2014 Indiana Code TITLE 36. LOCAL GOVERNMENT ARTICLE 7. PLANNING AND DEVELOPMENT CHAPTER 17. URBAN HOMESTEADING
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IC 36-7-17
Chapter 17. Urban Homesteading
IC 36-7-17-1
Application of chapter
Sec. 1. This chapter applies to all units except townships.
As added by Acts 1981, P.L.309, SEC.36.
IC 36-7-17-2
Designation of agency to administer program
Sec. 2. The fiscal body of a unit may by ordinance designate an
agency or quasi-public corporation, or establish a new agency, to
administer an urban homesteading program under which family
dwellings for one (1) through four (4) families may be conveyed to
individuals or families, who must occupy and rehabilitate the
dwellings, and community organizations that must rehabilitate the
dwellings and offer them for sale.
As added by Acts 1981, P.L.309, SEC.36. Amended by P.L.177-2003,
SEC.11.
IC 36-7-17-3
Acquisition of property
Sec. 3. (a) The agency designated or established in section 2 of
this chapter may acquire real property in the name of the unit, for use
as provided in this chapter.
(b) Under IC 6-1.1-24-4.5, the county auditor shall provide a list
of real property on which one (1) or more installments of taxes are
delinquent.
(c) Under IC 6-1.1-25-1 and IC 6-1.1-25-4, the agency may
acquire the deed for real property purchased at tax sale for the
purposes of this chapter one hundred twenty (120) days after the date
of sale, after compliance with the notice provisions of
IC 6-1.1-25-4.5.
(d) Under IC 6-1.1-25-7.5, the agency may acquire the deed for
real property for which the holder of the certificate of sale has failed
to request that the county auditor execute and deliver a deed within
one hundred twenty (120) days after issuance of the certificate.
(e) In addition to real property acquired through tax sale for the
purposes of this chapter, the agency may acquire real property by
purchase or gift.
As added by Acts 1981, P.L.309, SEC.36. Amended by P.L.87-1987,
SEC.11; P.L.1-1994, SEC.178; P.L.31-1994, SEC.22; P.L.2-1995,
SEC.135; P.L.169-2006, SEC.76.
IC 36-7-17-4
Notice to residents of unit
Sec. 4. The agency shall, after the acquisition of real property for
use as provided in this chapter, take the steps necessary to fully
inform the residents of each unit in which the dwellings are located
of:
(1) the existence, nature, and location of the dwellings;
(2) the qualifications required for participation in the program
under this chapter; and
(3) the terms and conditions on which the dwellings may be
conveyed to qualified persons.
As added by Acts 1981, P.L.309, SEC.36.
IC 36-7-17-5
Applications; eligibility; drawings to determine receipt of dwellings
Sec. 5. (a) A person or community organization may apply for the
program by completing a bid application.
(b) The following applicants are qualified and shall be approved
to receive real property offered under this chapter:
(1) A person who:
(A) is at least eighteen (18) years of age;
(B) possesses the financial resources to support a loan, the
necessary skills to rehabilitate the property, or a combination
of both; and
(C) has, including immediate family, not previously
participated in the program.
(2) A community organization as described in IC 36-7-9-2.
(c) Approved applicants are entitled to receive a list of all
properties owned by the unit that are available under this chapter.
(d) Approved applicants may apply for each dwelling in which
they are interested. A drawing shall be held to determine those
applicants receiving the dwellings. Persons applying under this
chapter shall receive priority over community organizations if both
indicate an interest in the same dwelling. Each approved person and
his or her immediate family may receive only one (1) dwelling in the
drawing. Each approved community organization may receive as
many dwellings as the agency considers proper.
As added by Acts 1981, P.L.309, SEC.36. Amended by P.L.177-2003,
SEC.12.
IC 36-7-17-6
Conveyances; duties of recipients
Sec. 6. The conveyance of a dwelling to an applicant under this
chapter shall be made in return for a fee of one dollar ($1) or more
and the execution by the applicant of an agreement with the
following minimum conditions:
(1) The applicant must:
(A) if a person, reside in the dwelling as the person's
principal place of residence for a period of not less than three
(3) years; or
(B) if a community organization, agree to list the dwelling
for sale within twelve (12) months after possession.
(2) The applicant must bring the residence up to a minimum
code standard, including building, plumbing, electrical, and fire
code standards, within twelve (12) months after possession, or
before possession if required under subdivision (4).
(3) The applicant must carry fire and liability insurance on the
dwelling at all times.
(4) The applicant must comply with any additional terms,
conditions, and requirements that the agency may impose to
assure that the purposes of this chapter are carried out. This may
include the requirement that the dwelling be rehabilitated to
minimum building code standards before possession.
