Gov. Mike Braun held a ceremonial signing Monday for legislation passed this year that aims to increase the state’s housing supply.
The law targets local zoning restrictions, which lawmakers hope will make it easier to bring new housing stock to the market.
The housing bill was a priority for House Republicans, as part of a broader legislative effort to improve the state’s affordability.
Indiana, like many states, is struggling to bring more housing online. White House economists have estimated that the U.S. faces a 10-million house shortage.
The legislation eliminates a number of restrictions that builders argue add to construction costs, limiting how local governments can zone. That included zoning requirements around density and off-street parking.
Streamlining zoning to reduce construction costs has been pursued by a number of cities in an effort to bring more housing online.
But local jurisdictions pushed back on the idea that the state could require them to make some of those changes. In turn, lawmakers amended zoning limitations to provide an opt-out where communities can consider but aren’t required to follow the law.
During the ceremonial signing, Braun acknowledged those challenges.
“It’s an important step for building more homes and making the American dream of home ownership more affordable to Hoosiers,” he said. “We’re just starting here, we maybe wanted to get more done.”
Braun highlighted many of the accomplishments of the legislation, including efforts to reduce permitting time and cap regulatory and application fees for builders.
“This law requires every city, town, and county to hold a public hearing this year on ways to expand the housing supply. ” Braun said, but then added. “May not work everywhere, but it allows it in places where it does make sense.”
Rep. Doug Miller (R-Elkhart) also noted his frustration with the watered-down law.
“I'm speaking very frankly. I was somewhat disappointed in our local governments,” Miller said. “We need to continue to work with local government officials to say, let's take a real good, hard look at the processes, and let's see what we can set aside, what we can change, what we can amend, what we can modify in order to bring more housing to the market.”
Advocates echoed lawmakers, noting that the bill was a step in the right direction.
Andrew Bradley is with Prosperity Indiana, a housing advocacy group. He said Indiana will need to do more to truly increase its housing stock.
“We’re going to have to see what additional steps the General Assembly and the administration itself is willing to take,” he said.
According to Bradley, Indiana is tied for the lowest rate of affordable housing in the Midwest.
He said Prosperity Indiana has called on the Governor to convene a commission on housing safety, stability, and affordability to help address the issue.
Contact Government Reporter Benjamin Thorp at bthorp@wfyi.org
