Homeowners associations in Indiana would do well to understand the state laws that govern them. But, what are the Indiana HOA laws these associations should know about in the first place?
For Homeowners Associations
The Indiana Homeowners Association Act oversees the creation, management, authority, and operation of homeowners associations created after June 30, 2009. These associations have the power to impose compulsory dues on the members of the community. The Act can also apply to HOAs created prior to July 1, 2009, provided the association elects to do so with a majority of members in favor of the decision.
You can find the Indiana Homeowners Association Act under Title 32, Article 25.5 of the Indiana Code. It consists of five chapters, each one divided further into sections.
Chapter 1. Applicability
Chapter 2. Definitions
Chapter 3. Homeowners Associations
- Roster of members; member addresses
- Special meetings
- Annual budget; budget meeting; budget approval; records available to members; right of members to attend board meetings; communications not subject to disclosure; records retention; search fees
- Homeowners association distributing water or sewer service; not considered public utility
- Approval of certain contracts; meeting; vote
- Borrowing money; approval by members
- Repealed
- Member voting rights
- Repealed
- Amending governing documents; consents required
- Member meeting proxies; requirements; retention; methods of submission
- Meeting to appoint or elect board members; failure to achieve quorum; authority to enforce governing documents
Chapter 4. Attorney General Actions
- Attorney general’s action against association or board member; misappropriation or fraud; proxy violations; budgeting violations
- Court remedies; imposition of civil penalties; limitations
Chapter 5. Grievance Resolution
- Application of chapter to exempt claims
- “Claim”
- “Claimant”
- “Exempt Claim”
- “Legal Proceedings”
- “Party”
- “Respondent”
- Repealed
- Requirements for claimant to begin legal proceedings
- Notice of claim; required information
- Negotiation meeting; access to subject property
- Impasse; submission of claim to mediation or binding arbitration; costs of mediator or arbitrator
- Impasse; beginning legal proceedings
- Settlement of claim through negotiation, mediation, or arbitration; legal proceedings; recovery of costs
- Effect of release or discharge
- Powers of board
- Costs of each party
For Condominiums
The Indiana Condominium Act regulates the creation, management, authority, and operation of condominiums that record a declaration under this article. You can find this Act under Title 32, Article 25 of the Indiana Code. It consists of 10 chapters, each one with its own sections.
Chapter 1. Condominiums
Chapter 2. Definitions
- Applicability of Definitions
- “Association of Co-Owners”
- “Building”
- “Common Areas and Facilities”
- “Common Expenses”
- “Common Profits”
- “Condominium”
- “Condominium Instruments”
- “Condominium Unit”
- “Contractable Condominium”
- “Co-Owner”
- “Declarant”
- “Declaration”
- “Expandable Condominium”
- “Limited Common Areas and Facilities”
- “Majority” or “Majority of Co-Owners”
- “Person”
- “Property”
- “To Record”
- “Unit Number”
Chapter 3. Classification of Property
Chapter 4. Ownership Interest in Condominiums
- Fee simple title; conveyance and encumbrance of condominiums
- Multiple ownership of condominiums
- Common areas and facilities; undivided interest; repairs
- Conveyance or encumbrance of common areas and facilities
- Contributions for expenses
Chapter 5. Conveyance Procedures
- First conveyance; satisfaction of liens
- Unpaid assessments; grantee and grantor jointly and severally liable
Chapter 6. Liens and Encumbrances
- Liens and encumbrances
- Common areas; transferable easements for making improvements
- Unpaid assessments; lien
Chapter 7. Declaration
- Recording declaration; contents
- Expandable condominiums; contents of declaration
- Contractable condominiums; contents of declaration
- Floor plans
- Designation; conveyance
- Presumption of consent to changes; reallocation of interests in common area; liens
- Amending declaration; consents required
Chapter 8. Administration of Condominiums
- Bylaws; administration of property
- Bylaws; contents
