Indiana HOA Laws: Statutes, Rules & Board Duties

What Indiana statutes actually require of community associations — meetings, fines, assessments and liens, records, reserves, architectural review, and the resident protections a board cannot override. Every point is cited to statute.

By the Grihak Team · Researched 2026-07-09

Governing statutes

• The Homeowners Associations Act, Ind. Code § 32-25.5 governs formation, records, budgets, meetings, and dispute resolution for HOAs. It applies to associations established after June 30, 2009 that impose mandatory dues, and to older associations only if the members elect to be governed by it (Ind. Code § 32-25.5-1-1).
• Even for older/non-electing associations, a core set of provisions applies to all HOAs regardless of election: the records/meeting/fee rules of Ind. Code § 32-25.5-3-3(g)–(m), plus §§ 32-25.5-3-9, -3-10, -3-11, and all of Chapter 4 (Attorney General actions) and Chapter 5 (grievance resolution) (Ind. Code § 32-25.5-1-1(b)).
• Condominiums are governed separately by the Condominium Act, Ind. Code § 32-25, including assessment liens (Ind. Code § 32-25-6-3) and condominium grievance resolution (Ind. Code § 32-25-8.5). (verify condo grievance chapter number.)
• HOA assessment liens are created under a separate lien statute, the Homeowners Association Liens Act, Ind. Code § 32-28-14.
• Where the Act is silent, the governing documents (declaration/covenants, articles, bylaws) control; "governing documents" is defined broadly to include recorded covenants and plats (Ind. Code § 32-25.5-2-3). Indiana has no comprehensive Davis-Stirling-style code, so many topics (architectural review, reserves, fine amounts) are left to the CC&Rs. (IN gap.)

Meetings & notice

• The Act does not set a general advance-notice period for routine board meetings; notice of regular member/board meetings is governed by the association's bylaws. (IN gap — but see 2026 change below.)
• Members have a statutory right to attend any board meeting, including the annual meeting (Ind. Code § 32-25.5-3-3(g)). The board may meet in private only to discuss delinquent assessments, or with legal counsel about pending/threatened litigation (Ind. Code § 32-25.5-3-3(g)).
• Special meetings: the board must hold one if at least 10% of members submit a written demand stating the purpose; if the board fails to notice the meeting within 30 days, a demanding member may set and notice it (Ind. Code § 32-25.5-3-2).
• Budget meeting: members must receive the proposed budget (or notice it is available free) and notice of any assessment increase before the budget meeting (Ind. Code § 32-25.5-3-3(c)); the budget is approved by a majority of members in attendance (in person, by proxy, or other allowed means) (Ind. Code § 32-25.5-3-3(d)–(e)).
• Effective July 1, 2026 (HEA 1115): associations must give at least four days' written notice with an agenda for meetings, and virtual attendance counts toward quorum. (verify exact code placement and day count — new amendment to Ind. Code § 32-25.5.)

Fines & enforcement

• The pre-2026 Act did not authorize or cap fines; an association could impose monetary penalties only if its governing documents granted that power. (IN gap for pre-July-2026 conduct.)
• Effective July 1, 2026 (HEA 1115): all Indiana associations gain statutory authority to impose fines even without governing-document language, but must first adopt a schedule of fines listing violation types, amounts, whether they recur, and any aggregate maximum, and must give the owner advance written notice of the violation, amount, assessment date, and recurrence. (verify code section and exact procedure — very recent.)
• The 2026 fine statute does not appear to impose a fixed dollar cap comparable to California's $100/violation; the schedule and aggregate maximum are set by the association. (verify — not confirmed.)
• The Attorney General may sue a board or an individual board member for misappropriation/diversion of funds, fraud, proxy violations (§ 32-25.5-3-10), or budget/records violations (§ 32-25.5-3-3); remedies include injunction, restitution, removal, and a civil penalty up to $500 per violation (Ind. Code §§ 32-25.5-4-1, -4-2).

