CHAPTER 1. INDIANA HOUSING AND COMMUNITY DEVELOPMENT AUTHORITY
IC 5-20
ARTICLE 20. HOUSING
IC 5-20-1
Chapter 1. Indiana Housing and Community Development
Authority
IC 5-20-1-1
Legislative findings and declaration of public policy
Sec. 1. Legislative Findings and Declaration of Public Policy. It
is hereby declared:
(1) that there exists in the state of Indiana a need for safe and
sanitary residential housing within the financial means of low
and moderate income persons and families, a need which unmet
is a threat to the health, safety, morals and welfare of Indiana
residents and which will require an excessive expenditure of
public funds for the social problems thus created;
(2) that private enterprise and investment will more adequately
be able to produce the needed construction of decent, safe and
sanitary residential housing at prices or rentals which persons
and families of low and moderate income can afford, or to
achieve the urgently needed rehabilitation of much of the
present low and moderate income housing; that it is imperative
that the supply of residential housing for persons and families
of low and moderate income displaced by public actions or
natural disaster be increased; and that private enterprise and
investment be encouraged to sponsor, build and rehabilitate
residential housing for such persons and families;
(3) that the provision of decent, safe and sanitary housing for
persons and families of low and moderate income who would
otherwise be unable to obtain adequate housing at costs they
could afford is a valid public purpose for which public money
may be spent;
(4) that there exists a need in Indiana to stimulate the residential
housing industry; that public employees have unmet needs with
regard to residential housing; that state retirement plans need
additional, safe avenues for investment; and that the provision
of money for mortgage loans through the issuance of
mortgage-backed bonds or notes will in part meet these needs;
and
(5) that the necessity in the public interest and welfare for the
provisions of this chapter is hereby declared a matter of
legislative determination.
As added by Acts 1978, P.L.28, SEC.1. Amended by Acts 1982,
P.L.35, SEC.2.
IC 5-20-1-2
Definitions
Sec. 2. As used in this chapter:
"Assisted" means, with respect to a loan:
(1) the payment by the United States or any duly authorized
agency of the United States of assistance payments, interest
payments, or mortgage reduction payments with respect to such
loan; or
(2) the provision of insurance, guaranty, security, collateral,
subsidies, or other forms of assistance or aid acceptable to the
authority for the making, holding, or selling of a loan from the
United States, any duly authorized agency of the United States,
or any entity or corporation acceptable to the authority, other
than the sponsor.
"Authority" means the Indiana housing and community
development authority created by section 3 of this chapter.
"Bonds" or "notes" means the bonds or notes authorized to be
issued by the authority under this chapter.
"Development costs" means the costs approved by the authority
as appropriate expenditures and credits which may be incurred by
sponsors, builders, and developers of residential housing prior to
commitment and initial advance of the proceeds of a construction
loan or of a mortgage, including but not limited to:
(1) payments for options to purchase properties on the proposed
residential housing site, deposits on contracts of purchase, or,
with prior approval of the authority, payments for the purchase
of such properties;
(2) legal, organizational, and marketing expenses, including
payments of attorney's fees, project manager, clerical, and other
incidental expenses;
(3) payment of fees for preliminary feasibility studies and
advances for planning, engineering, and architectural work;
(4) expenses for surveys as to need and market analyses;
(5) necessary application and other fees;
(6) credits allowed by the authority to recognize the value of
service provided at no cost by the sponsors, builders, or
developers; and
(7) such other expenses as the authority deems appropriate for
the purposes of this chapter.
"Governmental agency" means any department, division, public
agency, political subdivision, or other public instrumentality of the
state of Indiana, the federal government, any other state or public
agency, or any two (2) or more thereof.
"Construction loan" means a loan to provide interim financing for
the acquisition or construction of single family residential housing,
including land development.
"Mortgage" or "mortgage loan" means a loan to provide
permanent financing for:
(1) the rehabilitation, acquisition, or construction of single
family residential housing, including land development; or
(2) the weatherization of single family residences.
"Mortgage lender" means a bank, trust company, savings bank,
savings association, credit union, national banking association,
federal savings association or federal credit union maintaining an
office in this state, a public utility (as defined in IC 8-1-2-1), a gas
utility system organized under IC 8-1-11.1, an insurance company
authorized to do business in this state, or any mortgage banking firm
or mortgagee authorized to do business in this state and approved by
either the authority or the Department of Housing and Urban
Development.
"Land development" means the process of acquiring land
primarily for residential housing construction for persons and
families of low and moderate income and making, installing, or
constructing nonresidential housing improvements, including water,
sewer, and other utilities, roads, streets, curbs, gutters, sidewalks,
storm drainage facilities, and other installations or works, whether on
or off the site, which the authority deems necessary or desirable to
prepare such land primarily for residential housing construction.
"Obligations" means any bonds or notes authorized to be issued
by the authority under this chapter.
"Persons and families of low and moderate income" means
persons and families of insufficient personal or family income to
afford adequate housing as determined by the standards established
by the authority, and in determining such standards the authority
shall take into account the following:
(1) The amount of total income of such persons and families
available for housing needs.
(2) The size of the family.
(3) The cost and condition of housing facilities available in the
different geographic areas of the state.
(4) The ability of such persons and families to compete
successfully in the private housing market and to pay the
amounts at which private enterprise is providing sanitary,
decent, and safe housing.
The standards shall, however, comply with the applicable limitations
of section 4(b) of this chapter.
