The 2025 session of the Indiana General Assembly is officially scheduled to conclude no later than April 29; however, leaders in both the House and Senate are working to adjourn by April 25. Key remaining issues include the biennial state budget and property tax reform.

Unfortunately, it is highly likely that the property tax reform bill will include harmful language requiring school construction referenda to occur only during general elections in even-numbered years. Additionally, the bill will likely impose a one-year “cooling-off” period for capital project referenda, meaning—except for certain exceptions—schools would be prohibited from introducing funding questions in consecutive years. AIA Indiana strongly opposes this referendum language.

This negative public school construction referendum language will have serious consequences, including:

• Increased Costs for Schools and Taxpayers: Delaying school referenda will drive up expenses for capital projects due to rising construction costs, financing rates, and material prices. Needed repairs, renovations, and safety improvements will be postponed, placing a heavier financial burden on local taxpayers while at the same time jeopardizing the health and safety of students and faculty.
• Strained Resources & Higher Competition: By limiting school referenda to general election cycles, all school corporations will be forced onto the same narrow timeline. This will create unnecessary competition for design and construction services, further inflating costs for Hoosier taxpayers.
• The Current System Works: Voters already have a say, and many referenda fail. In 2023, 40% of school referenda did not pass, and since 2010, 36% of all referenda have failed. These ballot measures often drive voter turnout, sometimes drawing more participation than races for local offices like mayor or prosecutor. There is no need to change a system that already ensures community input and fiscal responsibility.

If you have not already done so, contact your state senator and state representative and ask them to oppose the negative public school construction referendum language and urge them to protect local decision-making and keep school funding in the hands of voters.

House of Representatives Phone - 317/232-9600

State Senate Phone - 800/382-9467

Email/Find Your Legislator - CLICK HERE

The biennial state budget, HB 1001, authored by Rep. Jeff Thompson (R - Lizton), passed out of the House on February 20 along party lines with a vote count of 66-28. The two-year, $46 billion spending plan, does not include any dollars for state university capital building projects but does include funding for maintenance. The bill will next be considered in the Senate Committee on Appropriations. AIA Indiana will continue to monitor its progress. 

Details regarding other legislation being lobbied on by AIA Indiana are explained below.

HB 1005, housing and building matters, authored by Rep. Doug Miller (R - Elkhart), includes language directing the Indiana Finance Authority (IFA) to prioritize funding loans from the Residential Housing Infrastructure Assistance Revolving Fund for local governments that have adopted and implemented a majority of the following policies for residential housing aimed at increasing housing availability and affordability. 

• Allowing higher-density development, such as duplexes, triplexes, and fourplexes, in areas designated for single-family homes.
• Encouraging the adaptive reuse of commercial buildings for residential purposes, including multifamily development in retail, office, and light manufacturing zones.
• Increasing the allowable floor area ratio in multifamily housing areas.
• Establishing density bonuses.
• Utilizing property tax abatements to promote higher-density and mixed-income communities.
• Donating vacant land for affordable housing development.
• Waiving or eliminating certain regulations, such as:
• Garage size and placement requirements.
• Steeper roof pitch mandates.
• Minimum lot size and square footage requirements.
• Greater setback requirements.
• Off-street parking requirements.
• Design standards that restrict or prohibit the use of code-compliant products.
• Property height limitations.

HB 1005 also introduces reforms to improve efficiency in the construction approval process by:

• Allowing private providers, in addition to government inspectors, to conduct inspections for Class 2 structures.
• Establishing clear deadlines and procedures for approving building permits, plan reviews, and inspections to reduce delays that hinder development.

Overall, HB 1005 incentivizes smart housing policies that streamline construction processes and remove regulatory barriers to development in an effort to expand affordability. By prioritizing funding for communities that adopt these measures, HB 1005 promotes responsible growth, increases housing supply, and enhances efficiency in Indiana’s building industry.

As introduced, HB 1005 included an additional $25 million for the Residential Housing Infrastructure Assistance Revolving Fund. While this provision was removed from the bill, it is now being considered in HB 1001, the biennial state budget bill, and has been increased to $50 million. 

HB 1005 passed out of the House on February 11 with a 93-0 vote. HB 1005 was heard in the Senate Local Government Committee on March 20 and AIA Indiana testified in favor of the bill and was voted on by the committee on March 27 with a vote count of 9-1. The bill was then debated on the Senate floor and passed with a vote count of 45-5. Because the bill was amended in the Senate, it will now be returned to the House for consideration. 

AIA Indiana supports HB 1005 and urges continued legislative action to advance housing and development solutions across the state.

