Indiana 2025 Regular Session

Indiana Senate Bill SB0445 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 445
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 32-25.5.
7	7	Synopsis: Homeowners association matters. Provides that the
8	8	governing documents of a homeowners association may authorize any
9	9	vote to be conducted by electronic means. Requires a homeowners
10	10	association to send certain notices to members of the homeowners
11	11	association. Requires a homeowners association to send a certain notice
12	12	to the attorney general. Requires a homeowners association to create
13	13	and maintain a website that includes certain information. Requires the
14	14	attorney general to establish a training course that members of a
15	15	homeowners association board must complete.
16	16	Effective: July 1, 2025.
17	17	Ford J.D.
18	18	January 13, 2025, read first time and referred to Committee on Local Government.
19	19	2025 IN 445—LS 7196/DI 154 Introduced
20	20	First Regular Session of the 124th General Assembly (2025)
21	21	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
22	22	Constitution) is being amended, the text of the existing provision will appear in this style type,
23	23	additions will appear in this style type, and deletions will appear in this style type.
24	24	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
25	25	provision adopted), the text of the new provision will appear in this style type. Also, the
26	26	word NEW will appear in that style type in the introductory clause of each SECTION that adds
27	27	a new provision to the Indiana Code or the Indiana Constitution.
28	28	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
29	29	between statutes enacted by the 2024 Regular Session of the General Assembly.
30	30	SENATE BILL No. 445
31	31	A BILL FOR AN ACT to amend the Indiana Code concerning
32	32	property.
33	33	Be it enacted by the General Assembly of the State of Indiana:
34	34	1 SECTION 1. IC 32-25.5-1-1, AS AMENDED BY P.L.27-2017,
35	35	2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
36	36	3 JULY 1, 2025]: Sec. 1. (a) Subject to subsection (b), this article applies
37	37	4 to the following:
38	38	5 (1) A homeowners association established after June 30, 2009,
39	39	6 that is authorized to impose mandatory dues on the homeowners
40	40	7 association's members.
41	41	8 (2) A homeowners association established before July 1, 2009:
42	42	9 (A) if a majority of the members of the homeowners
43	43	10 association elect to be governed by this article; or
44	44	11 (B) if the number of members required by the homeowners
45	45	12 association's governing documents elect to be governed by this
46	46	13 article if a different number of members other than the number
47	47	14 established in clause (A) is required by the governing
48	48	15 documents.
49	49	16 (b) The following apply to all homeowners associations, including
50	50	17 a homeowners association described in subsection (a)(2), regardless of
51	51	2025 IN 445—LS 7196/DI 154 2
52	52	1 whether the members of the homeowners association have elected
53	53	2 under subsection (a)(2)(A) or (a)(2)(B) to be governed by this article:
54	54	3 (1) IC 32-25.5-3-3(g) through IC 32-25.5-3-3(m).
55	55	4 (2) IC 32-25.5-3-9.
56	56	5 (3) IC 32-25.5-3-10.
57	57	6 (4) IC 32-25.5-3-10.5.
58	58	7 (4) (5) IC 32-25.5-3-11.
59	59	8 (6) IC 32-25.5-3-12.
60	60	9 (7) IC 32-25.5-3-13.
61	61	10 (8) IC 32-25.5-3-14.
62	62	11 (9) IC 32-25.5-3-15.
63	63	12 (10) IC 32-25.5-3.3.
64	64	13 (5) (11) IC 32-25.5-4.
65	65	14 (6) (12) IC 32-25.5-5.
66	66	15 SECTION 2. IC 32-25.5-3-5, AS ADDED BY P.L.167-2009,
67	67	16 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
68	68	17 JULY 1, 2025]: Sec. 5. (a) This section does not apply to money
69	69	18 borrowed by a homeowners association that is needed to:
70	70	19 (1) resolve, settle, or otherwise satisfy an act of enforcement
71	71	20 against the homeowners association for violating a state or local
72	72	21 law; or
73	73	22 (2) address an emergency that affects the public health, safety, or
74	74	23 welfare.
75	75	24 (b) A homeowners association may not borrow money during any
76	76	25 calendar year on behalf of the homeowners association in an amount
77	77	26 that exceeds the greater of:
78	78	27 (1) five thousand dollars ($5,000) during any calendar year; or
79	79	28 (2) if the homeowners association operated under an annual
80	80	29 budget in the previous calendar year, an amount equal to at least
81	81	30 ten percent (10%) of the previous annual budget of the
82	82	31 homeowners association;
83	83	32 unless borrowing the money is approved by the affirmative vote of a
84	84	33 majority of the members of the homeowners association voting under
85	85	34 this section.
86	86	35 (c) A person who owns a lot, parcel, tract, unit, or interest in land in
87	87	36 a subdivision may cast one (1) vote under this section for each lot,
88	88	37 parcel, tract, unit, or interest in land in the subdivision that is owned by
89	89	38 the person unless the governing documents provide for a different
90	90	39 voting procedure.
91	91	40 (d) A vote held under this section must be conducted by paper
92	92	41 ballot, unless the governing documents of a homeowners
93	93	42 association provide for voting by electronic means under section
94	94	2025 IN 445—LS 7196/DI 154 3
95	95	1 10.5 of this chapter.
96	96	2 (e) Except as provided in subsection (f), a homeowners
97	97	3 association shall distribute paper ballots to persons eligible to vote
98	98	4 under this section at least thirty (30) days before the date the votes are
99	99	5 to be opened and counted.
