Lawmakers consider housing infrastructure fund expansion and optional private plan review/inspection for single‑family and townhomes; municipalities urge clarif

House Bill 1005, presented by Representative Miller, would expand the residential housing infrastructure assistance program and create a statewide process allowing private, qualified providers to perform plan review and inspections for Class‑2 residential structures when a local unit requires those services.

What the bill would do

Representative Miller told the committee the measure prioritizes infrastructure funding to communities that adopt zoning and regulatory reforms encouraging higher‑density and "missing middle" housing and provides a path for private providers to perform plan review and inspections when the permit applicant chooses that route. "Communities that adopt zoning and regulatory changes are given priority consideration when applying for financial assistance for infrastructure to support housing," the sponsor said.

The bill also shortens review timelines in statute from 12 days to 10 days for the plan review and inspection steps targeted in the proposal, and requires that private providers carry liability insurance and sign attestations verifying they are not financially interested in the project.

Why proponents support it

Representative Miller and development supporters said the residential infrastructure fund established by earlier legislation has already supported projects across the state. Representative Miller cited program results: of $51 million allocated in round 1, about $41 million in loans have closed and those projects are expected to support roughly 1,750 housing units; round 2 allocations of about $31 million are projected to support about 1,600 units, for a combined approximate total of 3,350 units supported by the program so far. The sponsor said the measure is intended to speed permitting, expand capacity for timely inspections and preserve local authority to issue permits and certificates of occupancy.

Municipal and county concerns

City and county witnesses said they support the infrastructure fund and faster permitting in principle but urged revisions to the draft bill to address implementation details: how timelines are measured when a jurisdiction conducts multiple concurrent reviews (zoning, stormwater, floodplain), how jurisdictions will build new permit workflows, the consequences if local governments miss statutory deadlines, evidence of insurance/independence from builders, and how impact fees and revenues are treated if a third‑party provider performs reviews. Abby Brands of the City of Indianapolis told the committee that building a separate workflow and training the development community will take time; she also asked for clarity on whether private providers would affect issuance of certificates of occupancy.

Liability and consumer protection

Supporters and several local officials discussed liability insurance and a two‑year coverage window for providers; Representative Miller said the legislation would put an additional layer of consumer protection because private providers would carry liability insurance and give homeowners another avenue for recourse in the event of construction defects.

Action and next steps

The committee held the bill for further amendment and indicated the sponsor will work with county and municipal groups, the Indiana Finance Authority (which administers the infrastructure loans), and industry stakeholders to draft clarifying amendments. The sponsor said he expects to present amendments at the next committee meeting.

Ending

Committee members and witnesses agreed on the need to speed delivery of housing while preserving local oversight. Stakeholders asked for clear timelines, a realistic implementation window for municipal permitting systems and explicit rules for insurance, affidavits and fee allocation before the bill advances.