LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6820 NOTE PREPARED: Dec 29, 2023
BILL NUMBER: HB 1186 BILL AMENDED:
SUBJECT: Homeowners Association Covenants.
FIRST AUTHOR: Rep. Olthoff BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
DEDICATED
FEDERAL
Summary of Legislation: This bill requires the owner of a property to disclose in the disclosure form the
following:
(1) That the property is in a community governed by a homeowners association.
(2) A copy of the recorded governing documents.
(3) A statement indicating whether there are assessments and the amount of any assessments.
(4) The name and business or home address of a board member, homeowners association agent, or other
person who has a contract with the homeowners association to provide any management services for the
homeowners association.
It also makes conforming changes.
Effective Date: July 1, 2024.
Explanation of State Expenditures: Indiana Real Estate Commission - This bill will require the agency to
update the current version of the Seller’s Residential Real Estate Sales Disclosure Form so that the form
includes an option to denote that the property is in a community governed by a homeowners association.
Additionally, the disclosure form would need to include a statement indicating whether there are assessments,
the amount of any assessments by the homeowner association, and other specified information. Furthermore,
a copy of the recorded governing documents would need to be provided with the disclosure form.
This requirement will cause a temporary increase in the agency’s workload since the agency would have to
go through the rule making process to update the form, which is specified in 876 IAC 9-1-2. However, the
HB 1186 1 agency may be able to implement this requirement with no additional appropriations, assuming near
customary agency staffing and resource levels.
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Indiana Real Estate Commission.
Local Agencies Affected:
Information Sources: Indiana Seller’s Residential Real Estate Sales Disclosure Form (State Form 46234).
Fiscal Analyst: James Johnson, 317-232-9869.
HB 1186 2