State Codes and Statutes

State Codes and Statutes

Statutes > Indiana > Title32 > Ar25.5 > Ch3

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 member
of the association.
    (b) The homeowners association shall also maintain any
electronic mail addresses or facsimile (fax) numbers of those
members who have consented to receive notice by electronic mail or
facsimile (fax). Electronic mail addresses and facsimile (fax)
numbers provided by a member to receive notice by electronic mail
or facsimile (fax) shall be removed from the association's records
when the member revokes consent to receive notice by electronic
mail or facsimile (fax). However, the association is not liable for an
erroneous disclosure of an electronic mail address or a facsimile
(fax) number for receiving notices.
    (c) The mailing addresses and legal descriptions maintained by a
homeowners association under subsection (a):
        (1) shall be made available to a member of the homeowners
association upon request;
        (2) may be used by a member of the homeowners association
only for a purpose related to the operation of the homeowners
association; and
        (3) may not be used by a member of the homeowners
association for personal reasons.
    (d) Except as provided in subsection (c), a homeowners
association may not sell, exchange, or otherwise transfer information
maintained by the homeowners association under this section to any
person.
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, a
board shall hold a special meeting of the members of a homeowners
association if at least ten percent (10%) of the members of the
homeowners association submit to the board at least one (1) written
demand 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, and
place for a special meeting not more than thirty (30) days after the
date the board receives a valid written demand for the special
meeting under subsection (a), a member of the homeowners
association 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 other
members.
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 annual
budget.
    (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 current
budget year.
    (c) The homeowners association shall provide each member of the
homeowners association with:
        (1) a:
            (A) copy of the proposed annual budget; or
            (B) written notice that a copy of the proposed annual budget
is available upon request at no charge to the member; and
        (2) a written notice of the amount of any increase or decrease in
a regular annual assessment paid by the members that would
occur if the proposed annual budget is approved;
before the homeowners association meeting held under subsection
(d).
    (d) Subject to subsection (f), a homeowners association budget
must be approved at a meeting of the homeowners association
members by a majority of the members of the homeowners
association in attendance at a meeting called and conducted in
accordance with the requirements of the homeowners association's
governing documents.
    (e) For purposes of this section, a member of a homeowners
association is considered to be in attendance at a meeting if the
member 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 homeowners
association.
    (f) If the number of members of the homeowners association in
attendance at a meeting held under subsection (d) does not constitute
a quorum as defined in the governing documents of the homeowners
association, the board may adopt an annual budget for the
homeowners association for the ensuing year in an amount that does
not exceed one hundred percent (100%) of the amount of the last
approved homeowners association annual budget. However, the
board may adopt an annual budget for the homeowners association
for the ensuing year in an amount that does not exceed one hundred
ten percent (110%) of the amount of the last approved homeowners

association annual budget if the governing documents of the
homeowners association allow the board to adopt an annual budget
under this subsection for the ensuing year in an amount that does not
exceed one hundred ten percent (110%) of the amount of the last
approved 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 into
by a board that would resolve, settle, or otherwise satisfy an act of
enforcement against a homeowners association for violating a state
or local law.
    (b) A board may not enter into any contract that would result in
a new assessment or the increase in an existing assessment payable
by the affected members of the homeowners association in the
amount of more than five hundred dollars ($500) per year for each
affected member of the homeowners association unless:
        (1) the board holds at least two (2) homeowners association
meetings concerning the contract; and
        (2) the contract is approved by the affirmative vote of at least
two-thirds (2/3) of the affected members of the homeowners
association.
    (c) A board shall give notice of the first homeowners association
meeting held under subsection (b):
        (1) to each member of the homeowners association; and
        (2) at least seven (7) calendar days before the date the meeting
occurs.
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 a
homeowners association that is needed to:
        (1) resolve, settle, or otherwise satisfy an act of enforcement
against the homeowners association for violating a state or local
law; or
        (2) address an emergency that affects the public health, safety,
or welfare.
    (b) A homeowners association may not borrow money during any
calendar year on behalf of the homeowners association in an amount
that exceeds the greater of:
        (1) five thousand dollars ($5,000) during any calendar year; or
        (2) if the homeowners association operated under an annual
budget in the previous calendar year, an amount equal to at least
ten percent (10%) of the previous annual budget of the
homeowners association;
unless borrowing the money is approved by the affirmative vote of
a majority of the members of the homeowners association voting
under this section.

    (c) A person who owns a lot, parcel, tract, unit, or interest in land
in 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 owned
by the person unless the governing documents provide for a different
voting procedure.
    (d) A vote held under this section must be conducted by paper
ballot.
    (e) A homeowners association shall distribute paper ballots to
persons eligible to vote under this section at least thirty (30) days
before the date the votes are to be opened and counted.
    (f) Votes cast under this section shall be opened and counted at a
public 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 grievance
resolution procedures that apply to all members of the homeowners
association 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 voting
rights 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.