§ 36-7-16-4 — "Concentrated code delinquency area"; loans; authorization; prerequisites

(a) As used in this section, "concentrated code
delinquency area" means an area of at least one-half (1/2) square block
in which:
(1) at least two-thirds (2/3) of the lots are occupied by
improvements;
(2) at least two-thirds (2/3) of the improvements are homes; and
(3) an investigation by the agency shows that at least one-half
(1/2) of the homes are not in compliance with applicable building
code standards.
The agency may conduct an investigation on its own initiative, and
shall conduct an investigation on receipt of a petition signed by the
occupants of at least one-half (1/2) of the family dwelling units within
the proposed area. In conducting the investigation, the agency may use
its own staff or hire independent appraisers and inspectors.
(b) Rehabilitation loans may be made to enable the borrower to
make repairs that will bring the borrower's home into compliance with
applicable building code standards, if all of the following conditions
are present:
(1) The borrower holds marketable title to the property, subject
only to mortgage indebtedness or contract for the purchase of the
property, the lien of taxes that are not yet due and payable, and
any assessment for public improvements that is not yet due and
payable.
(2) The property is located within the area of a community
development target area designated by an application to the
Department of Housing and Urban Development under the 1974
Community Development Act, as amended (42 U.S.C. sections
5301-5318), an urban renewal project, a concentrated code
delinquency neighborhood, or an area needing redevelopment.
(3) The agency has determined that the borrower is an acceptable
credit risk. In making this determination, the agency shall be
guided by the fact that a principal purpose of this chapter is to
make rehabilitation available to those who would be unable to
obtain such loans through normal commercial channels.
(4) The borrower has in full force and effect a policy of insurance
protecting the property in an amount and with an insurer
satisfactory to the agency.
(c) Subject to subsection (d), the agency shall use the procedures
prescribed by IC 36-7-14-15 through IC 36-7-14-18 to make a finding
that an area is an area needing redevelopment.
(d) The agency in a consolidated city shall use the procedures
prescribed by law to make a finding that an area is an area needing
redevelopment.
[Pre-Local Government Recodification Citations: Acts
1975, P.L.195, SECTION 2 part; 18-7-7.5-1 part; 18-7-7.5-3;
18-7-7.5-8; 18-7-7.5-9.]
As added by Acts 1981, P.L.309, SEC.35. Amended by Acts
1981, P.L.310, SEC.92; P.L.185-2005, SEC.49; P.L.127-2017,
SEC.208.