HB 1115

           Second Regular Session of the 124th General Assembly (2026)
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 2025 Regular Session of the General Assembly.
    HOUSE ENROLLED ACT No. 1115
    AN ACT to amend the Indiana Code concerning property.
    Be it enacted by the General Assembly of the State of Indiana:
    SECTION 1. IC 32-21-5-8.5, AS AMENDED HEA 1152-2026,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 8.5. (a) This section applies to all transfers of title
to property after June 30, 2015.
    (b) The definitions in IC 32-25.5-2 apply in this section.
    (c) As used in this section, "property" refers to real property covered
by the governing documents of a homeowners association.
    (d) As used in this section, "purchaser" refers to a person who
purchases property.
    (e) The following must be provided by the seller to a purchaser not
later than ten (10) days before the sale of the property closes:
      (1) A disclosure 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 following information about 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:
         (A) The name.
         (B) The business or home address.
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    (f) In the case of a resale or refinance of property subject to this
section, a homeowners association or agent of a homeowners
association providing a statement of unpaid assessments or other
charges of the homeowners association relating to the property may not
charge a fee more than fifty dollars ($50) for the statement.
    (g) The failure to provide any of the documents listed in subsection
(e) does not limit or prevent enforcement of the governing documents
by the homeowners association.
    SECTION 2. IC 32-25.5-1-1, AS AMENDED BY P.L.27-2017,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 1. (a) Subject to subsection (b), this article applies
to the following:
       (1) A homeowners association established after June 30, 2009,
       that is authorized to impose mandatory dues on the homeowners
       association's members.
       (2) A homeowners association established before July 1, 2009:
          (A) if a majority of the members of the homeowners
          association elect to be governed by this article; or
          (B) if the number of members required by the homeowners
          association's governing documents elect to be governed by this
          article if a different number of members other than the number
          established in clause (A) is required by the governing
          documents.
    (b) The following apply to all homeowners associations, including
a homeowners association described in subsection (a)(2), regardless of
whether the members of the homeowners association have elected
under subsection (a)(2)(A) or (a)(2)(B) to be governed by this article:
       (1) IC 32-25.5-3-2(c).
       (1) (2) IC 32-25.5-3-3(g) IC 32-25.5-3-3(e) through
       IC 32-25.5-3-3(m). IC 32-25.5-3-3(o).
       (2) (3) IC 32-25.5-3-9.
       (3) (4) IC 32-25.5-3-10.
       (4) (5) IC 32-25.5-3-11.
       (6) IC 32-25.5-3-12.
       (5) (7) IC 32-25.5-4.
       (6) (8) IC 32-25.5-5.
    SECTION 3. IC 32-25.5-3-2, AS AMENDED BY P.L.1-2010,
SECTION 128, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 2. (a) In addition to any other
meeting held by a board, a board shall hold a special meeting of the
members of a homeowners association if at least ten percent (10%) of
the members of the homeowners association submit to the board at
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least one (1) written demand for the special meeting that:
      (1) describes the purpose for which the meeting is to be held; and
      (2) is signed by the members requesting the special meeting.
   (b) If a board does not send out a notice of the date, time, and place
for a special meeting not more than thirty (30) days after the date the
board receives a valid written demand for the special meeting under
subsection (a), a member of the homeowners association who signed
the written demand may:
      (1) set the date, time, and place for the special meeting; and
      (2) send out the notice for the special meeting to the other
      members.
   (c) In the meeting notice of the board's annual meeting, the
board shall include a written statement that:
      (1) notifies homeowners association members of the right to
      demand a special meeting of the members under this section;
      and
      (2) states the number of members required to demand a
      special meeting, as determined under subsection (a);
in accordance with section 3(g) of this chapter.
   SECTION 4. IC 32-25.5-3-3, AS AMENDED HEA 1152-2026,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 3. (a) A homeowners association shall prepare an
annual budget.
   (b) The annual budget must reflect:
      (1) the estimated revenues and expenses for the budget year; and
      (2) the estimated surplus or deficit as of the end of the current
      budget year.
   (c) The homeowners association shall provide each member of the
homeowners association with:
      (1) a:
         (A) copy of the proposed annual budget; or
         (B) written notice that a copy of the proposed annual budget
         is available upon request at no charge to the member; and
      (2) a written notice of the amount of any increase or decrease in
      a regular annual assessment paid by the members that would
      occur if the proposed annual budget is approved;
before the homeowners association meeting held under subsection (d).
   (d) Subject to subsection (f) and section 3.1 of this chapter, a
homeowners association budget must be approved at a meeting of the
homeowners association members by a majority of the members of the
homeowners association in attendance at a meeting called and
conducted in accordance with the requirements of the homeowners
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association's governing documents.
