CHAPTER 1. INDIANA HOUSING AND COMMUNITY DEVELOPMENT AUTHORITY
IC 5-20
ARTICLE 20. HOUSING
IC 5-20-1
Chapter 1. Indiana Housing and Community DevelopmentAuthority
IC 5-20-1-1
Legislative findings and declaration of public policy
Sec. 1. Legislative Findings and Declaration of Public Policy. Itis hereby declared:
(1) that there exists in the state of Indiana a need for safe andsanitary residential housing within the financial means of lowand moderate income persons and families, a need which unmetis a threat to the health, safety, morals and welfare of Indianaresidents and which will require an excessive expenditure ofpublic funds for the social problems thus created;
(2) that private enterprise and investment will more adequatelybe able to produce the needed construction of decent, safe andsanitary residential housing at prices or rentals which personsand families of low and moderate income can afford, or toachieve the urgently needed rehabilitation of much of thepresent low and moderate income housing; that it is imperativethat the supply of residential housing for persons and familiesof low and moderate income displaced by public actions ornatural disaster be increased; and that private enterprise andinvestment be encouraged to sponsor, build and rehabilitateresidential housing for such persons and families;
(3) that the provision of decent, safe and sanitary housing forpersons and families of low and moderate income who wouldotherwise be unable to obtain adequate housing at costs theycould afford is a valid public purpose for which public moneymay be spent;
(4) that there exists a need in Indiana to stimulate the residentialhousing industry; that public employees have unmet needs withregard to residential housing; that state retirement plans needadditional, safe avenues for investment; and that the provisionof money for mortgage loans through the issuance ofmortgage-backed bonds or notes will in part meet these needs;and
(5) that the necessity in the public interest and welfare for theprovisions of this chapter is hereby declared a matter oflegislative determination.
As added by Acts 1978, P.L.28, SEC.1. Amended by Acts 1982,P.L.35, SEC.2.
IC 5-20-1-2
Definitions
Sec. 2. As used in this chapter:
"Assisted" means, with respect to a loan: (1) the payment by the United States or any duly authorizedagency of the United States of assistance payments, interestpayments, or mortgage reduction payments with respect to suchloan; or
(2) the provision of insurance, guaranty, security, collateral,subsidies, or other forms of assistance or aid acceptable to theauthority for the making, holding, or selling of a loan from theUnited States, any duly authorized agency of the United States,or any entity or corporation acceptable to the authority, otherthan the sponsor.
"Authority" means the Indiana housing and communitydevelopment authority created by section 3 of this chapter.
"Bonds" or "notes" means the bonds or notes authorized to beissued by the authority under this chapter.
"Development costs" means the costs approved by the authorityas appropriate expenditures and credits which may be incurred bysponsors, builders, and developers of residential housing prior tocommitment and initial advance of the proceeds of a constructionloan or of a mortgage, including but not limited to:
(1) payments for options to purchase properties on the proposedresidential housing site, deposits on contracts of purchase, or,with prior approval of the authority, payments for the purchaseof such properties;
(2) legal, organizational, and marketing expenses, includingpayments of attorney's fees, project manager, clerical, and otherincidental expenses;
(3) payment of fees for preliminary feasibility studies andadvances 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 ofservice provided at no cost by the sponsors, builders, ordevelopers; and
(7) such other expenses as the authority deems appropriate forthe purposes of this chapter.
"Governmental agency" means any department, division, publicagency, political subdivision, or other public instrumentality of thestate of Indiana, the federal government, any other state or publicagency, or any two (2) or more thereof.
"Construction loan" means a loan to provide interim financing forthe acquisition or construction of single family residential housing,including land development.
"Mortgage" or "mortgage loan" means a loan to providepermanent financing for:
(1) the rehabilitation, acquisition, or construction of singlefamily 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 gasutility system organized under IC 8-1-11.1, an insurance companyauthorized to do business in this state, or any mortgage banking firmor mortgagee authorized to do business in this state and approved byeither the authority or the Department of Housing and UrbanDevelopment.
"Land development" means the process of acquiring landprimarily for residential housing construction for persons andfamilies of low and moderate income and making, installing, orconstructing nonresidential housing improvements, including water,sewer, and other utilities, roads, streets, curbs, gutters, sidewalks,storm drainage facilities, and other installations or works, whether onor off the site, which the authority deems necessary or desirable toprepare such land primarily for residential housing construction.
"Obligations" means any bonds or notes authorized to be issuedby the authority under this chapter.
"Persons and families of low and moderate income" meanspersons and families of insufficient personal or family income toafford adequate housing as determined by the standards establishedby the authority, and in determining such standards the authorityshall take into account the following:
(1) The amount of total income of such persons and familiesavailable for housing needs.
(2) The size of the family.
(3) The cost and condition of housing facilities available in thedifferent geographic areas of the state.
(4) The ability of such persons and families to competesuccessfully in the private housing market and to pay theamounts at which private enterprise is providing sanitary,decent, and safe housing.
The standards shall, however, comply with the applicable limitationsof 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 underIC 31-34 (or IC 31-6-4 before its repeal) or delinquentchildren 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 underIC 31-27;
(B) a residential facility that is or will be licensed underIC 12-28-5; or
(C) a facility that is or will be certified by the division ofmental health and addiction under IC 12-23.