"Residential facility for children" means a facility:
(1) that provides residential services to individuals who are:
(A) under twenty-one (21) years of age; and
(B) adjudicated to be children in need of services under
IC 31-34 (or IC 31-6-4 before its repeal) or delinquent
children under IC 31-37 (or IC 31-6-4 before its repeal); and
(2) that is:
(A) a child caring institution that is or will be licensed under
IC 31-27;
(B) a residential facility that is or will be licensed under
IC 12-28-5; or
(C) a facility that is or will be certified by the division of
mental health and addiction under IC 12-23.
"Residential facility for persons with a developmental disability"
means a facility that is approved for use in a community residential
program for the developmentally disabled under IC 12-11-1.1.
"Residential facility for persons with a mental illness" means a
facility that is approved by the division of mental health and
addiction for use in a community residential program for the
mentally ill under IC 12-22-2-3(1), IC 12-22-2-3(2), IC 12-22-2-3(3),
or IC 12-22-2-3(4).
"Residential housing" means a specific work or improvement
undertaken primarily to provide single or multiple family housing for
rental or sale to persons and families of low and moderate income,
including the acquisition, construction, or rehabilitation of lands,
buildings, and improvements to the housing, and such other
nonhousing facilities as may be incidental or appurtenant to the
housing.
"Sponsors", "builders", or "developers" means corporations,
associations, partnerships, limited liability companies, or other
entities and consumer housing cooperatives organized pursuant to
law for the primary purpose of providing housing to low and
moderate income persons and families.
"State" means the state of Indiana.
"Tenant programs and services" means services and activities for
persons and families living in residential housing, including the
following:
(1) Counseling on household management, housekeeping,
budgeting, and money management.
(2) Child care and similar matters.
(3) Access to available community services related to job
training and placement, education, health, welfare, and other
community services.
(4) Guard and other matters related to the physical security of
the housing residents.
(5) Effective management-tenant relations, including tenant
participation in all aspects of housing administration,
management, and maintenance.
(6) Physical improvements of the housing, including buildings,
recreational and community facilities, safety measures, and
removal of code violations.
(7) Advisory services for tenants in the creation of tenant
organizations which will assume a meaningful and responsible
role in the planning and carrying out of housing affairs.
(8) Procedures whereby tenants, either individually or in a
group, may be given a hearing on questions relating to
management policies and practices either in general or in
relation to an individual or family.
As added by Acts 1978, P.L.28, SEC.1. Amended by P.L.60-1983,
SEC.1; P.L.39-1984, SEC.1; P.L.40-1984, SEC.1; P.L.28-1985,
SEC.3; P.L.2-1992, SEC.54; P.L.81-1992, SEC.3; P.L.1-1993,
SEC.26; P.L.8-1993, SEC.72; P.L.61-1993, SEC.1; P.L.62-1993,
SEC.1; P.L.1-1994, SEC.22; P.L.1-1997, SEC.36; P.L.79-1998,
SEC.10; P.L.272-1999, SEC.4; P.L.215-2001, SEC.8; P.L.1-2006,
SEC.105; P.L.145-2006, SEC.11; P.L.181-2006, SEC.17;
P.L.99-2007, SEC.19.
IC 5-20-1-3
Authority creation; membership; terms; expenses; references to
Indiana housing finance authority
Sec. 3. (a) There is created a public body corporate and politic of
the state of Indiana to be known as the "Indiana housing and
community development authority". The authority shall consist of the
following seven (7) members:
(1) The lieutenant governor or the lieutenant governor's
designee.
(2) The treasurer of state, or the treasurer of state's designee.
(3) The public finance director of the Indiana finance authority,
or the public finance director's designee.
(4) Four (4) members appointed by the governor.
Not more than three (3) of the members of the authority appointed
under subdivision (4) shall be members of the same political party.
Members of the authority appointed by the governor shall serve for
a term of four (4) years, except that all vacancies shall be filled for
the unexpired term. However, any appointed member of the authority
shall be removable at the pleasure of the governor, with or without
cause. A member of the authority shall receive no compensation for
the member's services but shall be entitled to reimbursement for the
necessary expenses, including traveling expenses, incurred in the
discharge of the member's duties. Each member shall hold office
until the member's successor has been appointed and has qualified.
A certificate of appointment or reappointment of any members shall
be filed with the authority and this certificate shall be conclusive
evidence of the due and proper appointments of the member.
(b) The powers of the authority shall be vested in the members
thereof in office from time to time. A majority of the members of the
authority shall constitute a quorum for the purposes of conducting its
business and exercising its powers and for all other purposes,
notwithstanding the existence of any vacancies. Action may be taken
by the authority upon a vote of a majority of the members present,
unless the bylaws of the authority require a larger number. Meetings
of the members of the authority may be held anywhere within or
outside the state.
(c) The governor shall appoint a chairman and vice-chairman from
the members of the authority. The governor shall appoint an
executive director for the authority, who shall serve at the pleasure
of the governor and receive compensation as fixed by the authority.
The authority shall employ legal and technical experts and such other
officers, agents and employees, permanent and temporary, as it may
require, and shall determine their qualifications, duties, and
compensation. The authority may also engage independent legal
counsel to assist it. The authority may delegate to one (1) or more of
its agents or employees such powers or duties as it may deem proper.
(d) The authority may also contract with any entity, including the
Indiana finance authority, to provide staff or services, including the
functions of the executive director and employees of the authority,
under such terms as the authority determines.
(e) After May 14, 2005, a reference to the Indiana housing finance
authority in a statute, rule, or other document is considered a
reference to the authority as the successor agency.
As added by Acts 1978, P.L.28, SEC.1. Amended by P.L.235-2005,
SEC.86; P.L.20-2010, SEC.5.
