County treasurer allows nonprofit housing bids at tax sale

House Bill 1427, introduced in the Indiana House on April 24, 2025, aims to facilitate the development of low and moderate-income housing by allowing county treasurers to sell real property to eligible nonprofit entities. This legislation addresses the growing need for affordable housing options in Indiana, particularly for households that struggle to purchase homes due to financial constraints.

The bill outlines specific criteria for eligible nonprofit entities, which must be tax-exempt organizations with a proven track record in community development. To qualify, these organizations must have been operational for at least five years and have successfully rehabilitated and transferred single-family dwellings to low or moderate-income households in the previous two years. The bill defines "low or moderate income household" based on the income limits set by the U.S. Department of Housing and Urban Development.

Key provisions of House Bill 1427 include the stipulation that only up to five percent of the parcels listed for sale at public tax sales can be sold to these nonprofit entities. This limitation aims to balance the interests of the county's tax revenue with the need for affordable housing development.

Debate surrounding the bill has focused on its potential impact on local housing markets and the effectiveness of nonprofit organizations in managing housing projects. Supporters argue that the bill will provide much-needed resources for community development, while opponents express concerns about the limited number of properties available for sale and the potential for nonprofits to compete with private buyers.

The implications of House Bill 1427 extend beyond housing; it reflects a broader commitment to addressing economic disparities and promoting community stability in Indiana. Experts suggest that if passed, the bill could lead to increased homeownership opportunities for low-income families, ultimately contributing to stronger, more resilient communities.

As the legislative process continues, stakeholders will be closely monitoring discussions and potential amendments to the bill, which could shape its final form and effectiveness in addressing Indiana's housing challenges.