"Residential facility for persons with a developmental disability"means a facility that is approved for use in a community residentialprogram for the developmentally disabled under IC 12-11-1.1.
"Residential facility for persons with a mental illness" means afacility that is approved by the division of mental health and
addiction for use in a community residential program for thementally 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 improvementundertaken primarily to provide single or multiple family housing forrental 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 othernonhousing facilities as may be incidental or appurtenant to thehousing.
"Sponsors", "builders", or "developers" means corporations,associations, partnerships, limited liability companies, or otherentities and consumer housing cooperatives organized pursuant tolaw for the primary purpose of providing housing to low andmoderate income persons and families.
"State" means the state of Indiana.
"Tenant programs and services" means services and activities forpersons and families living in residential housing, including thefollowing:
(1) Counseling on household management, housekeeping,budgeting, and money management.
(2) Child care and similar matters.
(3) Access to available community services related to jobtraining and placement, education, health, welfare, and othercommunity services.
(4) Guard and other matters related to the physical security ofthe housing residents.
(5) Effective management-tenant relations, including tenantparticipation in all aspects of housing administration,management, and maintenance.
(6) Physical improvements of the housing, including buildings,recreational and community facilities, safety measures, andremoval of code violations.
(7) Advisory services for tenants in the creation of tenantorganizations which will assume a meaningful and responsiblerole in the planning and carrying out of housing affairs.
(8) Procedures whereby tenants, either individually or in agroup, may be given a hearing on questions relating tomanagement policies and practices either in general or inrelation to an individual or family.
As added by Acts 1978, P.L.28, SEC.1. Amended by P.L.60-1983,SEC.1; P.L.39-1984, SEC.1; P.L.40-1984, SEC.1; P.L.28-1985,SEC.3; P.L.2-1992, SEC.54; P.L.81-1992, SEC.3; P.L.1-1993,SEC.26; P.L.8-1993, SEC.72; P.L.61-1993, SEC.1; P.L.62-1993,SEC.1; P.L.1-1994, SEC.22; P.L.1-1997, SEC.36; P.L.79-1998,SEC.10; P.L.272-1999, SEC.4; P.L.215-2001, SEC.8; P.L.1-2006,SEC.105; P.L.145-2006, SEC.11; P.L.181-2006, SEC.17;P.L.99-2007, SEC.19.
IC 5-20-1-3
Authority creation; membership; terms; expenses; references toIndiana housing finance authority
Sec. 3. (a) There is created a public body corporate and politic ofthe state of Indiana to be known as the "Indiana housing andcommunity development authority". The authority shall consist of thefollowing seven (7) members:
(1) The lieutenant governor or the lieutenant governor'sdesignee.
(2) The treasurer of state, or the treasurer of state's designee.
(3) The public finance director of the Indiana finance authority,or the public finance director's designee.
(4) Four (4) members appointed by the governor.
Not more than three (3) of the members of the authority appointedunder subdivision (4) shall be members of the same political party.Members of the authority appointed by the governor shall serve fora term of four (4) years, except that all vacancies shall be filled forthe unexpired term. However, any appointed member of the authorityshall be removable at the pleasure of the governor, with or withoutcause. A member of the authority shall receive no compensation forthe member's services but shall be entitled to reimbursement for thenecessary expenses, including traveling expenses, incurred in thedischarge of the member's duties. Each member shall hold officeuntil the member's successor has been appointed and has qualified.A certificate of appointment or reappointment of any members shallbe filed with the authority and this certificate shall be conclusiveevidence of the due and proper appointments of the member.
(b) The powers of the authority shall be vested in the membersthereof in office from time to time. A majority of the members of theauthority shall constitute a quorum for the purposes of conducting itsbusiness and exercising its powers and for all other purposes,notwithstanding the existence of any vacancies. Action may be takenby the authority upon a vote of a majority of the members present,unless the bylaws of the authority require a larger number. Meetingsof the members of the authority may be held anywhere within oroutside the state.
(c) The governor shall appoint a chairman and vice-chairman fromthe members of the authority. The governor shall appoint anexecutive director for the authority, who shall serve at the pleasureof the governor and receive compensation as fixed by the authority.The authority shall employ legal and technical experts and such otherofficers, agents and employees, permanent and temporary, as it mayrequire, and shall determine their qualifications, duties, andcompensation. The authority may also engage independent legalcounsel to assist it. The authority may delegate to one (1) or more ofits agents or employees such powers or duties as it may deem proper.
(d) The authority may also contract with any entity, including theIndiana finance authority, to provide staff or services, including thefunctions of the executive director and employees of the authority,under such terms as the authority determines. (e) After May 14, 2005, a reference to the Indiana housing financeauthority in a statute, rule, or other document is considered areference to the authority as the successor agency.
As added by Acts 1978, P.L.28, SEC.1. Amended by P.L.235-2005,SEC.86; P.L.20-2010, SEC.5.
