Contact: Jessica Love, Executive Director, executivedirector@prosperityindiana.org, 317-222-1221 x402

Andrew Bradley, Policy Director, abradley@prosperityindiana.org, 317-222-1221 x403

INDIANAPOLIS – Prosperity Indiana thanks Governor Holcomb for listening to our call to ensure Hoosiers' housing is protected during the current public health emergency by issuing an Executive Order on Temporary Prohibitions on Evictions and Foreclosures. But beyond this response to the COVID-19 pandemic, Prosperity Indiana calls on him to veto SEA 148 to make sure housing stability remains a long-term priority in the Hoosier state.

While the order provides a critical, temporary reprieve on evictions for the more than 30 percent of Indiana’s population who rents their homes, it does nothing to lessen the permanent damage that SEA 148 would inflict on the nearly two million Hoosier renters once the order is lifted.

Prosperity Indiana Executive Director Jessica Love said, “We applaud Governor Holcomb for recognizing that Hoosiers who are most vulnerable to COVID-19 will be sheltering in their homes throughout the duration of the pandemic. The governor clearly understands that an eviction would subject those individuals, and Indiana at large, to the ‘serious threat to the health, welfare, and safety’ that the coronavirus poses, should they be removed from their homes.

“However, housing stability is not a one-time health concern that only matters during a pandemic like we face today. Housing has impacts on the health and safety of families year-round, and this health crisis should only shine a light on the larger problems Hoosiers are facing related to widespread evictions in this state.”

Because the COVID-19 pandemic will have effects on Indiana’s economy and preexisting affordable housing and evictions crises that will long outlast any temporary measure, Prosperity Indiana and its partners in speaking out against the bill remain concerned about the dangerous, unvetted language in SEA 148. All of the concerns that the hundreds of statewide organizations and individuals who spoke out against SEA 148, after being shut out of the legislative process, still stand.

Love said, “Although tenants who express concerns about unaddressed habitability issues– while spending more time than ever in their homes to avoid or recover from COVID-19 – will temporarily receive a reprieve from evictions, the day will come when angry, bad actor landlords can retaliate once again. So, we are looking to the governor now to see beyond the present health crisis and respond to this bad bill with a veto today.”

See the original letter calling on the Governor to veto SEA 148 along with supporting documents: https://www.prosperityindiana.org/Policy-News/8840057

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About Indiana Association for Community Economic Development D/B/A Prosperity Indiana

Prosperity Indiana is a statewide membership organization for the individuals and organizations strengthening Hoosier communities. Prosperity Indiana builds a better future for our communities by providing advocacy, leveraging resources, and engaging an empowered network of members to create inclusive opportunities that build assets and improve lives. Since its founding in 1986, Prosperity Indiana has grown to approximately 200 members from the public, private, and nonprofit sectors.

Contact: Jessica Love, Executive Director, executivedirector@prosperityindiana.org, 317-222-1221 x402

Andrew Bradley, Policy Director, abradley@prosperityindiana.org, 317-222-1221 x403

INDIANAPOLIS – On Tuesday, March 17, 18 statewide organizations asked Indiana Governor Eric Holcomb to veto SEA 148, citing the bill’s “dangerous, unvetted language that would worsen Indiana’s affordable housing and eviction crisis.” The timing of this bill could not be worse because it could have a disastrous effect on the health and safety of renters at a time when the COVID-19 coronavirus has already caused a public health crisis of its own.

“While those who are fortunate enough to do so are currently working from the comforts of home to flatten the curve for COVID-19, sadly, many Hoosiers’ housing stability will be shaken further by this bill – when we can least afford it as a state – if the governor signs it into law,” said Jessica Love, Executive Director of Prosperity Indiana.

The letter to the governor comes from affordable housing developers, religious groups, medical and legal assistance providers, and organizations representing older Hoosiers, veterans, domestic violence survivors, the homeless, and other vulnerable populations. It follows a call from nearly 300 organizations and individuals statewide who signed a letter to the General Assembly opposing the legislation, which first appeared as a surprise last-minute amendment to SB 340, and that was passed without standard public deliberation or debate during the last two weeks of session.

