Senate committee approves amended housing infrastructure, permitting bill after debate over priorities and TIF use

House Bill 1005, revised to change how the state prioritizes housing infrastructure loans and to adjust permitting and private-review rules for certain residential construction, passed the Indiana Senate Local Government Committee by a 9-1 roll-call vote Wednesday.

The amended bill gives priority consideration from the Residential Housing Infrastructure Assistance Fund to communities that adopt zoning or regulatory changes to encourage housing development and expands optional permitting reforms that allow applicants to use third‑party plan reviewers and private inspection providers at the applicant's expense. Representative Miller, the House author, told the committee the amendment also delays the effective date for permit- and inspection-related provisions to Jan. 1, 2026, strengthens conflict-of-interest language for private providers, and modifies insurance and timelines to better align with other professions and the vested‑rights statute.

The amendment was described by Representative Miller as the result of discussions with municipal and county organizations and technical staff. "We feel like we've taken a really good bill and made it a wonderful bill for our communities," Miller said, summarizing changes that include: expanding the Indiana Finance Authority's priority ranking criteria to include options from the so-called YIMBY Act; requiring applicants to indicate whether they will use a private provider at the time of permit filing; prohibiting private providers from being unit employees; removing home inspectors from the list of authorized private providers; requiring refund of plan-review fees if the unit cannot timely perform a review, while allowing a convenience fee of not more than $100; and clarifying when engineered-stamp plans may be required.

Carol Auslander of Torchbearer Public Affairs, speaking for the Indiana Chamber of Commerce, told the committee the chamber supports HB 1005. "We are particularly supportive of the bill's provision prioritizing loan awards from the Residential Housing Infrastructure Assistance Fund for communities that have adopted pro growth land use policies," Auslander said, adding that the measure does not bar communities from applying. She also cited prior rounds of the fund, saying Round 1 awarded about $51,000,000 to support roughly 2,000 homes and that Round 2 totaled about $31,000,000 in additional investments to communities such as Bloomington, Jasper and Michigan City.

Representing the Indiana Manufactured Housing Association, a witness identified as Ron said the industry anticipates regulatory changes at the U.S. Department of Housing and Urban Development that will allow triplexes, fourplexes and change chassis requirements in 2026, and he endorsed the bill's provisions that address those developments.

Committee discussion focused heavily on money from the fund and the role of tax increment financing (TIF). Representative Miller described the Residential Housing Infrastructure Assistance Fund as a revolving loan fund and said the budget cycle contains $50,000,000 in new money; she also referenced earlier rounds and the way TIF uses support projects and payback schedules. Senator Taylor spoke against the measure in part because of concerns about ensuring affordability requirements if communities receiving funds chose to support high-end development. "I'm gonna vote no," Taylor said during the roll call explanation, citing a plan to offer a second-reading amendment later to require affordability provisions tied to taxpayer dollars.

The committee adopted the amendment by consent and then approved the amended bill by roll call, 9 ayes to 1 no. Roll-call votes recorded in committee were: Jackson (aye), Yoder (aye), Taylor (no), Niemeyer (aye), Vohacek (aye), Becker (aye), Durnell (aye), Schmidt (aye), Toms (aye), and Buck (aye). The chair noted that members had an opportunity to offer amendments in committee and encouraged members to bring changes at that stage rather than on the second floor.

The bill's provisions now prioritize infrastructure loan awards for communities that take specified regulatory actions and make procedural changes intended to speed plan review and inspection while adding conflict-of-interest safeguards and refund obligations when local units cannot meet timelines. The committee record shows ongoing concerns about TIF use and local control over affordability standards; Representative Miller said affordability determinations remain with local governments under the amendment.

Votes and next steps: the committee approved the amended bill; the file will proceed per Senate rules toward second reading on the floor.