In Indiana, many planned communities are managed by a homeowners association (HOA). The laws governing HOAs in Indiana are set forth by various local and state regulations, as well as by each individual HOA’s governing documents.
Who Regulates HOAs in Indiana?
HOAs in Indiana are regulated by the Indiana Homeowners Associations Act found in Title 32 Article 25.5. This act governs a business entity where the use of dwellings is owned and operated by the members of the business entity.
Otherwise, governing documents regulate an HOA. Although every HOA is different, the governing documents typically include: Articles of Incorporation, Bylaws, Declaration of Covenants, Conditions and Restrictions, and other rules and regulations.
HOAs in Indiana may be subject to applicable federal laws such as:
HOAs may be subject to certain state laws such as:
- Indiana Nonprofit Corporations Act
- Indiana Condominiums Act
- Indiana Fair Housing Act
- Indiana Liens on Real Property
- Indiana Conveyance Procedures for Real Property
How to Find HOA Regulations in Indiana
HOA governing documents are public records in Indiana. The governing documents include the Articles of Incorporation and bylaws that are to be filed with the office of the county recorder. To obtain these records, visit the local office of the county recorder and pay a fee for copies.
Additionally, HOA bylaws are considered optional provisions when the Articles of Incorporation is filed with the Indiana Secretary of State. If the HOA chooses to include the bylaws in their business filings, they can be accessed by anyone on the Indiana Secretary of State Business Entity search website.
HOA Powers in Indiana
In Indiana, HOAs have the power to:
- Collect payments for common expenses
- Collect charges to maintain and operate the common areas
- Levy reasonable fines
- Foreclose on house for unpaid liens
Additionally, HOA governing documents can grant further powers such as restrictions on membership, exterior paint colors, fencing, and parking requirements.
Can an HOA Impose Fines on a Homeowner in Indiana
In Indiana, HOAs can impose fines on a homeowner. The HOA’s governing documents will likely note the amount and types of fees in the HOA as well as notice requirements for such fees.
An HOA cannot fine a homeowner for (or generally prohibit) any of the following:
- Displaying political signs during election season
- Installing solar energy systems so long as they do not pose a threat to public health and safety or significantly increase energy costs
- Displaying the American flag so long as the flag is displayed in a manner consistent with federal flag display law
- Installing satellite dishes and antennas
Moreover, an HOA’s governing documents can grant added powers such as restrictions on membership, parking, fencing, and exterior paint colors.
Can an HOA Take a Homeowner’s House in Indiana?
In Indiana, a homeowner can foreclose on a home within its community. HOAs have the power to place a lien on a property when the owner neglects to pay their dues. If a lien goes unresolved, the HOA can foreclose on the house.
The HOA must first file a complaint with the appropriate court where the residence is located. The complaint cannot be filed within a 90-day period of the unpaid fines. If the lien is enforced by the court, then an action for foreclosure can be initiated.
There is no provision about HOAs being able to evict homeowners or tenants. This information can be found in the HOA’s governing documents.
Can an HOA Enter a Homeowner’s Property in Indiana?
There is no provision in the Indiana Code that states whether HOAs can enter a homeowner’s property. Clauses of if, when, and how an HOA can enter a homeowner’s house will be listed in its governing documents.
Typically, an HOA may be able to enter a homeowner’s property in case of emergency, maintenance, or violation of any rules or regulations.
Except in the case of an emergency, reasonable notice should be provided to the homeowner before the HOA is to enter the property. A reasonable timeline can range depending on the reason for entry between three days and a couple of weeks.
Where Do Homeowners File Complaints Against Their HOA in Indiana?
The venue for filing a Complaint against an HOA in Indiana depends on the complaint.
For complaints concerning HOA fees, a homeowner can file a complaint with the Office of the Attorney General, the Federal Trade Commission, or the Consumer Financial Protection Bureau. Under the Fair Debt Collection Practices Act, homeowners may also file in state court, northern federal, or southern federal court within one year of the violation date.
If a homeowner feels they are a victim of housing discrimination, they can file a complaint with the Indiana Civil Rights Commission, the U.S. Department of Urban Housing, or file a private lawsuit in Indiana state, northern federal, or southern federal court.
Otherwise, a homeowner with any other complaints can bring a claim in state court in the appropriate county.
Joining and Leaving an HOA in Indiana
In Indiana, there is no state code for joining or leaving an HOA. These processes are set by the HOA’s governing documents. Documents explaining the HOA and its membership rules should be presented at the closing for a new owner’s home purchase.
Typically, there are two types of HOAs that regulate joining and leaving clauses:
- Mandatory HOAs. When a person buys a home, they automatically become a member required to abide by any HOA rules listed in the governing documents. This usually includes that a homeowner is not able to leave the HOA freely.
- Voluntary HOAs. When a person buys a home, membership is a choice for each homeowner. If they choose to become a member, they may leave at any time by stopping their payments with the HOA.
To leave a mandatory HOA, a homeowner can sell their house or try to petition the court to have their home removed. However, there is no guarantee the petition will be granted.
How to Dissolve an HOA in Indiana
The process for dissolution of an HOA in Indiana may be set forth in the HOA’s governing documents. If it is not, the HOA board must propose dissolution and the HOA members must come to a majority vote to authorize dissolution at a meeting.
If the majority of HOA members vote in favor of dissolution, the HOA can dissolve by filing an Articles of Dissolution with the Indiana Secretary of State.
Sources
- 1 Ind. Code § 25.5-2-3
-
“Governing documents” includes the following: (1) The articles of incorporation and bylaws of a homeowners association and all adopted amendments to the articles of incorporation and bylaws. (2) Any applicable covenants filed with the office of the county recorder of the applicable county recorder, whether contained in a declaration of covenants, contained in conditions and restrictions (or similarly titled document), or contained within a plat.
