Introduced Version
SENATE BILL No. 445
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 32-25.5.
Synopsis: Homeowners association matters. Provides that the
governing documents of a homeowners association may authorize any
vote to be conducted by electronic means. Requires a homeowners
association to send certain notices to members of the homeowners
association. Requires a homeowners association to send a certain notice
to the attorney general. Requires a homeowners association to create
and maintain a website that includes certain information. Requires the
attorney general to establish a training course that members of a
homeowners association board must complete.
Effective: July 1, 2025.
Ford J.D.
January 13, 2025, read first time and referred to Committee on Local Government.
2025 IN 445—LS 7196/DI 154 Introduced
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
SENATE BILL No. 445
A BILL FOR AN ACT to amend the Indiana Code concerning
property.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 32-25.5-1-1, AS AMENDED BY P.L.27-2017,
2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 1. (a) Subject to subsection (b), this article applies
4 to the following:
5 (1) A homeowners association established after June 30, 2009,
6 that is authorized to impose mandatory dues on the homeowners
7 association's members.
8 (2) A homeowners association established before July 1, 2009:
9 (A) if a majority of the members of the homeowners
10 association elect to be governed by this article; or
11 (B) if the number of members required by the homeowners
12 association's governing documents elect to be governed by this
13 article if a different number of members other than the number
14 established in clause (A) is required by the governing
15 documents.
16 (b) The following apply to all homeowners associations, including
17 a homeowners association described in subsection (a)(2), regardless of
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1 whether the members of the homeowners association have elected
2 under subsection (a)(2)(A) or (a)(2)(B) to be governed by this article:
3 (1) IC 32-25.5-3-3(g) through IC 32-25.5-3-3(m).
4 (2) IC 32-25.5-3-9.
5 (3) IC 32-25.5-3-10.
6 (4) IC 32-25.5-3-10.5.
7 (4) (5) IC 32-25.5-3-11.
8 (6) IC 32-25.5-3-12.
9 (7) IC 32-25.5-3-13.
10 (8) IC 32-25.5-3-14.
11 (9) IC 32-25.5-3-15.
12 (10) IC 32-25.5-3.3.
13 (5) (11) IC 32-25.5-4.
14 (6) (12) IC 32-25.5-5.
15 SECTION 2. IC 32-25.5-3-5, AS ADDED BY P.L.167-2009,
16 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
17 JULY 1, 2025]: Sec. 5. (a) This section does not apply to money
18 borrowed by a homeowners association that is needed to:
19 (1) resolve, settle, or otherwise satisfy an act of enforcement
20 against the homeowners association for violating a state or local
21 law; or
22 (2) address an emergency that affects the public health, safety, or
23 welfare.
24 (b) A homeowners association may not borrow money during any
25 calendar year on behalf of the homeowners association in an amount
26 that exceeds the greater of:
27 (1) five thousand dollars ($5,000) during any calendar year; or
28 (2) if the homeowners association operated under an annual
29 budget in the previous calendar year, an amount equal to at least
30 ten percent (10%) of the previous annual budget of the
31 homeowners association;
32 unless borrowing the money is approved by the affirmative vote of a
33 majority of the members of the homeowners association voting under
34 this section.
35 (c) A person who owns a lot, parcel, tract, unit, or interest in land in
36 a subdivision may cast one (1) vote under this section for each lot,
37 parcel, tract, unit, or interest in land in the subdivision that is owned by
38 the person unless the governing documents provide for a different
39 voting procedure.
40 (d) A vote held under this section must be conducted by paper
41 ballot, unless the governing documents of a homeowners
42 association provide for voting by electronic means under section
2025 IN 445—LS 7196/DI 154 3
1 10.5 of this chapter.
2 (e) Except as provided in subsection (f), a homeowners
3 association shall distribute paper ballots to persons eligible to vote
4 under this section at least thirty (30) days before the date the votes are
5 to be opened and counted.
6 (f) If the governing documents of a homeowners association
7 provide for voting by electronic means under section 10.5 of this
8 chapter, a homeowners association shall ensure that persons
9 eligible to vote under this section are given at least thirty (30) days
10 before the date the votes are to be opened and counted to cast their
11 vote by electronic means.
12 (f) (g) Votes cast under this section shall be opened and counted at
13 a public meeting held by the homeowners association.