HB 1637, school and public safety matters, authored by Rep. Steve Bartells (R - Eckerty), introduces several key public safety measures, including provisions directly impacting Hoosier AIA members. Key provisions in the bill include:

• Establishment of the Office of School Safety: Creates this office within the Department of Homeland Security (DHS) to coordinate and manage school security and safety resources.
• Streamlined Plan Reviews: Authorizes DHS to publish a list of projects eligible for release without requiring a formal plan review, improving efficiency in construction approvals.
• Positive building code language: Allows the State Building Commission to review more than three building codes within a 12-month period. However, the Commission may adopt no more than three new building codes during this timeframe, rather than being limited to a calendar year. This marks an improvement, as the Commission is currently restricted to reviewing a maximum of three building codes per year.

AIA Indiana testified in favor of HB 1637 before the Senate Homeland Security and Transportation Committee. During the testimony, AIA Indiana proposed an amendment to include a licensed architect with expertise in K-12 school design and construction on the Secured School Safety Board, ensuring informed decision-making on school safety infrastructure. Unfortunately, this amendment recommendation was not incorporated into the bill as it was opposed during committee testimony by the Indiana Department of Homeland Security.

HB 1637 passed the House with a 94-0 vote on February 18 and advanced through the Senate Homeland Security and Transportation Committee with an 8-0 vote on March 11. Due to its fiscal implications, the bill was referred to the Senate Committee on Appropriations, where it passed 14-0 on March 20. The full Senate approved the bill on April 3 with a 48-0 vote. It now returns to the House for a concurrence or dissent vote on the Senate’s amendments. 

AIA Indiana supports HB 1637 and will continue to monitor its progress through the final stages of the legislative process.

HB 1198, local public work projects, authored by Rep. Ethan Lawson (R-Greenfield), proposes increasing the threshold for public work projects that a local public works board may complete using its own workforce, without awarding a contract, from an estimated cost of less than $250,000 to $375,000 and includes an annual inflationary adjustment.

The bill also exempts certain public work on public buildings from requiring architect- or engineer-approved plans and specifications if the project is classified as routine maintenance or upkeep, or if it does not require a building permit from a city, town, or county. However, for public work on a public building exceeding $100,000, the project must follow plans and specifications approved by a licensed architect or engineer if the scope of work requires a design release.

HB 1198 passed out of the House with a vote count of 88-2 on February 4 and passed out of the Senate on March 20 with a vote count of 46-3. The bill was returned to the House due to it being amended in Senate Pensions & Labor Committee. The bill’s author, Rep. Lawson, has filed a motion to concur on the changes to the bill made in the Senate. The concurrence vote was successful in the House on April 1 with a vote count of 92-0 and it will now be sent to Gov. Braun for his consideration and likely signature into law. 

HB 1457, Indiana Department of Health, authored by Rep. Brad Barrett (R - Richmond), includes language specifying conditions for the use of updated publications for design enforcement by the Indiana Department of Health in the regulation of hospitals and ambulatory outpatient surgical centers (see Section 8, pages four and five). This language was developed by AIA Indiana and the Indiana Hospital Association. 

On March 26, the Senate Committee on Health and Provider Services amended the bill to include this language and passed it with a unanimous vote of 12-0. Due to its fiscal impact, the bill was then reassigned to the Senate Appropriations Committee, where it passed with another unanimous vote of 13-0 on April 3. HB 1457 will now be considered by the full Senate, and AIA Indiana fully supports its passage.

SB 310, feasibility study of energy audit of state government campus, authored by Sen. Andy Zay (R - Huntington) and Sen. Eric Bassler (R - Washington), would authorize a study to determine the cost and efficacy of a full energy audit of the Indiana Statehouse and Indiana Government Center. AIA Indiana supports this measure and feels it is a good first step.

The primary goal of a building energy audit is to provide a comprehensive understanding of a building's energy performance, identify areas of energy waste, and recommend solutions to improve efficiency. The benefits of such an audit include cost savings for Hoosier taxpayers, improved comfort and safety, and enhanced environmental responsibility.

SB 310 passed out of the Senate on February 3 with a vote count of 49-0. AIA Indiana testified in favor of the bill in the House Committee on Government and Regulatory Reform on March 24 and it passed with a vote count of 12-0. Due to the bill’s fiscal impact, it has been assigned to House Ways & Means Committee for consideration. AIA Indiana will continue to monitor SB 310 as it moves through the legislative process. 

If you have any questions or concerns, please feel free to contact AIA Indiana Executive Director Jason Shelley, Hon. AIA, at 317-634-6993, jshelley@aiaindiana.org.