CHAPTER 3. HOMEOWNERS ASSOCIATIONS
IC 32-25.5-3
Chapter 3. Homeowners Associations
IC 32-25.5-3-1
Roster of members; member addresses
Sec. 1. (a) A homeowners association shall maintain:
(1) a current roster of all members of the association; and
(2) the mailing address and legal description for each memberof the association.
(b) The homeowners association shall also maintain anyelectronic mail addresses or facsimile (fax) numbers of thosemembers who have consented to receive notice by electronic mail orfacsimile (fax). Electronic mail addresses and facsimile (fax)numbers provided by a member to receive notice by electronic mailor facsimile (fax) shall be removed from the association's recordswhen the member revokes consent to receive notice by electronicmail or facsimile (fax). However, the association is not liable for anerroneous disclosure of an electronic mail address or a facsimile(fax) number for receiving notices.
(c) The mailing addresses and legal descriptions maintained by ahomeowners association under subsection (a):
(1) shall be made available to a member of the homeownersassociation upon request;
(2) may be used by a member of the homeowners associationonly for a purpose related to the operation of the homeownersassociation; and
(3) may not be used by a member of the homeownersassociation for personal reasons.
(d) Except as provided in subsection (c), a homeownersassociation may not sell, exchange, or otherwise transfer informationmaintained by the homeowners association under this section to anyperson.
As added by P.L.167-2009, SEC.2.
IC 32-25.5-3-2
Special meetings
Sec. 2. (a) In addition to any other meeting held by a board, aboard shall hold a special meeting of the members of a homeownersassociation if at least ten percent (10%) of the members of thehomeowners association submit to the board at least one (1) writtendemand for the special meeting that:
(1) describes the purpose for which the meeting is to be held;and
(2) is signed by the members requesting the special meeting.
(b) If a board does not send out a notice of the date, time, andplace for a special meeting not more than thirty (30) days after thedate the board receives a valid written demand for the specialmeeting under subsection (a), a member of the homeownersassociation who signed the written demand may:
(1) set the date, time, and place for the special meeting; and (2) send out the notice for the special meeting to the othermembers.
As added by P.L.167-2009, SEC.2. Amended by P.L.1-2010,SEC.128.
IC 32-25.5-3-3
Annual budget; budget meeting; budget approval
Sec. 3. (a) A homeowners association shall prepare an annualbudget.
(b) The annual budget must reflect:
(1) the estimated revenues and expenses for the budget year;and
(2) the estimated surplus or deficit as of the end of the currentbudget year.
(c) The homeowners association shall provide each member of thehomeowners association with:
(1) a:
(A) copy of the proposed annual budget; or
(B) written notice that a copy of the proposed annual budgetis available upon request at no charge to the member; and
(2) a written notice of the amount of any increase or decrease ina regular annual assessment paid by the members that wouldoccur if the proposed annual budget is approved;
before the homeowners association meeting held under subsection(d).
(d) Subject to subsection (f), a homeowners association budgetmust be approved at a meeting of the homeowners associationmembers by a majority of the members of the homeownersassociation in attendance at a meeting called and conducted inaccordance with the requirements of the homeowners association'sgoverning documents.
(e) For purposes of this section, a member of a homeownersassociation is considered to be in attendance at a meeting if themember attends:
(1) in person;
(2) by proxy; or
(3) by any other means allowed under:
(A) state law; or
(B) the governing documents of the homeownersassociation.
(f) If the number of members of the homeowners association inattendance at a meeting held under subsection (d) does not constitutea quorum as defined in the governing documents of the homeownersassociation, the board may adopt an annual budget for thehomeowners association for the ensuing year in an amount that doesnot exceed one hundred percent (100%) of the amount of the lastapproved homeowners association annual budget. However, theboard may adopt an annual budget for the homeowners associationfor the ensuing year in an amount that does not exceed one hundredten percent (110%) of the amount of the last approved homeowners
association annual budget if the governing documents of thehomeowners association allow the board to adopt an annual budgetunder this subsection for the ensuing year in an amount that does notexceed one hundred ten percent (110%) of the amount of the lastapproved homeowners association annual budget.
As added by P.L.167-2009, SEC.2.
IC 32-25.5-3-4
Approval of certain contracts; meeting; vote
Sec. 4. (a) This section does not apply to a contract entered intoby a board that would resolve, settle, or otherwise satisfy an act ofenforcement against a homeowners association for violating a stateor local law.
(b) A board may not enter into any contract that would result ina new assessment or the increase in an existing assessment payableby the affected members of the homeowners association in theamount of more than five hundred dollars ($500) per year for eachaffected member of the homeowners association unless:
(1) the board holds at least two (2) homeowners associationmeetings concerning the contract; and
(2) the contract is approved by the affirmative vote of at leasttwo-thirds (2/3) of the affected members of the homeownersassociation.
(c) A board shall give notice of the first homeowners associationmeeting held under subsection (b):
(1) to each member of the homeowners association; and
(2) at least seven (7) calendar days before the date the meetingoccurs.
As added by P.L.167-2009, SEC.2.
IC 32-25.5-3-5
Borrowing money; approval by members
Sec. 5. (a) This section does not apply to money borrowed by ahomeowners association that is needed to:
(1) resolve, settle, or otherwise satisfy an act of enforcementagainst the homeowners association for violating a state or locallaw; or
(2) address an emergency that affects the public health, safety,or welfare.
(b) A homeowners association may not borrow money during anycalendar year on behalf of the homeowners association in an amountthat exceeds the greater of:
(1) five thousand dollars ($5,000) during any calendar year; or
(2) if the homeowners association operated under an annualbudget in the previous calendar year, an amount equal to at leastten percent (10%) of the previous annual budget of thehomeowners association;
unless borrowing the money is approved by the affirmative vote ofa majority of the members of the homeowners association votingunder this section. (c) A person who owns a lot, parcel, tract, unit, or interest in landin a subdivision may cast one (1) vote under this section for each lot,parcel, tract, unit, or interest in land in the subdivision that is ownedby the person unless the governing documents provide for a differentvoting procedure.
(d) A vote held under this section must be conducted by paperballot.
(e) A homeowners association shall distribute paper ballots topersons eligible to vote under this section at least thirty (30) daysbefore the date the votes are to be opened and counted.
(f) Votes cast under this section shall be opened and counted at apublic meeting held by the homeowners association.
As added by P.L.167-2009, SEC.2.
IC 32-25.5-3-6
Grievance resolution procedures
Sec. 6. The governing documents must include grievanceresolution procedures that apply to all members of the homeownersassociation and the board.
As added by P.L.167-2009, SEC.2.
IC 32-25.5-3-7
Member voting rights
Sec. 7. A homeowners association may not suspend the votingrights of a member for nonpayment of any assessments unless:
(1) the governing documents provide for suspension; and
(2) the assessments are delinquent for more than six (6) months.
As added by P.L.167-2009, SEC.2.