CHAPTER 17. URBAN HOMESTEADING
IC 36-7-17
Chapter 17. Urban Homesteading
IC 36-7-17-1
Application of chapter
Sec. 1. This chapter applies to all units except townships.
As added by Acts 1981, P.L.309, SEC.36.
IC 36-7-17-2
Designation of agency to administer program
Sec. 2. The fiscal body of a unit may by ordinance designate anagency or quasi-public corporation, or establish a new agency, toadminister an urban homesteading program under which familydwellings for one (1) through four (4) families may be conveyed toindividuals or families, who must occupy and rehabilitate thedwellings, and community organizations that must rehabilitate thedwellings and offer them for sale.
As added by Acts 1981, P.L.309, SEC.36. Amended by P.L.177-2003,SEC.11.
IC 36-7-17-3
Acquisition of property
Sec. 3. (a) The agency designated or established in section 2 ofthis chapter may acquire real property in the name of the unit, for useas provided in this chapter.
(b) Under IC 6-1.1-24-4.5, the county auditor shall provide a listof real property on which one (1) or more installments of taxes aredelinquent.
(c) Under IC 6-1.1-25-1 and IC 6-1.1-25-4, the agency mayacquire the deed for real property purchased at tax sale for thepurposes of this chapter one hundred twenty (120) days after the dateof sale, after compliance with the notice provisions ofIC 6-1.1-25-4.5.
(d) Under IC 6-1.1-25-7.5, the agency may acquire the deed forreal property for which the holder of the certificate of sale has failedto request that the county auditor execute and deliver a deed withinone hundred twenty (120) days after issuance of the certificate.
(e) In addition to real property acquired through tax sale for thepurposes of this chapter, the agency may acquire real property bypurchase or gift.
As added by Acts 1981, P.L.309, SEC.36. Amended by P.L.87-1987,SEC.11; P.L.1-1994, SEC.178; P.L.31-1994, SEC.22; P.L.2-1995,SEC.135; P.L.169-2006, SEC.76.
IC 36-7-17-4
Notice to residents of unit
Sec. 4. The agency shall, after the acquisition of real property foruse as provided in this chapter, take the steps necessary to fullyinform the residents of each unit in which the dwellings are locatedof: (1) the existence, nature, and location of the dwellings;
(2) the qualifications required for participation in the programunder this chapter; and
(3) the terms and conditions on which the dwellings may beconveyed to qualified persons.
As added by Acts 1981, P.L.309, SEC.36.
IC 36-7-17-5
Applications; eligibility; drawings to determine receipt of dwellings
Sec. 5. (a) A person or community organization may apply for theprogram by completing a bid application.
(b) The following applicants are qualified and shall be approvedto receive real property offered under this chapter:
(1) A person who:
(A) is at least eighteen (18) years of age;
(B) possesses the financial resources to support a loan, thenecessary skills to rehabilitate the property, or a combinationof both; and
(C) has, including immediate family, not previouslyparticipated in the program.
(2) A community organization as described in IC 36-7-9-2.
(c) Approved applicants are entitled to receive a list of allproperties owned by the unit that are available under this chapter.
(d) Approved applicants may apply for each dwelling in whichthey are interested. A drawing shall be held to determine thoseapplicants receiving the dwellings. Persons applying under thischapter shall receive priority over community organizations if bothindicate an interest in the same dwelling. Each approved person andhis or her immediate family may receive only one (1) dwelling in thedrawing. Each approved community organization may receive asmany dwellings as the agency considers proper.
As added by Acts 1981, P.L.309, SEC.36. Amended by P.L.177-2003,SEC.12.
IC 36-7-17-6
Conveyances; duties of recipients
Sec. 6. The conveyance of a dwelling to an applicant under thischapter shall be made in return for a fee of one dollar ($1) or moreand the execution by the applicant of an agreement with thefollowing minimum conditions:
(1) The applicant must:
(A) if a person, reside in the dwelling as the person'sprincipal place of residence for a period of not less thanthree (3) years; or
(B) if a community organization, agree to list the dwellingfor sale within twelve (12) months after possession.
(2) The applicant must bring the residence up to a minimumcode standard, including building, plumbing, electrical, and firecode standards, within twelve (12) months after possession, orbefore possession if required under subdivision (4). (3) The applicant must carry fire and liability insurance on thedwelling at all times.
(4) The applicant must comply with any additional terms,conditions, and requirements that the agency may impose toassure that the purposes of this chapter are carried out. Thismay include the requirement that the dwelling be rehabilitatedto minimum building code standards before possession.
As added by Acts 1981, P.L.309, SEC.36. Amended by P.L.177-2003,SEC.13.
