1. (a) The residential landlord-tenant statute (as defined in IC 32-31-2.9-2 ) does not prohibit an owner or a landlord from refusing to rent a rental unit on the basis of a reasonable occupancy standard.

2. (b) For purposes of this section, an occupancy standard is presumed reasonable if:

   1. (1) it permits two (2) individuals per bedroom; and

   2. (2) the owner or landlord:

      1. (A) does not include infants less than one (1) year of age in the individuals per bedroom count under subdivision (1); and

      2. (B) increases the number of individuals per unit by considering whether the configuration of a unit includes a:

         1. (i) den;
         2. (ii) library;
         3. (iii) finished basement; or

         4. (iv) loft;

            that could reasonably be used as a sleeping area, unless doing so would violate applicable state and local codes, including fire codes.

3. (c) An owner or landlord is not required to consider a kitchen, dining room, living room, bathroom, hallway, or closet as a sleeping area.

As added by P.L.266-2017, SEC.3.