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Moratorium on Evictions and Foreclosures in Indiana Extended

In March, Indiana Governor Eric Holcomb ordered a temporary prohibition on both eviction and foreclosure proceedings that involve residential real estate in Indiana. This followed and expanded upon the U.S. Department of Housing and Urban Development’s order to temporarily prohibit evictions and foreclosures on single family properties with FHA-insured mortgages, which was recently extended through August 31, 2020.

The Indiana moratorium was set to end on June 30, which would have allowed landlords and lending institutions to begin eviction and foreclosure proceedings beginning July 1. On June 30, however, Governor Holcomb released Executive Order 20-33 that extended the ban on evictions and foreclosures for another month, until July 31, 2020.

Executive Order 20-33 explicitly bars evictions based on nonpayment of rent and foreclosures based on nonpayment of mortgages for residential real estate or property. Emergency evictions “where there is specific immediate and serious injury, loss or damage to the property” may be allowed under Ind. Code § 32-31-6. Similarly, lending institutions may begin legal actions “where the property is vacant or abandoned or where there is a specific immediate and serious injury, loss or damage to the property.”

Furthermore, payment plans among interested parties for unpaid rent and mortgages are “strongly encourage[d]” by Governor Holcomb.

On June 24, Governor Holcomb announced the creation of the Indiana COVID-19 Rental Assistance Program. This program was designed to help Indiana residential tenants whose income has been adversely affected by COVID-19 avoid eviction by providing up to $2,000 in assistance to help cover monthly rent payments or late fees. This program is being administered by the Indiana Housing and Community Development Authority and applications will be available beginning on July 13, 2020, on their website at www.indianahousingnow.org.

For additional information and individualized guidance on this or any related topic, please contact your KDDK attorney or any member of the KDDK Real Estate Practice Team.

* Heather M. Heck, KDDK Summer Clerk, contributed to this article.

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