    (e) For purposes of this section, a member of a homeowners
association is considered to be in attendance at a meeting if the
member attends:
       (1) in person;
       (2) by proxy; or
       (3) by remote or virtual means in accordance with the
       procedures set forth in IC 23-17-10-1(d) through
       IC 23-17-10-1(f); or
       (3) (4) by any other means allowed under:
          (A) state law; or
          (B) the governing documents of the homeowners association.
    (f) Except as provided in sections 3.1, 3.2, and 3.3 of this chapter,
if the number of members of the homeowners association in attendance
at a meeting held under subsection (d) does not constitute a quorum as
defined in the governing documents of the homeowners association, the
board may adopt an annual budget for the homeowners association for
the ensuing year in an amount that does not exceed one hundred
percent (100%) of the amount of the last approved homeowners
association annual budget.
    (g) Subject to subsection (k):
       (1) the financial records, including all contracts, invoices, bills,
       receipts, and bank records, of a homeowners association must be
       available for inspection by each member of the homeowners
       association upon written request; and
       (2) the minutes of meetings of the homeowners association board,
       including the annual meeting, must be available to a member of
       the homeowners association for inspection upon the homeowners
       association member's request, which may be submitted:
          (A) in person;
          (B) in writing; or
          (C) by electronic mail or other electronic means.
       In addition to the right to inspect the meeting minutes of the
       homeowners association board, a member of a homeowners
       association has the right to attend any meeting of the homeowners
       association board, including an annual meeting of the board. For
       each meeting of the homeowners association board, the board
       must provide at least four (4) days advance written notice of
       the meeting to members of the homeowners association. The
       meeting notice must include an agenda for the meeting. The
       meeting notice for the annual meeting of the board must also
       include a statement of the right of homeowners association
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       members to demand a special meeting of the members under
       section 2 of this chapter, including a statement of the number
       of members required to demand a special meeting, as
       determined under section 2(a) of this chapter. The board may
       provide a written meeting notice required under this
       subsection by hand delivery, United States mail, or electronic
       mail or other electronic means. However, the board of directors
       may meet in private to discuss delinquent assessments. The board
       of directors may also meet in private with legal counsel to discuss
       the initiation of litigation or to discuss litigation that either is
       pending or has been threatened specifically in writing. As used in
       this subsection, "litigation" includes any judicial action or
       administrative law proceeding under state or federal law.
A written request for inspection must identify with reasonable
particularity the information being requested. A member's ability to
inspect records under this section shall not be unreasonably denied or
conditioned upon provision of an appropriate purpose for the request.
The homeowners association may not charge a fee for the copying of
a record requested under this subsection if the homeowners association
member requests a written copy of the record.
    (h) Subject to subsections (j) and (k), if there is a dispute between
a homeowner and a homeowners association, the officers of the
homeowners association must make all communications concerning the
dispute available to the homeowner.
    (i) Subject to subsections (j) and (k), the following apply:
       (1) A homeowners association shall make all communications and
       information concerning a lot available to the owner of the lot or
       a home on the lot.
       (2) If a homeowners association initiates communication with any
       member about another member's lot, the homeowners association
       must give a copy of that communication to the other member
       whose lot is the subject of the communication. However, this
       subdivision does not apply if the communication concerns
       suspected criminal activity, or activity that is the subject of a law
       enforcement investigation, involving the member whose lot is the
       subject of the communication.
    (j) A homeowners association is not required to make:
       (1) communications between the homeowners association and the
       legal counsel of the homeowners association; and
       (2) other communications or attorney work product prepared in
       anticipation of litigation;
available to the owner of a lot or home.
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    (k) A homeowners association is not required to make available to
a member for inspection any of the following:
       (1) Unexecuted contracts.
       (2) Records regarding contract negotiations.
       (3) Information regarding an individual member's association
       account to a person who is not a named party on the account.
       (4) Any information that is prohibited from release under state or
       federal law.
       (5) Any records that were created more than two (2) years before
       the request.
       (6) Information that:
          (A) is provided by a member of the homeowners association
          about another member of the homeowners association; and
          (B) concerns suspected criminal activity involving the other
          member.
Except as otherwise provided in this article (including subsection (j)
and this subsection), other applicable law, or the governing documents
of the homeowners association, a homeowners association is not
required to retain a record of a written or electronic communication for
any specific period of time. However, a homeowners association or a
member of the board of a homeowners association shall retain for at
least two (2) years after receipt, the date it is received or sent, and
during that period shall make available to a member of the homeowners
association at the member's request, any written or electronic
communication received or sent by the homeowners association or
board member that relates to a financial transaction of the homeowners
association and that is not otherwise excepted from disclosure under
this article or other applicable law.
