Many courts throughout Indiana closed their doors to the public in the past weeks making it difficult for community associations and landlords to pursue their legal matters. On March 19, 2020, Governor Holcomb signed Executive Order 20-06 prohibiting the initiation of foreclosure matters and stays all eviction orders until the state of emergency has terminated. This was reaffirmed on March 23, 2020 when Governor Holcomb signed Executive Order 20-08 mandating that Hoosiers stay home unless essential travel is necessary.
What does all of the order mean for associations throughout Indiana?
Unless a foreclosure action was filed prior to March 19, 2020, associations will have to wait for the state of emergency to end before future foreclosures can be pursued. At the same time, landlords who were in the process of evicting tenants must sit back and wait. While it may seem that community associations and landlords have little remedy during these historic times, Executive Order 20-06 makes clear that owners must continue to pay their rent, mortgage, or any other obligations under a tenancy. Owners should continue to pay assessments and owners should continue paying rent.
Courts around the state have now officially closed their doors to the general public. This does not mean that all legal matters must come to a halt. Courts are still accepting filings as well as lawsuits for unpaid assessments. It is unlikely that the court will schedule a hearing in the coming weeks but a hearing will eventually be set. Hearings regarding covenant violations that pose a health risk to the community are still moving forward. However, courts are attempting to utilize telephonic appearances.
It is expected that many courts will begin to open to the public around the mid to end of April. Some courts estimate opening in mid-May. These dates are constantly changing as new information regarding the coronavirus (also known as COVID-19) surfaces. Along with landlords, many condominium, homeowner, and townhome community associations throughout Indiana appear to be working with delinquent accounts by reviewing late fees and attempting to work out agreements until courts completely open. While associations are encouraged to work with owners, it is important that board members follow the governing documents and do not violate their fiduciary duty to the community.
If KSN can answer any legal questions or assist your board, do not hesitate to contact our law firm. Please call 855-537-0500 or visit www.ksnlaw.com.
Since 1983, KSN has been a legal resource for condominium, homeowner, and townhome associations. We have four office locations, serving hundreds of clients and thousands of communities throughout Illinois, Indiana, and Wisconsin. Our attorneys are also licensed in Arizona, Florida, and Missouri.
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