Cal. Civ. Code § 36-1-20-3
Deposit of fees in dedicated fund; budgeting of money in fund; nonreversion
Operative Text
Sec. 3. Any fee assessed and collected by a political subdivision pertaining exclusively to a rental unit or rental unit community must be maintained in a special fund dedicated solely to reimbursing the costs actually incurred by the political subdivision relating to the imposition and amount of the fee. Each fund shall be maintained as a separate line item in the political subdivision’s budget. Money in the fund may not at any time revert to the general fund or any other fund of the political subdivision.
Under Indiana Code § 36-1-20-3, when a local government (political subdivision) collects fees that are tied exclusively to rental units or rental unit communities, those fees must be held in a dedicated special fund. That fund can only be used to reimburse the actual costs the local government incurred in connection with imposing and setting the fee. The fund must appear as its own line item in the local government's budget, and the money in it can never be transferred to the general fund or any other fund.
Plain English — not legal advice.
Indiana Code § 36-1-20-3 places structural limits on how local governments may handle rental-related fees, which has practical implications for property owners and managers. A compliant political subdivision keeps rental-fee revenue in a ring-fenced account, spends it only on costs directly related to the fee program, and reports it as a distinct budget line — meaning landlords can look to that budget line to verify that collected fees are not being redirected to unrelated municipal purposes. Operators who pay rental-unit fees in Indiana may find it useful to review the relevant local budget documents to confirm the subdivision is meeting these statutory requirements.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Indiana Code § 36-1-20-3 establishes that any fees a local government collects specifically from or related to rental units must stay in a dedicated fund and cannot be swept into the general fund or spent on unrelated government purposes. This provision is designed to ensure that rental-fee revenue is used only for the costs associated with the fee program itself, providing a layer of fiscal accountability that can benefit renters in communities where such fees are charged. Tenants who have questions about how their local government is managing rental-related fees may wish to review publicly available budget documents or reach out to a local tenant-rights organization for guidance.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 14, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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