Source Link - 2 County Recorder Manual Chapter 9 Legal Guide
-
The county recorder shall charge and collect the fees prescribed in IC 36-2-7-10(b) for furnishing copies of records produced by photographic process.
Source Link - 3 Ind. Code § 23-17-4-2
-
(14) Impose dues, assessments, admission, and transfer fees upon the corporation’s members… (19) Do all things necessary or convenient, not inconsistent with law, to further the activities and affairs of the corporation. (20) Adopt, either in the corporation’s articles of incorporation or bylaws, a provision establishing exclusive jurisdiction in the circuit or superior courts of any county in Indiana or in the United States district courts of Indiana…
Source Link - 4 Ind. Code § 32-28-14-9
-
(b) A person who gives notice under subsection (a)(1) by registered or certified mail to the owner or holder of the homeowners association lien at the address given in the recorded statement may file an affidavit of service of the notice to file an action to foreclose the lien with the recorder of the county in which the real estate is located.
Source Link - 5 Ind. Code § 32-21-13-4
-
Except as provided in section 5 of this chapter, a homeowners association may not adopt or enforce a rule that prohibits a member of the homeowners association from displaying a sign on the member’s property during the period: (1) beginning thirty (30) days before; and (2) ending five (5) days after; the date of the election to which the sign relates.
Source Link - 6 Ind. Code § 36-7-2-8
-
(b) A unit may not adopt any ordinance which has the effect of prohibiting or of unreasonably restricting the use of solar energy systems other than for the preservation or protection of the public health and safety. (c) This section does not apply to ordinances which impose reasonable restrictions on solar energy systems. However, it is the policy of this state to promote and encourage the use of solar energy systems and to remove obstacles to their use. Reasonable restrictions on solar energy systems are those restrictions which: (1) do not significantly increase the cost of the system or significantly decrease its efficiency; or (2) allow for an alternative system of comparable cost and efficiency.
Source Link - 7 4 U.S.C. § 5
-
A condominium association, cooperative association, or residential real estate management association may not adopt or enforce any policy, or enter into any agreement, that would restrict or prevent a member of the association from displaying the flag of the United States on residential property within the association with respect to which such member has a separate ownership interest or a right to exclusive possession or use.
Source Link - 8 Over-the-Air Reception Devices Rule (OTARD Rule)
-
Enforceable placement preferences must be clearly articulated in writing and made available to all residents of the community in question. A requirement that an antenna be located where reception or transmission would be impossible or substantially degraded is prohibited by the rule… A valid enforceable placement preference should not contain prohibited provisions such as prior approval or require professional installation… when an antenna is professionally installed, the installer often determines the location of the antenna at the time of installation based upon the type of antenna installed and the ability of the antenna to receive an acceptable quality signal.
Source Link - 9 Ind. Code § 32-28-14-8
-
(a) A homeowners association may enforce a homeowners association lien by filing a complaint in the circuit or superior court of the county where the real estate that is the subject of the lien is located. The complaint: (1) may not be filed earlier than ninety (90) days… and (2) must be filed not later than five (5) years; after the date the statement and notice of intention to hold a lien was recorded under section 6 of this chapter. (b) If a lien is not enforced within the time set forth in subsection (a), the lien is void. (c) If a lien is foreclosed under this chapter, the court rendering judgment shall order a sale to be made of the real estate subject to the lien.
Source Link - 10 When You Must Allow an HOA Representative to Enter Your Unit
-
…an HOA representative can enter an owner’s unit in emergency situations, or for health and safety reasons… Many HOAs also have the right to enter an owner’s unit to maintain common elements… An HOA might also have the right to enter an owner’s unit to inspect for a violation of the development’s rules or regulations. Normally this is allowed only if the HOA has good reason to believe a violation is occurring… State statutes commonly require that HOAs provide an owner with “reasonable” notice. What’s considered “reasonable” depends on the situation. For example, prior notice of between three days and a week might be reasonable for an HOA wishing to enter an owner’s unit to perform periodic common area maintenance… if immediate entrance is necessary for health or safety reasons (such as if there is a fire in the unit), minimal or no notice is probably acceptable.
Source Link - 11 Can you refuse to join an HOA?
-
… membership in voluntary HOAs is optional… If you enter into a voluntary HOA, you can leave whenever you want by stopping your payments, although you’ll stop receiving the benefits of the HOA… When you buy a house in a community governed by a mandatory HOA, you automatically become a dues-owing HOA member. When you become a member, you stay a member for as long as you own the property or until the HOA is dissolved (which is very rare). At your home’s closing, you will have to sign documents agreeing to abide by the HOAs rules and pay any assessments, fees, or fines associated with the HOA or incurred by violating HOA rules…. Unless you can gain enough support in your community to let you leave the HOA voluntarily, you will have to hire an attorney to try to convince a judge that you should be allowed to leave.
Source Link - 12 Ind. Code § 23-17-22-2
-
(a) A corporation’s board of directors may propose dissolution for submission to the members. (b) For a proposal to dissolve to be adopted, the following conditions must be met: (1) The board of directors must recommend dissolution to the members… require a greater vote or a vote by voting groups, the proposal to dissolve to be adopted must be approved by the members by a majority of the votes cast on the proposal.
Source Link - 13 Ind. Code § 23-17-22-3
-
(a) After a dissolution is authorized, the corporation may dissolve by delivering to the secretary of state articles of dissolution… (b) A corporation is dissolved upon the effective date of the corporation’s articles of dissolution.
Source Link
