Indiana Senate Passes Amended Housing Bill

Legislation aims to address housing costs and expand permitted uses for single-family homes and affordable housing.

Published on Feb. 25, 2026

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The Indiana Senate has passed House Bill 1001, which was amended on Monday to expand permitted uses for single-family dwellings, townhouses, accessory dwelling units, and affordable housing on property purchased by religious institutions. The bill also restricts local governments' ability to impose certain fees and design-element limitations related to building approvals and permits. The bill was amended to give local governments the option to opt-out of many provisions and to address increasing construction costs.

Why it matters

This bill is an attempt by Indiana lawmakers to address the state's housing crisis, which has seen the average age of first-time home buyers rise to 40 years old. The legislation aims to make it easier to build new housing and expand affordable options, particularly for young families, teachers, and law enforcement officers who are priced out of many communities.

The details

House Bill 1001 expands permitted uses that are approved without a hearing to include single-family dwellings, townhouses, accessory dwelling units within single-family homes, and affordable housing on property purchased by religious institutions before 2025. The bill also restricts local governments' ability to impose and increase fees related to building approvals and permits, and addresses other zoning restrictions and minimum parking requirements. The Senate Judiciary committee amended the bill to give local governments the option to pass an ordinance to opt-out of many provisions, and to address increasing construction costs.

  • The bill passed the Senate on Tuesday, February 25, 2026.
  • The Senate Judiciary committee amended the bill on Monday, February 24, 2026.

The players

Aaron Freeman

State Senator, R-Indianapolis, who was the tie-breaking vote to pass the bill out of the Senate Judiciary committee.

Chris Garten

State Senator, R-Charlestown, who sponsored the bill in the Senate and presented the amended version on Monday.

Fady Qaddoura

State Senator, D-Indianapolis, who proposed an amendment to the bill to include language from his own Senate Bill 104 regarding landlord requirements.

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What they’re saying

“If the House on down does not give him the keys to this bill and allow him to amend it … this bill is going to die and should die.”

— Aaron Freeman, State Senator, R-Indianapolis (chicagotribune.com)

“That means if you're a young family, a young teacher, a new law enforcement officer, you can work in a lot of our communities but you certainly can't live there. We have got to have this conversation around the importance of our housing crisis in Indiana.”

— Chris Garten, State Senator, R-Charlestown (chicagotribune.com)

“This way, I can work with Sen. Garten to find a conference committee report to work with you on this.”

— Fady Qaddoura, State Senator, D-Indianapolis (chicagotribune.com)

What’s next

The amended bill will now go back to the Indiana House of Representatives for consideration. If approved by the House, the bill will then head to the governor's desk for signature.

The takeaway

This housing bill represents a bipartisan effort in the Indiana legislature to address the state's affordable housing crisis, particularly for young families, teachers, and first responders who are priced out of many communities. The amendments aim to balance the needs of local governments and the construction industry as the state seeks to expand housing options.