IC 5-20-1-3.5
Surety bonds
Sec. 3.5. Before the issuance of any bonds under this chapter:
(1) the executive director of the authority;
(2) each member of the authority; and
(3) any other employee or agent of the authority authorized by
resolution of the authority to handle funds or sign checks;
shall execute a surety bond in the penal sum of fifty thousand dollars
($50,000). If an individual described in subdivisions (1) through (3)
is already covered by a bond required by state law, the individual
need not obtain another bond if the bond required by state law is in
at least the penal sum specified in this section and covers the
individual's activities for the authority. In lieu of this bond, the
chairman of the authority may execute a blanket surety bond
covering each member, the executive director, and the employees or
other officers of the authority. Each surety bond must be conditioned
upon the faithful performance of the individual's duties, and shall be
issued by a surety company authorized to transact business in Indiana
as surety. At all times after the issuance of any surety bonds, these
surety bonds shall be maintained in full force and effect. All costs of
the surety bonds shall be borne by the authority.
As added by P.L.235-2005, SEC.87.
IC 5-20-1-4
Powers of the authority
Sec. 4. (a) The authority has all of the powers necessary or
convenient to carry out and effectuate the purposes and provisions of
this chapter, including the power:
(1) to make or participate in the making of construction loans
for multiple family residential housing under terms that are
approved by the authority;
(2) to make or participate in the making of mortgage loans for
multiple family residential housing under terms that are
approved by the authority;
(3) to purchase or participate in the purchase from mortgage
lenders of mortgage loans made to persons of low and moderate
income for residential housing;
(4) to make loans to mortgage lenders for the purpose of
furnishing funds to such mortgage lenders to be used for
making mortgage loans for persons and families of low and
moderate income. However, the obligation to repay loans to
mortgage lenders shall be general obligations of the respective
mortgage lenders and shall bear such date or dates, shall mature
at such time or times, shall be evidenced by such note, bond, or
other certificate of indebtedness, shall be subject to prepayment,
and shall contain such other provisions consistent with the
purposes of this chapter as the authority shall by rule or
resolution determine;
(5) to collect and pay reasonable fees and charges in connection
with making, purchasing, and servicing of its loans, notes,
bonds, commitments, and other evidences of indebtedness;
(6) to acquire real property, or any interest in real property, by
conveyance, including purchase in lieu of foreclosure, or
foreclosure, to own, manage, operate, hold, clear, improve, and
rehabilitate such real property and sell, assign, exchange,
transfer, convey, lease, mortgage, or otherwise dispose of or
encumber such real property where such use of real property is
necessary or appropriate to the purposes of the authority;
(7) to sell, at public or private sale, all or any part of any
mortgage or other instrument or document securing a
construction loan, a land development loan, a mortgage loan, or
a loan of any type permitted by this chapter;
(8) to procure insurance against any loss in connection with its
operations in such amounts and from such insurers as it may
deem necessary or desirable;
(9) to consent, subject to the provisions of any contract with
noteholders or bondholders which may then exist, whenever it
deems it necessary or desirable in the fulfillment of its purposes
to the modification of the rate of interest, time of payment of
any installment of principal or interest, or any other terms of
any mortgage loan, mortgage loan commitment, construction
loan, loan to lender, or contract or agreement of any kind to
which the authority is a party;
(10) to enter into agreements or other transactions with any
federal, state, or local governmental agency for the purpose of
providing adequate living quarters for such persons and families
in cities and counties where a need has been found for such
housing;
(11) to include in any borrowing such amounts as may be
deemed necessary by the authority to pay financing charges,
interest on the obligations (for a period not exceeding the period
of construction and a reasonable time thereafter or if the
housing is completed, two (2) years from the date of issue of the
obligations), consultant, advisory, and legal fees and such other
expenses as are necessary or incident to such borrowing;
(12) to make and publish rules respecting its lending programs
and such other rules as are necessary to effectuate the purposes
of this chapter;
(13) to provide technical and advisory services to sponsors,
builders, and developers of residential housing and to residents
and potential residents, including housing selection and
purchase procedures, family budgeting, property use and
maintenance, household management, and utilization of
community resources;
(14) to promote research and development in scientific methods
of constructing low cost residential housing of high durability;
(15) to encourage community organizations to participate in
residential housing development;
(16) to make, execute, and effectuate any and all agreements or
other documents with any governmental agency or any person,
corporation, association, partnership, limited liability company,
or other organization or entity necessary or convenient to
accomplish the purposes of this chapter;
(17) to accept gifts, devises, bequests, grants, loans,
appropriations, revenue sharing, other financing and assistance
and any other aid from any source whatsoever and to agree to,
and to comply with, conditions attached thereto;
(18) to sue and be sued in its own name, plead and be
impleaded;
(19) to maintain an office in the city of Indianapolis and at such
other place or places as it may determine;
(20) to adopt an official seal and alter the same at pleasure;
(21) to adopt and from time to time amend and repeal bylaws
for the regulation of its affairs and the conduct of its business
and to prescribe rules and policies in connection with the
performance of its functions and duties;
(22) to employ fiscal consultants, engineers, attorneys, real
estate counselors, appraisers, and such other consultants and
employees as may be required in the judgment of the authority
and to fix and pay their compensation from funds available to
the authority therefor;
(23) notwithstanding IC 5-13, but subject to the requirements of