IC 5-20-1-3.5
Surety bonds
Sec. 3.5. Before the issuance of any bonds under this chapter:
(1) the executive director of the authority;
(2) each member of the authority; and
(3) any other employee or agent of the authority authorized byresolution of the authority to handle funds or sign checks;
shall execute a surety bond in the penal sum of fifty thousand dollars($50,000). If an individual described in subdivisions (1) through (3)is already covered by a bond required by state law, the individualneed not obtain another bond if the bond required by state law is inat least the penal sum specified in this section and covers theindividual's activities for the authority. In lieu of this bond, thechairman of the authority may execute a blanket surety bondcovering each member, the executive director, and the employees orother officers of the authority. Each surety bond must be conditionedupon the faithful performance of the individual's duties, and shall beissued by a surety company authorized to transact business in Indianaas surety. At all times after the issuance of any surety bonds, thesesurety bonds shall be maintained in full force and effect. All costs ofthe surety bonds shall be borne by the authority.
As added by P.L.235-2005, SEC.87.
IC 5-20-1-4
Powers of the authority
Sec. 4. (a) The authority has all of the powers necessary orconvenient to carry out and effectuate the purposes and provisions ofthis chapter, including the power:
(1) to make or participate in the making of construction loansfor multiple family residential housing under terms that areapproved by the authority;
(2) to make or participate in the making of mortgage loans formultiple family residential housing under terms that areapproved by the authority;
(3) to purchase or participate in the purchase from mortgagelenders of mortgage loans made to persons of low and moderateincome for residential housing;
(4) to make loans to mortgage lenders for the purpose offurnishing funds to such mortgage lenders to be used formaking mortgage loans for persons and families of low andmoderate income. However, the obligation to repay loans tomortgage lenders shall be general obligations of the respectivemortgage lenders and shall bear such date or dates, shall matureat 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 thepurposes of this chapter as the authority shall by rule orresolution determine;
(5) to collect and pay reasonable fees and charges in connectionwith 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, byconveyance, including purchase in lieu of foreclosure, orforeclosure, to own, manage, operate, hold, clear, improve, andrehabilitate such real property and sell, assign, exchange,transfer, convey, lease, mortgage, or otherwise dispose of orencumber such real property where such use of real property isnecessary or appropriate to the purposes of the authority;
(7) to sell, at public or private sale, all or any part of anymortgage or other instrument or document securing aconstruction loan, a land development loan, a mortgage loan, ora loan of any type permitted by this chapter;
(8) to procure insurance against any loss in connection with itsoperations in such amounts and from such insurers as it maydeem necessary or desirable;
(9) to consent, subject to the provisions of any contract withnoteholders or bondholders which may then exist, whenever itdeems it necessary or desirable in the fulfillment of its purposesto the modification of the rate of interest, time of payment ofany installment of principal or interest, or any other terms ofany mortgage loan, mortgage loan commitment, constructionloan, loan to lender, or contract or agreement of any kind towhich the authority is a party;
(10) to enter into agreements or other transactions with anyfederal, state, or local governmental agency for the purpose ofproviding adequate living quarters for such persons and familiesin cities and counties where a need has been found for suchhousing;
(11) to include in any borrowing such amounts as may bedeemed necessary by the authority to pay financing charges,interest on the obligations (for a period not exceeding the periodof construction and a reasonable time thereafter or if thehousing is completed, two (2) years from the date of issue of theobligations), consultant, advisory, and legal fees and such otherexpenses as are necessary or incident to such borrowing;
(12) to make and publish rules respecting its lending programsand such other rules as are necessary to effectuate the purposesof this chapter;
(13) to provide technical and advisory services to sponsors,builders, and developers of residential housing and to residentsand potential residents, including housing selection andpurchase procedures, family budgeting, property use andmaintenance, household management, and utilization ofcommunity resources; (14) to promote research and development in scientific methodsof constructing low cost residential housing of high durability;
(15) to encourage community organizations to participate inresidential housing development;
(16) to make, execute, and effectuate any and all agreements orother documents with any governmental agency or any person,corporation, association, partnership, limited liability company,or other organization or entity necessary or convenient toaccomplish the purposes of this chapter;
(17) to accept gifts, devises, bequests, grants, loans,appropriations, revenue sharing, other financing and assistanceand 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 beimpleaded;
(19) to maintain an office in the city of Indianapolis and at suchother 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 bylawsfor the regulation of its affairs and the conduct of its businessand to prescribe rules and policies in connection with theperformance of its functions and duties;
(22) to employ fiscal consultants, engineers, attorneys, realestate counselors, appraisers, and such other consultants andemployees as may be required in the judgment of the authorityand to fix and pay their compensation from funds available tothe authority therefor;
(23) notwithstanding IC 5-13, but subject to the requirements ofany 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'scustody; and
(C) proceeds of bonds or notes;
in the manner provided by an investment policy established byresolution of the authority;
(24) to make or participate in the making of construction loans,mortgage loans, or both, to individuals, partnerships, limitedliability companies, corporations, and organizations for theconstruction of residential facilities for individuals with adevelopmental disability or for individuals with a mental illnessor for the acquisition or renovation, or both, of a facility tomake it suitable for use as a new residential facility forindividuals with a developmental disability or for individualswith a mental illness;
(25) to make or participate in the making of construction andmortgage loans to individuals, partnerships, corporations,limited liability companies, and organizations for theconstruction, rehabilitation, or acquisition of residentialfacilities 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 underIC 8-1.5;
if those mortgage loans were made for the purpose of insulatingand otherwise weatherizing single family residences in order toconserve energy used to heat and cool those residences;
(27) to provide financial assistance to mutual housingassociations (IC 5-20-3) in the form of grants, loans, or acombination of grants and loans for the development of housingfor low and moderate income families;
(28) to service mortgage loans made or acquired by theauthority and to impose and collect reasonable fees and chargesin connection with such servicing;
(29) subject to the authority's investment policy, to enter intoswap agreements (as defined in IC 8-9.5-9-4) in accordancewith IC 8-9.5-9-5 and IC 8-9.5-9-7;
(30) to promote and foster community revitalization throughcommunity services and real estate development;
(31) to coordinate and establish linkages between governmentaland other social services programs to ensure the effectivedelivery of services to low income individuals and families,including individuals or families facing or experiencinghomelessness;
(32) to cooperate with local housing officials and plancommissions in the development of projects that the officials orcommissions have under consideration;
(33) to take actions necessary to implement its powers that theauthority determines to be appropriate and necessary to ensurethe availability of state or federal financial assistance; and
(34) to administer any program or money designated by thestate or available from the federal government or other sourcesthat is consistent with the authority's powers and duties.
