Indiana Gov. Mike Braun signed into law on Monday a Republican-priority bill from the 2026 legislative session aimed at addressing housing costs.
House Enrolled Act 1001 states that 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 are permitted uses that are approved without a hearing.
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The law restricts a local government unit’s ability to impose and increase fees related to building approval and permits, among other design-element limitations. It addresses long permitting processes, zoning restrictions, and minimum parking requirements.
Further, the law gives local governments the option to pass an ordinance to opt out of many provisions of the bill and to address increasing construction costs.
After signing the bill, Braun said, while “it took a long time to get (the bill) across the finish line,” affordability is his administration’s top priority.
“Affordable housing is probably that area that, along with property taxes, utility rates, all the other things that go into your monthly budget, it probably is going to be the one that may be up there as most important. For too many Hoosiers, owning that first home has gotten out of reach,” Braun said.
The reason it’s been difficult for first-time home buyers has been inflation from 2022 through 2024, Braun said. Braun went on to blame former President Joe Biden and his administration for the inflation.
The last time Americans saw such high interest rates was in the early 1980s, Braun said, when then-chairman of the Federal Reserve Board Paul Volcker increased rates to 20% to decrease inflation. It took about 5 years to decrease interest rates, Braun said.
“We’re trying to make it easier with what we can do as a state to at least make sure that our own state rules associated with home ownership are not going to be burdensome,” Braun said. “The goal is to identify barriers to build more homes and lowering prices.”
Bill author State Rep. Doug Miller, R-Elkhart, said in a statement that as Indiana communities expand and grow, housing demand has to keep up.
“Housing is an essential long-term asset that helps our communities attract and retain residents, grows the workforce and supports our local economies. This legislation will help more Hoosiers achieve the American dream of owning a home at a price they can afford,” Miller said in the statement.
Miller, who attended the signing of the bill, said after the signing that the bill’s initial intent was to address property rights and developmental rights to ensure that people who want to move out of their homes to downsize have places to move.
House Enrolled Act 1001 builds a “scaffold” to continue addressing affordable housing, Miller said, particularly through the housing development data reporting requirement from local governments.
“I was somewhat disappointed in our local governments that they have such a stranglehold on individual property rights when, at the end of the day,… taxpayers foot the bill for everything. We want to have low property tax bills. We want to have affordable lot prices. We want to have higher density,” Miller said.
In response to a question about the law decreasing local control and expanding housing without taking into consideration road and sewer needs, Miller said if a builder buys a property and follows rules and regulations in the area, then housing should be built there.
“I’m not here to take local control away. What the intent of this whole bill was to have thoughtful discussions, just to make sure that local governments are absolutely committed in their mind they are doing the right thing,” Miller said.
Last week, Braun announced the state would suspend the 7% gas usage tax amid the U.S.-Israel war on Iran. Suspending the gas usage tax brings the cost per gallon down by just over 17 cents.
Braun said Monday, “It all adds up.” After the increase in inflation under the Biden administration, states have to respond to the increased costs for Americans, he said.
To further address affordability, Braun said his first priority was to decrease property taxes, which the legislature passed in the 2025 legislative session to save taxpayers up to $300 on their 2025 property tax bill, while local governments will lose $1.4 billion per year through 2028.
Under his tenure, the Indiana Utility Regulatory Commission has shifted in membership, with three of five members focused on ratepayers, Braun said.
“We’re just getting started,” Braun said. “We’re going to be enterprising to see how Indiana can do the most to address the affordability issue.”
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