AIM counsel outlines new state housing law’s reporting duties and local impacts

Becca Mccay, chief legal counsel for Accelerate Indiana Municipalities, told the Greenwood Common Council on June 15 that the 2026 housing bill—referred to throughout her presentation as '101' or 'Housing Act 10001'—aims to increase housing supply and reduce housing costs while imposing new reporting and administrative requirements on local governments.

Mccay laid out three immediate tasks for Greenwood: prepare to separate building and permitting funds from the general fund in accounting systems; develop processes and responsibilities to compile an annual housing progress report (including permits issued, denied, lots platted and median sales prices); and review the text of the city’s zoning ordinance for nine categories the statute identifies (density, housing types, parking and setback standards, among others). "So these three slides outline every single thing that's in the bill," Mccay said, adding that AIM will provide resources as cities assemble required data.

Why it matters: the report will be submitted to the state and used to assess how quickly communities are producing housing and where bottlenecks exist. Mccay warned that some data may not be stored locally and will require city staff to identify outside sources and cite them in the report. She also said timing will matter: "you may have to use 2025 data as opposed to 2026 depending on when you're putting this report together," complicating near‑term compliance.

Council members pressed Mccay on practical tradeoffs. On density and infrastructure she recommended measured approaches: pilot districts or focused areas for increased density rather than blanket citywide changes, and housing studies to ground decisions. "Maybe it's not a wholesale...we can create some kind of specific district to say this is where we want to encourage growth," she said, noting local conditions (roads, stormwater) must shape any change.

Mccay also summarized elements that did not survive the legislative process: earlier drafts that included opt‑out provisions for setback or parking reductions and proposals to allow by‑right additional units on lots were removed. She described changes to fee rules: delays in implementing new fees were extended from 90 to 180 days, fee increases will be limited to once every five years with inflation caps, and a narrow exception remains if growth justifies an interim increase after a public hearing.

On technical standards, Mccay said some items were clarified in state drafting—examples included accessory dwelling unit definitions and classifications for certain structure classes—and flagged that local building inspection teams should review changes that affect on‑the‑ground practice. She urged Greenwood staff to watch for forthcoming state guidance on fund numbers and reporting format.

The presentation concluded with Mccay offering AIM as a resource while noting the state’s work will continue into the 2027 session on related topics such as stormwater management and infill versus new‑neighborhood development. The council did not take formal action on the presentation but scheduled further UDO (unified development ordinance) engagement on June 29 to consider local ordinance changes in light of the state law.