The omission of a power from the list in this subsection does notimply that the authority lacks that power. The authority may exerciseany power that is not listed in this subsection but is consistent withthe powers listed in this subsection to the extent that the power is notexpressly denied by the Constitution of the State of Indiana or byanother statute.
(b) The authority shall ensure that a mortgage loan acquired bythe authority under subsection (a)(3) or made by a mortgage lenderwith funds provided by the authority under subsection (a)(4) is notknowingly made to a person whose adjusted family income, asdetermined by the authority, exceeds one hundred twenty-fivepercent (125%) of the median income for the geographic areainvolved. However, if the authority determines that additionalencouragement is needed for the development of the geographic areainvolved, a mortgage loan acquired or made under subsection (a)(3)or (a)(4) may be made to a person whose adjusted family income, asdetermined by the authority, does not exceed one hundred forty
percent (140%) of the median income for the geographic areainvolved. The authority shall establish procedures that the authoritydetermines are appropriate to structure and administer any programconducted under subsection (a)(3) or (a)(4) for the purpose ofacquiring or making mortgage loans to persons of low or moderateincome. In determining what constitutes low income, moderateincome, or median income for purposes of any program conductedunder subsection (a)(3) or (a)(4), the authority shall consider:
(1) the appropriate geographic area in which to measure incomelevels; and
(2) the appropriate method of calculating low income, moderateincome, or median income levels including:
(A) sources of;
(B) exclusions from; and
(C) adjustments to;
income.
(c) The authority, when directed by the governor, shall administerprograms and funds under 42 U.S.C. 1437 et seq.
(d) The authority shall identify, promote, assist, and fund:
(1) home ownership education programs; and
(2) mortgage foreclosure counseling and education programsunder IC 5-20-6;
conducted throughout Indiana by nonprofit counseling agencies thatthe authority has certified, or by any other public, private, ornonprofit entity in partnership with a nonprofit agency that theauthority has certified, using funds appropriated under section 27 ofthis chapter. The attorney general and the entities listed inIC 4-6-12-4(a)(1) through IC 4-6-12-4(a)(10) shall cooperate with theauthority in implementing this subsection.
(e) The authority shall:
(1) oversee and encourage a regional homeless delivery systemthat:
(A) considers the need for housing and support services;
(B) implements strategies to respond to gaps in the deliverysystem; and
(C) ensures individuals and families are matched withoptimal housing solutions;
(2) facilitate the dissemination of information to assistindividuals and families accessing local resources, programs,and services related to homelessness, housing, and communitydevelopment; and
(3) each year, estimate and reasonably determine the number ofthe following:
(A) Individuals in Indiana who are homeless.
(B) Individuals in Indiana who are homeless and less thaneighteen (18) years of age.
(C) Individuals in Indiana who are homeless and notresidents of Indiana.
As added by Acts 1978, P.L.28, SEC.1. Amended by Acts 1982,P.L.35, SEC.3; P.L.60-1983, SEC.2; P.L.39-1984, SEC.2;
P.L.3-1989, SEC.30; P.L.69-1989, SEC.2; P.L.14-1991, SEC.3;P.L.2-1992, SEC.55; P.L.8-1993, SEC.73; P.L.27-1993, SEC.16;P.L.1-1994, SEC.23; P.L.235-2005, SEC.88; P.L.145-2006, SEC.12;P.L.181-2006, SEC.18; P.L.99-2007, SEC.20; P.L.133-2008, SEC.1;P.L.145-2008, SEC.3; P.L.1-2009, SEC.23; P.L.105-2009, SEC.1.
IC 5-20-1-4.1
Code of ethics
Sec. 4.1. (a) The authority shall:
(1) adopt:
(A) rules under IC 4-22-2; or
(B) a policy;
establishing a code of ethics for its employees; or
(2) decide it wishes to be under the jurisdiction and rulesadopted by the state ethics commission.
(b) A code of ethics adopted by rule or policy under this sectionmust be consistent with state law and approved by the governor.
As added by P.L.5-1996, SEC.7.
IC 5-20-1-4.5
Housing for special needs populations; allocation of federal lowincome housing credits
Sec. 4.5. (a) As used in this section, "special needs populations"includes the following:
(1) Persons with physical or developmental disabilities.
(2) Persons with mental impairments.
(3) Single parent households.
(4) Victims of domestic violence.
(5) Abused children.
(6) Persons with chemical addictions.
(7) Homeless persons.
(8) The elderly.
