CHAPTER 4. AFFORDABLE HOUSING AND COMMUNITY DEVELOPMENT FUND
IC 5-20-4
Chapter 4. Affordable Housing and Community DevelopmentFund
IC 5-20-4-1
"Advisory committee" defined
Sec. 1. As used in this chapter, "advisory committee" refers to theaffordable housing and community development fund advisorycommittee established by section 15 of this chapter.
As added by P.L.69-1989, SEC.4. Amended by P.L.181-2006,SEC.28.
IC 5-20-4-2
"Families" defined
Sec. 2. As used in this chapter, "families" has the meaning setforth in 42 U.S.C. 1437a(b)(3).
As added by P.L.69-1989, SEC.4.
IC 5-20-4-3
"Housing and community development authority" defined
Sec. 3. As used in this chapter, "authority" refers to the Indianahousing and community development authority established underIC 5-20-1.
As added by P.L.69-1989, SEC.4. Amended by P.L.1-2006, SEC.113;P.L.181-2006, SEC.29; P.L.1-2007, SEC.31.
IC 5-20-4-4
"Fund" defined
Sec. 4. As used in this chapter, unless the context requiresotherwise, "fund" refers to the affordable housing and communitydevelopment fund established by section 7 of this chapter.
As added by P.L.69-1989, SEC.4. Amended by P.L.181-2006,SEC.30.
IC 5-20-4-5
"Lower income families" defined
Sec. 5. As used in this chapter, "lower income families" meansfamilies whose income does not exceed eighty percent (80%) of themedian income for the area.
As added by P.L.69-1989, SEC.4.
IC 5-20-4-6
"Very low income families" defined
Sec. 6. As used in this chapter, "very low income families" meansfamilies whose income does not exceed fifty percent (50%) of themedian for the area.
As added by P.L.69-1989, SEC.4.
IC 5-20-4-7
Establishment of fund; administration; resources; investments;
disposition of remaining money; interest
Sec. 7. (a) There is established the affordable housing andcommunity development fund. The fund shall be administered by theauthority under the direction of the authority's board.
(b) The fund consists of the following resources:
(1) Appropriations from the general assembly.
(2) Gifts, grants, and donations of any tangible or intangibleproperty from public or private sources.
(3) Investment income earned on the fund's assets.
(4) Repayments of loans from the fund.
(5) Funds borrowed from the board for depositories insurancefund (IC 5-13-12-7).
(6) Money deposited in the fund under IC 6-7-2-17 andIC 36-2-7-10.
(c) The treasurer of state shall invest the money in the fund notcurrently needed to meet the obligations of the fund in the samemanner as other public funds may be invested.
(d) The money remaining in the fund at the end of a fiscal yeardoes not revert to the state general fund.
(e) Interest earned on the fund may be used by the authority to payexpenses incurred in the administration of the fund.
As added by P.L.69-1989, SEC.4. Amended by P.L.27-1993, SEC.17;P.L.1-2006, SEC.114; P.L.181-2006, SEC.31; P.L.1-2007, SEC.32;P.L.211-2007, SEC.1; P.L.234-2007, SEC.200; P.L.3-2008, SEC.31.
IC 5-20-4-8
Financial assistance; form; allocation
Sec. 8. (a) The money in the fund shall be used to providefinancial assistance in the form of:
(1) grants;
(2) loans; and
(3) loan guarantees.
In addition, money from the fund may be used to provide technicalassistance to nonprofit developers of low income housing.
(b) The financial assistance described in subsection (a) shall beused for:
(1) the acquisition, construction, rehabilitation, development,operation, and insurance of, and education concerning,affordable housing and community economic development; or
(2) other programs considered appropriate to meet theaffordable housing and community development needs of lowerincome families and very low income families, including lowerincome elderly, persons with disabilities, and homelessindividuals.
(c) At least fifty percent (50%) of the dollars allocated must beused to serve very low income households.
As added by P.L.69-1989, SEC.4. Amended by P.L.23-1993, SEC.18;P.L.27-1993, SEC.18; P.L.181-2006, SEC.32; P.L.211-2007, SEC.2.
IC 5-20-4-9
Terms of loans from board for depositories insurance fund
Sec. 9. The board for depositories shall determine the terms of theloan from the board for depositories insurance fund under section 8of this chapter that must include the following:
(1) That the duration of the loan may not exceed twenty (20)years from the date of the execution of the agreement betweenthe authority and the public deposit insurance fund operated bythe board for depositories.
(2) The repayment schedule of the loan that:
(A) shall not require repayment of any principal; and
(B) must allow any principal to be repaid by the fund at anytime;
before the end of the term for the loan.
(3) That no interest may be charged.
(4) The amount of the loan, which may not exceed five milliondollars ($5,000,000).
