LOCAL GOVERNMENT FINANCE

HOUSING

• HB 1001 creates broad new preemptions around local authority to plan and zone housing projects in an attempt to compel higher-density development strategies and lower costs for housing developers. It preempts density, setback, and parking ordinances that will have a wide-ranging impact.
• It also includes new restrictions on impact fees, which are used to defray the infrastructure costs associated with increased residential development in a community without raising taxes on citizens. This new system will move the funding of these infrastructure costs to the citizens and utility rate payers.
• Cities and towns are primary partners and drivers of housing development in the state which has seen a significant uptick since 2020, even in rural areas, due in large part to investments and development-friendly strategies employed by municipalities within their existing authority. Aim opposes large-scale preemption of planning and zoning authority but supports ways that the state, municipalities, and developers can partner to grow and develop our state and is working with the bill author and sponsor to put forward proactive solutions that lower housing costs without removing local inpu.
• HB 1001, authored by Rep. Doug Miller (R-Elkhart) and sponsored by Sen. Chris Garten (R-Charlestown), will be heard in the Senate Judiciary committee within the next two weeks.

COMMUNITY CROSSINGS

• Many municipalities were concerned about the lack of Community Crossings funding that was awarded to Indiana’s cities and towns in the fall of 2025. This caused a delay in infrastructure improvement plans in many communities throughout the state.
• SB 179 would allow for an additional $75 million call for projects in the spring of 2026 reserved for communities that did not receive funding in the 2025 fall call.
• Aim supports this bill as it helps ease the transition to the new Community Crossings formula without disrupting expected infrastructure investments throughout the state.
• SB 179, authored by Sen. Mike Crider (R-Greenfield) and sponsored by Rep. Jim Pressel (R-Rolling Prairie), will be heard in the House Transportation committee on Monday.

MUNICIPAL ELECTIONS

• HB 1055 would give all cities and towns the option to adopt an ordinance that would move municipal elections to the mid-year or presidential election cycles.
• Aim opposes any attempt to erode the municipal election cycle because holding municipal elections on a separate year from state and national elections ensures that local issues are front and center in those elections and they are not overshadowed by national issues or distorted by straight-ticket votes that are more concerned with up-ballot races.
• HB 1055, authored by Rep. Jennifer Meltzer (R-Shelbyville), was heard in the Senate Elections committee last Monday but was held for amendment and vote at a future meeting.

GOVERNMENT ORGANIZATION

• HB 1161 would make certain boards and commissions within city and county government at-will appointments by the executive or legislative bodies that appoint them. This week, the bill was amended by the Chair of the Senate Local Government committee to adjust the at-will language, stating the appointing authority only has oversight of their own at-will appointments, narrowing the scope of local oversight.
• While Aim supports the original language in the bill referring to at-will appointments, we continue to support the work of the author as he prioritizes the importance of local oversight on boards and commissions.
• HB 1161, authored by Rep. Ethan Lawson (R-Greenfield) and sponsored by Sen. Brett Clark (R-Avon) was heard in the Senate Local Government committee on Thursday but was held for future amendments and vote.

Listen to more about this week on the seventh episode of the 2026 Market Street to Main Street Podcast Series, Aim’s legislative episodes of the Hometown Innovations Podcast and a supplement to this e-newsletter. In this episode, Jennifer sits down with Matt to discuss important legislative updates as we pass the halfway mark of this quick, short Session. In addition to the important bills highlighted above, Matt and Jennifer cover HB 1381 and a concerning amendment that gives fiscal officer oversight capabilities to the council.

To listen to Market Street to Main Street, please visit The Terminal post and click the “play button” on the audio player. Or you can subscribe to Aim Hometown Innovations Podcast on Podbean, Apple Podcasts, and Spotify.