Summing Up the Short Session |
The 2026 session of the Indiana General Assembly started early with a highly-charged debate over mid-decade redistricting and ended ahead of the statutory schedule as well – and unlike many previous years, even adjourned well before midnight on this final day. But legislators still packed a lot into its two months (give or take) of regular business.
We’re pleased to report progress on a number of REALTOR® priorities. And even though the winter storm in late January limited our face-to-face opportunities, hundreds of REALTORS® came to the statehouse for Delegation Days, mingled with lawmakers at our Legislative Reception and responded to calls to action by contacting their Representatives and Senators to help push key bills across the finish line.
And while we accepted a few compromises along the way (members know a thing or two about negotiating the best deal when perfection isn’t possible), we scored significant victories for current property owners, future homeowners and real estate consumers.
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2026 Session Scorecard: Just the Highlights |
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Encouraging pro-housing updates to local planning and zoning ordinances, limiting local inspection and permitting fees to actual administrative costs and local impact fees to the costs of new residential infrastructure; requiring annual reporting on new housing development and affordability (House Bill 1001).
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Keeping Indiana ahead of the curve on consumer transparency in real estate and broker compensation (and reducing member risk) by requiring straightforward disclosure of referral fees (House Bill 1252).
- Protecting Hoosiers by requiring notification of local law enforcement when a violent offender is released into a community, a proposal motivated by a personal tragedy affecting our REALTOR® family (House Bill 1250).
- Defending property rights from local rental cap rules that dictate whether homeowners can lease their properties, threaten to stigmatize certain neighborhoods and displace or drive up housing costs for renter families (House Bill 1210).
- Successfully opposing provisions in several bills that would have increased liability and added new legal obligations to the work of real estate brokers.
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Referral Fee Transparency: |
Let’s start with consumers and the issue of referral fee disclosure. Reducing risk to real estate brokerages is always a top IAR priority. We’ve learned some difficult lessons as an industry over the past two years about the importance of transparency in business practices and compensation – and in retrospect, the value of addressing these issues proactively instead of through litigation.
With the support of IAR’s Legislative Policy Advisory Committee and Board of Directors, we endorsed a state-level requirement for the disclosure to consumers of broker-to-broker referral fees. Not only will this mandatory disclosure requirement help protect members from potential liability, but it will also get a head start on anticipated future changes to the REALTOR® Code of Ethics and ensure that the same consumer disclosure rules apply to all Indiana licensees.
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- House Bill 1252, authored by REALTOR® champion Representative Tim O’Brien, keeps Indiana’s real estate professionals ahead of the curve on consumer transparency with a straightforward referral fee disclosure requirement.
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The bill requires real estate licensees who refer clients or customers to another licensee (brokerage) to disclose to the client or customer in writing at the time of the referral if that licensee/brokerage company will be compensated for the referral.
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The bill provides that the referring broker will disclose the fee at the time of referral so consumers are aware of the fee(s) before they enter into any discussions that may trigger an agency relationship or sign an agency agreement.
- HB1252 passed both the House and Senate with unanimous support and was signed into law by Governor Braun earlier this week; watch for more guidance on complying with this requirement before it takes effect on July 1st
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Attacking Indiana’s Housing Shortage: House Bill 1001 |
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‘Affordability’ was a theme of this session, and affordable homeownership was the aim of the #1 bill of the House majority – House Bill 1001, authored by REALTOR® champion Representative Doug Miller. HB1001sought to roll back local regulations that add unnecessary costs and delays to new housing projects.
As REALTORS® know, we need more housing: The number of properties for sale on our MLSs have been cut in half since 2015 as Indiana continues to grow; in the past five years, we’ve added about 125,000 new homeowner households but have permitted less than 99,000 single-family units.
Limited supply puts upward pressure on home prices. And one key bottleneck to new housing is the patchwork of local zoning and development standards – especially regulations focused on aesthetic or decorative requirements that have little to do with safety, privacy or consumer preferences.
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Political Pushback and Compromise on HB1001: |
HB1001 originally eliminated such requirements in favor of statewide standards unless local governments adopted ordinances to opt out and preserve their existing rules – an opportunity for community debate about housing development and growth.
But local officials pushed back despite the opt-out provisions, declaring that HB1001 threatened local decision-making and ‘community character.’
We believe that local regulations already routinely threaten property rights and drive up costs for the residents who make up their communities – and turf battles shouldn’t stand in the way of housing for Hoosiers.
A 2020 Indiana University survey of local officials identified ‘affordable housing’ as a top concern of three out of four respondents (the most common choice unrelated to public health). Since then, home prices have risen twice as fast as household income with limited inventory as a primary culprit. But the urgency expressed in 2020 took a back seat to bureaucratic prerogatives in 2026.
We’re disappointed that local leaders are more invested in their own authority to control development than actually moving the needle on new housing and affordability as they worked to chip away at HB1001.
But while the final bill backed away from the full preemption of anti-housing rules, it still took several steps in the right direction as it passed both chambers with bipartisan support – as it was sent to the Governor’s desk, HB1001:
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- Requires local governments to publicly review their Unified Development Ordinances, zoning regulations and land development rules and report specific information to the state, including investments in housing studies conducted, minutes from public hearings, and any changes and ways in which revised ordinances support increased housing development.