SEA 148 is a substantial change in law that affects the lives of over 30 percent of Indiana’s population, the more than two million people who rent their homes. Research shows that access to affordable housing acts as a “vaccine” that paves the way to health and economic mobility, while housing insecurity and homelessness negatively impact the health, safety, education and development of children. As the COVID-19 pandemic sweeps across the state, SEA 148 would undermine public health by undercutting access to safe and stable housing.

Advocates point to existing Indiana efforts, such as the Governor’s recovery housing and workforce housing initiatives, and to provision of safe and stable housing as a means of improving health outcomes and decreasing health costs, as positive steps for Hoosiers. SEA 148 would hinder Indiana’s ability to reach the ‘next level’ of public health by substantially changing existing landlord-tenant law to diminish state protections for renters. Also, stripping local governments of the ability to take action to improve housing quality and stabilize rental housing, unless specifically permitted by the state legislature, will create dangerous delays that could worsen significant health conditions already prevalent in the state. These include rates of asthma, lead poisoning, mental illness, maternal mortality, and opioid-related deaths.

Changes to Indiana’s landlord-tenant law in previous years followed full vetting in both the House and Senate after many compromises from representatives of both landlords and tenants were made. But this year, the section of SEA 148 impacting tenants was not afforded any full or fair democratic process, and no opportunity for formal input by those concerned was provided. As a result, no balance in the language for renters was achieved. Specifically, this language was never filed as a bill and never heard in any committee of the Senate. It was not posted for hearing in the House to be considered as an amendment to its original bill. The language of this amendment was not available to the public until after it passed out of committee that same day.  When the language was later moved to SEA 148 in conference committee, the Senate conference committee chair initially announced there would be no public testimony allowed. Under protest from other conferees, still only two people were allowed to speak. After questions generally relating to how many ordinances would be affected – to which no one knew the answer, the hearing abruptly ended.

The imbalanced bill – favoring landlords – allows accelerated emergency eviction procedures to be used in an expanded class of cases. This includes instances in which a tenant – having committed no violation of law or lease – can be evicted in three days. It also omits standard code provisions that prevent landlords from simply eliminating or changing the limited retaliation protections afforded by SEA 148 through a non-negotiable lease. It further arbitrarily preempts the ability of all local governments throughout the state to regulate any aspect of the landlord-tenant relationship. These measures and allowances are considered extreme, especially since they were passed without having studied or surveyed existing local ordinances and regulations throughout the state to determine how they would be nullified.

According to the group calling for the veto, “Given the potential damage to Indiana’s housing and public health, it is imperative that Governor Holcomb not allow SEA 148 to become law. Legislation this significant, which impacts millions of Hoosiers across all walks of life, should be studied, examined, and debated, through a truly democratic process.”

Resources: 

Letter to Senate Opposing SB340 (signed by 300+ statewide orgs and individuals)

Legal Concerns of SEA148

Evicted- Hoosiers in Housing Crisis

Health and Housing in Indiana

Hoosier Housing Crisis: By the Numbers

City of Fort Wayne SB340 Opposition Letter

Dr. Sarah Stelzner Statement for Press Conference on Landlord Tenant Issue

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About Indiana Association for Community Economic Development D/B/A Prosperity Indiana

Prosperity Indiana is a statewide membership organization for the individuals and organizations strengthening Hoosier communities. Prosperity Indiana builds a better future for our communities by providing advocacy, leveraging resources, and engaging an empowered network of members to create inclusive opportunities that build assets and improve lives. Since its founding in 1986, Prosperity Indiana has grown to approximately 200 members from the public, private, and nonprofit sectors.

INDIANAPOLIS, IN – Today, the Indiana House is scheduled to vote on SB 340. A letter with signatures from nearly 300 organizations and individuals from around Indiana has been sent to the Speaker Brian Bosma and members of the Indiana House of Representatives voicing concern and urging a “No” vote on SB 340. This opposition is in light of the surprise last-minute amendment to the bill on February 24 that will have a significant negative impact on renters across the state.