As added by Acts 1981, P.L.309, SEC.36. Amended by P.L.177-2003,
SEC.13.
IC 36-7-17-7
Conveyances; methods authorized
Sec. 7. (a) The agency shall convey the real property acquired for
the purposes of this chapter to those persons or community
organizations qualified under section 6 of this chapter by using the
methods prescribed by subsection (b), (c), or (d).
(b) The real property may be conveyed by a conditional sales
contract, with title to remain in the agency for a period of at least one
(1) year.
(c) The title to real property may be conveyed to a person
purchasing the property as a determinable fee, with the language of
the granting clause in the deed of conveyance to include the language
"The property is conveyed on the conditions that the purchaser:
(1) will reside in the dwelling as his principal place of residence
for a period of not less than three (3) years;
(2) will bring the residence up to minimum code standards in
twelve (12) months;
(3) will carry adequate fire and liability insurance on the
dwelling at all times; and
(4) will comply with such additional terms, conditions, and
requirements as the agency requires before __________ (date of
the deed) under IC 36-7-17.".
(d) The title to real property may be conveyed to a community
organization purchasing the property as a determinable fee, with the
language of the granting clause in the deed of conveyance to include
the language: "The property is conveyed on the conditions that the
purchaser:
(1) will list the property for sale within twelve (12) months of
taking possession;
(2) will bring the residence up to minimum code standards
within twelve (12) months;
(3) will carry adequate fire and liability insurance on the
dwelling at all times; and
(4) will comply with any additional terms, conditions, and
requirements as the agency requires before __________ (date of
the deed) under IC 36-7-17.".
As added by Acts 1981, P.L.309, SEC.36. Amended by P.L.19-1986,
SEC.61; P.L.177-2003, SEC.14.
IC 36-7-17-8
Conveyances; effect of purchaser's failure to fulfill agreement;
subordination of agency's interest to financial institutions or
persons lending money
Sec. 8. Before the vesting of a fee simple title in the purchaser,
any material failure by the purchaser to carry out the agreement
entered into under section 6 of this chapter nullifies the agreement
and all right, title, and interest in the property immediately reverts to
the agency, except that the agency may grant the purchaser a
specified period, not to exceed two (2) years, to come into
compliance with the terms of the agreement. The agency may
subordinate its interest under the terms of the agreement to financial
institutions or persons lending money to the purchaser for the purpose
of allowing the purchaser to fulfill the terms of the conveyance.
As added by Acts 1981, P.L.309, SEC.36.
IC 36-7-17-9
Conveyances; fee simple title
Sec. 9. (a) When, after purchase, a person has resided in the
dwelling for the required three (3) year period, brought the property
into compliance with the required code standards, and otherwise
complied with the terms of the person's agreement, the agency shall
convey to the person a fee simple title to the property.
(b) When, after purchase, a community organization has brought
the property into compliance with the required code standards,
documented its intent to list the property for sale, and otherwise
complied with the terms of its agreement, the agency shall convey to
it a fee simple title to the property.
As added by Acts 1981, P.L.309, SEC.36. Amended by P.L.177-2003,
SEC.15.
IC 36-7-17-10
Rules and regulations
Sec. 10. The director of the agency shall prescribe the rules and
regulations necessary to carry out this chapter, including rules and
regulations establishing standards and methods for inspection of
buildings, bidding for properties by applicants, and measurement of
rehabilitation progress.
As added by Acts 1981, P.L.309, SEC.36.
IC 36-7-17-11
Retention of deed by unit; property deemed municipal property;
tax exemption
Sec. 11. Property acquired or held under this chapter with
retention of the deed by the unit is considered property of the unit
held for municipal purposes and is exempt from property taxation.
This property tax exemption becomes effective on the date of
conveyance to the unit. A petition to cancel taxes or a certified
application for exemption is not required for property acquired or
held under this chapter.
As added by Acts 1981, P.L.309, SEC.36.
IC 36-7-17-12
Property not applied for in successive drawings; sale; disposition
of proceeds
Sec. 12. (a) A property for which no one applies in two (2)
successive drawings held under this chapter may be sold at public
auction to the highest bidder.
(b) The proceeds of the sale of real property acquired under
IC 6-1.1-25-7.5 shall be applied to the cost of the sale, including
advertising and appraisal.
(c) If any proceeds remain after payment of the costs under
subsection (b), the proceeds shall be applied to the payment of taxes
removed from the tax duplicate under IC 6-1.1-25-7.5(e).
(d) If any proceeds remain after payment of the taxes under
subsection (c), the proceeds shall be deposited in the county general
fund.
As added by Acts 1981, P.L.309, SEC.36. Amended by P.L.87-1987,
SEC.12; P.L.169-2006, SEC.77.
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