any trust agreement entered into by the authority, to invest:
(A) the authority's money, funds, and accounts;
(B) any money, funds, and accounts in the authority's
custody; and
(C) proceeds of bonds or notes;
in the manner provided by an investment policy established by
resolution of the authority;
(24) to make or participate in the making of construction loans,
mortgage loans, or both, to individuals, partnerships, limited
liability companies, corporations, and organizations for the
construction of residential facilities for individuals with a
developmental disability or for individuals with a mental illness
or for the acquisition or renovation, or both, of a facility to
make it suitable for use as a new residential facility for
individuals with a developmental disability or for individuals
with a mental illness;
(25) to make or participate in the making of construction and
mortgage loans to individuals, partnerships, corporations,
limited liability companies, and organizations for the
construction, rehabilitation, or acquisition of residential
facilities for children;
(26) to purchase or participate in the purchase of mortgage
loans from:
(A) public utilities (as defined in IC 8-1-2-1); or
(B) municipally owned gas utility systems organized under
IC 8-1.5;
if those mortgage loans were made for the purpose of insulating
and otherwise weatherizing single family residences in order to
conserve energy used to heat and cool those residences;
(27) to provide financial assistance to mutual housing
associations (IC 5-20-3) in the form of grants, loans, or a
combination of grants and loans for the development of housing
for low and moderate income families;
(28) to service mortgage loans made or acquired by the
authority and to impose and collect reasonable fees and charges
in connection with such servicing;
(29) subject to the authority's investment policy, to enter into
swap agreements (as defined in IC 8-9.5-9-4) in accordance
with IC 8-9.5-9-5 and IC 8-9.5-9-7;
(30) to promote and foster community revitalization through
community services and real estate development;
(31) to coordinate and establish linkages between governmental
and other social services programs to ensure the effective
delivery of services to low income individuals and families,
including individuals or families facing or experiencing
homelessness;
(32) to cooperate with local housing officials and plan
commissions in the development of projects that the officials or
commissions have under consideration;
(33) to take actions necessary to implement its powers that the
authority determines to be appropriate and necessary to ensure
the availability of state or federal financial assistance; and
(34) to administer any program or money designated by the
state or available from the federal government or other sources
that is consistent with the authority's powers and duties.
The omission of a power from the list in this subsection does not
imply that the authority lacks that power. The authority may exercise
any power that is not listed in this subsection but is consistent with
the powers listed in this subsection to the extent that the power is not
expressly denied by the Constitution of the State of Indiana or by
another statute.
(b) The authority shall ensure that a mortgage loan acquired by
the authority under subsection (a)(3) or made by a mortgage lender
with funds provided by the authority under subsection (a)(4) is not
knowingly made to a person whose adjusted family income, as
determined by the authority, exceeds one hundred twenty-five
percent (125%) of the median income for the geographic area
involved. However, if the authority determines that additional
encouragement is needed for the development of the geographic area
involved, a mortgage loan acquired or made under subsection (a)(3)
or (a)(4) may be made to a person whose adjusted family income, as
determined by the authority, does not exceed one hundred forty
percent (140%) of the median income for the geographic area
involved. The authority shall establish procedures that the authority
determines are appropriate to structure and administer any program
conducted under subsection (a)(3) or (a)(4) for the purpose of
acquiring or making mortgage loans to persons of low or moderate
income. In determining what constitutes low income, moderate
income, or median income for purposes of any program conducted
under subsection (a)(3) or (a)(4), the authority shall consider:
(1) the appropriate geographic area in which to measure income
levels; and
(2) the appropriate method of calculating low income, moderate
income, or median income levels including:
(A) sources of;
(B) exclusions from; and
(C) adjustments to;
income.
(c) The authority, when directed by the governor, shall administer
programs and funds under 42 U.S.C. 1437 et seq.
(d) The authority shall identify, promote, assist, and fund:
(1) home ownership education programs; and
(2) mortgage foreclosure counseling and education programs
under IC 5-20-6;
conducted throughout Indiana by nonprofit counseling agencies that
the authority has certified, or by any other public, private, or
nonprofit entity in partnership with a nonprofit agency that the
authority has certified, using funds appropriated under section 27 of
this chapter. The attorney general and the entities listed in
IC 4-6-12-4(a)(1) through IC 4-6-12-4(a)(10) shall cooperate with the
authority in implementing this subsection.
(e) The authority shall:
(1) oversee and encourage a regional homeless delivery system
that:
(A) considers the need for housing and support services;
(B) implements strategies to respond to gaps in the delivery
system; and
(C) ensures individuals and families are matched with
optimal housing solutions;
(2) facilitate the dissemination of information to assist
individuals and families accessing local resources, programs,
and services related to homelessness, housing, and community
development; and
(3) each year, estimate and reasonably determine the number of
the following:
(A) Individuals in Indiana who are homeless.
(B) Individuals in Indiana who are homeless and less than
eighteen (18) years of age.
(C) Individuals in Indiana who are homeless and not
residents of Indiana.
As added by Acts 1978, P.L.28, SEC.1. Amended by Acts 1982,
P.L.35, SEC.3; P.L.60-1983, SEC.2; P.L.39-1984, SEC.2;
P.L.3-1989, SEC.30; P.L.69-1989, SEC.2; P.L.14-1991, SEC.3;
P.L.2-1992, SEC.55; P.L.8-1993, SEC.73; P.L.27-1993, SEC.16;
P.L.1-1994, SEC.23; P.L.235-2005, SEC.88; P.L.145-2006, SEC.12;
P.L.181-2006, SEC.18; P.L.99-2007, SEC.20; P.L.133-2008, SEC.1;
P.L.145-2008, SEC.3; P.L.1-2009, SEC.23; P.L.105-2009, SEC.1.