Although SB 340’s amendment appears to have been in response to the City of Indianapolis’ new Housing Initiative, it will have statewide impact and applicability. SB 340 gives preference to landlords in a variety of ways. Most sweepingly, it takes away a city’s ability to establish landlord-tenant laws. As a result, it decreases a city’s ability to address disclosure and retaliation violations through fines, allowing more types of retaliation against tenants to occur when reporting concerns. It also awards landlords sued for retaliation, who are successful in court, attorney fees plus damages. In contrast, tenants who win a retaliation suit against their landlord only get to stay in their rental unit under the existing terms and receive one month of rent in compensation, while absorbing all of their legal fees associated with the retaliation case. One of the most basic rights outlawed by the bill is a city’s ability to require that landlords provide renters with information on their legal rights as tenants. SB 340 also makes other problematic changes that overwhelmingly favor landlords.

Keith Broadnax, Senior Vice President of Business Development at Cinnaire, stated his concerns, “As an investor, lender, and advocate for affordable housing in Indiana, Cinnaire strongly opposes SB 340 and encourages a ‘No’ vote on it. This bill will be detrimental to our Hoosier families who are already struggling to support themselves. The bill removes any fines imposed on landlords who retaliate against tenants and further limits the actions of local authorities to require that tenants be informed of the basic housing rights afforded to them by law.”

Jessica Love, Executive Director of Prosperity Indiana, said, “At Prosperity Indiana, our work is built around strengthening our communities, and bills like this only tear away at the fabric of family life and local governing power. SB 340 will clip every community’s opportunity to address the bad actors who are only adding to housing instability in this state. To counteract what legislators are being told by some is good public policy, members of our General Assembly need to hear from everyone who believes that SB 340 is an overreach. If not stopped, the bill could be adopted this week. So, the time to speak out is now. Please contact your representative immediately and ask them to vote no and kill this bill.”

Dr. Sarah Stelzner, a pediatrician and legislative chairman of the Indiana American Academy of Pediatrics shared, “We know these families and children are most vulnerable to experiencing significant health impacting issues in their rental homes, such as mold, infestations, high utility bills, and poorly maintained infrastructure. These families often fear or have experienced retaliation, including eviction, for attempting to address any problems and often have inadequate representation in court. Any eviction filed against them, whether there is a judgement or not, stays on their record and makes it even harder for a family to find quality, affordable housing in the future.  We need to work to reverse the trends that have caused a dramatic increase in evictions, as well as unsafe and unhealthy housing, in a number of Indiana cities and towns. This bill seeks to undermine even local efforts to address rental habitability concerns and retaliatory evictions, which we know are leading social determinants of health.”

“SB 340 is one of the most harmful housing bills I have seen in my over 20-year housing career,” stated Amy Nelson, Executive Director of the Fair Housing Center of Central Indiana (FHCCI). “Not only does SB 340 modify current law to take away any fines for those landlords who retaliate against tenants with just cause, but it even goes so far as to say that a City cannot even demand that tenants be informed of their most basic housing rights under law, amongst other changes.”

Info on SB 340: http://iga.in.gov/legislative/2020/bills/senate/340

Don’t Know Who Your Legislator Is? Go to Find Politicians in our Advocacy Action Center: https://www.prosperityindiana.org/Action-Center

Learn more on the Prosperity Indiana’s Public Policy Page: https://www.prosperityindiana.org/Policy-Priorities

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About Indiana Association for Community Economic Development D/B/A Prosperity Indiana

Prosperity Indiana is a statewide membership organization for the individuals and organizations strengthening Hoosier communities. Prosperity Indiana builds a better future for our communities by providing advocacy, leveraging resources, and engaging an empowered network of members to create inclusive opportunities that build assets and improve lives. Since its founding in 1986, Prosperity Indiana has grown to approximately 200 members from the public, private, and nonprofit sectors.

On Monday, a last-minute amendment to SB 340 passed in the last committee hearing for the House Judiciary committee for this session. The amendment dramatically changes Indiana Landlord/Tenant Law. These harmful changes will stop the current effort in Indianapolis (and possibly other cities) to address the serious rental habitability problems, lack of adequate representation of tenants, and landlord retaliation that occurs when tenants complain about violations of law. 

