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Indiana Housing Bill Moves Forward Despite Concerns Over Local Control

By: Charlotte Burke • February 24, 2026 • Indianapolis, IN
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(INDIANAPOLIS) - A wide-ranging housing bill intended to boost home construction across Indiana has advanced to the full Senate, despite concerns from local officials about reduced control over zoning decisions.

House Bill 1001 narrowly cleared the Senate Judiciary Committee on a 6-5 vote after more than two hours of debate. The measure would limit local zoning restrictions, speed up approval processes, and expand areas where residential development is automatically allowed unless cities or counties choose to opt out.

Supporters say the bill is needed to address a statewide housing shortage as population growth continues to outpace new construction. They argue that certain local requirements can significantly increase building costs and make homes less affordable for first-time buyers.

Opponents, including local government leaders and planning experts, warn the proposal could override community planning efforts, strain infrastructure, and impose one-size-fits-all policies that may not suit all areas -- including rural counties in northeast Indiana.

Amendments added in committee would increase allowable construction costs for some projects, limit automatic development provisions to areas near public transit or redevelopment zones, and require annual progress reports from the Indiana Housing and Community Development Authority beginning in 2027.

The bill now heads to the full Senate, where further revisions are possible before a final vote.