IC 5-20-1-4.1
Code of ethics
Sec. 4.1. (a) The authority shall:
(1) adopt:
(A) rules under IC 4-22-2; or
(B) a policy;
establishing a code of ethics for its employees; or
(2) decide it wishes to be under the jurisdiction and rules
adopted by the state ethics commission.
(b) A code of ethics adopted by rule or policy under this section
must be consistent with state law and approved by the governor.
As added by P.L.5-1996, SEC.7.
IC 5-20-1-4.5
Housing for special needs populations; allocation of federal low
income housing credits
Sec. 4.5. (a) As used in this section, "special needs populations"
includes the following:
(1) Persons with physical or developmental disabilities.
(2) Persons with mental impairments.
(3) Single parent households.
(4) Victims of domestic violence.
(5) Abused children.
(6) Persons with chemical addictions.
(7) Homeless persons.
(8) The elderly.
(b) As used in this section, "qualified building" means a building:
(1) that is used or will be used to provide residential housing for
special needs populations; and
(2) for which a taxpayer is eligible to claim a low income
housing credit under 26 U.S.C. 42.
(c) Subject to subsection (d), the authority shall allocate to
qualified buildings at least ten percent (10%) of the total dollar
amount of federal low income housing credits allocated to the
authority under 26 U.S.C. 42. The authority shall allocate credits
under this section based on the proportionate amount of a qualified
building that is used to provide residential housing for special needs
populations, as determined by the authority.
(d) The authority shall hold available the allocation made under
subsection (c) for qualified buildings through October 31 of each
calendar year. Beginning November 1 of each calendar year, any part
of the allocation that remains unassigned shall be available for any
appropriate use under 26 U.S.C. 42.
As added by P.L.74-1989, SEC.1. Amended by P.L.2-1993, SEC.52;
P.L.23-1993, SEC.17; P.L.272-1999, SEC.5; P.L.145-2008, SEC.4.
IC 5-20-1-5
Repealed
(Repealed by P.L.145-2008, SEC.34.)
IC 5-20-1-6
Repealed
(Repealed by P.L.145-2008, SEC.34.)
IC 5-20-1-7
State not liable for obligations of the Indiana housing and
community development authority
Sec. 7. (a) Obligations issued under the provisions of this chapter
do not constitute a debt, liability, or obligation of the state of Indiana
or a pledge of the faith and credit of the state of Indiana, but shall be
payable solely from the revenues or assets of the authority. Under
any circumstances, general fund revenues of the state of Indiana may
not be used to pay all or part of the obligations of the authority, and
there is no moral obligation of the state of Indiana to pay all or part
of the obligations of the authority. Each obligation issued under this
chapter shall contain on the face thereof a statement to the effect that
the authority shall not be obligated to pay the same nor the interest
thereon except from the revenues or assets pledged therefor and that
neither the faith and credit nor the taxing power of the state of
Indiana is pledged to the payment of the principal of or the interest
on such obligation.
(b) Expenses incurred by the authority in carrying out the
provisions of this chapter may be made payable from funds provided
pursuant to this chapter, and no liability shall be incurred by the
authority under this chapter beyond the extent to which moneys shall
have been so provided.
As added by Acts 1978, P.L.28, SEC.1. Amended by P.L.1-2006,
SEC.106 and P.L.181-2006, SEC.19.
IC 5-20-1-8
Authorization to use revenue bond financing; approval of public
finance director required
Sec. 8. (a) Subject to the approval of the public finance director
appointed under IC 4-4-11-9, the authority is hereby authorized to
issue bonds or notes, or a combination thereof, to carry out and
effectuate its purposes and powers. The principal of, and the interest
on, such bonds or notes shall be payable solely from the funds
provided for such payment in this chapter. The authority may secure
the repayment of such bonds and notes by the pledge of mortgages
and notes of others, revenues derived from operations and loan
repayments, the proceeds of its bonds, and any available revenues or
assets of the authority. The bonds or notes of each issue shall be
dated and may be made redeemable before maturity at the option of
the authority, at such price or prices and under such terms and
conditions as may be determined by the authority. Any such bonds
or notes shall bear interest at such rate or rates as may be determined
by the authority. Notes shall mature at such time or times not
exceeding ten (10) years from their date or dates, and bonds shall
mature at such time or times not exceeding forty-five (45) years from
their date or dates, as may be determined by the authority. The
authority shall determine the form and manner of execution of the
bonds or notes, including any interest coupons to be attached thereto,
and shall fix the denomination or denominations and the place or
places of payment of principal and interest, which may be any bank
or trust company within or outside the state. In case any officer
whose signature, or a facsimile of whose signature, shall appear on
any bonds or notes or coupons attached thereto shall cease to be such
officer before the delivery thereof, such signature or such facsimile
shall nevertheless be valid and sufficient for all purposes the same as
if the person had remained in office until such delivery. The
authority may also provide for the authentication of the bonds or
notes by a trustee or fiscal agent. The bonds or notes may be issued
in coupon or registered form, or both, as the authority may
determine, and provision may be made for the registration of any
coupon bonds or notes as to principal alone and also as to both
principal and interest, and for the reconversion into coupon bonds or
notes of any bonds or notes registered as to both principal and
interest, and for the interchange of registered and coupon bonds or
notes. Upon the approval of a resolution of the authority authorizing
the sale of its bonds or notes, such bonds or notes may be sold in
such manner, either at public or private sale, and for such price as the
authority shall determine to be for the best interest of the authority
and to best effectuate the purposes of this chapter.