100	100	6 (f) If the governing documents of a homeowners association
101	101	7 provide for voting by electronic means under section 10.5 of this
102	102	8 chapter, a homeowners association shall ensure that persons
103	103	9 eligible to vote under this section are given at least thirty (30) days
104	104	10 before the date the votes are to be opened and counted to cast their
105	105	11 vote by electronic means.
106	106	12 (f) (g) Votes cast under this section shall be opened and counted at
107	107	13 a public meeting held by the homeowners association.
108	108	14 SECTION 3. IC 32-25.5-3-10.5 IS ADDED TO THE INDIANA
109	109	15 CODE AS A NEW SECTION TO READ AS FOLLOWS
110	110	16 [EFFECTIVE JULY 1, 2025]: Sec. 10.5. The governing documents
111	111	17 of a homeowners association may authorize any vote held under
112	112	18 this article to be conducted by electronic means.
113	113	19 SECTION 4. IC 32-25.5-3-12 IS ADDED TO THE INDIANA
114	114	20 CODE AS A NEW SECTION TO READ AS FOLLOWS
115	115	21 [EFFECTIVE JULY 1, 2025]: Sec. 12. (a) A homeowners association
116	116	22 shall send to members of the homeowners association an annual
117	117	23 notice that contains the following information:
118	118	24 (1) A schedule of fines that may be imposed on a member if
119	119	25 the member violates any rules or regulations in the
120	120	26 homeowners association's governing documents.
121	121	27 (2) The contact information for all members of the board of
122	122	28 directors of the homeowners association.
123	123	29 (3) A blank envelope so that a member may mail back the
124	124	30 member's vote if the member opts to cast a vote by mail.
125	125	31 (4) The date and time of any scheduled homeowners
126	126	32 association meeting.
127	127	33 (b) The notice described in subsection (a) must be sent by first
128	128	34 class mail.
129	129	35 SECTION 5. IC 32-25.5-3-13 IS ADDED TO THE INDIANA
130	130	36 CODE AS A NEW SECTION TO READ AS FOLLOWS
131	131	37 [EFFECTIVE JULY 1, 2025]: Sec. 13. (a) If a homeowners
132	132	38 association imposes a fine on a member of the homeowners
133	133	39 association for violating a rule or regulation in the homeowners
134	134	40 association's governing documents, the homeowners association
135	135	41 shall notify the member of the homeowners association of the fine.
136	136	42 (b) The notice described in subsection (a) must be sent by first
137	137	2025 IN 445—LS 7196/DI 154 4
138	138	1 class mail.
139	139	2 SECTION 6. IC 32-25.5-3-14 IS ADDED TO THE INDIANA
140	140	3 CODE AS A NEW SECTION TO READ AS FOLLOWS
141	141	4 [EFFECTIVE JULY 1, 2025]: Sec. 14. (a) A homeowners association
142	142	5 shall send to members of the homeowners association and the
143	143	6 attorney general an annual notice that contains financial
144	144	7 information concerning the homeowners association, which
145	145	8 includes an income statement and balance sheet for the
146	146	9 homeowners association.
147	147	10 (b) The notice described in subsection (a) may be sent:
148	148	11 (1) by first class mail; or
149	149	12 (2) by electronic mail to the electronic mail address provided
150	150	13 to the homeowners association by a member of the
151	151	14 homeowners association or the attorney general.
152	152	15 SECTION 7. IC 32-25.5-3-15 IS ADDED TO THE INDIANA
153	153	16 CODE AS A NEW SECTION TO READ AS FOLLOWS
154	154	17 [EFFECTIVE JULY 1, 2025]: Sec. 15. A homeowners association
155	155	18 shall create and maintain a website that includes the following
156	156	19 information:
157	157	20 (1) The governing documents of the homeowners association.
158	158	21 (2) The contact information for all members of the board of
159	159	22 directors of the homeowners association.
160	160	23 (3) Information setting forth a procedure a member of the
161	161	24 homeowners association can follow to file a complaint against
162	162	25 the homeowners association with the attorney general.
163	163	26 SECTION 8. IC 32-25.5-3.3 IS ADDED TO THE INDIANA CODE
164	164	27 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
165	165	28 JULY 1, 2025]:
166	166	29 Chapter 3.3. Homeowners Association Board Training
167	167	30 Sec. 1. The attorney general or the attorney general's designee
168	168	31 shall establish a mandatory training course that members of a
169	169	32 homeowners association board of directors must complete within
170	170	33 one (1) year of joining the board of a homeowners association.
171	171	34 Sec. 2. The training course described in section 1 of this chapter
172	172	35 must do the following:
173	173	36 (1) Inform board members about Indiana law concerning
174	174	37 homeowners associations.
175	175	38 (2) Provide guidance on how an individual can be a successful
176	176	39 board member of a homeowners association.
177	177	40 (3) Address the criminal and civil penalties that may be
178	178	41 imposed on a board member of a homeowners association if
179	179	42 a board member violates the law in the individual's capacity
180	180	2025 IN 445—LS 7196/DI 154 5
181	181	1 as a board member of a homeowners association.
182	182	2 (4) Address any other topic that the attorney general or the
183	183	3 attorney general's designee determines is necessary.
184	184	4 Sec. 3. The training course described in section 1 of this chapter
185	185	5 must be offered online.
186	186	6 Sec. 4. The attorney general shall adopt rules under IC 4-22-2
187	187	7 to carry out this chapter.
188	188	2025 IN 445—LS 7196/DI 154