As added by P.L.69-1989, SEC.4. Amended by P.L.27-1993, SEC.19;P.L.1-2006, SEC.115; P.L.181-2006, SEC.33; P.L.1-2007, SEC.33.
IC 5-20-4-10
Repealed
(Repealed by P.L.27-1993, SEC.26.)
IC 5-20-4-10.1
Repayment of loans; procedures
Sec. 10.1. The authority and the board for depositories shallestablish procedures to insure repayment of the loan principal at theend of the loan term. The procedures may include purchase of a zerocoupon bond to insure the loan principal, a requirement that apercentage of the loans issued by the authority be made through alinked deposit program in certificates of deposit, or other proceduresthat the authority and the board for depositories may determineappropriate.
As added by P.L.27-1993, SEC.20. Amended by P.L.1-2006,SEC.116; P.L.181-2006, SEC.34; P.L.1-2007, SEC.34.
IC 5-20-4-11
Allocation of fund resources
Sec. 11. (a) At least fifty percent (50%) of the resources of thefund shall be allocated to recognized nonprofit corporations underSection 501(c) of the Internal Revenue Code.
(b) The resources of the fund that are not allocated undersubsection (a) may be allocated to private developers of housing andprivate development entities as determined by the authority.
As added by P.L.69-1989, SEC.4. Amended by P.L.179-1991, SEC.9;P.L.1-1992, SEC.13; P.L.27-1993, SEC.21; P.L.1-2006, SEC.117;P.L.181-2006, SEC.35; P.L.1-2007, SEC.35.
IC 5-20-4-12
Occupancy of housing developed with fund resources
Sec. 12. Rental housing that is developed with money from thefund shall be made available for occupancy to low income familiesor very low income families for at least fifteen (15) years. In theevent of foreclosure or equivalent action, the remaining affordabilityperiod may be waived by the authority.
As added by P.L.69-1989, SEC.4. Amended by P.L.27-1993, SEC.22;P.L.1-2006, SEC.118; P.L.181-2006, SEC.36; P.L.1-2007, SEC.36.
IC 5-20-4-13
Developer certification of compliance with federal requirements
Sec. 13. A developer that uses funds from the fund shall certify tothe authority that the developer will comply with the following:
(1) The federal Civil Rights Act of 1968 (P.L. 90-284).
(2) The federal Fair Housing Amendments of 1988 (P.L.100-430).
(3) The Indiana Civil Rights Law (IC 22-9-1).
As added by P.L.69-1989, SEC.4. Amended by P.L.1-2006, SEC.119;P.L.181-2006, SEC.37; P.L.1-2007, SEC.37.
IC 5-20-4-14
Policies and procedures for implementation of chapter
Sec. 14. The authority shall establish written policies andprocedures to implement this chapter. These policies and proceduresshall include the following:
(1) The development of an application process for requestingfinancial assistance under this chapter.
(2) The establishment of a procedure for disbursing financialassistance under this chapter.
(3) The establishment of a rate of interest for a loan under thischapter.
(4) The establishment of loan underwriting criteria to protectthe assets of the fund. The authority shall require a lien or othersecurity when appropriate and in the amounts the authoritydetermines appropriate.
(5) A requirement that a financial institution holding anobligation that is guaranteed under this chapter must adequatelysecure the obligation.
(6) Standards requiring a local match for any assistance underthis chapter and establishing the level of local match required.
(7) The establishment of a cap on the amount of financialassistance that any recipient may receive.
(8) The establishment of procedures to do the following:
(A) Ensure that an equitable part of all funds are distributedto rural areas of Indiana.
(B) Enable the authority to use the fund to provide matchingfunds to local housing trust funds in Indiana.
(C) Promote community economic development.
As added by P.L.69-1989, SEC.4. Amended by P.L.27-1993, SEC.23;
P.L.1-2006, SEC.120; P.L.181-2006, SEC.38; P.L.1-2007, SEC.38.
IC 5-20-4-15 Version a
Housing trust fund advisory committee; membership; term ofoffice; removal from office; vacancies
Note: This version of section amended by P.L.145-2006, SEC.13.See also following version of this section amended by P.L.181-2006,SEC.39.
Sec. 15. (a) The housing trust fund advisory committee isestablished.
(b) The committee consists of sixteen (16) members to beappointed by the governor as follows:
(1) One (1) member of the division of mental health andaddiction.
(2) One (1) member of the division of family resources.
(3) One (1) member of the division of disability, aging, andrehabilitative services.
(4) One (1) member of the office of the lieutenant governor.
(5) One (1) member to represent residential real estatedevelopers.
(6) One (1) member to represent construction trades.
(7) One (1) member to represent banks and other lendinginstitutions.
(8) One (1) member to represent the interests of persons withdisabilities.