(b) The proceeds of any bonds or notes shall be used solely for the
purposes for which they are issued. The proceeds shall be disbursed
in such manner and under such restrictions, if any, as the authority
may provide in the resolution authorizing the issuance of such bonds
or notes or in the trust agreement securing the same.
(c) Prior to the preparation of definitive bonds, the authority may,
under like restrictions and subject to the approval of the public
finance director appointed under IC 4-4-11-9, issue interim receipts
or temporary bonds, with or without coupons, exchangeable for
definitive bonds when such bonds shall have been executed and are
available for delivery. The authority may also provide for the
replacement of any bonds or notes which shall become mutilated or
shall be destroyed or lost.
(d) The authority shall cooperate with and use the assistance of
the Indiana finance authority established under IC 4-4-11 in the
issuance of the bonds or notes.
As added by Acts 1978, P.L.28, SEC.1. Amended by P.L.235-2005,
SEC.89; P.L.145-2008, SEC.5.
IC 5-20-1-9
Trust agreements to secure authority obligations
Sec. 9. Trust Agreement to Secure Authority Obligations. In the
discretion of the authority, any obligations issued under the
provisions of this chapter may be secured by a trust agreement by
and between the authority and a corporate trustee, which may be any
trust company or bank having the powers of a trust company within
or outside the state of Indiana. Such trust agreement or the resolution
providing for the issuance of such obligations, whether or not
secured, may pledge or assign all or any part of the revenues or assets
of the authority, including, without limitation, mortgage loans,
mortgage loan commitments, construction loans, loans to lenders,
contracts, agreements and other security or investment obligations,
the fees or charges made or received by the authority, the moneys
received in payment of loans and interest thereon, and any other
moneys received or to be received by the authority. Such trust
agreement or resolution may contain such provisions for protecting
and enforcing the rights and remedies of the holders of any such
obligations as may be reasonable and proper and not in violation of
law, including convenants setting forth the duties of the authority in
relation to the purposes to which obligation proceeds may be applied,
the disposition or pledging of the revenues or assets of the authority,
the terms and conditions for the issuance of additional obligations,
and the custody, safeguarding and application of all moneys. It shall
be lawful for any bank or trust company incorporated under the laws
of the state which may act as depository of the proceeds of
obligations, revenues, or other money to furnish such indemnifying
bonds or to pledge such securities as may be required by the
authority. Any such trust agreement or resolution may set forth the
rights and remedies of the holders of any obligations and of the
trustee, and may restrict the individual right of action by any such
holders. In addition to the foregoing, any such trust agreement or
resolution may contain such other provisions as the authority may
deem reasonable and proper for the security of the holders of any
obligations. All expenses incurred in carrying out the provisions of
such trust agreement or resolution may be paid from the revenues or
assets pledged or assigned to the payment of the principal of and the
interest on obligations, or from any other funds available to the
authority.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-10
Pledge of authority assets to obligations of the authority
Sec. 10. Pledge of Authority Assets to Obligations of the
Authority. The pledge of any assets or revenues of the authority to
the payment of the principal of, premium, if any, and interest on any
obligations of the authority shall be valid and binding from the time
when the pledge is made, and any such assets or revenues shall
immediately be subject to the lien of such pledge without any
physical delivery thereof or further act. The lien of any such pledge
shall be valid and binding as against all parties having claims of any
kind in tort, contract or otherwise against the authority, irrespective
of whether such parties have notice thereof.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-11
Receipts as trust funds; investment
Sec. 11. All Moneys Received Are Trust Funds and May Be
Temporarily Invested. Notwithstanding any other provisions of law
to the contrary, all moneys received pursuant to the authority of this
chapter are trust funds to be held and applied solely as provided in
this chapter. The resolution authorizing any obligations, or the trust
agreement securing the same, may provide that any of such moneys
may be temporarily invested pending the disbursement thereof, and
shall provide that any officer with whom, or any bank or trust
company with which, such moneys shall be deposited shall act as
trustee of such moneys and shall hold and apply the same for the
purposes of this chapter, subject to such regulations as this chapter
and such resolution or trust agreement may provide.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-12
Enforcement of authority duties; rights of holders of authority
obligations
Sec. 12. Holders of Authority Obligations Granted Legal Rights
to Enforce Duties of the Authority. Any holder of obligations issued
under the provisions of this chapter or any coupons appertaining
thereto, and the trustee under any trust agreement or resolution
authorizing the issuance of such obligations, except to the extent the
rights given in this chapter may be restricted by such trust agreement
or resolution, may, either at law or in equity, by suit, action,
mandamus or other proceeding, protect and enforce any and all rights
under the laws of the state, or granted in this chapter, or under such
trust agreement or resolution, or under any other contract executed
by the authority pursuant to this chapter, and may enforce and
compel the performance of all duties required by this chapter or by
such trust agreement or resolution to be performed by the authority
or by any officer thereof.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-13
Declaration of negotiability of authority obligations
Sec. 13. Declaration of Negotiability of Obligations of the
Authority. Notwithstanding any of the provisions of this chapter or
any recitals in any obligations issued by the authority under the
provisions of this chapter, all such obligations and interest coupons
appertaining thereto are negotiable instruments under the laws of this
state, subject only to any applicable provisions for registration.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-14
Authority obligations as authorized investments
Sec. 14. Obligations of Authority Are Authorized Investments.