Assessments, liens & foreclosure

• Unpaid HOA assessments become a lien on the lot under Ind. Code § 32-28-14; the association must record a statement and notice of intention to hold a lien (Ind. Code § 32-28-14-5, -6). Condominium assessment liens attach at the time of assessment (Ind. Code § 32-25-6-3).
• Priority: Indiana grants no super-priority. The HOA/condo lien is subordinate to real-estate tax liens and to a recorded first mortgage; a first-mortgage foreclosure purchaser is not liable for assessments that came due before it took title (Ind. Code §§ 32-28-14-7, 32-25-6-3).
• Foreclosure is judicial — the association files a complaint in circuit/superior court, and the court orders a sale of the property (Ind. Code § 32-28-14-8).
• Timing limits (Ind. Code § 32-28-14-8): the foreclosure complaint generally may not be filed earlier than 90 days after recording the lien, and must be filed within 5 years of recording or the lien is void.
• Owner's demand to force action (Ind. Code § 32-28-14-9): a lot owner (or interest holder) may serve written notice demanding the lienholder foreclose; if the association fails to file within one (1) year, the lien becomes void and the owner may record an affidavit releasing it.
• Condominium liens are foreclosed under Indiana's mechanic's-/materialmen's-lien procedures, and a money judgment for unpaid assessments may be sought without foreclosing (Ind. Code § 32-25-6-3).

Records access

• Financial records — including all contracts, invoices, bills, receipts, and bank records — and board meeting minutes (including the annual meeting) must be available for inspection by each member on written request, which may be made in person, in writing, or by email (Ind. Code § 32-25.5-3-3(g)).
• The request must identify the information with reasonable particularity, but inspection may not be unreasonably denied or conditioned on stating a purpose (Ind. Code § 32-25.5-3-3(g)).
• Retention: an association is not required to produce records created more than two (2) years before the request, and must retain for at least two years any written/electronic communication relating to a financial transaction (Ind. Code § 32-25.5-3-3(k)).
• Exempt from disclosure: attorney-client communications and work product, unexecuted contracts, contract-negotiation records, another member's individual account, information barred by law, and tips about suspected criminal activity (Ind. Code § 32-25.5-3-3(j)–(k)).
• Search fees (pre-2026): the first hour is free; beyond that the association may charge a prorated hourly fee not exceeding $35/hour, capped at $200 total, plus a reasonable copying fee (Ind. Code § 32-25.5-3-3(m)). Effective July 1, 2026 (HEA 1115), associations reportedly lose the authority to charge members for document requests and must provide account statements free. (verify — recent amendment appears to supersede the § 3-3(m) fee schedule.)

Reserves & budgets

• Annual budget required: every association must prepare an annual budget showing estimated revenues, expenses, and surplus/deficit (Ind. Code § 32-25.5-3-3(a)–(b)).
• Members must receive the proposed budget (or free-copy notice) and notice of any assessment change before the budget meeting, and the budget is approved by a majority of members in attendance (Ind. Code § 32-25.5-3-3(c)–(d)).
• No-quorum fallback: if quorum is not met, the board may adopt a budget up to 100% of the last approved budget, or up to 110% if the governing documents allow (Ind. Code § 32-25.5-3-3(f)). For associations formed after July 1, 2026, HEA 1152 lowers this ceiling to 105%. (verify code section — new.)
• Indiana law imposes no reserve-study or reserve-funding requirement and no balcony/structural-inspection mandate; reserve practices are governed solely by the CC&Rs. (IN gap.)
• Contract/borrowing limits: a board may not sign a contract that raises assessments by more than $500/year per affected member without two meetings and a two-thirds vote of affected members (Ind. Code § 32-25.5-3-4); it may not borrow more than the greater of $5,000 or 10% of the prior budget without member approval by paper ballot (Ind. Code § 32-25.5-3-5).

Architectural control

• The Homeowners Associations Act contains no general architectural-review procedure, standards requirement, or approval-deadline for owner improvements — architectural authority and any timeline come entirely from the governing documents. (IN gap — verify any timeline claimed in a specific community's CC&Rs.)
• Statutory carve-outs override an architectural review committee for specific improvements: solar energy systems (Ind. Code § 32-25.5-3.5), U.S./Indiana flags and flagpoles (Ind. Code § 32-21-13.5), and fuel-source-based restrictions on vehicles/outdoor equipment (Ind. Code § 32-25.5-3.6). A committee may not deny a qualifying solar request once the owner meets the statutory petition requirements (Ind. Code § 32-25.5-3.5).
• Amending the governing documents: the documents must allow owner amendments and may not require more than 75% owner consent (or more than 75% of eligible first-mortgage holders); 95% may be required to convey common areas or dissolve the association; a declarant's consent may be required for up to 7 years (Ind. Code § 32-25.5-3-9).

