As session filing deadlines passed and bill lists completed, Prosperity Indiana’s Policy Team has been hard at work tracking legislation and pushing forward key bills on behalf of our members and in line with our 2018 State Priorities.  Please review the key bills and updates highlighted below and take action where indicated.  Also, please visit our member legislation tracker page for full priority bill lists.

Ask your Senator to Co-sponsor/Support SB 213, to protect access to affordable rental housing for low-income individuals and families (Sponsored by Senator Doug Eckerty)

Prosperity Indiana worked again to introduce this measure to provide clarity for non-profit organizations with Senator Eckerty. The bill has been referred to the Senate Tax and Fiscal Committee and we urgently need your help trying to secure a hearing!  Please contact Chairman Holdman and share details of why you support the measure and ask him to hear the bill. 

 

Background: Currently in Indiana, we have a significant lack of affordable rental housing options for low-income individuals and families. Non-profits statewide that wholly own properties and use them to provide safe, affordable housing options for low-income renters help meet this critical need and reduce reliance on emergency shelters.  Unfortunately, they have no way of knowing from county to county whether or not their clearly charitable purpose will be recognized for property tax exemption due to vague language in state code.  SB 213 establishes a narrow, clear definition, preserving these critical housing options for vulnerable Hoosiers.

               

Ask your SEnator to co-sponsor/support SB 325 TO PUT A 36% CAP ON PAYDAY LOANS AND CUT DOWN ON PREDATORY LENDING THAT TRAPS LOW-INCOME CONSUMERS IN DEBT (Sponsored by Senator Greg walker)

In recent years, Prosperity Indiana and numerous other advocacy organizations have pushed back against legislative efforts to expand payday lending products, but we had not had legislation we could support to cut down on these predatory products that devastate our communities. This year, we worked to find a legislator willing to introduce a bill to empower low-income borrowers by cutting down on the predatory rates lenders can charge on short-term loans and Senator Greg Walker introduced SB 325. So far, we have had difficulties trying to secure a hearing date, so please help us build support and tell Chairman Perfect why you think it is critical to hear the bill and move this legislation forward.

 

Background: Predatory loans, offered at triple digit interest rates, destabilize Hoosier families and communities because this debt trap can lead to bankruptcy and housing instability. SB 325 would cap these loans at 36 percent interest, which is the most effective way to stop the cycle of high-cost debt intentionally created by payday lenders. This is the rate the U.S. Department of Defense secured to protect active duty military members and 15 other states have implemented caps of 36 percent or less to protect borrowers. It is a rate that allows wide access to credit without creating an incentive for a lender to seek out distressed borrowers who are unable to repay. Additionally, a new poll shows 88 percent of Hoosiers support a 36 percent rate cap on annual interest for payday loans and seventy-five percent indicated they would be more likely to vote for a legislative candidate who favors lowering the rate to 36 percent.

 

Ask your Representative to oppose HB 1319 A BILL THAT WOULD AUTHORIZE INSTALLMENT LOANS AT EXTREMELY HIGH INTEREST RATES  

(Sponsored by representative martin carbaugh)

Please help us oppose the following measure by finding your State Representative and asking him/her to oppose this bill that will likely be heard in Committee on Wendesday, January 24.

 

This proposal would authorize a new, longer-term installment loan product from payday lenders that would carry interest rates rate exceeding 200% APR.  These rates are significantly higher than other installment loans already offered in Indiana and would hurt vulnerable consumers, trapping them in a cycle of debt and increasing their dependency on food stamps and delaying on medical care and rent, and increasing their likelihood of bankruptcy.

Specifically, the bill:

·         Adds a new three-18 month installment loan product, called an “unsecured consumer loan,” to be offered by payday lenders that conservatively would produce loans at around 200 percent APR, but could reach higher depending on how fees and interest are applied;

·         Allows all consumer loans up to $54,600 charge up to a 36 percent interest rate. Currently only loans of $2000 or less can charge 36 percent;

·         Exempts the finance charge on installment loans from the current felony criminal loan sharking standard of 72 percent APR to allow these loans to reach triple-digit APRs.

 

Ask Your SEnator to co-sponsor/support SB 422 TO EXPAND RESOURCES AND TOOLS FOR COMMUNITIES TO COMBAT BLIGHT (Sponsored by SEnator Vaneta Becker)

 

Abandoned properties threaten the safety and stability of Hoosier communities. While the Indiana General Assembly has made significant incremental legislative progress to empower local responses over the past few years, existing tools and resources are unfortunately not equal to the challenges that continue to exist. That is why we seek legislative changes to further empower community redevelopment through acquisition, disposition, and adequate funding for neighborhood revitalization strategies. SB 422, authored by Senator Becker, is based on national best practices and would help improve processes for land banks and/or redevelopment commissions to help them more effectively acquire properties and fund efforts to combat blight.