House Bill 1001, which aims to loosen local zoning guidelines to encourage new housing starts, passed the House Tuesday.
The bill, a House Republican priority for this session, was amended on second reading Jan. 22 to include the elements of the housing reports that local governments will file to the legislature annually.
State Rep. Doug Miller, R-Elkhart, the bill author, said the goal of the bill is to expand the state’s housing supply and decrease the cost of homeownership by rolling back costly regulations that impede development.
Indiana faces a housing shortage of 50,000 units to meet current demand, Miller said. The average first-time homeowner age is 40 years old, he said.
The bill gives communities the option to opt in to certain requirements of the bill, Miller said. Overall, reducing red tape around home ownership will bring more housing to Indiana, he said.
The bill addresses long permitting processes, zoning restrictions, and minimum parking requirements. For example, one of the provisions includes expanding permitted uses that are approved without a hearing to single family dwellings and townhouses in residential areas, an accessory dwelling unit within a single family home, and affordable housing on property purchased by a religious institution before Jan. 1, 2025 in a residential or commercial zone.
The bill also restricts a unit of government’s ability to impose and increase fees related to building approval and permits, among other design-element limitations.
“Indiana faces a challenge in this state, just like there’s challenges across the rest of the United States, for housing. It’s been years in the making. There’s no one silver bullet. There’s no single proposal that’s going to bring housing to the market fast enough,” Miller said.
When the bill was heard in the House Local Government Committee, Amy Krieg, government affairs director with Accelerate Indiana Municipalities, said the organization supports increasing housing opportunities and addressing barriers to housing production in Indiana.
But, the organization has concerns with the bill because it “extends beyond setting statewide guardrails into areas that remove local decision making in ways that have unintended consequences,” Krieg said.
Miller said there has been a perception that the bill removes local control. But, there are portions of the bill that local officials could opt out of, he said.
In the last 48 hours, he’s had conversations with county commissioners and other community organizations about the bill and received “positive feedback,” Miller said.
House Speaker Todd Huston, R-Fishers, said the bill “is a work in progress,” particularly with local officials.
“There’s a bevy of research that says part of the problem in this, not the only problem, is that there are way too many regulations and rules,” Huston said. “Some of those we own and we’re working through trying to get that resolved.”
State and local officials all want to make housing more accessible, Huston said, but the challenge is finding that “middle ground.” Both state and local officials are working to find that common ground, he said.
“It’s a very important issue. It’s been a bipartisan issue all across the country to try and solve this because it frankly impacts all of us,” Huston said. “There’s a place to find that spot with our local elected officials as it goes across the Senate.”
State Rep. Wendy Dant Chesser, D-Jeffersonville, said she has three concerns with the bill: protections for homeowners who invested in communities where housing rules may change; approvals of accessory dwellings without parking requirements; and the timeline for local governments to adjust building and construction fees.
“I appreciate the complexity of this bill. I hope we can continue to find ways local government can partner in not only increasing the availability of housing but also ensuring lower housing costs for all of our residents,” Dant Chesser said.
State Rep. Chris Campbell, D-West Lafayette, said the bill takes away local control from mayors and commissioners who know their communities best. West Lafayette is densely populated, she said, so portions of the bill — concerning accessory dwellings and rentals — won’t work there.
“Taking away that local decision is not good for my community,” Campbell said. “When you create legislation that is a one-size-fits-all bill throughout the state, this isn’t going to fit for my community. We need to make sure that if we’re going to protect local decisions that we address these issues.”
The bill passed 76-15, with State Rep. Craig Haggard, R-Mooresville, voting with 14 Democrats against the measure. The bill moves to the Senate for consideration.
