§ 6-1.1-24-17.5 — Sale of real property to eligible nonprofit entities for low or moderate income housing project

Indiana § 6-1.1-24-17.5

• Jurisdiction: Indiana
• Art. 1.1: PROPERTY TAXES
• Ch. 24: Sale of Real Property When Taxes or Special

Text

5. (a) This section does not apply to real
property:
(1) used as a principal place of residence and receiving a
homestead standard deduction under IC 6-1.1-12-37 for the most
recent assessment date; or
(2) for which a set off has been obtained under IC 6-8.1-9.5 against
the delinquent debt owed on the real property.
This subsection includes any real property adjacent to and under the
same ownership as the homestead real property described in
subdivision (1).
(b) This section applies only to real property that has been offered for
sale by the county at two (2) or more public tax sales held under this
chapter.
(c) For purposes of this section, "county executive" refers to:
(1) in a county containing a consolidated city, the board of
commissioners as provided in IC 36-3-3-10; and
(2) in all other counties, the board of commissioners.
(d) For purposes of this section, "eligible nonprofit entity" means an
organization exempt from federal income tax under 26 U.S.C.
501(c)(3) that is either:
(1) an entity that:
(A) acquires real property to stabilize and provide future home
ownership opportunities to those who would not otherwise be
financially capable of purchasing a home;
(B) has the organizational capacity and community experience
necessary to successfully undertake community development
projects;
(C) has been organized and in operation for at least five (5)
years; and
(D) has each year of the immediately preceding two (2) years,
rehabilitated and transferred at least one (1) single family
dwelling to a low or moderate income household for use as a
residence; or
(2) a community development corporation (as defined in IC 4-4-28-2).
(e) For purposes of this section, "low or moderate income household"
means a household having an income equal to or less than the Section
8 low income limit established by the United States Department of
Housing and Urban Development.
(f) A county treasurer may, as a separate part of a regularly scheduled
sale conducted under section 5 of this chapter, offer for sale a tract or
item of real property, subject to the right of redemption, to an eligible
nonprofit entity for purposes of a project for the development of low or
moderate income housing, using either:
(1) the sale process under section 5 of this chapter; or
(2) a procedure developed and implemented by resolution of the
county executive that conforms in all material respects to the
procedures under section 5 of this chapter.
(g) Not more than five percent (5%) of the number of parcels listed
for sale under section 5 of this chapter may be made available for sale
to eligible nonprofit entities under subsection (f). However, an eligible
nonprofit entity may acquire not more than ten (10) parcels made
available for sale under subsection (f).
(h) To participate in a sale under subsection (f), an eligible nonprofit
entity must file, not later than forty-five (45) days prior to the
advertised date of the sale under section 5 of this chapter:
(1) an application to the county executive, signed by an officer or
member of the eligible nonprofit entity, that includes:
(A) the address or parcel number of the tract or item of real
property the entity desires to acquire;
(B) the intended use of the tract or item of real property;
(C) the time period anticipated for implementation of the
intended use; and
(D) any additional information required by the county executive
and communicated to potential applicants in advance that
demonstrates the entity meets the definition of an eligible
nonprofit entity under subsection (d); and
(2) documentation verifying:
(A) the entity's federal tax exempt status; and
(B) the entity's good standing in Indiana as determined by the
secretary of state.
(i) If an eligible nonprofit entity takes possession of a tax sale
certificate under this section, the eligible nonprofit entity acquires the
same rights and obligations as a purchaser under section 6.1 of this
chapter. However, if an eligible nonprofit entity obtains a tax deed after
the expiration of the redemption period specified under IC 6-1.1-25, the
eligible nonprofit entity shall first offer an occupant of the parcel the
opportunity to purchase the parcel.
(j) If an eligible nonprofit entity uses a tract or item of real property
obtained under this section for a purpose other than the development
of low or moderate income housing, the tract or item of real property
is subject to forfeiture.

Legislative History

As added by P.L.123-2022, SEC.1. Amended by P.L.159-2023, SEC.1; P.L.230-2025, SEC.52.