2013 Indiana Code
TITLE 5. STATE AND LOCAL ADMINISTRATION
ARTICLE 20. HOUSING
CHAPTER 4. AFFORDABLE HOUSING AND COMMUNITY DEVELOPMENT FUND
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IC 5-20-4
Chapter 4. Affordable Housing and Community Development
Fund
IC 5-20-4-1
Repealed
(Repealed by P.L.133-2012, SEC.33.)
IC 5-20-4-2
"Families"
Sec. 2. As used in this chapter, "families" has the meaning set
forth 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"
Sec. 3. As used in this chapter, "authority" refers to the Indiana
housing and community development authority established under
IC 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"
Sec. 4. As used in this chapter, unless the context requires
otherwise, "fund" refers to the affordable housing and community
development 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"
Sec. 5. As used in this chapter, "lower income families" means
families whose income does not exceed eighty percent (80%) of the
median income for the area.
As added by P.L.69-1989, SEC.4.
IC 5-20-4-6
"Very low income families"
Sec. 6. As used in this chapter, "very low income families" means
families whose income does not exceed fifty percent (50%) of the
median 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 and
community development fund. The fund shall be administered by the
authority 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 intangible
property 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 insurance
fund (IC 5-13-12-7).
(6) Money deposited in the fund under IC 6-7-2-17 and
IC 36-2-7-10.
(c) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public funds may be invested.
(d) The money remaining in the fund at the end of a fiscal year
does not revert to the state general fund.
(e) Interest earned on the fund may be used by the authority to pay
expenses 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 provide
financial assistance in the form of:
(1) grants;
(2) loans; and
(3) loan guarantees.
In addition, money from the fund may be used to provide technical
assistance to nonprofit developers of low income housing.
(b) The financial assistance described in subsection (a) shall be
used 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 the
affordable housing and community development needs of lower
income families and very low income families, including lower
income elderly, persons with disabilities, and homeless
individuals.
(c) At least fifty percent (50%) of the dollars allocated must be
used 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 the
loan from the board for depositories insurance fund under section 8
of 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 between
the authority and the public deposit insurance fund operated by
the 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 any
time;
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 million
dollars ($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 shall
establish procedures to insure repayment of the loan principal at the
end of the loan term. The procedures may include purchase of a zero
coupon bond to insure the loan principal, a requirement that a
percentage of the loans issued by the authority be made through a
linked deposit program in certificates of deposit, or other procedures
that the authority and the board for depositories may determine
appropriate.
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 the
fund shall be allocated to recognized nonprofit corporations under
Section 501(c) of the Internal Revenue Code.
(b) The resources of the fund that are not allocated under
subsection (a) may be allocated to private developers of housing and
private 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 the
fund shall be made available for occupancy to low income families
or very low income families for at least fifteen (15) years. In the
event of foreclosure or equivalent action, the remaining affordability
period 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 to
the 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 and
procedures to implement this chapter. These policies and procedures
shall include the following:
(1) The development of an application process for requesting
financial assistance under this chapter.
(2) The establishment of a procedure for disbursing financial
assistance under this chapter.
(3) The establishment of a rate of interest for a loan under this
chapter.
(4) The establishment of loan underwriting criteria to protect
the assets of the fund. The authority shall require a lien or other
security when appropriate and in the amounts the authority
determines appropriate.
(5) A requirement that a financial institution holding an
obligation that is guaranteed under this chapter must adequately
secure the obligation.
(6) Standards requiring a local match for any assistance under
this chapter and establishing the level of local match required.
(7) The establishment of a cap on the amount of financial
assistance that any recipient may receive.
(8) The establishment of procedures to do the following:
(A) Ensure that an equitable part of all funds are distributed
to rural areas of Indiana.
(B) Enable the authority to use the fund to provide matching
funds 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
Repealed
(Repealed by P.L.133-2012, SEC.34.)
IC 5-20-4-16
Repealed
(Repealed by P.L.133-2012, SEC.35.)
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