    (l) Except for information described in subsection (k)(4), nothing
in this chapter:
       (1) abrogates or eliminates provisions in homeowners association
       agreements that permit or require additional disclosure or
       inspection rights not required by this chapter; or
       (2) prevents a homeowners association from agreeing to make
       disclosures or to provide inspection rights not required by this
       chapter.
    (m) A homeowners association may not charge a fee to search for
a record in response to a written request submitted under this chapter.
    (n) Notwithstanding any other law, a homeowners association, an
agent of a homeowners association, or a homeowners association
management company may not charge a homeowner a fee associated
with any service services that are included in the homeowner's
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association assessment and provided by the homeowners association,
other than agent of the homeowners association, or homeowners
association management company, including services related to:
     (1) waste management for common areas;
     (2) maintenance of common areas;
     (3) landscaping of common areas;
     (4) maintenance of common amenities;
     (5) security for the subdivision; or
     (6) administrative duties.
This subsection does not prohibit a homeowners association, an
agent of a homeowners association, or a homeowners association
management company from charging a homeowner a fee for any
optional service that is offered to a homeowner in connection with
the homeowner's individual lot, parcel, tract, unit, or interest in the
subdivision and that the homeowner opts to receive from the
homeowners association, agent of the homeowners association, or
homeowners association management company. However, any
service that is included in a homeowners association assessment
may not be reclassified as an optional service and charged as a
separate fee unless such reclassification is approved by a majority
of the members of the homeowners association in attendance at a
meeting (as determined under subsection (e)) called and conducted
in accordance with the requirements of the homeowners
association's governing documents. A schedule of any optional
services offered by the homeowners association, an agent of the
homeowners association, or a homeowners association
management company must be approved by the board and
distributed to members of the homeowners association on at least
an annual basis and whenever there is a change in the fees for any
of the offered services. The amount of any unpaid fee for an
optional service provided to a homeowner under this subsection
does not constitute a lien against the homeowner's property. This
subsection does not abrogate or limit the authority of a
homeowners association to charge or collect the homeowners
association dues assessments or fines expressly identified in the
homeowners association's governing documents. This subsection does
not affect the ability of a homeowners association, an agent of a
homeowners association, or a homeowners association
management company to take debt collection efforts for dues
assessments, fees for optional services, or fines allowable under the
homeowners association's governing documents.
   (o) Notwithstanding any other law, a homeowners association,
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an agent of a homeowners association, or a homeowners
association management company may not charge a homeowner a
fee associated with the production of a statement of account setting
forth the amount of any unpaid assessments or other charges due
and owing from the homeowner. An account statement must be
maintained by the homeowners association or its agent, and must
be provided to a homeowner upon request.
   SECTION 5. IC 32-25.5-3-9, AS AMENDED BY P.L.164-2016,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 9. (a) The governing documents must contain a
provision allowing the owners to amend the governing documents at
any time, from time to time, subject to the following:
     (1) The declarant's consent to an amendment may be required if:
        (A) the declarant owns one (1) or more units within the
        subdivision; and
        (B) not more than seven (7) years have passed since the
        original governing documents were first recorded.
     (2) The consent of the owners to the amendment has been
     obtained as evidenced by either of the following:
        (A) The vote of the owners at a meeting duly called for the
        purpose of considering the amendment, including a special
        meeting called upon the demand of members of the
        homeowners association under section 2 of this chapter.
        (B) A written instrument signed by the owners.
     The governing documents may not require that the consent of
     more than seventy-five percent (75%) two-thirds (2/3) of the
     owners is be required for consent under this subdivision.
     (3) If the consent of first mortgage holders is required, only first
     mortgage holders that provide an address to the secretary of the
     board must be notified. The consent of a first mortgage holder
     must be indicated in a written instrument signed by the mortgage
     holder. However, a mortgage holder is considered to have
     consented to a proposed amendment if the mortgage holder does
     not respond to a written request for consent within thirty (30) days
     after the mortgage holder receives the request. The governing
     documents may not require that the consent of more than
     seventy-five percent (75%) two-thirds (2/3) of first mortgage
     holders eligible to receive notice is be required for consent under
     this subdivision.
     (4) Notwithstanding subdivisions (1) through (3), the governing
     documents may require the approval of at least ninety-five percent
     (95%) of the owners to convey common areas or to dissolve the
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      plan of governance for the homeowners association.
    (b) A homeowners association or the board may not enforce a
provision of the governing documents that conflicts with this
section.