(b) As used in this section, "qualified building" means a building:
(1) that is used or will be used to provide residential housing forspecial needs populations; and
(2) for which a taxpayer is eligible to claim a low incomehousing credit under 26 U.S.C. 42.
(c) Subject to subsection (d), the authority shall allocate toqualified buildings at least ten percent (10%) of the total dollaramount of federal low income housing credits allocated to theauthority under 26 U.S.C. 42. The authority shall allocate creditsunder this section based on the proportionate amount of a qualifiedbuilding that is used to provide residential housing for special needspopulations, as determined by the authority.
(d) The authority shall hold available the allocation made undersubsection (c) for qualified buildings through October 31 of eachcalendar year. Beginning November 1 of each calendar year, any partof the allocation that remains unassigned shall be available for anyappropriate use under 26 U.S.C. 42.
As added by P.L.74-1989, SEC.1. Amended by P.L.2-1993, SEC.52;
P.L.23-1993, SEC.17; P.L.272-1999, SEC.5; P.L.145-2008, SEC.4.
IC 5-20-1-5
Repealed
(Repealed by P.L.145-2008, SEC.34.)
IC 5-20-1-6
Repealed
(Repealed by P.L.145-2008, SEC.34.)
IC 5-20-1-7
State not liable for obligations of the Indiana housing andcommunity development authority
Sec. 7. (a) Obligations issued under the provisions of this chapterdo not constitute a debt, liability, or obligation of the state of Indianaor a pledge of the faith and credit of the state of Indiana, but shall bepayable solely from the revenues or assets of the authority. Underany circumstances, general fund revenues of the state of Indiana maynot be used to pay all or part of the obligations of the authority, andthere is no moral obligation of the state of Indiana to pay all or partof the obligations of the authority. Each obligation issued under thischapter shall contain on the face thereof a statement to the effect thatthe authority shall not be obligated to pay the same nor the interestthereon except from the revenues or assets pledged therefor and thatneither the faith and credit nor the taxing power of the state ofIndiana is pledged to the payment of the principal of or the intereston such obligation.
(b) Expenses incurred by the authority in carrying out theprovisions of this chapter may be made payable from funds providedpursuant to this chapter, and no liability shall be incurred by theauthority under this chapter beyond the extent to which moneys shallhave been so provided.
As added by Acts 1978, P.L.28, SEC.1. Amended by P.L.1-2006,SEC.106 and P.L.181-2006, SEC.19.
IC 5-20-1-8
Authorization to use revenue bond financing; approval of publicfinance director required
Sec. 8. (a) Subject to the approval of the public finance directorappointed under IC 4-4-11-9, the authority is hereby authorized toissue bonds or notes, or a combination thereof, to carry out andeffectuate its purposes and powers. The principal of, and the intereston, such bonds or notes shall be payable solely from the fundsprovided for such payment in this chapter. The authority may securethe repayment of such bonds and notes by the pledge of mortgagesand notes of others, revenues derived from operations and loanrepayments, the proceeds of its bonds, and any available revenues orassets of the authority. The bonds or notes of each issue shall bedated and may be made redeemable before maturity at the option ofthe authority, at such price or prices and under such terms and
conditions as may be determined by the authority. Any such bondsor notes shall bear interest at such rate or rates as may be determinedby the authority. Notes shall mature at such time or times notexceeding ten (10) years from their date or dates, and bonds shallmature at such time or times not exceeding forty-five (45) years fromtheir date or dates, as may be determined by the authority. Theauthority shall determine the form and manner of execution of thebonds or notes, including any interest coupons to be attached thereto,and shall fix the denomination or denominations and the place orplaces of payment of principal and interest, which may be any bankor trust company within or outside the state. In case any officerwhose signature, or a facsimile of whose signature, shall appear onany bonds or notes or coupons attached thereto shall cease to be suchofficer before the delivery thereof, such signature or such facsimileshall nevertheless be valid and sufficient for all purposes the same asif the person had remained in office until such delivery. Theauthority may also provide for the authentication of the bonds ornotes by a trustee or fiscal agent. The bonds or notes may be issuedin coupon or registered form, or both, as the authority maydetermine, and provision may be made for the registration of anycoupon bonds or notes as to principal alone and also as to bothprincipal and interest, and for the reconversion into coupon bonds ornotes of any bonds or notes registered as to both principal andinterest, and for the interchange of registered and coupon bonds ornotes. Upon the approval of a resolution of the authority authorizingthe sale of its bonds or notes, such bonds or notes may be sold insuch manner, either at public or private sale, and for such price as theauthority shall determine to be for the best interest of the authorityand to best effectuate the purposes of this chapter.
(b) The proceeds of any bonds or notes shall be used solely for thepurposes for which they are issued. The proceeds shall be disbursedin such manner and under such restrictions, if any, as the authoritymay provide in the resolution authorizing the issuance of such bondsor notes or in the trust agreement securing the same.
(c) Prior to the preparation of definitive bonds, the authority may,under like restrictions and subject to the approval of the publicfinance director appointed under IC 4-4-11-9, issue interim receiptsor temporary bonds, with or without coupons, exchangeable fordefinitive bonds when such bonds shall have been executed and areavailable for delivery. The authority may also provide for thereplacement of any bonds or notes which shall become mutilated orshall be destroyed or lost.
