. IBA supports the amended bill, which passed the House Environmental Affairs Committee 9-3. HB 1266 heads to the House floor.
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Bill to Expedite Building Permit and CofO Issuance Moves to House Floor
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House Bill 1128, authored by Rep. Miller (R-Elkhart), requires a local governmental agency to issue a building or improvement location permit and a certificate of occupancy to a person not later than 12 business days after the person has filed a completed application and meets all required conditions. IBA supports the bill, which passed the House Committee on Local Government 11-0 and moves to the House floor.
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Bill to Train Local Gov Officers Held
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House Bill 1437, authored by Rep. Engleman (R-Georgetown), pertains to training for local government officers. HB 1437 was heard in the House Committee on Local Government. Charlie Smith, Executive Officer of the Building & Development Association of Southern Indiana, and IBA staff testified in support of the bill, which was held.
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Building Official Bill Moves to 3rd Reading in Senate
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Senate Bill 142, authored by Sen. Bohacek (R- Michigan City), prohibits a building commissioner, building code official, or inspector for a local unit of government (unit) from issuing a building permit when the building commissioner, building code official, or inspector has a direct or indirect financial interest in the issuance of the permit. Requires a unit to adopt an ordinance to establish a procedure to address instances where a building commissioner, building code official, or inspector has a direct or indirect financial interest in the issuance of a permit. The bill is on third reading in the Senate on Monday.
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Water Bill Moves to House
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Senate Bill 4, authored by Sen. Charbonneau (R-Valparaiso) and sponsored by Rep. Soliday (R-Valparaiso), is a culmination of several years of work by various stakeholders to address Indiana's water and wastewater infrastructure issues. The bill also creates a Task Force to address the issue of storm water run-off. IBA supports the legislation and continues to work on an amendment to include the construction industry on the proposed Task Force. SB 4 passed the Senate 48-0 and moves to the House.
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Bill on Statutory Indemnity for Architects & Engineers on 3rd Reading
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House Bill 1015, authored by Rep. Torr (R- Carmel), specifies that a provision in a professional services contract with an architect or engineer that requires indemnification and defense of a promisee for certain liability is void.
In the House Judiciary Committee, IBA staff testified in opposition to Section 2 of HB 1015 for the following reasons:
- Circumvents the ability to freely negotiate the allocation of risk.
- Architectural and engineering firms are under no obligation to contract for projects for which they determine the risk is too great and should not have statutory protection from risk for projects in which they chose to provide services.
- Gives preferential treatment to architects and engineers under Indiana's anti-indemnity statute at the expense of all other industry participants, including owners, contractors, and subcontractors.
HB 1015 moves to third reading in the House on Monday.
Senate Bill 230, authored by Sen. Messmer (R-Jasper), has the same language in Section 1 as Rep. Torr's bill and specifies that "sole negligence" for purposes of liability under a construction or design contract does not include: (1) vicarious liability; (2) imputed negligence; or (3) assumption of a nondelegable duty. IBA supports SB 230, which passed the Senate Judiciary Committee 11-0 and moves to the Senate floor for further consideration.
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Bill Allowing Sewer Connections Through Rights-Of-Way Moves To House
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Senate Bill 193, authored by Sen. Bohacek (R- Michigan City) and sponsored by Rep. Pressel (R-Rolling Prairie), provides that a unit may not prohibit a property owner from installing a sewer line or other sewage works: (1) in or through a public right-of-way owned or controlled by the unit; and (2) for the purpose of connecting the owner's property to a sewer system owned or operated by another unit or entity; if the owner provides to the unit a written determination from a specified authority that the owner's existing sewage disposal system is failing, and if certain other conditions are met. The bill passed the Senate 38-0 and moves to the House.
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Workforce Funding Bill Passes House
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House Bill 1002, authored by Rep. Holli Sullivan (R-Evansville) and sponsored by Sen. Perfect (R-Lawrenceburg) and Sen. Raatz (R-Richmond), reallocates existing state funds to support workforce programs throughout the state. The bill aims to boost workforce development efforts to give Hoosiers the opportunity to increase their certifications, earn stackable credentials and secure high-paying jobs in high-demand fields. HB 1002 passed the House 99-0. Read More. |
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Bill on HOAs and Solar Power to Be Heard Feb. 6
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House Bill 1331, authored by Rep. Speedy (R-Indianapolis), provides that a homeowners association may not: (1) prohibit the owner of a dwelling unit from installing a solar energy system; (2) impose unreasonable limitations on the owner's ability to install or use a solar energy system; or (3) require the removal of a solar energy system that has been installed. Provides, however, that a homeowners association may require preapproval of the location of a solar energy system and of the manner in which the solar energy system is installed. Applies only to rules, covenants, declarations of restrictions, and other governing documents adopted or amended by a homeowners association after June 30, 2019.
IBA has opposed this bill in the past because it limits an HOA's authority to enforce covenants that the neighborhood's residents agreed to, which may include a prohibition on solar panel installation or other restrictions. IBA supports the current process for amending covenants to address the issue of solar panel installation or others. HB 1331 is scheduled for a hearing on Wednesday, Feb. 6 in the House Utilities, Energy and Telecommunications Committee.
