- Community Associations, Legal Updates
- Indiana
In a very active legislative session in Indiana, both HB1152 and HB1115 have moved through the legislature and are scheduled to proceed. KSN attorneys, along with the CAI legislative action committee, have spent a significant amount of time over the past few weeks meeting with legislators, lobbyists and other stakeholders to push for revisions to the bills.
Unfortunately, in mid-February, an amendment was proposed on both bills, adding language that would prohibit homeowner associations, their agents, and management companies from charging any homeowner fee unless that fee is expressly listed in the association’s recorded governing documents. This language effectively prevents associations/management companies from charging a fee for a payoff/resale letter to the owner requesting such service.
Impact to Indiana Community Associations
To summarize, critics of the proposed bills argue the proposed language of these amendments has the following potential effects:
- The language added to HB 1115 and HB 1152 in the Senate removes the current $250 cap on payoff letters.
- The language shift costs for services to all homeowners, rather than the owner requesting the service.
- The language removes transparency in the amount of fees that are charged, as agents will be forced to combine fees into larger service contracts.
- The language creates unintended consequences to Hoosier homeowners and will result in increased costs and fees.
- The language that was added is overly broad and prevents associations from charging necessary fees for services.
Many homeowners and other stakeholders are petitioning legislators, asking for this language to be narrowed or changed in both bills before final approval by the legislature.
These implications affect not only boards and managers, but also the homeowners who rely on associations to maintain property values, financial stability, and community standards.
Legislative Engagement and Action
There is still time for HB 1115 to be reviewed in conference committee and for the language to be narrowed and revised. Unless language is revised in HB1115, then the provisions of HB1152 will become law and will affect nearly all community associations in Indiana.
We strongly encourage boards, community association managers, and industry stakeholders to remain engaged as HB 1152 and HB 1115 continue through the legislative process. Changes of this magnitude require input from those who understand how community associations function in practice.
You may wish to:
- Monitor the progress of HB 1152 and HB 1115 during the current legislative session
- Communicate concerns to your local legislators and committee members
- Share this information with board members and industry colleagues
- Reach out for guidance on how this legislation may impact your association
Legal Resource
KSN will continue to monitor these legislative changes closely and provide updates as developments occur. Please contact us if you have questions regarding the proposed Indiana legislation or would like assistance engaging with legislators.
Please call 855-537-0500 or visit www.ksnlaw.com.
Since 1983, KSN has been a legal resource for condominium, homeowner, and townhome associations. Additionally, we represent clients in real estate transactions, collections, landlord/tenant issues, and property tax appeals. We represent thousands of clients and community associations throughout the US with offices in several states including Florida, Illinois, Indiana, and Wisconsin.
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