Protected activities (what an HOA generally cannot prohibit)

• Solar energy systems: under Ind. Code § 32-25.5-3.5 (HEA 1196, 2022), an owner who petitions and obtains the signatures needed to amend the covenants — or at least 65% of unit owners, whichever is fewer — and supplies the required site plan/vendor/spec information may not be denied installation; the association may still require roof-mounting (or an approved structure) and enforce genuine health/safety and common-area limits. (Note: the task's cited Ind. Code § 32-21-11 and § 8-1-40-5 are not the operative HOA-solar provisions — § 32-21-11 is repealed and § 8-1-40 addresses distributed-generation/net-metering. The controlling HOA statute is § 32-25.5-3.5. verify.)
• U.S. flag and Indiana state flag: effective July 1, 2026 (HEA 1150), governing documents may not prohibit display of the U.S. or Indiana flag, and owners may erect a flagpole (reportedly up to ~20 feet), subject to reasonable placement restrictions (Ind. Code § 32-21-13.5). (verify flagpole height and exact section.)
• Electric vehicles / fuel source: effective July 1, 2026 (HEA 1150), associations may not restrict or discriminate against motor vehicles or outdoor equipment based on fuel source (e.g., banning EVs or gas equipment) (Ind. Code § 32-25.5-3.6). (verify.)
• Clotheslines are commonly described as protected as "solar energy devices," but this rests on interpretation of the solar statute, not an express clothesline provision. (verify — not confirmed.)
• Rentals: effective July 1, 2026 (HEA 1210), local rental-cap ordinances are preempted and an HOA may restrict rentals only through the statutory member-vote process. (verify code section.)

Fair housing & assistance animals

• Housing discrimination by associations is prohibited by the federal Fair Housing Act and the Indiana Fair Housing Act / Indiana Civil Rights Law, Ind. Code § 22-9.5, covering disability among other protected classes.
• Associations must make reasonable accommodations, including allowing service animals and emotional-support animals notwithstanding a "no pets" or breed/size rule; an ESA is treated as an assistance animal, not a pet. The association may conduct a "meaningful review" and request information establishing the disability and disability-related need where not obvious. (Indiana has no HOA-specific assistance-animal statute; this rests on the FHA/ICRL and HUD guidance — verify.)
• Complaints may be filed with the Indiana Civil Rights Commission or HUD, generally within one (1) year of the discriminatory act (Ind. Code § 22-9.5). (verify limitation period.)

Required disclosures

• Budget disclosure: the proposed annual budget (or free-copy notice) and notice of any assessment change must be provided to members before the budget meeting (Ind. Code § 32-25.5-3-3(c)).
• Records on request: financial records and minutes must be made available to members as described in Records access above (Ind. Code § 32-25.5-3-3(g)).
• Resale/payoff letters: Indiana had no detailed statutory resale-certificate regime pre-2026. Effective July 1, 2026 (HEA 1115), the fee for a resale/payoff letter is capped at $50 (down from a reported $250), and a simple account-balance statement must be provided free. (verify code section and prior cap — new.)
• Indiana imposes no annual "policy statement" or reserve-disclosure package comparable to California's. (IN gap.)

Dispute resolution

• Chapter 5 grievance resolution (Ind. Code § 32-25.5-5) is mandatory before most litigation: a claimant may not file a legal proceeding on a covered claim until completing the grievance process (Ind. Code § 32-25.5-5-9).
• Exempt claims (which skip the process) include the association's collection of assessments/dues, emergency injunctive relief, and claims facing an imminent limitations deadline (Ind. Code § 32-25.5-5-4) — so foreclosure/collection is generally not blocked by the grievance step. (verify applicability to a specific dispute.)
• Process: the claimant serves a written notice of claim stating the nature, basis, and requested resolution (Ind. Code § 32-25.5-5-10); the respondent may request a meeting within 10 business days, and the parties meet in good faith (Ind. Code § 32-25.5-5-11).
• At impasse, either party may, within 10 days, request mediation or binding arbitration (the requesting party pays the mediator/arbitrator); if neither is requested or it fails, the claimant may begin legal proceedings (Ind. Code §§ 32-25.5-5-12, -5-13).
• A party that prevails in enforcing a signed settlement may recover court costs and attorney's fees (Ind. Code § 32-25.5-5-14); otherwise each party bears its own costs (Ind. Code § 32-25.5-5-17).

