Indiana

Indiana does not operate an ADU-specific statewide loan, grant, or forgivable-loan program. The Indiana Housing and Community Development Authority (IHCDA) administers general homeownership, down-payment-assistance, and affordable-housing-development programs that can apply to properties with ADUs when eligibility criteria are met, but none target ADU construction directly. HEA 1001 (2026) gave IHCDA a new oversight role — receiving annual housing-progress reports from every local government — but did not create new ADU financing.

• Indiana Housing and Community Development Authority (IHCDA)
• Indiana Affordable Housing and Community Development Fund (IHCDA)

Indiana is not a wildfire-WUI state and is not part of the Gulf/Atlantic state-run wind-pool system, but it does operate a FAIR Plan as the insurer of last resort. The Indiana Basic Property Insurance Underwriting Association (IBPIUA), branded the Indiana FAIR Plan, was established 1968-10-28 and provides Dwelling Fire DP1, DP2, Homeowners Modified 8, and Homeowners 2 policies to applicants who have been denied coverage by at least three admitted-market insurers. ADUs are typically covered as accessory structures under standard homeowner policies (often at ~10% of dwelling coverage) or require a dwelling-fire or landlord endorsement when rented; the FAIR Plan covers eligible properties on the same dwelling-fire / homeowner basis without ADU-specific provisions. Indiana has tornado and severe-thunderstorm risk in the central and southern parts of the state, which can affect availability and pricing in some markets but does not trigger a separate state-run wind pool.

Indiana's primary state-level ADU program is the new HEA 1001 (2026) framework: ADU-by-right permitting unless opted out, capped permit-fee escalation, restricted design regulation, and required local public hearings and annual progress reporting to IHCDA. There is no statewide pre-approved ADU plan catalog, no statewide ADU impact-fee waiver, and no statewide ADU rebate program. Earlier discussion in HB 1005 (2025) of broader housing-process reforms set the policy stage for HEA 1001.

• HEA 1001 ADU-by-right framework — ADUs are permitted uses statewide unless a city, town, or county opts out by ordinance before 2026-12-31. Localities that opt in (the default) must process ADU applications ministerially within their ordinary permit framework.
• HEA 1001 building-permit-fee cap — Local building-permit-fee increases must be published 180 days before they take effect. Limits on the size and frequency of increases apply after 2026-12-31.
• HEA 1001 local housing-supply hearing and reporting requirement — Every Indiana city, town, and county must hold a public hearing on housing supply in 2026 and submit annual progress reports to IHCDA on housing approvals, denials, and timelines.