Bill > HB1293

This bill establishes a comprehensive regulatory framework to discourage investor ownership of single-family residential properties by imposing significant financial disincentives. Specifically, the bill creates a Housing Down Payment Assistance Fund and implements a new tax structure for investors (defined as applicable entities like partnerships, corporations, and real estate investment trusts) who own multiple single-family residences. Under the legislation, investors will be subject to a 50% transfer tax on the fair market value of each single-family residence acquired after December 31, 2025, and will face an annual excise tax for owning more than a specified number of residential properties. The maximum number of permissible units declines annually over nine years, ultimately reaching zero for hedge fund investors and 50 for other applicable taxpayers. The bill provides some exemptions, such as for nonprofit organizations and entities primarily engaged in residential construction, and establishes a mechanism where tax revenues will be directed into a fund to provide down payment assistance to homebuyers. The Indiana Housing and Community Development Authority will administer the fund, prioritizing assistance for families purchasing homes from applicable taxpayers. By imposing these financial barriers, the bill aims to reduce institutional investor ownership of residential properties and potentially make homeownership more accessible to individual buyers.

Budget and Finance

https://iga.in.gov/legislative/2025/bills/house/1293/details