The Indiana Homeowners Association Act governs the formation, management, and operation of HOAs in Indiana. Enacted for associations established after June 30, 2009, it outlines the obligations of associations regarding budgets, member rights, and the assessment of mandatory dues.
Unlike some states that have specific governmental agencies dedicated to regulating HOAs, Indiana does not have a single state agency that directly oversees these associations. Instead, the regulation of HOAs in Indiana is primarily governed by state statutes, the association's governing documents, and the courts.
Fines. Homeowner's associations in Indiana have the authority to penalize property owners for violations and unpaid dues.
Once you buy a home that's part of an HOA, you automatically become a member of the HOA. HOA rules are legally binding, and you must adhere to all rules and regulations in the governing document. Yes, there are bylaws that you may not like, but there are no HOA loopholes.
Yes, you can sue an HOA in Indiana if you believe that the association has acted unlawfully, breached its fiduciary duty, or violated the terms of the governing documents. However, it is important to explore alternative dispute resolution methods and consult with an experienced attorney before taking legal action.
Homeowners associations in Indiana generally have the ability to impose rental restrictions on owners. No special requirements exist as of writing. That said, it is best for HOAs that wish to restrict rentals to include such restrictions in their governing documents to avoid conflict.
Due to court decisions, describing HOAs as a kind of private entity, HOA boards of directors are not bound by constitutional restrictions on governments—although they are de facto a level of government.
In summary, there is no case where HOA rules override state law. Considering the hierarchy, federal, state, and local laws always take precedence over an association's rules. Board members should have a solid grasp of these laws. In doing so, they can protect the HOA and mitigate the risk of liability.
Yes, state laws generally come first before HOA rules. Federal and state laws take precedence over all other association documents, including the CC&Rs and the operating rules. For instance, in California, Civil Code Section 4715 states that HOAs can't prohibit owners from keeping at least one pet.