Obligations issued under the provisions of this chapter are hereby
made securities in which all public officers and public bodies of the
state of Indiana and its political subdivisions, all insurance
companies, trust companies, banking associations, savings and loan
associations, investment companies, executors, administrators,
trustees and other fiduciaries may properly and legally invest funds,
including capital in their control or belonging to them. Such
obligations are securities which may properly and legally be
deposited with and received by any state or municipal officer or any
agency or political subdivision of the state for any purpose for which
the deposit of bonds, notes or obligations of the state is authorized by
law.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-15
Authorization for issuance of refunding obligations
Sec. 15. Authorization for Issuance of Refunding Obligations. (a)
The authority is authorized to provide for the issuance of refunding
obligations for the purpose of refunding any obligations then
outstanding which shall have been issued under the provisions of this
chapter, including the payment of any redemption premium thereon
and any interest accrued or to accrue to the date of redemption of
such obligations, and for any corporate purpose of the authority. The
issuance of such obligations, the maturities and other details thereof,
the rights of the holders thereof, and the rights, duties and obligations
of the authority in respect of the same shall be governed by the
provisions of this chapter which relate to the issuance of obligations,
insofar as such provisions may be appropriate therefor.
(b) Refunding obligations may be sold or exchanged for
outstanding obligations issued under this chapter and, if sold, the
proceeds thereof may be applied, in addition to any other authorized
purposes, to the purchase, redemption or payment of such
outstanding obligations. Pending the application of the proceeds of
any such refunding obligations (together with any other available
funds) to the payment of the principal, accrued interest and any
redemption premium on the obligations being refunded, or if so
provided or permitted in the resolution authorizing the issuance of
such refunding obligations or in the trust agreement securing the
same to the payment of any interest on such refunding obligations
and any expenses in connection with such refunding, such proceeds
shall be invested in: (1) direct obligations of, or obligations the
principal of and the interest on which are unconditionally guaranteed
by, the United States of America and agencies of the United States
of America; or (2) general obligations of the state, which shall
mature or which shall be subject to redemption by the holders
thereof, at the option of such holders, not later than the respective
dates when the proceeds, together with the interest accruing thereon,
will be required for the purposes intended.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-16
Capital reserve fund
Sec. 16. Capitol Reserve Fund. (a) The authority may created and
establish one (1) or more special funds, herein referred to as capital
reserve funds, to secure the notes and bonds. The authority shall pay
into each such capital reserve fund: (1) any moneys appropriated and
made available by the state for the purposes of such fund; (2) any
proceeds of sale of notes or bonds, to the extent provided in the
resolution of the authority authorizing the issuance thereof; and (3)
any other moneys which may be made available to the authority for
the purpose of such fund from any other source or sources.
(b) All moneys held in any capital reserve fund, except as
otherwise specifically provided, shall be used, as required, solely: (1)
for the payment of the principal of bonds of the authority secured in
whole or in part by such fund; (2) for payment of the sinking fund
payments mentioned in this section with respect to such bonds; (3)
for the purchase or redemption of such bonds; (4) for the payment of
interest on such bonds; or (5) for the payment of any redemption
premium required to be paid when such bonds are redeemed prior to
maturity. However, if moneys in such fund at any time are less than
the capital reserve fund requirement established for such fund as
provided in this section, the authority shall not use such moneys for
any optional purchase or optional redemption of such bonds. Any
income or interest earned by, or increment to, any capital reserve
fund due to the investment thereof may be transferred by the
authority to other funds or accounts of the authority to the extent
such transfer does not reduce the amount of such capital reserve fund
below the capital reserve fund requirement for such fund.
(c) The authority shall not at any time issue bonds secured in
whole or in part by a capital reserve fund, if, upon the issuance of
such bonds, the amount in such capital reserve fund will be less than
the capital reserve fund requirement of such fund, unless the
authority, at the time of issuance of such bonds, deposits in such fund
from the proceeds of the bonds to be issued, or from other sources,
an amount which, together with the amount then in such fund, will
not be less than the capital reserve fund requirement for such fund.
For purposes of this section, "capital reserve fund requirement"
means, as of any particular date of computation, an amount of
money, as provided in the resolutions of the authority authorizing the
bonds with respect to which such fund is established, which amount
shall not exceed the average of the annual debt service on the bonds
of the authority for that calendar year and succeeding calendar years
secured in whole or in part by such fund. The annual debt service for
any calendar year is the amount of money equal to the aggregate of
(1) all interest payable during such calendar year on all bonds
secured in whole or in part by such fund outstanding on the date of
computation, plus (2) the principal amount of all such bonds
outstanding on said date of computation which mature during such
calendar year, plus (3) all amounts specified as payable during such
calendar year as a sinking fund payment with respect to any of such
bonds which mature after such calendar year. This calculation shall
embody the assumption that such bonds will, after such date of
computation, cease to be outstanding by reason, but only by reason,
of (1) the payment of bonds when due, and (2) the payment when due
of all such sinking fund payments payable at or after such date of
computation. However, in computing the annual debt service for any
calendar year, bonds deemed to have been paid in accordance with
the defeasance provisions of the resolution of the authority
authorizing the issuance thereof shall not be included in bonds
outstanding on such date of computation.
(d) To assure the continued operation and solvency of the
authority for the carrying out of the public purposes of this chapter,
the authority shall accumulate in each capital reserve fund an amount
equal to the capital reserve fund requirement for such fund.
(e) In computing the amount of any capital reserve fund for the
purposes of this section, securities in which all or a portion of such
capital reserve fund is invested shall be valued at par, or if purchased
at less than par, at their cost to the authority.
