Indiana HOA Laws and Regulations

Know your association’s laws

Indiana Community Association Law

Homeowners’ Associations in Indiana must be set up as a non-profit corporation and therefore must follow the Indiana Nonprofit Corporation Act of 1991. In addition to state non-profit laws, IC 32-25.5 of the Indiana Code provides more specific regulations for HOA management.

All regulations described in Article 25.5 of the Indiana code apply to communities established after June 30th, 2009. Communities created before July 1st, 2009 may elect to be governed by these laws with a majority vote of all association members.

 

Homeowners Association’s Rights and Responsibilities

The primary purpose of an HOA is to protect property values and maintain community common elements. The community association may charge regular fees to homeowners to provide a budget for maintenance expenses.

 

Delinquency

Liens may be placed on the property by the homeowners’ association in the event of account delinquency consistent with Article 28 of Indiana Code. The board of directors may also suspend member voting rights if an account is more than six months overdue.

 

Budget

It is the responsibility of the board of directors to prepare an annual budget that describes the estimated revenues and expenses for the year and the estimated surplus or deficit for the current year. After the budget is drafted, it must be sent to all association members with written notice of any increase or decrease in regular assessments. The budget must be approved in an association meeting by a majority vote. If a quorum is not reached at the meeting, the board may adopt the budget independently so long as the budget is not more than the previously adopted budget. If stated in community bylaws, the budget may be adopted by the board at 110% of the previously adopted budget.

The board of directors must maintain detailed financial records and a roster of all association members with current addresses and contact information. This information, along with community declarations and bylaws, must be made available to all association members at no charge. If a member sends written requests for copies of all community documents, the board may charge for the cost of making copies and time spent compiling records up to $35 per hour up to a maximum of $200.

 

Homeowner Rights

Homeowners have the power to adopt or reject proposed annual budgets and to call association meetings. A 10% vote from association members can call a special meeting to discuss community matters. If the board of directors does not provide details for a meeting after 30 days of the petition, an association member who signed the petition may set the date, time, and location of the meeting and send notice to other association members.

All community documents including bylaws, financial documents, and association roster must be made available to homeowners for official business only. The board may not charge for providing community documents but may charge for making copies and any administrative time spent compiling information.

 

Community Associations in Indiana

Please note that CSM is not a licensed attorney and cannot provide legal advice. If you have questions about interpreting your state’s legal requirements or the association’s governing documents, please contact an attorney that is licensed in your state.
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