§ 36-7-14-56 — Residential housing development program; allocation area

(a) This section applies only to a residential
housing development program authorized by section 53 of this chapter.
(b) Notwithstanding section 39(a) of this chapter, with respect to the
allocation and distribution of property taxes for the accomplishment of
the purposes of a residential housing development program adopted
under section 53 of this chapter, "base assessed value" means the net
assessed value of all of the property, other than personal property, as
finally determined for the assessment date immediately preceding the
effective date of the allocation provision, as adjusted under section
39(h) of this chapter.
(c) The allocation fund established under section 39(b) of this
chapter for the allocation area for a residential housing development
program adopted under section 53 of this chapter may be used only for
purposes related to the accomplishment of the purposes of the program,
including, but not limited to, the following:
(1) The construction of any infrastructure (including streets,
roads, and sidewalks) or local public improvements in, serving,
or benefiting a residential housing development project.
(2) The acquisition of real property and interests in real property
for rehabilitation purposes within the allocation area.
(3) The preparation of real property in anticipation of
development of the real property within the allocation area.
(4) To do any of the following:
(A) Pay the principal of and interest on bonds or any other
obligations payable from allocated tax proceeds in the
allocation area that are incurred by the redevelopment district
for the purpose of financing or refinancing the residential
housing development program established under section 53 of
this chapter for the allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
the allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in the allocation area and from the
special tax levied under section 27 of this chapter.
(D) Pay the principal of and interest on bonds issued by the unit
to pay for local public improvements that are physically located
in or physically connected to the allocation area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in the
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in the allocation area under section 25.2 of this
chapter.
(G) Reimburse the unit for expenditures made by the unit for
local public improvements (which include buildings, parking
facilities, and other items described in section 25.1(a) of this
chapter) that are physically located in or physically connected
to the allocation area.
(d) Notwithstanding section 39(b) of this chapter, the commission
shall, relative to the allocation fund established under section 39(b) of
this chapter for an allocation area for a residential housing
development program adopted under section 53 of this chapter, do the
following before June 15 of each year:
(1) Determine the amount, if any, by which the assessed value of
the taxable property in the allocation area for the most recent
assessment date minus the base assessed value, when multiplied
by the estimated tax rate of the allocation area, will exceed the
amount of assessed value needed to produce the property taxes
necessary to:
(A) make the distribution required under section 39(b)(2) and
39(b)(3) of this chapter;
(B) make, when due, principal and interest payments on bonds
described in section 39(b)(4) of this chapter;
(C) pay the amount necessary for other purposes described in
section 39(b)(4) of this chapter; and
(D) reimburse the county or municipality for anticipated
expenditures described in subsection (c)(2).
(2) Provide a written notice to the county auditor, the fiscal body
of the county or municipality that established the department of
redevelopment, the officers who are authorized to fix budgets, tax
rates, and tax levies under IC 6-1.1-17-5 for each of the other
taxing units that are wholly or partly located within the allocation
area, and (in an electronic format) the department of local
government finance. The notice must:
(A) state the amount, if any, of excess property taxes that the
commission has determined may be paid to the respective
taxing units in the manner prescribed in section 39(b)(1) of this
chapter; or
(B) state that the commission has determined that there is no
excess assessed value that may be allocated to the respective
taxing units in the manner prescribed in subdivision (1).
The county auditor shall allocate to the respective taxing units the
amount, if any, of excess assessed value determined by the
commission.
(e) If the amount of excess assessed value determined by the
commission is expected to generate more than two hundred percent
(200%) of the amount of allocated tax proceeds:
(1) necessary to make, when due, principal and interest payments
on bonds described in section 39(b)(4) of this chapter; plus
(2) the amount necessary for other purposes described in section
39(b)(4) of this chapter;
the commission shall submit to the county or municipal legislative
body its determination of the excess assessed value that the
commission proposes to allocate to the respective taxing units in the
manner prescribed in subsection (d)(2). The county or municipal
legislative body may approve the commission's determination or
modify the amount of the excess assessed value that will be allocated
to the respective taxing units in the manner prescribed in subsection
(d)(2).
(f) An allocation area must terminate on the date the residential
housing development program is terminated as set forth in section
53(e) of this chapter.

Legislative History

As added by P.L.235-2019, SEC.5. Amended by P.L.236-2023, SEC.183.