A bill aimed at lowering housing costs barely passed out of the Senate Judiciary committee Wednesday, with many voting in favor of the bill expressing concerns and indicating they may vote against the bill as it advances.
House Bill 1001 expands 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 restricts a local government unit’s ability to impose and increase fees related to building approval and permits, among other design-element limitations. The bill addresses long permitting processes, zoning restrictions, and minimum parking requirements.
The Senate Judiciary Committee amended the bill to give local governments the option to pass an ordinance to opt out of many provisions of the bill and to address increasing construction costs.
Bill author State Rep. Doug Miller, R-Elkhart, said in the committee that discussions around the bill will continue as it advances to the Senate.
“Indiana needs about 50,000 homes today, and one of the intents of the bill is to bring those homes to market … as rapidly as possible,” Miller said. “We had to put a stake in the ground and say, ‘We need to do this now,’ and that’s really the nexus of why we’re at where we’re at.”
The bill passed committee 6-5, with State Sen. Aaron Freeman, R-Indianapolis, representing the tie-breaking vote. Many of the Senators who voted in favor of the bill expressed concerns and the possibility of voting against the bill on the floor.
“The only reason that I will cast the vote that I am going to cast, and the only reason, is because of (State Sen.) Chris Garten,” Freeman said. “If the House on down does not give him the keys to this bill and allow him to amend it … this bill is going to die and should die.”
State Sen. Scott Alexander, R-Muncie, said while the bill still needs “a lot of work” it’s the only bill aimed at addressing housing concerns in Indiana.
“I don’t like it, that it’s stepping on local control. I’m going to vote ‘yes’ on it to move it on, but I’m going to reserve the right to vote against it and argue against it if we don’t very quickly find a better place for this,” Alexander said.
State Sen. Brett Clark, R-Avon, said he’s heard from local leaders in his district who don’t like the bill. Up until hearing the amendment, Clark said he was ready to vote against the bill, but he supports the opt-out provisions of the amendment.
“I would reserve the right to vote a hard ‘no’ on the floor, but because I think there is value to the debate and the discussion. I will vote ‘yes’,” Clark said.
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State Sen. Lonnie Randolph, D-East Chicago, said the bill takes away local control, and he recommended that the bill have “opt-in” provisions instead of “opt-out” provisions.
“Every city and town in Indiana is different. They’ve got different populations, different needs, different problems,” Randolph said. “It could be detrimental to a respective city that cannot fit the needs that this bill requires.”
State Sen. Rodney Pol, D-Chesterton, said he has many concerns about the bill because it lacks “safeguards.”
During the committee hearing, 21 people signed up to testify, with the majority of those testifying opposing the bill.
Michael Jabo, the executive director of the Porter County Development & Storm Water Department, testified against the bill because it would favor cities and towns over rural communities.
“While we support responsible growth and affordable housing, we’re concerned that House Bill 1001’s current version favors municipal areas and may negatively affect rural communities,” Jabo said. “Our county relies on wells and septic systems, not municipal water and sewer, making higher residential density only feasible where infrastructure exists.”
Porter County’s comprehensive plan prioritizes farm land preservation and supports development where municipal utilities are available, Jabo said.
“Enacting House Bill 1001 as written could undermine these priorities,” Jabo said. “If the goal is affordable housing, we recommend sustainable alternatives, higher density zoning near existing infrastructure, house tax increment financing and target updates to our unified development ordinance.”
David Phelps, president of the Beverly Shores town council, testified against the bill because it “is a further diminution of Home Rule and removes the very tools that small communities rely on to manage growth responsibly and safely.”
Phelps said the bill reduces local control because it requires towns to approve a wide range of residential projects without public hearings, which still remains in the bill even with the opt-out options, Phelps said.
“We need to preserve local flexibility and public safety (and) recognize the unique needs of Indiana’s small towns. Communities like ours need to manage our growth in a responsible and sustainable way, ” Phelps said.
Gina Leckron, the state director for Habitat for Humanity of Indiana, said the organization supports the bill because it will help with increasing capacity and access to homeownership for low-income workers.
If signed into law, House Bill 1001 would help address the costs of building homes, Leckron said. As an example, Leckton said Habitat for Humanity of Indiana recently built a home in a community that had an ordinance that required all new homes to have a two-car garage.
The organization had to comply, Leckron said, but the two-car garage increased construction costs and the mortgage on the home, as well as take away from the backyard space.
“Habitat had to subsidize that cost. No other builder would do that. These are the kinds of things that are happening that we need your help with,” Leckron said.
The bill now heads to the Senate for consideration.