Recent changes (2022–2026)

• HEA 1196 (2022): enacted the HOA solar statute, Ind. Code § 32-25.5-3.5, barring associations from denying qualifying rooftop solar once the owner meets the petition/65%-signature requirement.
• HEA 1115 (eff. July 1, 2026): grants statutory fine authority to all associations (with a required fine schedule and notice), eliminates member document-request fees and requires free account statements, caps resale/payoff-letter fees at $50, and adds a ≥4-day meeting-notice-with-agenda rule plus virtual quorum. (verify code sections — very recent.)
• HEA 1150 (eff. July 1, 2026): protects U.S./Indiana flag display and flagpoles (Ind. Code § 32-21-13.5), bars fuel-source discrimination against vehicles/outdoor equipment (Ind. Code § 32-25.5-3.6), and restricts automated license-plate readers on association property. (verify.)
• HEA 1152 (eff. July 1, 2026): lowers the no-quorum budget ceiling to 105% for associations formed after that date, bars extra service fees outside dues/fines, and protects Class I in-home childcare. (verify code sections.)
• HEA 1210 (eff. July 1, 2026): preempts local rental-cap ordinances and limits HOA rental restrictions to the statutory member-vote process. (verify.)

Sources

• Indiana Homeowners Associations Act, Ind. Code § 32-25.5 (full article text) — https://iga.in.gov/laws/2024/ic/titles/32 ; § 32-25.5-3-3 (budget, records, meetings, retention, search fees) — https://law.justia.com/codes/indiana/title-32/article-25-5/chapter-3/section-32-25-5-3-3/ and https://codes.findlaw.com/in/title-32-property/in-code-sect-32-25-5-3-3/
• Chapter 3 overview (special meetings, contracts, borrowing, voting, amendments, proxies, quorum) — https://law.justia.com/codes/indiana/title-32/article-25-5/chapter-3/
• HOA Liens Act, Ind. Code § 32-28-14 — § 32-28-14-8 (90-day/5-year limits) https://codes.findlaw.com/in/title-32-property/in-code-sect-32-28-14-8/ ; § 32-28-14-9 (owner demand voids lien after 1 year) https://codes.findlaw.com/in/title-32-property/in-code-sect-32-28-14-9/ ; chapter overview https://www.lawserver.com/law/state/indiana/in-code/indiana_code_title_32_article_28_chapter_14
• Condominium Act lien, Ind. Code § 32-25-6-3 — https://law.justia.com/codes/indiana/title-32/article-25/chapter-6/section-32-25-6-3/
• Solar statute, Ind. Code § 32-25.5-3.5 (HEA 1196, 2022) — https://law.justia.com/codes/indiana/title-32/article-25-5/chapter-3-5/ ; bill https://iga.in.gov/legislative/2022/bills/house/1196 ; firm analyses https://www.eadsmurraypugh.com/blog/solar-panel-law-limits-powers-of-indiana-homeowners-associations and https://www.ksnlaw.com/blog/indiana-solar-panels-hoa-associations/
• Fair housing / assistance animals — Indiana Civil Rights Law, Ind. Code § 22-9.5; IHCDA ESA fact sheet https://www.in.gov/ihcda/files/Emotional_Support_Animal.pdf ; Fair Housing Center of Central Indiana https://www.fhcci.org/programs/education/disability/
• 2026 legislation (HEA 1115 / 1150 / 1152 / 1210) — KSN Law Firm summary https://www.ksnlaw.com/blog/2026-legislative-updates-indiana-community-associations/ ; The Indiana Lawyer overview https://www.theindianalawyer.com/articles/chip-garver-and-lacey-berkshire-legislatures-overhaul-expands-housing-supply-reins-in-hoas ; flag/EV bill (HEA 1150) https://iga.in.gov/legislative/2026/bills/house/1150 ; WTHR new-laws roundup https://www.wthr.com/article/news/politics/what-new-indiana-laws-go-into-effect-on-july-1-crime-haileys-law-hoa-school-cellphone-social-media-bills-police-violent-children-grooming/531-89881f5d-a77f-4925-9aec-49aea599d7c5

HOA laws in other states

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