    SECTION 6. IC 32-25.5-3-12 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 12. (a) A homeowners association
may assess a fine for a member's violation of a covenant described
in IC 32-25.5-2-3(2) if the board first adopts a schedule of fines that
sets forth:
      (1) the covenant violations that are subject to a fine;
      (2) the amount of the fine that applies to each violation
      identified under subdivision (1);
      (3) if any of the fines listed in subdivision (2) will be assessed
      on an ongoing or recurring basis:
          (A) for a defined period or a specified number of days; or
          (B) until the violation is cured or another contingency
          occurs;
      a statement of that fact, along with a description of how the
      fine will be calculated and assessed; and
      (4) a maximum aggregate fine amount for any single violation.
      A fine assessed on an ongoing or recurring basis may not
      exceed the maximum aggregate amount stated in the schedule
      of fines.
    (b) If the board will adopt a schedule of fines under this section
at a meeting of the board, the board shall give notice of the meeting
to members in accordance with the homeowners association's
governing documents. The notice must include the proposed
schedule of fines.
    (c) A schedule of fines adopted under this section must be
available to any member for inspection upon the member's request,
which may be submitted:
      (1) in person;
      (2) in writing; or
      (3) by electronic mail or other electronic means.
    (d) The board may, from time to time, amend or repeal a
schedule of fines adopted under this section if notice of:
      (1) the amendment or repeal, including the amended schedule
      of fines in the case of an amendment; and
      (2) any meeting held to adopt the amendment or repeal;
is given to members in accordance with the homeowners
association's governing documents.
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    (e) Members may submit to the board under section 2 of this
chapter a written demand for a special meeting of the members of
the homeowners association for the purpose of voting to amend a
schedule of fines adopted under this section. An amended schedule
of fines shall be:
      (1) adopted as proposed; or
      (2) revised and adopted;
if so approved by a majority of members present at the meeting.
    (f) After a schedule of fines has been adopted under this section,
the board may assess a member a fine for a violation included in
the schedule of fines under subsection (a)(1) if the board first
provides notice to the member of:
      (1) the violation for which the fine will be assessed;
      (2) the amount of the fine;
      (3) the date on which the fine will be assessed; and
      (4) if the fine will be assessed on an ongoing or recurring
      basis:
          (A) for a defined period or a specified number of days; or
          (B) until the violation is cured or another contingency
          occurs;
      a statement of that fact, along with a description of how the
      fine will be calculated and assessed.
    (g) If a member is assessed a fine under this section, the amount
of the fine that has accrued must be available to the member upon
the member's request, which may be submitted:
      (1) in person;
      (2) in writing; or
      (3) by electronic mail or other electronic means.
    (h) The assessment of a fine by a homeowners association under
this section does not operate as a waiver of the homeowners
association's rights to pursue alternative remedies provided for in
the homeowners association's governing documents, including any
right to injunctive relief or to pursue a claim for damages.
    SECTION 7. IC 32-25.5-5-4, AS ADDED BY P.L.141-2015,
SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 4. As used in this chapter, "exempt claim" refers
to any of the following claims or actions:
      (1) A claim by the homeowners association for assessments or
      dues and any action by the association to collect assessments or
      dues. This subdivision does not include a claim that involves
      the assessment or enforcement of a fine under IC 32-25.5-3-12
      by a homeowners association for a member's violation of a
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     covenant of the homeowners association.
     (2) An action by a party to obtain a temporary restraining order or
     equivalent emergency equitable relief:
         (A) to maintain the status quo and preserve the party's ability
         to enforce the governing documents; or
         (B) when an emergency condition exists that jeopardizes the
         health or safety of any of the residents within the community
         governed by the homeowners association.
     (3) A suit to which an applicable statute of limitations would
     expire within the notice period. This subdivision does not apply
     if a party against which the claim is made agrees to toll the statute
     of limitations as to the claim for the period reasonably necessary
     to comply with this chapter.
     (4) A dispute that is subject to mediation, arbitration, or other
     alternate dispute resolution under applicable law, contract,
     warranty agreement, or other instrument.
     (5) A claim that is substantively identical to a claim:
         (A) that was previously addressed by the parties; or
         (B) that was resolved by a judicial determination in favor of
         one (1) of the parties.
   SECTION 8. IC 32-25.5-5-10, AS ADDED BY P.L.141-2015,
SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 10. A claimant must provide notice of the claim
to the respondent, stating plainly and concisely the following
information:
     (1) The nature of the claim, including the date, time, location,
     persons involved, and the respondent's role in the claim.
     (2) The basis of the claim, including the provision of the
     governing documents or other authority out of which the claim
     arises.
     (3) What the claimant wants the respondent to do or not to do to
     resolve the claim.
     (4) That the respondent has a right to meet with the claimant, if
     the respondent makes a written request for a meeting not later
     than ten (10) business days after the date of the notice.
     (5) The name and address of the person from whom the
     respondent must contact to:
         (A) request a meeting under subdivision (4); or
         (B) provide notice that the violation on which the claim is
         based has been cured.
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Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date:  Time:
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