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Monitors housing development trends with new annual reporting requirements on new planned units, median home prices and rent, income affordability for new units, net change in units, etc.
- Triggers a review of the Indiana Storm Water Quality Manual, implements statewide flood plain mitigation standards and preempts requirements around arc-fault circuit interrupters to reduce new construction costs within accepted safety standards.
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Limits local permitting and inspection fees to the reasonable cost of actually administering those functions; local units may also seek periodic fee increases to reflect inflation. Impact fees are also limited to infrastructure investments that are specific to new housing developments
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Defending Property Rights and Limiting Local Rental Caps:
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We were also compelled to stand up for property rights and housing access by fighting back against unfair, arbitrary local caps on single-family rental properties through language within House Bill 1210:
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In 2025, two Hamilton County municipalities enacted percentage caps on the number of single-family rental properties on a subdivision-by-subdivision basis despite fewer than one in ten single-family homes in the county being renter occupied.
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Despite misleading public statements, these ordinances do not prevent ‘institutional investors’ from buying homes; the caps apply to all homeowners, local landlords and property managers – Main Street, not Wall Street, is attacked by these restrictions.
- Local bureaucrats shouldn’t dictate whether certain property owners should be allowed to lease their homes (while neighbors in the next subdivision enjoy the full flexibility of ownership).
- Rental caps likely affect neighborhood resale values as well. (Should buyers shy away from homes restricted by caps? Can sellers expect to lose interest and offers?)
- By limiting the supply of single-family homes for lease, these ordinances also drive up rental costs, adding to our housing affordability challenges.
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REALTORS® are advocates for private property rights, housing access and affordability – single-family rental caps are an attack on all of these priorities.
- House Bill 1210 includes language prohibiting local governments from enacting or enforcing these single-family rental caps.
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We also sought a rollback of current rental cap ordinances; Carmel and Fishers homeowners deserve the same rights to lease or sell their homes as any Hoosier.
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REALTOR® champion Senator Scott Baldwin helped negotiate an acceptable compromise between pro-property rights and local government advocates: HB1210 includes a preemption of all rental cap regulations and a two-year sunset period after which Carmel and Fishers ordinances will be voided. A subsequent amendment offered on the floor of the Senate limits the voting rights of non-resident property owners in Homeowners Association matters on decisions dealing with rentals, possibly making it easier for HOAs to pass their own caps.
- We believe all property owners should have a voice in their neighborhoods, especially if they are required to pay the same dues, fees and assessments! However, the opportunity to prohibit local governments from imposing rental caps by law across the state was ultimately worth accepting the HOA restrictions as the price of passage.
- HB1210 passed on the final day of session and heads to Governor Braun.
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Protecting Hoosiers from Preventable Violence: |
Indiana REALTORS® supported House Bill 1250 as a common-sense public safety bill motivated by the tragic murder of Susan Haynie, a valued community member and part of our real estate family in Southwest Indiana.
Susan’s assailant was a violent offender who was paroled just six months prior to the attack in her eastside Evansville home. These circumstances shaped HB1250, which requires a seven-day electronic notification of the county sheriff, prosecuting attorney and/or chief of police when a violent offender is being released or paroled into the local area; also requires the court to notify the victim of the impending release.
Fellow Evansville REALTOR® and Representative Tim O’Brien authored HB1250 as good public policy that also honors the legacy of Susan Haynie by taking steps to prevent future tragedies.
HB1250 has passed the House and Senate and awaits Governor Braun’s signature.
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And Protecting Brokers from Undue Liability: |
Your IAR Government Affairs team also worked to protect REALTORS® from undue liability in their day-to-day business created by other state laws – laws which may serve a noble and legitimate purpose but should not impose an unfair burden on real estate brokers. For example:
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We worked through the process with supporters of Senate Bill 276, which prohibits citizens and agents of foreign adversary nations from acquiring real property in Indiana.
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The final version of SB276 includes the clear statement: “The responsibility for determining whether an individual or other entity is subject to section 7 or 8 of this chapter rests solely with the prohibited person and the attorney general…” – providing assurance that real estate brokers will not be compelled to accept legal responsibility and make inquiries that could conflict with fair housing and other professional standards.
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We also raised objections to Senate Bill 67, which would have given listing brokers the legal obligation of confirming buyers are educated and informed about the threat of radon exposure and guidelines for testing and mitigation – again, a good cause (though duplicative with the current state seller’s disclosure) that shouldn’t be assigned to real estate brokers. (The bill ultimately failed to advance beyond committee.)
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2026 brought progress on several top priorities; read for yourself in the full IAR legislative agenda: |
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| MAGGIE MCSHANE
Senior Vice-President of Government Affairs
(317) 408-3896 call/text
mmcshane@indianarealtors.com
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| ERIN SEIBERT
Government Affairs Director
(317) 690-5465 call/text
eseibert@indianarealtors.com
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Indiana Association of REALTORS®
143 W Market St, STE 100, Indianapolis, IN 46204
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