(d) The authority shall cooperate with and use the assistance ofthe Indiana finance authority established under IC 4-4-11 in theissuance of the bonds or notes.
As added by Acts 1978, P.L.28, SEC.1. Amended by P.L.235-2005,SEC.89; P.L.145-2008, SEC.5.
IC 5-20-1-9
Trust agreements to secure authority obligations Sec. 9. Trust Agreement to Secure Authority Obligations. In thediscretion of the authority, any obligations issued under theprovisions of this chapter may be secured by a trust agreement byand between the authority and a corporate trustee, which may be anytrust company or bank having the powers of a trust company withinor outside the state of Indiana. Such trust agreement or the resolutionproviding for the issuance of such obligations, whether or notsecured, may pledge or assign all or any part of the revenues or assetsof the authority, including, without limitation, mortgage loans,mortgage loan commitments, construction loans, loans to lenders,contracts, agreements and other security or investment obligations,the fees or charges made or received by the authority, the moneysreceived in payment of loans and interest thereon, and any othermoneys received or to be received by the authority. Such trustagreement or resolution may contain such provisions for protectingand enforcing the rights and remedies of the holders of any suchobligations as may be reasonable and proper and not in violation oflaw, including convenants setting forth the duties of the authority inrelation to the purposes to which obligation proceeds may be applied,the disposition or pledging of the revenues or assets of the authority,the terms and conditions for the issuance of additional obligations,and the custody, safeguarding and application of all moneys. It shallbe lawful for any bank or trust company incorporated under the lawsof the state which may act as depository of the proceeds ofobligations, revenues, or other money to furnish such indemnifyingbonds or to pledge such securities as may be required by theauthority. Any such trust agreement or resolution may set forth therights and remedies of the holders of any obligations and of thetrustee, and may restrict the individual right of action by any suchholders. In addition to the foregoing, any such trust agreement orresolution may contain such other provisions as the authority maydeem reasonable and proper for the security of the holders of anyobligations. All expenses incurred in carrying out the provisions ofsuch trust agreement or resolution may be paid from the revenues orassets pledged or assigned to the payment of the principal of and theinterest on obligations, or from any other funds available to theauthority.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-10
Pledge of authority assets to obligations of the authority
Sec. 10. Pledge of Authority Assets to Obligations of theAuthority. The pledge of any assets or revenues of the authority tothe payment of the principal of, premium, if any, and interest on anyobligations of the authority shall be valid and binding from the timewhen the pledge is made, and any such assets or revenues shallimmediately be subject to the lien of such pledge without anyphysical delivery thereof or further act. The lien of any such pledgeshall be valid and binding as against all parties having claims of anykind in tort, contract or otherwise against the authority, irrespective
of whether such parties have notice thereof.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-11
Receipts as trust funds; investment
Sec. 11. All Moneys Received Are Trust Funds and May BeTemporarily Invested. Notwithstanding any other provisions of lawto the contrary, all moneys received pursuant to the authority of thischapter are trust funds to be held and applied solely as provided inthis chapter. The resolution authorizing any obligations, or the trustagreement securing the same, may provide that any of such moneysmay be temporarily invested pending the disbursement thereof, andshall provide that any officer with whom, or any bank or trustcompany with which, such moneys shall be deposited shall act astrustee of such moneys and shall hold and apply the same for thepurposes of this chapter, subject to such regulations as this chapterand such resolution or trust agreement may provide.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-12
Enforcement of authority duties; rights of holders of authorityobligations
Sec. 12. Holders of Authority Obligations Granted Legal Rightsto Enforce Duties of the Authority. Any holder of obligations issuedunder the provisions of this chapter or any coupons appertainingthereto, and the trustee under any trust agreement or resolutionauthorizing the issuance of such obligations, except to the extent therights given in this chapter may be restricted by such trust agreementor resolution, may, either at law or in equity, by suit, action,mandamus or other proceeding, protect and enforce any and all rightsunder the laws of the state, or granted in this chapter, or under suchtrust agreement or resolution, or under any other contract executedby the authority pursuant to this chapter, and may enforce andcompel the performance of all duties required by this chapter or bysuch trust agreement or resolution to be performed by the authorityor by any officer thereof.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-13
Declaration of negotiability of authority obligations
Sec. 13. Declaration of Negotiability of Obligations of theAuthority. Notwithstanding any of the provisions of this chapter orany recitals in any obligations issued by the authority under theprovisions of this chapter, all such obligations and interest couponsappertaining thereto are negotiable instruments under the laws of thisstate, subject only to any applicable provisions for registration.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-14
Authority obligations as authorized investments Sec. 14. Obligations of Authority Are Authorized Investments.Obligations issued under the provisions of this chapter are herebymade securities in which all public officers and public bodies of thestate of Indiana and its political subdivisions, all insurancecompanies, trust companies, banking associations, savings and loanassociations, investment companies, executors, administrators,trustees and other fiduciaries may properly and legally invest funds,including capital in their control or belonging to them. Suchobligations are securities which may properly and legally bedeposited with and received by any state or municipal officer or anyagency or political subdivision of the state for any purpose for whichthe deposit of bonds, notes or obligations of the state is authorized bylaw.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-15
Authorization for issuance of refunding obligations
Sec. 15. Authorization for Issuance of Refunding Obligations. (a)The authority is authorized to provide for the issuance of refundingobligations for the purpose of refunding any obligations thenoutstanding which shall have been issued under the provisions of thischapter, including the payment of any redemption premium thereonand any interest accrued or to accrue to the date of redemption ofsuch obligations, and for any corporate purpose of the authority. Theissuance of such obligations, the maturities and other details thereof,the rights of the holders thereof, and the rights, duties and obligationsof the authority in respect of the same shall be governed by theprovisions of this chapter which relate to the issuance of obligations,insofar as such provisions may be appropriate therefor.
