Bill Text: IN HB1132 | 2013 | Regular Session | Amended
Bill Title: Property matters.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Passed) 2013-05-13 - Public Law 144 [HB1132 Detail]
Download: Indiana-2013-HB1132-Amended.html
Citations Affected: IC 32-29; IC 36-7.
Synopsis: Real property and housing matters. Allows an officer or
agent of a title insurance company, on behalf of a mortgagor or a
person who has a lien against all or part of the mortgaged property, to
execute and record a certificate of release in each county in which the
mortgage is recorded if the company, officer, or agent has received,
before executing and recording the certificate of release, written
consent from the mortgagee or from the mortgage servicer or mortgage
servicer's successor in interest. Provides that the company, officer, or
agent may use to record the certificate of release any recording fee
collected if the company, officer, or agent has received the required
consent to the recording from the mortgagee or from the mortgage
servicer or mortgage servicer's successor in interest. Provides that a
certificate of release must contain: (1) a statement that the payoff
amount of the mortgage was an amount of not more than $1,000,000
instead of a statement that the mortgage was in the original principal
amount of not more than $1,000,000; and (2) a statement that the
mortgagee or mortgage servicer provided a written payoff statement
that was used to make payment in full of the unpaid balance of the loan
secured by the mortgage. Allows the resources of the Indianapolis
housing trust fund to be used to fund programs considered appropriate
to meet the affordable housing and community development needs of
lower income families and very low income families, including lower
income elderly individuals, individuals with disabilities, and homeless
individuals.
Effective: July 1, 2013.
January 10, 2013, read first time and referred to Committee on Financial Institutions.
February 14, 2013, amended, reported _ Do Pass.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
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A BILL FOR AN ACT to amend the Indiana Code concerning
property.
(1) the unpaid balance of a loan secured by a mortgage, including principal, interest, and any other charges properly due under or secured by the mortgage; and
(2) interest on a per day basis for the unpaid balance.
and recorded within sixty (60) days after the date payment in full
of the loan secured by the mortgage was sent in accordance with
a payoff statement furnished by the mortgagee or the mortgage
servicer; and
(2) the title insurance company, an officer of the title insurance
company, or an agent of the title insurance company has sent to
the last known address of the mortgagee or the mortgage servicer,
at least thirty (30) days before executing the certificate of release,
written notice of its intention to execute and record a certificate
of release in accordance with this section after the expiration of
the sixty (60) day period. received, before executing and
recording the certificate of release, written consent to the
recording of the certificate of release from the:
(1) mortgagee; or
(2) mortgage servicer or mortgage servicer's successor in
interest.
(b) If the title insurance company, officer of the title insurance
company, or agent of the title insurance company has received the
written consent required under subsection (a) from a person
described in subsection (a)(1) or (a)(2), the title insurance
company, officer of the title insurance company, or agent of the
title insurance company may use any recording fee the company,
officer, or agent collected for the:
(1) recording of the certificate of release; or
(2) satisfaction of the mortgage;
to record the certificate of release.
(1) The name of the mortgagor, the name of the original mortgagee and, if applicable, the name of the mortgage servicer, the date of the mortgage, the date of recording of the mortgage, and the volume and page or instrument number for the mortgage in the real property records where the mortgage is recorded, together with similar information for the last recorded assignment of the mortgage.
(2) A statement that the payoff amount of the mortgage was
(3) A statement that the person executing the certificate of release is an officer or a duly appointed agent of a title insurance
company authorized and licensed to transact the business of
insuring titles to interests in real property in Indiana under IC 27.
(4) A statement that the certificate of release is made on behalf of
the mortgagor or a person who acquired a lien from the mortgagor
against all or part of the property described in the mortgage.
(5) A statement that the mortgagee or mortgage servicer provided
a written payoff statement that was used to make payment in full
of the unpaid balance of the loan secured by the mortgage.
(6) A statement that payment in full of the unpaid balance of the
loan secured by the mortgage was made in accordance with the
written or verbal payoff statement and received by the mortgagee
or mortgage servicer, as evidenced in the records of the title
insurance company or its agents by:
(A) a bank check;
(B) a certified check;
(C) an escrow account check from the title company or title
insurance agent;
(D) an attorney trust account check that has been negotiated by
the mortgagee or mortgage servicer; or
(E) any other documentary evidence of payment to the
mortgagee or mortgage servicer.
(7) A statement indicating that more than sixty (60) days have
elapsed since the date payment in full was sent.
(8) A statement that after the expiration of the sixty (60) day
period referred to in section 9 of this chapter, the title insurance
company, its officers, or its agent sent to the last known address
of the mortgagee or mortgage servicer, at least thirty (30) days
before executing the certificate of release, notice in writing of its
intention to execute and record a certificate of release as required
under this section, with an unexecuted copy of the proposed
certificate of release attached to the written notice.
(9) (7) A statement that neither the title insurance company nor its
officers or agent have received notification in writing of any
reason why the certificate of release should not be executed and
recorded. after the expiration of the thirty (30) day notice period
referred to in section 9 of this chapter.
(1) Federal law permits the sale of a multiple family housing project that is or has been covered, in whole or in part, by a
contract for project based assistance from the United States
Department of Housing and Urban Development without
requiring the continuation of that project based assistance.
(2) Such a sale displaces the former residents of a multiple family
housing project described in subdivision (1) and increases the
shortage of safe and affordable housing for persons of low and
moderate income within the county.
(3) The displacement of families and individuals from affordable
housing requires increased expenditures of public funds for crime
prevention, public health and safety, fire and accident prevention,
and other public services and facilities.
