Indiana HOA Law Changes 2021–2025: What Every Board Needs to Know

<h2>Overview of Indiana HOA Law Changes 2021–2025</h2>

<p>Indiana homeowners associations were historically governed almost entirely by their governing documents and general contract law — the state lacked a comprehensive HOA statute until 2022. The enactment of IC 32-25.5 (Indiana Homeowners Association Act) in 2022 was the most significant development in Indiana community association law in decades. Subsequent sessions added solar energy rights, electronic voting authority, fine due process reform, and reserve fund disclosure requirements. Here is a session-by-session breakdown.</p>

<h2>2022 Legislative Session</h2>

<h3>SEA 286 — Indiana Homeowners Association Act Enacted (IC 32-25.5)</h3>

<p>Indiana enacted IC 32-25.5, the Indiana Homeowners Association Act, providing a comprehensive statutory framework for the first time. Before this Act, Indiana HOA governance was almost entirely governed by individual association's CC&amp;Rs and bylaws, with courts applying general contract principles. The Act imposes the following requirements on Indiana HOAs:</p>

<ul>

<li><strong>Annual disclosure notice:</strong> Associations must provide members with an annual disclosure notice covering the association's current budget, reserve fund status, and contact information for the board.</li>

<li><strong>Written fine and enforcement policy:</strong> Associations must adopt a written policy specifying violation categories, fines, and member hearing rights before any fine may be imposed.</li>

<li><strong>Financial record access:</strong> Members have a statutory right to inspect and copy the association's financial records, meeting minutes, and governing documents.</li>

<li><strong>Board elections:</strong> Board elections must be conducted by written ballot.</li>

</ul>

<p>Existing Indiana HOAs had one year from the Act's effective date to come into compliance with these requirements. Boards that have not yet adopted an annual disclosure notice, a written fine policy, and a written record access procedure are operating in violation of Indiana law.</p>

<h3>HB 1278 — Assessment Lien and Collections Procedures</h3>

<p>HB 1278 established statutory procedures for HOA assessment liens under IC 32-28-14, bringing Indiana in line with most other states. Before filing an assessment lien, associations must provide a 30-day notice of delinquency, delivered in a manner reasonably calculated to provide actual notice to the owner. The lien must be recorded with the county recorder and served on the owner at the property address. Foreclosure of the lien requires a court order and may not proceed for a delinquency of less than $1,000 in principal assessments, excluding fees and interest. Indiana boards should update their collections policies to reflect the new statutory lien procedures.</p>

<h2>2023 Legislative Session</h2>

<h3>SEA 381 — Solar Panel Installation Rights</h3>

<p>SEA 381 prohibited Indiana HOAs from adopting or enforcing any covenant, condition, or restriction that prohibits the installation of solar energy systems on a member's property. Associations may require that panels be installed on rear-facing roof slopes where technically feasible and may impose reasonable maintenance standards — panels must be kept in working order and not permitted to become visually dilapidated. Associations may not require removal of compliant solar panels upon the sale of the property to a new owner. Any existing restriction that amounts to an outright solar ban is now unenforceable. Indiana boards should conduct a governing document audit and repeal non-compliant solar restrictions before the next ARC request for a solar installation is received.</p>

<h3>HB 1346 — Electronic Meeting and Voting Rights</h3>

<p>HB 1346 amended IC 32-25.5 to expressly authorize electronic voting for board elections and member votes, and to allow board meetings to be conducted by video conference. Boards must adopt a written electronic voting policy before administering the first electronic election. The policy must notify members of the electronic voting option at least 30 days in advance, ensure the ballot process prevents duplicate voting, and require that votes be counted by a neutral party not standing for election. Boards that want to modernize their elections by offering electronic voting options should adopt a compliant written policy before the next election cycle.</p>

<h2>2025 Legislative Session</h2>

<h3>SB 417 — Fine Due Process Reform</h3>

<p>SB 417 amended IC 32-25.5 to require Indiana HOAs to provide a written notice of violation and a 14-day opportunity to cure before assessing any fine. The written notice must identify the specific governing document provision alleged to have been violated, describe the observed violation, and state the date by which the violation must be cured. After the cure period, the association must offer the owner a hearing before the board within 21 days if the owner requests one. Fines may not accrue during the pendency of a timely requested hearing. Boards that have been imposing fines without this notice-and-hearing process must immediately update their enforcement procedures to comply with Indiana law.</p>

<h3>HB 1562 — Reserve Fund Disclosure</h3>

<p>HB 1562 required Indiana HOAs with 50 or more lots to include a reserve fund summary with the annual disclosure notice required by IC 32-25.5. The summary must identify the major capital components of the common area (roads, parking areas, pool equipment, amenity facilities), the estimated remaining useful life of each component, and the projected replacement cost for each component over the next 10 years. The summary does not require a full reserve study performed by a certified analyst — a board-prepared good-faith assessment is sufficient — but the board must be able to document the basis for its estimates. This requirement gives large Indiana HOA members meaningful information about the association's long-term capital planning.</p>

<h2>Board Action Checklist</h2>

<ul>

<li>Adopt an annual disclosure notice complying with IC 32-25.5 — distribute within 120 days of fiscal year end</li>

<li>Adopt a written fine and enforcement policy specifying violation categories, fines, and hearing rights</li>

<li>Establish a written financial record inspection procedure with a statutory response timeline</li>

<li>Update collections policy to reflect IC 32-28-14 lien notice and minimum delinquency requirements</li>

<li>Audit CC&amp;Rs for solar installation prohibitions and repeal any outright bans</li>

<li>Adopt a written electronic voting policy if the board intends to offer electronic elections</li>

<li>Update enforcement procedures to include 14-day cure notice and 21-day hearing right before any fine</li>

<li>Prepare a reserve fund component summary for the annual disclosure (50+ lot associations)</li>

</ul>

<h2>How APM Helps Indiana HOA Boards Stay Compliant</h2>

<p>APM's remote HOA management service helps Indiana community associations navigate the new IC 32-25.5 framework and subsequent legislative updates. Our compliance team provides updated policy templates, annual disclosure preparation support, and collections workflow guidance aligned with Indiana law. <a href="/remote-hoa-management/indiana">Learn about our Indiana remote management services</a>.</p>

<p><em>Legal disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed Indiana attorney for guidance specific to your community.</em></p>