(b) Refunding obligations may be sold or exchanged foroutstanding obligations issued under this chapter and, if sold, theproceeds thereof may be applied, in addition to any other authorizedpurposes, to the purchase, redemption or payment of suchoutstanding obligations. Pending the application of the proceeds ofany such refunding obligations (together with any other availablefunds) to the payment of the principal, accrued interest and anyredemption premium on the obligations being refunded, or if soprovided or permitted in the resolution authorizing the issuance ofsuch refunding obligations or in the trust agreement securing thesame to the payment of any interest on such refunding obligationsand any expenses in connection with such refunding, such proceedsshall be invested in: (1) direct obligations of, or obligations theprincipal of and the interest on which are unconditionally guaranteedby, the United States of America and agencies of the United Statesof America; or (2) general obligations of the state, which shallmature or which shall be subject to redemption by the holdersthereof, at the option of such holders, not later than the respectivedates when the proceeds, together with the interest accruing thereon,will be required for the purposes intended.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-16
Capital reserve fund
Sec. 16. Capitol Reserve Fund. (a) The authority may created andestablish one (1) or more special funds, herein referred to as capitalreserve funds, to secure the notes and bonds. The authority shall payinto each such capital reserve fund: (1) any moneys appropriated andmade available by the state for the purposes of such fund; (2) anyproceeds of sale of notes or bonds, to the extent provided in theresolution of the authority authorizing the issuance thereof; and (3)any other moneys which may be made available to the authority forthe purpose of such fund from any other source or sources.
(b) All moneys held in any capital reserve fund, except asotherwise specifically provided, shall be used, as required, solely: (1)for the payment of the principal of bonds of the authority secured inwhole or in part by such fund; (2) for payment of the sinking fundpayments mentioned in this section with respect to such bonds; (3)for the purchase or redemption of such bonds; (4) for the payment ofinterest on such bonds; or (5) for the payment of any redemptionpremium required to be paid when such bonds are redeemed prior tomaturity. However, if moneys in such fund at any time are less thanthe capital reserve fund requirement established for such fund asprovided in this section, the authority shall not use such moneys forany optional purchase or optional redemption of such bonds. Anyincome or interest earned by, or increment to, any capital reservefund due to the investment thereof may be transferred by theauthority to other funds or accounts of the authority to the extentsuch transfer does not reduce the amount of such capital reserve fundbelow the capital reserve fund requirement for such fund.
(c) The authority shall not at any time issue bonds secured inwhole or in part by a capital reserve fund, if, upon the issuance ofsuch bonds, the amount in such capital reserve fund will be less thanthe capital reserve fund requirement of such fund, unless theauthority, at the time of issuance of such bonds, deposits in such fundfrom the proceeds of the bonds to be issued, or from other sources,an amount which, together with the amount then in such fund, willnot be less than the capital reserve fund requirement for such fund.For purposes of this section, "capital reserve fund requirement"means, as of any particular date of computation, an amount ofmoney, as provided in the resolutions of the authority authorizing thebonds with respect to which such fund is established, which amountshall not exceed the average of the annual debt service on the bondsof the authority for that calendar year and succeeding calendar yearssecured in whole or in part by such fund. The annual debt service forany calendar year is the amount of money equal to the aggregate of(1) all interest payable during such calendar year on all bondssecured in whole or in part by such fund outstanding on the date ofcomputation, plus (2) the principal amount of all such bondsoutstanding on said date of computation which mature during suchcalendar year, plus (3) all amounts specified as payable during suchcalendar year as a sinking fund payment with respect to any of such
bonds which mature after such calendar year. This calculation shallembody the assumption that such bonds will, after such date ofcomputation, cease to be outstanding by reason, but only by reason,of (1) the payment of bonds when due, and (2) the payment when dueof all such sinking fund payments payable at or after such date ofcomputation. However, in computing the annual debt service for anycalendar year, bonds deemed to have been paid in accordance withthe defeasance provisions of the resolution of the authorityauthorizing the issuance thereof shall not be included in bondsoutstanding on such date of computation.
(d) To assure the continued operation and solvency of theauthority for the carrying out of the public purposes of this chapter,the authority shall accumulate in each capital reserve fund an amountequal to the capital reserve fund requirement for such fund.
(e) In computing the amount of any capital reserve fund for thepurposes of this section, securities in which all or a portion of suchcapital reserve fund is invested shall be valued at par, or if purchasedat less than par, at their cost to the authority.