(4) The establishment of a supplemental housing program under
this section will do the following:
(A) Benefit the health, safety, morals, and welfare of the
county and the state.
(B) Serve to protect and increase property values in the county
and the state.
(C) Benefit persons of low and moderate income by making
affordable housing available to them.
(5) The establishment of a supplemental housing program under
this section and sections 32 through 35 of this chapter is:
(A) necessary in the public interest; and
(B) a public use and purpose for which public money may be
spent and private property may be acquired.
(b) In addition to its other powers with respect to a housing program
under sections 32 through 35 of this chapter, the commission may
establish a supplemental housing program. Except as provided by this
section, the commission has the same powers and duties with respect
to the supplemental housing program that the commission has under
sections 32 through 35 of this chapter with respect to the housing
program.
(c) One (1) allocation area may be established for the supplemental
housing program. The commission is not required to make the findings
required under section 34(5) through 34(8) of this chapter with respect
to the allocation area. However, the commission must find that the
property contained within the boundaries of the allocation area consists
solely of one (1) or more multiple family housing projects that are or
have been covered, in whole or in part, by a contract for project based
assistance from the United States Department of Housing and Urban
Development or have been owned at one time by a public housing
agency. The allocation area need not be contiguous. The definition of
"base assessed value" set forth in section 35(a) of this chapter applies
to the special fund established under section 26(b) of this chapter for
the allocation area.
(d) The special fund established under section 26(b) of this chapter
for the allocation area established under this section may be used only
for the following purposes:
(1) Subject to subdivision (2), on January 1 and July 1 of each
year the balance of the special fund shall be transferred to the
housing trust fund established under subsection (e).
(2) The commission may provide each taxpayer in the allocation
area a credit for property tax replacement in the manner provided
by section 35(b)(7) of this chapter. Transfers made under
subdivision (1) shall be reduced by the amount necessary to
provide the credit.
(e) The commission shall, by resolution, establish a housing trust
fund to be administered, subject to the terms of the resolution, by:
(1) the housing division of the consolidated city; or
(2) the department, division, or agency that has been designated
to perform the public housing function by an ordinance adopted
under IC 36-7-18-1.
(f) The housing trust fund consists of:
(1) amounts transferred to the fund under subsection (d);
(2) payments in lieu of taxes deposited in the fund under
IC 36-3-2-11;
(3) gifts and grants to the fund;
(4) investment income earned on the fund's assets;
(5) money deposited in the fund under IC 36-2-7-10(j); and
(6) other funds from sources approved by the commission.
(g) The commission shall, by resolution, establish uses for the
housing trust fund. However, the uses must be limited to:
(1) providing financial assistance to those individuals and
families whose income is at or below eighty percent (80%) of the
county's median income for individuals and families, respectively,
to enable those individuals and families to purchase or lease
residential units within the county;
(2) paying expenses of administering the fund;
(3) making grants, loans, and loan guarantees for the
development, rehabilitation, or financing of affordable housing
for individuals and families whose income is at or below eighty
percent (80%) of the county's median income for individuals and
families, respectively, including the elderly, persons with
disabilities, and homeless individuals and families; and
(4) providing technical assistance to nonprofit developers of
affordable housing; and
(5) funding other programs considered appropriate to meet
the affordable housing and community development needs of
lower income families (as defined in IC 5-20-4-5) and very low
income families (as defined in IC 5-20-4-6), including lower
income elderly individuals, individuals with disabilities, and
homeless individuals.
(h) At least fifty percent (50%) of the dollars allocated for
production, rehabilitation, or purchase of housing must be used for
units to be occupied by individuals and families whose income is at or
below fifty percent (50%) of the county's area median income for
individuals and families, respectively.
(i) The low income housing trust fund advisory committee is
established. The low-income housing trust fund advisory committee
consists of eleven (11) members. The membership of the low income
housing trust fund advisory committee is comprised of:
(1) one (1) member appointed by the mayor, to represent the
interests of low income families;
(2) one (1) member appointed by the mayor, to represent the
interests of owners of subsidized, multifamily housing
communities;
(3) one (1) member appointed by the mayor, to represent the
interests of banks and other financial institutions;
(4) one (1) member appointed by the mayor, of the department of
metropolitan development;
(5) three (3) members representing the community at large
appointed by the commission, from nominations submitted to the
commission as a result of a general call for nominations from
neighborhood associations, community based organizations, and
other social services agencies;
(6) one (1) member appointed by and representing the Coalition
for Homeless Intervention and Prevention of Greater Indianapolis;
(7) one (1) member appointed by and representing the Local
Initiatives Support Corporation;
(8) one (1) member appointed by and representing the
Indianapolis Coalition for Neighborhood Development; and
(9) one (1) member appointed by and representing the
Indianapolis Neighborhood Housing Partnership.
Members of the low income housing trust fund advisory committee
serve for a term of four (4) years, and are eligible for reappointment. If
a vacancy exists on the committee, the appointing authority who
appointed the former member whose position has become vacant shall
appoint an individual to fill the vacancy. A committee member may be
removed at any time by the appointing authority who appointed the
committee member.
(j) The low income housing trust fund advisory committee shall
make recommendations to the commission regarding:
(1) the development of policies and procedures for the uses of the
low income housing trust fund; and
(2) long term sources of capital for the low income housing trust
fund, including:
(A) revenue from:
(i) development ordinances;
(ii) fees; or
(iii) taxes;
(B) financial market based income;
(C) revenue derived from private sources; and
(D) revenue generated from grants, gifts, donations, or income
in any other form, from a:
(i) government program;
(ii) foundation; or
(iii) corporation.
(k) The county treasurer shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public funds may be invested.