(9) One (1) member to represent service providers.
(10) Two (2) members to represent neighborhood groups.
(11) One (1) member to represent low income families.
(12) One (1) member to represent nonprofit community basedorganizations and community development corporations.
(13) One (1) member to represent real estate brokers orsalespersons.
(14) One (1) member to represent the Indiana ApartmentOwner's Association.
(15) One (1) member to represent the manufactured housingindustry.
At least three (3) members of the committee shall be from a city witha population of less than thirty-five thousand (35,000), a town, or arural area.
(c) Members of the advisory committee shall serve a term of three(3) years. However, the governor may remove for cause an appointedmember of the advisory committee and fill vacancies of appointedmembers on the advisory committee.
(d) The advisory committee shall make recommendations to thehousing and community development authority regarding:
(1) the development of policies and procedures under section 14of this chapter; and
(2) long term sources to capitalize the housing trust fund,including the following:
(A) Revenue from development ordinances, fees, or taxes. (B) Market based or private revenue.
(C) Revenue generated from government programs,foundations, private individuals, or corporations.
(e) The advisory committee shall prepare and present an annualreport that:
(1) describes disbursements under the housing trust fund; and
(2) makes recommendations to the board of the Indiana housingand community development authority regarding long termsources to capitalize the housing trust fund.
As added by P.L.69-1989, SEC.4. Amended by P.L.2-1992, SEC.56;P.L.23-1993, SEC.19; P.L.4-1993, SEC.8; P.L.5-1993, SEC.19;P.L.215-2001, SEC.9; P.L.1-2006, SEC.121; P.L.145-2006, SEC.13.
IC 5-20-4-15 Version b
Affordable housing and community development fund advisorycommittee
Note: This version of section amended by P.L.181-2006, SEC.39.See also preceding version of this section amended by P.L.145-2006,SEC.13.
Sec. 15. (a) The affordable housing and community developmentfund advisory committee is established.
(b) The advisory committee consists of sixteen (16) members tobe appointed by the governor as follows:
(1) One (1) member of the office of the secretary of family andsocial services.
(2) One (1) member of the Indiana economic developmentcorporation.
(3) One (1) member to represent home builders.
(4) One (1) member of the office of rural affairs established byIC 4-4-9.7-4.
(5) One (1) member to represent residential real estatedevelopers.
(6) One (1) member to represent construction trades.
(7) One (1) member to represent mortgage lenders.
(8) One (1) member to represent the interests of persons withdisabilities.
(9) One (1) member to represent service providers.
(10) Two (2) members to represent neighborhood groups.
(11) One (1) member to represent low income families.
(12) One (1) member to represent nonprofit community basedorganizations and community development corporations.
(13) One (1) member to represent real estate brokers orsalespersons.
(14) One (1) member to represent the Indiana ApartmentOwner's Association.
(15) One (1) member to represent the manufactured housingindustry.
At least three (3) members of the advisory committee shall be froma city with a population of less than thirty-five thousand (35,000), atown, or a rural area. (c) Members of the advisory committee shall serve a term of three(3) years. However, the governor may remove for cause an appointedmember of the advisory committee and fill vacancies of appointedmembers on the advisory committee.
(d) The advisory committee shall make recommendations to theauthority regarding:
(1) the development of policies and procedures under section 14of this chapter; and
(2) long term sources to capitalize the fund, including thefollowing:
(A) Revenue from development ordinances, fees, or taxes.
(B) Market based or private revenue.
(C) Revenue generated from government programs,foundations, private individuals, or corporations.
(e) The advisory committee shall prepare and present an annualreport that:
(1) describes disbursements under the fund; and
(2) makes recommendations to the board of the authorityregarding long term sources to capitalize the fund.
As added by P.L.69-1989, SEC.4. Amended by P.L.2-1992, SEC.56;P.L.23-1993, SEC.19; P.L.4-1993, SEC.8; P.L.5-1993, SEC.19;P.L.215-2001, SEC.9; P.L.181-2006, SEC.39.
IC 5-20-4-16
Housing trust fund advisory committee members; salary per diem;traveling expenses and other expenses
Sec. 16. (a) Each member of the advisory committee who is nota state employee is entitled to the minimum salary per diem providedby IC 4-10-11-2.1(b). Such a member is also entitled toreimbursement for traveling expenses and other expenses actuallyincurred in connection with the member's duties, as provided in thestate travel policies and procedures established by the department ofadministration and approved by the budget agency.
(b) Each member of the advisory committee who is a stateemployee is entitled to reimbursement for traveling expenses andother expenses actually incurred in connection with the member'sduties, as provided in the state travel policies and proceduresestablished by the department of administration and approved by thebudget agency.
As added by P.L.69-1989, SEC.4.