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IN HB1373

IN HB1373
Rent escrow.


summary

Introduced
01/13/2025
In Committee
01/13/2025
Crossed Over
Passed
Dead
04/24/2025

Introduced Session

2025 Regular Session

Bill Summary

Rent escrow. Establishes a procedure permitting a tenant to withhold rent from a landlord and deposit it with a court if the landlord does not fulfill the landlord's obligations or fails to remedy a violation of an ordinance, rule, code, or other law, and the violation may materially affect the health or safety of the tenant.

AI Summary

This bill establishes a comprehensive procedure allowing tenants in Indiana to withhold rent and deposit it with the court if their landlord fails to fulfill legal obligations or does not remedy violations that could materially affect the tenant's health or safety. The bill creates a new legal framework where tenants must first notify the landlord in writing about specific violations, and if the landlord does not address these issues within 30 days or a specified deadline from a governmental agency, the tenant can take several actions. These actions include depositing rent with the county court clerk, requesting court orders to compel the landlord to fix issues, reduce rent, or even terminate the rental agreement. The bill provides protections for landlords by allowing them to challenge the rent withholding and request partial rent release for ongoing expenses. Importantly, the bill prohibits landlords from filing eviction actions within 30 days of the tenant's actions or during pending legal proceedings related to the rent withholding. The legislation also requires court clerks to maintain detailed records of these rent deposits and establishes a specific rental escrow fund to manage the withheld rent. The bill is set to take effect on July 1, 2025, and does not apply to tenants who are not current on their rent payments.

Committee Categories

Justice

Sponsors (2)

Last Action

First reading: referred to Committee on Judiciary (on 01/13/2025)

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