Indiana bill targets housing affordability with state zoning changes

"Another state vs. local jurisdiction showdown is brewing up in Indiana. Lawmakers there are poised to strip cities of much of their power over where and how new housing is built, setting up a clash over who holds the reins of local growth and critically housing development. Indiana's proposed bill would transform how communities across the state approve housing. If passed, the Statehouse would take charge of key decisions, relegating local planning commissions and councils to a dramatically narrowed purview over neighborhood objections."

"The effort reflects a growing pattern of state vs. local showdowns in places such as California, Connecticut, Texas, Colorado and Florida, where state leaders have preempted local zoning to spur new residential construction as a housing affordability strategy. In those states, governors and elected legislative representatives argue that local resistance to apartments, duplexes, and smaller homes has fueled a severe shortage by stifling new ground-up home development. In response, those state-level officials have passed laws that override city zoning processes."

"Local officials, in turn, warn that broad state mandates can backfire by ignoring on-the-ground realities such as aging sewers, school crowding, and neighborhood character, not to mention environmental and central services constraints. Indiana is now stepping squarely into that debate, testing the lengths state leaders can go to rewrite housing rules in the face of backlash from mayors, county officials and anti-development neighborhood groups."

Indiana lawmakers are proposing legislation that would transfer major housing approval powers from municipal planning bodies and councils to the state legislature and executive. The bill would limit local authority to block or shape new apartments, duplexes, and smaller homes, centralizing zoning decisions at the Statehouse. The proposal mirrors actions in California, Connecticut, Texas, Colorado, and Florida where state preemption sought to increase housing supply. Local leaders caution that statewide mandates risk overlooking infrastructure limits, school overcrowding, environmental constraints, and neighborhood character. Rising rents in Indianapolis during the pandemic underscore tensions between supply constraints and demand-driven price increases.

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