Senate Bill 374
Introduced Senate Bill (S)
DIGEST
Individual development accounts. For purposes of the statute concerning individual development accounts (accounts), provides that, in addition to a community development corporation (as provided under current law), a municipality may administer accounts under the statute. Makes conforming changes throughout the statute and in the Indiana Code provisions establishing the individual development account tax credit. Provides that a municipality that administers accounts may, in determining an individual's order of placement on a waiting list maintained by the municipality to allow qualified individuals to establish accounts, give preference to qualified individuals who reside in or near the municipality over qualified individuals who
Individual development accounts. For purposes of the statute concerning individual development accounts (accounts), provides that, in addition to a community development corporation (as provided under current law), a municipality may administer accounts under the statute. Makes conforming changes throughout the statute and in the Indiana Code provisions establishing the individual development account tax credit. Provides that a municipality that administers accounts may, in determining an individual's order of placement on a waiting list maintained by the municipality to allow qualified individuals to establish accounts, give preference to qualified individuals who reside in or near the municipality over qualified individuals who
do not reside in or near the municipality. Specifies that a community development corporation or a municipality may, but is not required to, administer accounts under the statute. Allows an individual who qualifies for an account under the statute (qualifying individual) to use funds in an account to reduce the principal amount owed on a primary residence located in Indiana. (Current law allows funds to be used for such purposes only if the residence was purchased with money from an individual development account.) Provides that a qualifying individual may deposit the following in an account: (1) Earned income. (2) Social Security benefits. (3) Social Security disability benefits. (4) Veterans benefits. (Current law provides that a qualifying individual may deposit money from the individual's earned income into the individual's account.) Provides the following with respect to state deposits made in individual accounts by the housing and community development authority (authority): (1) That the authority shall allocate to each account $4 for each $1 of the first $1,000 that an individual deposited into the individual's account during the preceding 12 months. (2) That the authority shall not make any allocation with respect to any amount that an individual deposits in the individual's account after the five year anniversary of the date on which the individual's account was opened. (3) That the authority's total allocation for any one individual's account may not exceed $4,000 with respect to all deposits made by the individual during the five year period, regardless of when during that period the $4,000 limit is reached. (4) That before making allocations under the statute, the authority may retain up to 20% of the allocation amount to pay for expenses incurred by the authority (and, at the discretion of the authority, by community development corporations and municipalities) in administering the statute. (Current law: (1) requires the authority to allocate $3 for each $1 of the first $400 that an individual deposited during the preceding 12 months, subject to the sufficiency of appropriated funds; and (2) allows the authority to allocate $3 for each $1 of any part of an amount above $400 that an individual deposited into the individual's account, subject to a total cap of $2,400 per account.)
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