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Bill to Eliminate Remonstrance Procedure on 3rd Reading; Another Annexation Bill to be Heard 2/7
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Senate Bill 94, authored by Sen. Boots (R-Crawfordsville), pertains to annexation and would void remonstrance waivers. SB 94 was amended on second reading to remove a prohibition on annexation within a year of a census. Click here to view the amendment. The bill is on third reading in the Senate on Monday.
Three additional bills of interest pertaining to annexation are House Bill 1359, authored by Rep. Mahan (R-Hartford City), House Bill 1427, authored by Rep. Leonard (R-Huntington), and Senate Bill 556, authored by Sen. Buck (R-Kokomo). The House bills have not been scheduled for a hearing, but SB 556 will be heard in the Senate Committee on Local Government, of which Sen. Buck is chairman, on Feb. 7th.
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Bill to Expand State-Approved Wastewater Treatment Devices Held
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House Bill 1486, authored by Rep. Bartels (R-Eckerty), requires the state department of health to authorize the use of a proprietary residential wastewater treatment device if certain conditions are met.
HB 1486 was heard in the House Committee on Environmental Affairs and held. IBA staff testified that we support establishing clear criteria for approving new technology, and, provided a product meets the criteria, it should be approved in a reasonable amount of time.
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Bill to Increase IDEM Fees Held
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House Bill 1514, authored by Rep. Morris (R-Ft. Wayne), provides a statutory framework that would allow some fees to be increased for IDEM programs to cover their shortfall, while making sure that the regulated industries can see a return on their investment from the agency in the form of timely review and release of permits. The agency has not had a fee increase in many years and they have proposed fee increases through the Environmental Rules Board. HB 1514 was heard in the House Committee on Environmental Affairs and held. IBA staff and other stakeholders testified that the General Assembly should approve fee increases on regulated entities.
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Bill to Repeal Local Authority to Exercise Extraterritorial Powers Held
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Senate Bill 535, authored by Sen. Boots (R-Crawfordsville), repeals the general authority of a city or town (municipality) to exercise certain powers outside of its corporate boundaries. IBA supports the bill and believes cities and towns should not be able to regulate outside of their jurisdictional boundaries. The bill was heard in the Senate Local Government Committee and held. It is scheduled to be heard again on February 7.
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Bills of Interest Scheduled for Committee Hearings Next Week
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| Monday, February 4, 2019 |
| HOUSE JUDICIARY |
| HB1138** |
ARBITRATION FOR HOMEOWNERS ASSOCIATION DISPUTES. (BURTON, W) |
Tuesday, February 5, 2019 |
| HOUSE FINANCIAL INSTITUTIONS |
| HB1495** |
REAL ESTATE LAND CONTRACTS. (SUMMERS, V) |
Wednesday, February 6, 2019 |
| SENATE PENSIONS AND LABOR |
| SB289** |
REPORTING ON WORKER MISCLASSIFICATION. (NIEZGODSKI, D) |
| HOUSE UTILITIES, ENERGY AND TELECOMMUNICATIONS |
| HB1331** |
HOMEOWNERS ASSOCIATIONS AND SOLAR POWER. (SPEEDY, M) |
| HB1347** |
MUNICIPALLY OWNED UTILITIES. (BURTON, W) |
Thursday, February 7, 2019 |
| SENATE LOCAL GOVERNMENT |
| SB535** |
EXTRATERRITORIAL POWERS OF CITIES AND TOWNS. (BOOTS, P) |
| SB556** |
ANNEXATION. (BUCK, J) |
| SENATE COMMERCE AND TECHNOLOGY |
| SB605** |
INDIANA-MICHIGAN BOUNDARY LINE COMMISSION. (DORIOT, B) |
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Articles of Interest
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Workforce Development Partnership Supports Construction Vocational Program
The city of Indianapolis and the Metropolitan School District of Wayne Township have unveiled a partnership focused on workforce development and improving neighborhood quality of life. The city says it will allocate $300,000 to fund adult education programs for Marion County residents in opportunity job sectors that are in high-demand but have unfilled positions. An additional $90,000 will go toward the district's Area 31 Student Construction Vocational Program. Read More.
'Most Affordable Places to Retire' Includes Hoosier Cities
A website focusing on adult communities has included two Indiana cities in its list of the "20 Most Affordable Places to Retire in 2019." The list from 55places.com was determined by measuring a variety of criteria such as overall cost of living, median home prices, and local healthcare options. Read More And Connect to List.
Indy Among Makes 'Best Cities for First-Time Homebuyers'
Indianapolis has earned a spot on LendingTree's 'Best Cities for First-Time Homebuyers' list. The city comes in sixth, praised for its amount of homes that are affordable to median income families. Read More.
Greenfield Approves Increase in Park Impact Fee Which Could Raise $3.6 Million in 10 years
The Greenfield City Council approved an amendment to the city's park impact fee ordinance last week, raising the extra cost associated with new building permits to $1,313 in 2019 for single-family homes. Read More.
6 Big Problems With Building Tiny Houses
Minimalism is in. A growing number of people are adopting a lifestyle that's scaled down both physically and financially, taking on only the bare minimum of material possessions and living space in order to function. Unfortunately, there are also some hazards to tiny house plans that don't get quite the same amount of attention. Take a look at a few perils of downsizing. |
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