Gary Appraisal Bill Receives Final Approval in Indiana House

Senate Bill 232 will allow the city to streamline property appraisals and sell vacant land to residents.

Published on Feb. 24, 2026

The Indiana House of Representatives passed Senate Bill 232 in a 93-2 vote on Monday, allowing the city of Gary to hire professional appraisers to assess residential and commercial properties. The bill aims to bypass the city's previous requirement of two appraisers per property, which had cost the city millions of dollars. With the new legislation, Gary can now post and annually update average property values to establish minimum offering prices, making it easier to sell vacant land to residents and developers.

Why it matters

For years, Gary has struggled with a high number of vacant and blighted properties, with an estimated 7,000 properties "stuck in red tape." This new legislation is part of the city's broader efforts to eliminate blight, revitalize neighborhoods, and generate new revenue through property sales.

The details

Senate Bill 232, authored by state Sen. Mark Spencer, D-Gary, allows the city of Gary to hire professional appraisers to assess residential and commercial properties. The bill prohibits city employees or elected officials from purchasing the appraised properties. Through the legislation, Gary must post and annually update the average value per square foot for residential properties and the average value per acre for commercial plots, which will be used to establish minimum offering prices. The city plans to use the new system to sell vacant land to residents and developers, with a 24-month "clawback clause" to ensure buyers follow through on development plans.

  • On Monday, February 24, 2026, the Indiana House passed Senate Bill 232 in a 93-2 vote.
  • Previously, city officials said it would cost Gary about $7 million to appraise all 7,000 properties under the old system.

The players

Eddie Melton

The mayor of Gary, Indiana, who called the passage of Senate Bill 232 a "defining moment" for the city.

Mark Spencer

The state senator from Gary who authored Senate Bill 232.

Julie Olthoff

The state representative from Crown Point, Indiana, who gave an overview of the bill on the House floor.

Vernon Smith

The state representative from Gary who voiced his support for the bill before its passage.

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What they’re saying

“With the passage of Senate Bill 232, we are replacing outdated hurdles with a clear, streamlined path of growth. For too long, our city was trapped by a system that required millions of dollars in appraisals just to put land back in the hands of our people. Today, we break that cycle.”

— Eddie Melton, Mayor of Gary, Indiana (chicagotribune.com)

“Through our Open Data Portal, every sale and baseline study will be visible to the public before closing. We are moving Gary from a cycle of maintenance costs to a cycle of recurring revenue. If we successfully return just half of these lots to the tax rolls, we stand to generate $1.75 million in new annual revenue for our libraries, our parks and our children's education.”

— Eddie Melton, Mayor of Gary, Indiana (chicagotribune.com)

“Our mayor, along with the city administration, needs this bill. We have a lot of property that is owned by the city, and it'll be much more cost effective if this bill is passed.”

— Vernon Smith, State Representative from Gary, Indiana (chicagotribune.com)

What’s next

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The takeaway

This legislation is a significant step in Gary's efforts to address its high number of vacant and blighted properties, streamlining the appraisal process and making it easier for the city to sell land to residents and developers. By generating new revenue from property sales, Gary hopes to invest in community resources like libraries, parks, and education.