However, SB 340 goes even further. The bill:

• Bans Indiana cities from requiring that tenants be provided information on their legal rights
• Decreases cities’ ability to address disclosure and retaliation violations through fines, allowing more types of tenant retaliation to occur when contacting the health department or legal services
• Awards landlords sued for retaliation, who are successful in court, attorney fees plus damages, while winning tenants only get to stay in the unit under the existing terms and receive just one month of rent, while absorbing all of their legal fees associated with the retaliation case
• Favors landlords’ rights overwhelmingly over tenants’ rights at a time when Indiana is already seeing an eviction crisis fueled by affordability and habitability concerns

SB 340 could be going to the House floor vote as early as this Thursday (2/27)! If it passes the House, it seems likely the Senate will support the changes, and the bill will go right to the Governor for signature. To STOP this harmful bill from becoming law, we need your help!

Please contact your House rep and urge a NO vote on SB 340. Don’t know who your House rep is? You can find that info by entering your address under Find Politicians on our Advocacy Action Center.  Make phone calls and send emails ASAP, please! 

What to say? Speak from your heart on why this legislation should be stopped. Or, if you need any idea, you could say:

Please vote No on SB 340. The changes to his bill will harm housing options for far too many in our state. Indiana tenants already face significant barriers in their housing options due to lack of affordability, habitability issues, retaliation by bad acting landlords, and lack of legal representation to understand their rights. This bill goes too far in taking options away by cities in ensuring safe housing options. Please vote No!

Please act today! For your info, attached is the amendment that was made to SB 340. 

Info on SB 340: http://iga.in.gov/legislative/2020/bills/senate/340

Some recent press on SB 340 and Indianapolis’ new Housing Initiative, which SB 340 would immediately pre-empt:

• https://www.indystar.com/story/news/politics/2020/02/24/indianapolis-mayor-joe-hogsett-tenant-protections-put-jeopardy-indiana-legislature/4856984002/
• https://www.ibj.com/articles/house-committee-amends-bill-to-keep-cities-from-regulating-tenant-relations?utm_source=ibj-daily&utm_medium=newsletter&utm_campaign=2020-02-24
• https://www.theindychannel.com/news/politics/statehouse-proposal-would-limit-indys-ability-to-regulate-landlord-tenant-relations
• https://fox59.com/news/city-county-council-passes-proposal-to-protect-renters-despite-amendment-to-state-bill/

What a busy week!  Prosperity Indiana worked with our colleagues on three bills this week dealing with consumer lending, landlord tenant issues and land contracts.  Here is where things stand on those bills:

SB395 Uniform Consumer Credit Code (Sen. Eric Bassler) –

This bill was heard in Senate Insurance and Financial Institutions Committee on Wednesday and Mindi Goodpaster testified in opposition on behalf of Prosperity Indiana.  The bill would create a flat 36% rate on any loan regardless of size (think auto loans and second mortgages) and does not address a 36% cap on payday loans, which is what we have been advocating for.  The committee is holding the bill and considering three possible amendments introduced by Senator Walker for vote next week.  One of the amendments would create an annual cap of four payday loans per year and a maximum of eight in a lifetime.  We will wait to see how the bill will be amended before refining our position.

SB391 Property Matters (Sen. Mike Bohacek) –

SB 391 was supposed to be heard in Senate Judiciary on Wednesday, but at the last minute was held and the committee is considering amendments for hearing and discussion next week.  The bill contains several concerning provisions that look to limit tenants’ rights and processes for complaints about habitability.  Prosperity Indiana is working with Senator Bohacek to make changes to the bill that address those provisions.

HB1191 Land Contracts and Landlord-tenant Matters (Rep. Ed Clere) –

HB1191 is scheduled for a hearing on Monday, Jan 27 at 10:00 a.m. in House Judiciary Committee.  The bill is a streamlined version of HB1495, which passed out of the House in 2019 but died in the Senate.  In an effort to address some of the concerns that killed the bill last year, the main provisions of HB1191 include disclosures by landlords to tenants on liens, habitability issues, etc. and recording requirements so that tenants will be able to make better informed decisions about the property they want to buy and give them further legal recourse in case issues arise with the property.  HB1191 will be amended to take out the landlord-tenant provisions to streamline the bill to improve its likelihood for passage.  Jessica Love will be testifying on behalf of Prosperity Indiana in support of the bill.

