Our Indiana’s legislative overlords concentration on bullying trans kids and impoverishing public education evidently leaves them little time or interest in solving the state’s real problems, like the lack of affordable housing and/or the plight of low-income renters.
As I’ve indicated before, tenants in Indiana have almost no rights and no recourse against bad actor landlords. Indiana law–or really, the lack thereof– is an open invitation to out-of-state buyers of real property, with the result that Indianapolis is now first in the nation for out-of-state ownership of rental property. (In most cities, around 3% of rental properties are owned by out-of-state investors. In Indianapolis, the percentage is 15% and climbing.)
We have an eviction crisis, made more severe by Indiana’s lack of affordable housing. The Greater Indianapolis Multi-Faith Alliance (GIMA) reports that Indiana has a gap of 135,033 rental units affordable for Hoosiers in the bottom 30% of the income distribution. Indiana has the single highest housing cost burden among all Midwest states for those residents.
As a result,many Hoosiers are spending 50-80% of their incomes on rent. One minor emergency – an issue with a car, an emergency room visit, a layoff– can cause a spiral into evictions.
Indianapolis ranks #2 in the country for evictions. Only New York is higher, and costs are a huge factor; Marion County rents have increased an average of 20% since 2020, while wages have only increased by 4%.
As GIMA has reported, out-of-state institutional investors are drawn to Indiana for its landlord-friendly laws, a situation that doesn’t just hurt renters, but drives up costs for would-be homebuyers as well.
Some other statistics: Sixty percent of rental property owners in Indiana live in Illinois, California, Georgia, Texas, and Florida. Indiana is on track for more than 30% of all residential property purchases to be by investors. Indianapolis is #1 among U.S. cities for out-of-state corporate investment in real estate.
GIMA is trying to get legislators’ attention.
It is supporting HB 1005, Rep. Doug Miller’s bill to establish a residential housing infrastructure assistance program and revolving fund.
Rep. Miller’s bill will be particularly beneficial in rural Indiana, which highlights that this is not an urban, city-focused issue. It affects all of Indiana. Providing state-supported programs to build more housing is critical to stopping the evictions crisis. We would encourage our legislators to take this first, modest step to show the people of Indiana that they come first, that human dignity is a Hoosier value, and that housing is critical to human well-being.
The organization is also supporting SB114., a bipartisan measure sponsored by Sen. Eric Koch, Sen. Shelli Yoder and Sen. Stacey Donato. That bill was prompted by an incident that received widespread publicity: in February of last year, Citizens Energy shut off the water supply for 868 tenants of Capital Place and Berkley Commons apartments for 21 hours, because the landlord, JPC Charities, owed $1.3m in missed utility payments.
Citizens Energy Group certainly deserves to be paid for its services, but tenants should be able to apply pressure by paying their rents into escrow accounts until the landlord remedies its misbehavior.
As GIMA’s policy paper put it,
This incident highlights the reality that tenants in Indiana have almost no rights, no power, and no recourse from bad actor landlords. It also highlights the impact that out-of-state investment in rental properties is having in our state… This small step will help send a message that Indiana is no longer ripe for “do-what-you want” property owners.
GIMA’s concerns about Hoosier tenants’ lack of legal recourse is shared by State Senator Fady Qaddoura. Last session, Qaddoura introduced legislation allowing renters to put their rent in escrow if a landlord did not make timely repairs to serious problems. He noted at the time that Indiana is one of just a handful of states without some mechanism allowing tenants to withhold payment of rent until repairs are completed.
Qaddoura has reintroduced that measure, together with some additions that would require out-of-state landlords to contract with real estate property managers inside Indiana.
“The philosophy here is that if you live and operate in Indiana, you’re not going to risk the reputation of your business to engage in deceptive practices on behalf of an out-of-state, negligent, corporate landlord,” he said.
Qaddoura also wants to increase state income tax deductions for tenants – currently set at $3,000.
You would think these bills would pass easily– they simply reflect a fairer balance between landlords and tenants–but this is Indiana, so of course, you’d be wrong. As a friend who knows her way around the Statehouse tells me, the Indiana Apartment Association has ruled with impunity in the General Assembly for decades, and continues to do so.
The IAA represents landlords–homegrown or not–and couldn’t care less about tenants. Particularly low-income Hoosiers who struggle to pay those escalating rents.
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