(f) Notwithstanding subsections (a) through (f), the authority,
subject to such agreements with noteholders or bondholders as may
then exist, may elect not to secure any particular issue of its bonds
with a capital reserve fund. Such election shall be made in the
resolution authorizing such issue. In this event, subsections (b) and
(c) shall not apply to the bonds of such issue in that they shall not be
entitled to payment out of, or be eligible for purchase by, any such
fund, nor shall they be taken into account in computing or applying
any capital reserve fund requirement.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-17
State power to alter authority; pledge against impairment of
authority contracts
Sec. 17. State Power to Alter Authority; Pledge Against
Impairment of Authority Contracts. The state may at any time, or
from time to time, alter or change the structure, organization
programs, activities or powers of the authority and may, at its sole
discretion, terminate the existence of the authority. However, the
state pledges and agrees with the holders of any obligations issued
pursuant to this chapter that the state will not limit or alter the rights
vested in the authority to fulfill the terms of any agreements made
with the holders thereof, or in any way impair the right and remedy
of the holders until the notes or bonds, together with the interest
thereon, with interest on any unpaid installments of interest, and all
costs and expenses in connection with any action or proceeding by
or on behalf of such holders are fully met and discharged. The
authority is authorized to include this pledge and agreement of the
state in any agreement with the holders of such notes or bonds.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-18
Annual report; annual audit
Sec. 18. The authority shall, promptly following the close of each
fiscal year, submit an annual report of its activities for the preceding
year to the public finance director appointed under IC 4-4-11-9, the
budget committee, and the general assembly. An annual report
submitted under this section to the general assembly must be in an
electronic format under IC 5-14-6. The report shall set forth a
complete operating and financial statement of the authority during
such year, and a copy of such report shall be available to inspection
by the public at the Indianapolis office of the authority. The authority
shall cause an audit of its books and accounts to be made at least
once in each year by an independent certified public accountant and
the cost thereof may be paid from any available money of the
authority.
As added by Acts 1978, P.L.28, SEC.1. Amended by P.L.28-2004,
SEC.60; P.L.235-2005, SEC.90; P.L.145-2008, SEC.6.
IC 5-20-1-19
Limitation of liability; authority members or officers
Sec. 19. Limitation of Liability for Authority Members or
Officers. No member or other officer of the authority shall be subject
to any personal liability or accountability by reason of his execution
of any obligations or the issuance thereof.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-20
Authority to accept and expend funds
Sec. 20. Authority to Accept and Expend Funds. The authority is
authorized to accept and expend such moneys as may be received
from any source, including income from the authority's operations,
for effectuating its corporate purposes including, without limitation,
the payment of the initial expenses of administration and operation,
and the establishment of a reserve or contingency fund to be
available for the payment of the principal of and the interest on any
bonds or notes of the authority.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-21
Tax exempt status
Sec. 21. Tax Exempt Status. The authority shall not be required
to pay any taxes and assessments to the state, or any county,
municipality or other governmental subdivision of the state, upon any
of its property or upon its obligations or other evidences of
indebtedness pursuant to the provisions of this chapter, or upon any
moneys, funds, revenues or other income held or received by the
authority, and the notes and bonds of the authority and the income
therefrom shall at all times be exempt from taxation imposed by the
state, except for death and gift taxes and taxes on transfers. Real
property owned by the authority shall be exempt from all property
taxation and special assessments of the state or political subdivisions
thereof, but the authority may agree to pay, in lieu of such taxes,
such amounts as the authority finds consistent with the cost to the
state or political subdivision of supplying municipal services for such
real property and any housing development constructed thereon,
which payments such bodies are authorized to accept.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-22
Disclosure of conflicts of interest
Sec. 22. Disclosure of Conflicts of Interest. If any member, officer
or employee of the authority shall be interested either directly or
indirectly, or shall be an officer or employee of or have an ownership
interest in any firm or corporation interested directly or indirectly in
any contract with the authority, including the making of any loan to
any sponsor, builder or developer, such interest shall be disclosed to
the authority and it shall be set forth in the minutes of the authority.
The member, officer or employee having such interest shall not
participate on behalf of the authority in the authorization of any such
contract with the authority.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-23
Authority assets; disposition upon termination or dissolution
Sec. 23. Authority Assets; Disposition upon Termination or
Dissolution. The authority shall fund its operating costs from the net
revenues derived from the operation of the programs under section
4 of this chapter. No part of the revenues or assets of the authority
shall inure to the benefit of or be distributable to its members or
officers or other private persons. Any net earnings of the authority
beyond that necessary for retirement of authority indebtedness or to
implement the public purposes of this chapter shall inure to the
benefit of the state. Upon termination or dissolution, all rights and
properties of the authority shall pass to and be vested in the state,
subject to the rights of lienholders and other creditors.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-24
Chapter as supplemental to other laws
Sec. 24. Provisions of this Chapter Deemed to Be Supplemental
Powers to Other Laws. This chapter shall be deemed to provide an
additional and alternative method for the performance of the
activities authorized by this chapter, and shall be regarded as
supplemental and additional to powers conferred by other laws, and
shall not be regarded as in derogation of any powers now existing.
However, the issuance of bonds or notes under this chapter need not
comply with the requirements of any other law applicable to the
issuance of bonds or notes.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-25
Liberal construction
Sec. 25. Liberal Construction. This chapter, being necessary for
the prosperity of the state and its inhabitants, shall be liberally
construed to effect its purposes.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-26
Chapter controlling
Sec. 26. Chapter Controlling. Insofar as the provisions of this
chapter are inconsistent with the provisions of any general or special
laws, or parts thereof, the provisions of this chapter shall be
controlling.
As added by Acts 1978, P.L.28, SEC.1.
IC 5-20-1-27
Home ownership education account established
Sec. 27. (a) The home ownership education account within the
state general fund is established to s