It has been a whirlwind first half of 2018 session of the General Assembly. We have made strong progress on key priorities, but have also critical alerts to share with our members as well that warrant immediate action.
As we laid out at the start of session, Prosperity Indiana pursued an ambitious state policy agenda to advance key priorities to empower our member network.
Property Tax Exemption for Non-profits
1) One such goal was to introduce and advance legislation on a topic we have worked hard to address for numerous years- ensuring fair tax treatment for non-profit owned affordable rental housing for low-income families. Senator Eckerty again took the lead in sponsoring legislation, SB 213, that would do just that. Currently, non-profits statewide 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.
Update (2/27): We unfortunately have to share that the Chairman of the House Ways and Means Committee did not give this legislation a vote.
Update (2/22): We are pleased that the Senate Tax and Fiscal Committee held a hearing on this bill and Prosperity Indiana members Mark Lindenlaub with Thrive Alliance and Steven Meyer with King Park Community Development Corporation testified in support of the measure on January 30. The Committee voted to approve the measure 11-1. The bill then was approved by the full Senate on February 6 with a vote of 45-3. Just this week, the House Ways and Means Committee held a hearing on the measure as Mark Lindenlaub and Nate Lichti, a Prosperity Indiana Board Member, joined representatives from the Indiana Association of Area Agencies on Aging, Leading Age, and the Indiana Community Action Association in support of the measure. We are presently working to get the Committee to hold a vote on the measure.
Stopping the Expansion of Predatory Lending
2) Another key issue for 2018 network priorities is cutting down on predatory lending in the state. In that interest, we supported SB 325, a bill to cap payday loans at 36% and cut down on debt traps for low-income consumers. These predatory loans, offered at triple digit interest rates, destabilize Hoosier families and communities because this debt trap can lead to bankruptcy and housing instability.
Update (2/22): Unfortunately, this bill did not receive a hearing, despite 8 Senate co-sponsors of the measure.
Worse still, a bill Prosperity Indiana has worked hard to oppose is still moving forward. HB 1319 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.
Update (2/27): We are thrilled to share that this payday expansion bill has died as Senator Mark Messmer, Chair of Commerce and Technology, where the bill was assigned, decided not to take up consideration of the measure, citing a lack of support in his caucus. Thank you for your advocacy!
Update (2/22): Despite testimony from coalition of faith leaders, Prosperity Indiana members, and other consumer advocates, the bill passed out the House Financial Institutions Committee on January 24 and passed by a thin margin of 53-41 on January 31. Prosperity Indiana member response to our calls to action along with those of other coalition partners have been VERY effective and Senators are expressing to us that they are very hesitant to support the measure because of constituent feedback, so please keep calling your Senators! The Senate Commerce and Technology is set to hear the bill on Thursday at 9 a.m.
Resources for Combating Blight and Abandonment
3) In order to combat the scourge of abandoned properties that threaten the safety and stability of Hoosier communities, Prosperity Indiana worked with members and Senator Becker to introduce SB 422, a bill that would empower community redevelopment through acquisition, disposition, and adequate funding for neighborhood revitalization strategies. This legislation 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.
Update (2/22): The bill received a hearing in the Senate Local Government Committee on January 17, but was not voted on. Conversations will continue over the summer to try and address fiscal impact concerns in preparation re-introduction for the next session.
More Updates:
Check back here on Friday, March 2 for key updates on other critical bills we are engaged on, such as SB 11, addressing SNAP benefits and HB 1314, addressing educational outcomes for foster and homeless youth, and HB 1278, bill that would make it harder to establish Economic Improvement Districts.
Statehouse Day:
Thank you to the more than 50 members and partners who participated in our Statehouse Day, Prosperity IN Action, on January 23. Participants representing a spectrum of services, interests and communities across the state, spoke to legislators about their individual concerns as well as the network’s 2018 priorities. We were grateful for all the members who joined as they were exceptionally effective in sharing examples of impact each of these priorities has on Hoosier communities and the clients our members serve.
