Bill > HB1135

This bill establishes a comprehensive framework to limit investor ownership of single-family residences and create a housing down payment assistance fund. Specifically, the bill imposes a 50% transfer tax on single-family residences acquired by applicable taxpayers (primarily hedge funds and investment entities) after December 31, 2026, and creates a progressive reduction of permissible residential property holdings over nine years. For hedge fund taxpayers, the maximum allowable holdings will decrease from 90% of their current portfolio to zero after nine years, while other applicable entities can maintain 50 properties plus a declining percentage of their existing portfolio. The legislation also creates a housing down payment assistance fund, which will be administered by the Indiana housing and community development authority and funded by the taxes and penalties collected under this new regulatory scheme. The fund will prioritize assisting families purchasing single-family residences sold or transferred by applicable taxpayers, with the goal of supporting homeownership and potentially reducing large-scale institutional property acquisition. The bill includes detailed reporting requirements for applicable taxpayers, with potential penalties of $20,000 for non-compliance, and aims to provide transparency and oversight in the residential real estate investment market.

Budget and Finance

https://iga.in.gov/legislative/2026/bills/house/1135/details