Indiana counties and towns report housing data and review development rules

Counties, cities, and towns must report housing data and review development rules. Counties, cities, and towns send reports to the state housing authority and legislative services director. The housing progress report applies to a local unit that uses planning and zoning powers. The review must consider the listed ways to support housing; a unit need not adopt any particular option. Annual reports begin January 1, 2027, and cover the prior year. The first housing conditions report uses 2025 data as a reference point. The rule review and related report are due January 1, 2027.

Local units may charge covered application fees only within stated cost limits and must keep the money in a dedicated fund. These rules apply to county, city, and town fees for building, construction, land, and development applications. The rules cover fees for reviewing applications, inspecting plans, and preparing detailed statements. Fees may generally rise once every five years, up to the stated inflation measure. If costs change substantially, the local legislative body may adjust a fee after a public hearing. The dedicated fund may pay only costs tied to imposing and setting the fee; its money cannot be moved to another fund. The fee limits and fund rules apply after December 31, 2026.

State agencies and local governments may not require certain devices or systems in covered buildings. The restrictions cover requirements imposed by state agencies and local governments. The restriction on arc-fault circuit interrupters applies to Class 2 and R-2 buildings built after June 30, 2026. The restriction on emergency responder communication systems applies to new Class 1 buildings and existing Class 1 buildings reconstructed, remodeled, or renovated after June 30, 2026. Older local rules are void only to the extent they conflict with these restrictions. These restrictions take effect July 1, 2026, and apply to the specified buildings built or work done after June 30, 2026.

Local rules generally stay in place for certain permit applications, and impact fee zones face location and public notice rules. These provisions cover people seeking local development permits and counties, cities, and towns that impose impact fees. For a complete local permit application, the rules in effect when it is filed generally govern for at least three years, even if rules change while approval is pending. Building codes are excluded, and this protection can end if work is not completed within ten years after it starts. For a project needing state approval, the rules in effect when the state application is filed generally govern for at least three years, if the state application is filed within 90 days of local approval. This rule does not apply if the project would cause imminent peril to life or property. Before adopting, renewing, or amending an impact fee, or collecting a scheduled increase, the unit must hold a public hearing and give at least 45 days' notice. New impact zones must meet the stated location rules. The permit rules apply as stated in the law. The added impact zone rules apply to zones designated after June 30, 2026.

The state environmental department must review stormwater guidance, and governments face limits on certain floodplain requirements. The manual rules concern stormwater basins; the floodplain limit applies to people intending to fill land and to state and local governments. The review must consider whether the manual's recommendations are cost effective and whether new or revised recommendations are needed. For stormwater basins, the manual may not require a pond bank ratio greater than three to one, and it must require either a ten-foot maintenance ledge or a ten-foot safety ledge, but not both. The state or a county, city, town, or township may not require floodplain fill to be balanced with storage at a ratio greater than three to one. The department must report its findings and update the manual by December 1, 2026. These provisions take effect July 1, 2026.