With the end of the first half of session nearing, committees will be wrapping up their hearings next week.  This means that those bills that have been heard will be voted on in their chamber of origin and moving on to the second chamber for consideration.  Those bills that did not receive a hearing will be considered dead.  While not all of Prosperity Indiana’s priorities received hearings thus far, we are encouraged that HB1191 is moving forward and are hopeful about its passage this session.  We will continue to keep you informed and will let you know how you can take action to make this happen. 

Click here to read our Priority Legislation Report 1-24-2020.pdf

Another Statehouse Day is on the books and the 2020 short session of the Indiana General Assembly speeding along! This week, members walked the halls and advocated for critical policy priorities that impact their communities and clients. Legislators engaged in great conversations about the bills most important to our efforts and why it is critical state legislators take action to increase renter protections and reduce evictions, implement consumer protections to combat predatory lending, and increase access to and the supply of affordable housing. Key handouts that outline each of our top priorities can be found below.

We encourage you to contact your legislators today and speak up in support of these bills. You can find their contact information by entering your zip code on our advocacy action page.

To follow these and other top bills we are supporting, monitoring, or concerned about this session, click here for our bill tracker. This link will automatically be updated as the final bills are added this week.

We thank our members who traveled near and far to make their voices heard. Having policymakers hear from constituents about how these proposals impact work you do is exceptionally powerful.

On Monday, December 16, congressional negotiators revealed the details of two "minibus" spending bills - one for domestic programs and the other, for the defense budget. These packages will fund the federal government through the end of the fiscal year, September 30, 2020 (domestic and defense. Today, the House passed both measures, sending them to the Senate and then, upon passage, to the President of the December 20 funding deadline. 

Our updated budget chart is included below, outlining many major programs of interest for Prosperity Indiana members, but here are  key highlights:

HUD: The funding package is a victory for housing advocates in that most HUD programs are funded at or above the Senate proposed levels. The final figures are not as ambitious as the House proposal, but important increases were achieved for TBRA, PBRA (enough to renew all contracts for 12 months), the Public Housing Capital fund, Homeless Assistance Grants, Housing Counseling (which was at risk of cuts in the Senate budget proposal), and Section 202 Housing for the Elderly, among others.

The final bill does not include provisions from the House bill that would have prevented HUD from implementing the harmful proposed mixed-status rule that would separate families in HUD-assisted housing or it's proposed weakening of the Equal Access Rule that provide protections against discrimination in shelters based on sexual orientation and gender identity.

USDA: Most USDA's rural housing programs receive similar funding to last year, with small increases for Section 514 farm labor housing loans and Section 523 self-help housing grants and larger increases for the MPR rental preservation program and for Section 542 vouchers. 

What Else Was Included? The minibus packages also contained significant funding and/or funding boosts for physically expanding national border fencing, military spending, the National Institutes of Health, the 2020 Census, election security grants and gun violence research.

WE COMMEND PROSPERITY INDIANA MEMBERS FOR YOUR ADVOCACY IN WORKING TO ACHIEVE CRITICAL FUNDING INCREASES!

WHAT ABOUT THE TAX PACKAGE? HOW DID AFFORDABLE HOUSING CREDIT IMPROVEMENT ACT PROVISIONS FARE?

As the FY20 appropriations bills move forward this week, a year-end tax bill is also moving through Congress this week. Unfortunately, despite the work of our network and local and national partners, no provisions from the Affordable Housing Credit Improvement Act were adopted. Early on yesterday, the 4 percent floor for LIHTC was included, but late night negotiations saw it cut that from the final package. Continued advocacy is needed on this front as we head into 2020.

Background:

Last week, the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) issued a Notice of Proposed Rulemaking (NPR) proposing substantial revisions to the examination process in ways that do not all appear to align with the intent of the Act. CRA was established to address a legacy of redlining and divestment in low- and moderate-income (LMI) communities. However, the proposed changes raise concerns about how it will affect CRA’s charge to affirmatively meet the community needs for credit and services in LMI communities.