IC 36-7-17-7
Conveyances; methods authorized
Sec. 7. (a) The agency shall convey the real property acquired forthe purposes of this chapter to those persons or communityorganizations qualified under section 6 of this chapter by using themethods prescribed by subsection (b), (c), or (d).
(b) The real property may be conveyed by a conditional salescontract, with title to remain in the agency for a period of at least one(1) year.
(c) The title to real property may be conveyed to a personpurchasing the property as a determinable fee, with the language ofthe granting clause in the deed of conveyance to include the language"The property is conveyed on the conditions that the purchaser:
(1) will reside in the dwelling as his principal place of residencefor a period of not less than three (3) years;
(2) will bring the residence up to minimum code standards intwelve (12) months;
(3) will carry adequate fire and liability insurance on thedwelling at all times; and
(4) will comply with such additional terms, conditions, andrequirements as the agency requires before __________ (dateof the deed) under IC 36-7-17".
(d) The title to real property may be conveyed to a communityorganization purchasing the property as a determinable fee, with thelanguage of the granting clause in the deed of conveyance to includethe language: "The property is conveyed on the conditions that thepurchaser:
(1) will list the property for sale within twelve (12) months oftaking possession;
(2) will bring the residence up to minimum code standardswithin twelve (12) months;
(3) will carry adequate fire and liability insurance on thedwelling at all times; and
(4) will comply with any additional terms, conditions, andrequirements as the agency requires before __________ (dateof the deed) under IC 36-7-17.".
As added by Acts 1981, P.L.309, SEC.36. Amended by P.L.19-1986,SEC.61; P.L.177-2003, SEC.14.
IC 36-7-17-8 Conveyances; effect of purchaser's failure to fulfill agreement;subordination of agency's interest to financial institutions orpersons lending money
Sec. 8. Before the vesting of a fee simple title in the purchaser,any material failure by the purchaser to carry out the agreemententered into under section 6 of this chapter nullifies the agreementand all right, title, and interest in the property immediately reverts tothe agency, except that the agency may grant the purchaser aspecified period, not to exceed two (2) years, to come intocompliance with the terms of the agreement. The agency maysubordinate its interest under the terms of the agreement to financialinstitutions or persons lending money to the purchaser for thepurpose of allowing the purchaser to fulfill the terms of theconveyance.
As added by Acts 1981, P.L.309, SEC.36.
IC 36-7-17-9
Conveyances; fee simple title
Sec. 9. (a) When, after purchase, a person has resided in thedwelling for the required three (3) year period, brought the propertyinto compliance with the required code standards, and otherwisecomplied with the terms of the person's agreement, the agency shallconvey to the person a fee simple title to the property.
(b) When, after purchase, a community organization has broughtthe property into compliance with the required code standards,documented its intent to list the property for sale, and otherwisecomplied with the terms of its agreement, the agency shall convey toit a fee simple title to the property.
As added by Acts 1981, P.L.309, SEC.36. Amended by P.L.177-2003,SEC.15.
IC 36-7-17-10
Rules and regulations
Sec. 10. The director of the agency shall prescribe the rules andregulations necessary to carry out this chapter, including rules andregulations establishing standards and methods for inspection ofbuildings, bidding for properties by applicants, and measurement ofrehabilitation progress.
As added by Acts 1981, P.L.309, SEC.36.
IC 36-7-17-11
Retention of deed by unit; property deemed municipal property;tax exemption
Sec. 11. Property acquired or held under this chapter withretention of the deed by the unit is considered property of the unitheld for municipal purposes and is exempt from property taxation.This property tax exemption becomes effective on the date ofconveyance to the unit. A petition to cancel taxes or a certifiedapplication for exemption is not required for property acquired orheld under this chapter.As added by Acts 1981, P.L.309, SEC.36.
IC 36-7-17-12
Property not applied for in successive drawings; sale; dispositionof proceeds
Sec. 12. (a) A property for which no one applies in two (2)successive drawings held under this chapter may be sold at publicauction to the highest bidder.
(b) The proceeds of the sale of real property acquired underIC 6-1.1-25-7.5 shall be applied to the cost of the sale, includingadvertising and appraisal.
(c) If any proceeds remain after payment of the costs undersubsection (b), the proceeds shall be applied to the payment of taxesremoved from the tax duplicate under IC 6-1.1-25-7.5(e).
(d) If any proceeds remain after payment of the taxes undersubsection (c), the proceeds shall be deposited in the county generalfund.
As added by Acts 1981, P.L.309, SEC.36. Amended by P.L.87-1987,SEC.12; P.L.169-2006, SEC.77.