Indiana House Passes Bill 1001 to Loosen Local Zoning Rules
Indiana House Bill 1001, a priority piece of legislation aimed at loosening local zoning guidelines to encourage new housing development, passed the House on Tuesday by a vote of 76-15. The bill now heads to the Senate for further consideration.
The legislation seeks to address the state’s housing shortage by reducing regulatory barriers that proponents argue drive up costs and delay construction. If enacted, the bill would allow certain types of housing, such as accessory dwelling units (ADUs) and duplexes, to be built “by right” in residential areas, meaning they would be automatically approved without requiring public hearings. It also proposes limits on the ability of local governments to enforce strict design standards—such as mandates on siding materials, roof pitch, or garage placement—unless a municipality specifically passes an ordinance to opt out of these restrictions. Additionally, the bill allows religious institutions to build affordable housing on their property and caps certain impact fees assessed on developers.
Supporters, including the Indiana Builders Association and the Indiana Association of Realtors, argue that current regulations add tens of thousands of dollars to the price of a new home. Data cited during committee hearings suggested that government regulations can account for up to 25% of the cost of a single-family home and nearly 40% for multifamily projects. Representative Doug Miller, the bill’s author, stated that the measures are necessary to provide housing options for the state’s workforce and to close the widening affordability gap.
Objections to the bill have been raised by city and county officials who contend it strips communities of local control. Critics argue that a centralized, “one-size-fits-all” approach undermines the ability of local leaders to manage infrastructure needs, traffic flow, and neighborhood character. The Hamilton County Commissioners and other municipal leaders have expressed concern that preempting local planning authority creates uncertainty for homeowners and businesses. Opponents also fear that removing design standards could negatively impact property values and reduce public input on development projects.
The proposal comes amidst a broader national trend where state legislatures are increasingly intervening in local land-use decisions to boost housing supply. While the bill received strong support in the House, it is expected to face continued debate in the Senate regarding the balance between state-level deregulation and municipal autonomy.
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