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Bill

HB 1373

Rent escrow.

2025 Regular Session Introduced by Patricia Boy and 1 co-sponsor

HB 1373 creates Indiana rent escrow allowing tenants to withhold rent into escrow accounts when landlords fail repairs, protecting renters while ensuring eventual payment.

First reading: referred to Committee on Judiciary
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Bill Summary · HB 1373

Legislative bill overview

HB 1373 establishes a rent escrow mechanism in Indiana that allows tenants to deposit rent payments into an escrow account when landlords fail to maintain habitable living conditions or make required repairs. The bill provides tenants with a legal avenue to withhold rent while ensuring landlords eventually receive payment once housing code violations are remedied.

Why is this important

Rent escrow protects vulnerable renters by preventing them from choosing between unsafe living conditions and eviction, while maintaining landlord revenue incentives for repairs. This addresses a significant tenant protection gap in states without such mechanisms, potentially reducing housing code violations and tenant displacement.

Potential points of contention

  • Landlord concerns: Property owners worry about cash flow disruption, potential abuse of the escrow system, and administrative burdens in dispute resolution
  • Implementation complexity: Determining which repairs qualify, establishing escrow procedures, and resolving disputes over habitability standards requires detailed regulatory framework
  • Tenant access barriers: Low-income tenants may lack knowledge of the process, face language barriers, or be unable to afford legal assistance to navigate escrow claims

Compiled from official sources — confirm details with the bill’s official record.

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