(f) Notwithstanding subsections (a) through (f), the authority,subject to such agreements with noteholders or bondholders as maythen exist, may elect not to secure any particular issue of its bondswith a capital reserve fund. Such election shall be made in theresolution authorizing such issue. In this event, subsections (b) and(c) shall not apply to the bonds of such issue in that they shall not beentitled to payment out of, or be eligible for purchase by, any suchfund, nor shall they be taken into account in computing or applyingany capital reserve fund requirement.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-17
State power to alter authority; pledge against impairment ofauthority contracts
Sec. 17. State Power to Alter Authority; Pledge AgainstImpairment of Authority Contracts. The state may at any time, orfrom time to time, alter or change the structure, organizationprograms, activities or powers of the authority and may, at its solediscretion, terminate the existence of the authority. However, thestate pledges and agrees with the holders of any obligations issuedpursuant to this chapter that the state will not limit or alter the rightsvested in the authority to fulfill the terms of any agreements madewith the holders thereof, or in any way impair the right and remedyof the holders until the notes or bonds, together with the interestthereon, with interest on any unpaid installments of interest, and allcosts and expenses in connection with any action or proceeding byor on behalf of such holders are fully met and discharged. Theauthority is authorized to include this pledge and agreement of thestate in any agreement with the holders of such notes or bonds.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-18
Annual report; annual audit
Sec. 18. The authority shall, promptly following the close of eachfiscal year, submit an annual report of its activities for the precedingyear to the public finance director appointed under IC 4-4-11-9, thebudget committee, and the general assembly. An annual reportsubmitted under this section to the general assembly must be in anelectronic format under IC 5-14-6. The report shall set forth acomplete operating and financial statement of the authority duringsuch year, and a copy of such report shall be available to inspectionby the public at the Indianapolis office of the authority. The authorityshall cause an audit of its books and accounts to be made at leastonce in each year by an independent certified public accountant andthe cost thereof may be paid from any available money of theauthority.
As added by Acts 1978, P.L.28, SEC.1. Amended by P.L.28-2004,SEC.60; P.L.235-2005, SEC.90; P.L.145-2008, SEC.6.
IC 5-20-1-19
Limitation of liability; authority members or officers
Sec. 19. Limitation of Liability for Authority Members orOfficers. No member or other officer of the authority shall be subjectto any personal liability or accountability by reason of his executionof any obligations or the issuance thereof.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-20
Authority to accept and expend funds
Sec. 20. Authority to Accept and Expend Funds. The authority isauthorized to accept and expend such moneys as may be receivedfrom any source, including income from the authority's operations,for effectuating its corporate purposes including, without limitation,the payment of the initial expenses of administration and operation,and the establishment of a reserve or contingency fund to beavailable for the payment of the principal of and the interest on anybonds or notes of the authority.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-21
Tax exempt status
Sec. 21. Tax Exempt Status. The authority shall not be requiredto pay any taxes and assessments to the state, or any county,municipality or other governmental subdivision of the state, upon anyof its property or upon its obligations or other evidences ofindebtedness pursuant to the provisions of this chapter, or upon anymoneys, funds, revenues or other income held or received by theauthority, and the notes and bonds of the authority and the incometherefrom shall at all times be exempt from taxation imposed by thestate, except for death and gift taxes and taxes on transfers. Realproperty owned by the authority shall be exempt from all property
taxation and special assessments of the state or political subdivisionsthereof, but the authority may agree to pay, in lieu of such taxes,such amounts as the authority finds consistent with the cost to thestate or political subdivision of supplying municipal services for suchreal property and any housing development constructed thereon,which payments such bodies are authorized to accept.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-22
Disclosure of conflicts of interest
Sec. 22. Disclosure of Conflicts of Interest. If any member, officeror employee of the authority shall be interested either directly orindirectly, or shall be an officer or employee of or have an ownershipinterest in any firm or corporation interested directly or indirectly inany contract with the authority, including the making of any loan toany sponsor, builder or developer, such interest shall be disclosed tothe authority and it shall be set forth in the minutes of the authority.The member, officer or employee having such interest shall notparticipate on behalf of the authority in the authorization of any suchcontract with the authority.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-23
Authority assets; disposition upon termination or dissolution
Sec. 23. Authority Assets; Disposition upon Termination orDissolution. The authority shall fund its operating costs from the netrevenues derived from the operation of the programs under section4 of this chapter. No part of the revenues or assets of the authorityshall inure to the benefit of or be distributable to its members orofficers or other private persons. Any net earnings of the authoritybeyond that necessary for retirement of authority indebtedness or toimplement the public purposes of this chapter shall inure to thebenefit of the state. Upon termination or dissolution, all rights andproperties of the authority shall pass to and be vested in the state,subject to the rights of lienholders and other creditors.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-24
Chapter as supplemental to other laws
Sec. 24. Provisions of this Chapter Deemed to Be SupplementalPowers to Other Laws. This chapter shall be deemed to provide anadditional and alternative method for the performance of theactivities authorized by this chapter, and shall be regarded assupplemental and additional to powers conferred by other laws, andshall not be regarded as in derogation of any powers now existing.However, the issuance of bonds or notes under this chapter need notcomply with the requirements of any other law applicable to theissuance of bonds or notes.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-25
Liberal construction
Sec. 25. Liberal Construction. This chapter, being necessary forthe prosperity of the state and its inhabitants, shall be liberallyconstrued to effect its purposes.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-26
Chapter controlling
Sec. 26. Chapter Controlling. Insofar as the provisions of thischapter are inconsistent with the provisions of any general or speciallaws, or parts thereof, the provisions of this chapter shall becontrolling.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-27
Home ownership education account established
Sec. 27. (a) The home ownership education account within thestate general fund is established to s