14 SECTION 3. IC 32-25.5-3-10.5 IS ADDED TO THE INDIANA
15 CODE AS A NEW SECTION TO READ AS FOLLOWS
16 [EFFECTIVE JULY 1, 2025]: Sec. 10.5. The governing documents
17 of a homeowners association may authorize any vote held under
18 this article to be conducted by electronic means.
19 SECTION 4. IC 32-25.5-3-12 IS ADDED TO THE INDIANA
20 CODE AS A NEW SECTION TO READ AS FOLLOWS
21 [EFFECTIVE JULY 1, 2025]: Sec. 12. (a) A homeowners association
22 shall send to members of the homeowners association an annual
23 notice that contains the following information:
24 (1) A schedule of fines that may be imposed on a member if
25 the member violates any rules or regulations in the
26 homeowners association's governing documents.
27 (2) The contact information for all members of the board of
28 directors of the homeowners association.
29 (3) A blank envelope so that a member may mail back the
30 member's vote if the member opts to cast a vote by mail.
31 (4) The date and time of any scheduled homeowners
32 association meeting.
33 (b) The notice described in subsection (a) must be sent by first
34 class mail.
35 SECTION 5. IC 32-25.5-3-13 IS ADDED TO THE INDIANA
36 CODE AS A NEW SECTION TO READ AS FOLLOWS
37 [EFFECTIVE JULY 1, 2025]: Sec. 13. (a) If a homeowners
38 association imposes a fine on a member of the homeowners
39 association for violating a rule or regulation in the homeowners
40 association's governing documents, the homeowners association
41 shall notify the member of the homeowners association of the fine.
42 (b) The notice described in subsection (a) must be sent by first
2025 IN 445—LS 7196/DI 154 4
1 class mail.
2 SECTION 6. IC 32-25.5-3-14 IS ADDED TO THE INDIANA
3 CODE AS A NEW SECTION TO READ AS FOLLOWS
4 [EFFECTIVE JULY 1, 2025]: Sec. 14. (a) A homeowners association
5 shall send to members of the homeowners association and the
6 attorney general an annual notice that contains financial
7 information concerning the homeowners association, which
8 includes an income statement and balance sheet for the
9 homeowners association.
10 (b) The notice described in subsection (a) may be sent:
11 (1) by first class mail; or
12 (2) by electronic mail to the electronic mail address provided
13 to the homeowners association by a member of the
14 homeowners association or the attorney general.
15 SECTION 7. IC 32-25.5-3-15 IS ADDED TO THE INDIANA
16 CODE AS A NEW SECTION TO READ AS FOLLOWS
17 [EFFECTIVE JULY 1, 2025]: Sec. 15. A homeowners association
18 shall create and maintain a website that includes the following
19 information:
20 (1) The governing documents of the homeowners association.
21 (2) The contact information for all members of the board of
22 directors of the homeowners association.
23 (3) Information setting forth a procedure a member of the
24 homeowners association can follow to file a complaint against
25 the homeowners association with the attorney general.
26 SECTION 8. IC 32-25.5-3.3 IS ADDED TO THE INDIANA CODE
27 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
28 JULY 1, 2025]:
29 Chapter 3.3. Homeowners Association Board Training
30 Sec. 1. The attorney general or the attorney general's designee
31 shall establish a mandatory training course that members of a
32 homeowners association board of directors must complete within
33 one (1) year of joining the board of a homeowners association.
34 Sec. 2. The training course described in section 1 of this chapter
35 must do the following:
36 (1) Inform board members about Indiana law concerning
37 homeowners associations.
38 (2) Provide guidance on how an individual can be a successful
39 board member of a homeowners association.
40 (3) Address the criminal and civil penalties that may be
41 imposed on a board member of a homeowners association if
42 a board member violates the law in the individual's capacity
2025 IN 445—LS 7196/DI 154 5
1 as a board member of a homeowners association.
2 (4) Address any other topic that the attorney general or the
3 attorney general's designee determines is necessary.
4 Sec. 3. The training course described in section 1 of this chapter
5 must be offered online.
6 Sec. 4. The attorney general shall adopt rules under IC 4-22-2
7 to carry out this chapter.
2025 IN 445—LS 7196/DI 154