There are some key core issues at of critical concern, based on an initial review of the NPR. We ask that our members who are concerned about these regulations continue to check our website for further details be prepared to comment not only with regulators, but with members of Congress as well!

• The NPR would dilute benefits for LMI communities by broadening CRA-eligible activities (including infrastructure - roads and stadiums could count)
  
• It would significantly dilute focus of bank activities on LMI consumers and communities
• It limits consideration of bank branches more than under the current CRA service test. Banks may respond by closing more branches in LMI communities
• Retail lending analysis would count for much less under the new proposed exams, which could exacerbate banking deserts

What Counts:

• The NPR would broaden what bank activities are CRA-qualifying
• • The definition of community development is currently: affordable housing for LMI households, economic development for businesses under $1 million in revenue, community facilities and the revitalization/stabilization of LMI communities. The NPR deletes economic development and revitalization/stabilization from the definition
  • The NPR also added a new criterion: infrastructure. This can include roads, bridges, or hospitals, but it does not appear those even have to even be based in LMI communities. This dilutes the impact of targeting LMI community investment
  • Key bank services, such as deposit accounts, are no longer considered qualified activities. There is significant concern that proliferation of check-cashing, payday lending and other subprime services will only be exacerbated by further driving banking deserts if this is finalized
  • While framed as an anti-gentrification move, the NPR excludes the consideration of middle- and upper- income lending in LMI communities. This economic integration, if properly applied, with an eye for preventing displacement, is the kind that can help revitalize divested LMI communities
  • Instead of focusing on LMI impact, the NPR would count financial education for all income levels, when research shows LMI communities are disproportionately under- or un-banked
  • Community development services now allows for all volunteer activities, which is a departure from the current definition that is a service related to providing financial products for LMI individuals

Where it Counts

• Assessment areas are updated in ways that aim to account for the proliferation of internet-based banks, but there is much that is still vague/unknown about how the regs would assign deposits collected via the internet to branches.
• The NPR notes that there is an allowance for credit for qualifying activities conducted outside of bank assessment areas. We will be looking into this as we have concerns about how this will impact investment in small non-profits

How it Counts

There remain significant concerns in how the one ratio test may result in

Following the NPR release several civil rights/fair housing/consumer groups listed below issued a letter linked here: https://nationalfairhousing.org/2019/12/13/diverse-coalition-issues-joint-statement-on-proposed-changes-to-community-reinvestment-act/.  Americans for Financial Reform Education Fund, Center for Responsible Lending, NAACP, NAACP Legal Defense and Educational Fund, Inc., National Association of Real Estate Brokers, National Coalition for Asian Pacific Americans Community Development, National Community Reinvestment Coalition, National Fair Housing Alliance, The Leadership Conference on Civil and Human Rights, and UnidosUS.

There was a sea of red at the Statehouse yesterday on Org Day as tens of thousands of teachers rallied as lawmakers returned for the ceremonial start of the 2020 legislative session. Legislators spent much of the day meeting with educators urging action on compensation, testing reforms and repealing certain professional development mandates. 

As attention was focused on the #RedforEd movement, there was additional big news from House leadership as Speaker Brian Bosma announced he will retire after this session to move to a “national legislative campaign role.” Republicans in the House will confirm his replacement in the next two weeks. (Photo Source: Robert Scheer/IndyStar).

Prosperity Indiana's policy staff shared our 2020 State Priorities (see below) with numerous legislators throughout the day as well and specific legislation we are working with lawmakers to craft to address the critical 

concerns of our members! 

These efforts are focused on ensuring Hoosiers can remain in or gain access to safe, stable, and affordable housing and expanding consumer protections to more low-income households build and retain assets.

The best way you can prepare right now to help us advance these priorities is to register for our Statehouse Day on Tuesday, January 14, 2020, from 1-4 p.m. EST.  At this event, we connect members with their legislators to share why these priorities are so critical to our network and our communities. If you have questions regarding these priorities or how to get more engaged  in advocacy, contact our policy director, Kathleen Lara, at klara@prosperityindiana.org.

We will keep you updated and engaged throughout session, but please be aware all hearings and session meetings are publicly available to stream live at www.in.gov/iga.