- Board of directors meetings; co-owners entitled to attend; permissible private meetings; availability of meeting minutes
- Recording instruments; indexes
- Sales and management offices; model units
- Alteration or structural changes; impairing easements or hereditaments
- Common profits and expenses
- Condominium association distributing water or sewer service; not considered public utility
- Taxes, assessments, and charges
- Records
- Insurance; co-owners
- Insurance; reconstruction of building
- Insurance; reconstruction of building; insufficient proceeds
- Determination not to rebuild after casualty or disaster
- Expandable condominiums; addition of real estate
- Contractable condominiums; withdrawal of land
- Reservation of option not to expand; disclosure
- Removal of property
Chapter 8.5. Grievance Resolution
- Application of chapter to exempt claims
- “Board”
- “Claim”
- “Claimant”
- “Exempt claim”
- “Legal proceedings”
- “Party”
- “Respondent”
- Repealed
- Requirements for claimant to begin legal proceedings
- Notice of claim; required information
- Negotiation meeting; access to subject property
- Impasse; submission of claim to mediation or binding arbitration; costs of mediator or arbitrator
- Impasse; beginning legal proceedings
- Settlement of claim through negotiation, mediation, or arbitration; legal proceedings; recovery of costs
- Effect of release or discharge
- Powers of board
- Costs of each party
Chapter 9. Actions and Proceedings
- Compliance with articles, bylaws, covenants, etc.; organization of co-owners
- Actions and proceedings
Indiana HOA Laws on Corporate Governance
The Indiana Nonprofit Corporation Act of 1991 applies to associations that register as a non-profit corporation. Interestingly, a majority of the associations in Indiana are considered as such. This Act governs the corporate procedure and structure of such associations.
You can find the Indiana Nonprofit Corporation Act of 1991 under Title 23, Article 17 of the Indiana Code. It consists of 31 chapters, namely:
- Application
- Definitions
- Organization
- Purposes and Powers
- Repealed
- Repealed
- Members; Admission; Types of Memberships; Rights and Duties
- Resignation and Termination of Members
- Delegates
- Meetings and Action Without Meetings
- Voting
- Directors
- Standards of Conduct for Directors
- Officers
- Meetings and Action of Board of Directors
- Indemnification
- Amendment of Articles of Incorporation
- Amendment of Bylaws
- Merger
- Sale of Assets
- Distributions
- General Dissolution
- Repealed
- Judicial Dissolution
- Private Foundations
- Repealed
- Records and Reports
- Notice
- Repealed
- Miscellaneous Provisions
- Repealed
Indiana HOA Laws on Property Use Restrictions
Many homeowners associations have restrictions in place concerning how members of the community can use their property. But, under the HOA laws of Indiana, there are certain restrictions HOAs can’t make. One example has to do with the display of political signs.
Under Title 23, Article 21, Chapter 13 of the Indiana Code, HOAs may not prohibit members from displaying political signs on their property during the following periods:
- Starting 30 days before the date of the related election
- Ending 5 days after the date of the related election
However, associations can restrict the size, number, and location of the signs in question.
Another common property use restriction is the installation of solar panels. Because HOAs want to maintain a uniform look throughout the neighborhood, they may adopt certain solar restrictions.
While many states have already enacted laws that forbid HOAs from prohibiting solar panel installations, Indiana has yet to do the same. Instead, according to I.C. 36-7-2-8, Indiana associations may not impose unreasonable restrictions that significantly raises the cost or decreases the efficiency of the solar energy system.
Fair Housing
The Indiana Fair Housing Act protects residents from discrimination based on color, race, national origin, religion, sex, disability, or familial status. It functions similarly to the federal Fair Housing Act. Those who wish to file a discrimination complaint can do so with the U.S. Department of Housing and Urban Development or the Indiana Civil Rights Commission. For private recourse, victims may file a lawsuit in federal district court.
