1. (a) This section does not apply to a political subdivision with a rental registration or inspection program created before July 1, 1984. This section does not apply to a manufactured housing community or mobile home community that is licensed, permitted, and inspected by the Indiana department of health.
2. (b) Except as provided in subsection (c), this chapter does not prohibit a political subdivision from establishing and enforcing a program for inspecting rental units.

3. (c) Except as provided in subsection (d), after June 30, 2014, a political subdivision may not inspect a rental unit or impose a fee pertaining to the inspection of a rental unit, if the rental unit satisfies all of the following:

   1. (1) The rental unit is:

      1. (A) managed by; or

      2. (B) part of a rental unit community that is managed by;

         a professional real estate manager.

   2. (2) During the previous twelve (12) months, the rental unit has been inspected or is part of a rental unit community that has been inspected by either of the following:

      1. (A) By or for:

         1. (i) the United States Department of Housing and Urban Development, the Indiana housing and community development authority, or another federal or state agency; or
         2. (ii) a financial institution or insurance company authorized to do business in Indiana.

      2. (B) By an inspector who:

         1. (i) is a registered architect;
         2. (ii) is a professional engineer; or

         3. (iii) satisfies qualifications for an inspector of rental units prescribed by the political subdivision.

            The inspector may not be an employee of the owner or landlord.

   3. (3) A written inspection report of the inspection under subdivision

   4. (2) has been issued to the owner or landlord of the rental unit or rental unit community (as applicable) that verifies that the rental unit or a random sample of the rental unit community, if the sample size complies with the United States Department of Housing and Urban Development's (HUD) rules for sample size on inspection, is safe and habitable with respect to:

      1. (A) electrical supply and electrical systems;
      2. (B) plumbing and plumbing systems;
      3. (C) water supply, including hot water;
      4. (D) heating, ventilation, and air conditioning equipment and systems;
      5. (E) bathroom and toilet facilities;
      6. (F) doors, windows, stairways, and hallways;
      7. (G) functioning smoke detectors; and

      8. (H) the structure in which a rental unit is located.

         A political subdivision may not add to the requirements of this subdivision.

      9. (4) The inspection report issued under subdivision (3) is delivered to the political subdivision on or before the due date set by the political subdivision.

4. (d) This subsection applies to all rental units, including a rental unit that meets the requirements for an exemption under subsection (c). A political subdivision may inspect a rental unit, if the political subdivision:

   1. (1) has reason to believe; or

   2. (2) receives a complaint;

      that the rental unit does not comply with applicable code requirements. However, in the case of a rental unit that meets the requirements for an exemption under subsection (c), the political subdivision may not impose a fee pertaining to the inspection of the rental unit. If an inspection of a rental unit reveals a violation of applicable code requirements, the owner of the rental unit may be subject to a penalty as provided in section 6 of this chapter.

5. (e) This subsection applies only to a rental unit that meets the requirements for an exemption under subsection (c). If the inspection report for the rental unit or a sample of the rental unit community is prepared by or for the United States Department of Housing and Urban Development, the inspection report is valid for purposes of maintaining the exemption under subsection (c) until:

   1. (1) the date specified in the inspection report; or

   2. (2) thirty-six (36) months after the date of the inspection report;

      whichever is earlier.

As added by P.L.193-2014, SEC.7. Amended by P.L.56-2023, SEC.329; P.L.236-2023, SEC.163; P.L.9-2024, SEC.544.