First Regular Session 116th General Assembly (2009)
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HOUSE ENROLLED ACT No. 1071
AN ACT to amend the Indiana Code concerning property.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-1.1-12.6-2.1; (09)HE1071.1.1. -->
SECTION 1. IC 6-1.1-12.6-2.1 IS ADDED TO THE INDIANA
CODE AS A NEW
SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 2.1. (a) This section applies
only to a model residence that is first assessed as:
(1) a partially completed structure; or
(2) a fully completed structure;
for the assessment date in 2008 and was still a model residence on
January 1, 2009.
(b) Except as provided in subsection (c) and sections 4, 5, and 6
of this chapter, and subject to sections 7 and 8 of this chapter, an
owner of a model residence is entitled to a deduction from the
assessed value of the model residence in the amount of fifty percent
(50%) of the assessed value of the model residence for the 2008
assessment date. A deduction under this section counts as a
deduction for an assessment date for purposes of section 2 of this
(c) A property owner that qualifies for the deduction under this
section must file a statement containing the information required
by subsection (d) with the county auditor to claim the deduction for
the 2008 assessment date in the manner prescribed in emergency
rules, which shall be adopted by the department of local
government finance under IC 4-22-2. The township assessor shall
verify each statement filed under this section, and the county
(1) make the deductions; and
(2) notify the county property tax assessment board of appeals
of all deductions approved;
under this section. If the property taxes due for the 2008
assessment date have been paid, the person that paid the property
taxes is entitled to a refund of the amount that has been overpaid
after applying the deduction under this section. A property owner
is not required to apply for a refund due under this section. The
county auditor shall, without an appropriation being required,
issue a warrant to the property owner payable from the county
general fund for the amount of the refund due the property owner.
In the June or December settlement and apportionment of taxes,
or both, immediately following a refund made under this section
the county auditor shall deduct the amount refunded from the
gross tax collections of the taxing units for which the refunded
taxes were originally paid and shall pay the amount so deducted
into the general fund of the county. However, the county auditor
shall make the deductions and payments required by this
subsection not later than the December settlement and
(d) The statement referred to in subsection (c) must be verified
under penalties for perjury and must contain the following
(1) The assessed value of the real property for which the
person is claiming the deduction.
(2) The full name and complete business address of the person
claiming the deduction.
(3) The complete address and a brief description of the real
property for which the person is claiming the deduction.
(4) The name of any other county in which the person has
applied for a deduction under this section for that assessment
(5) The complete address and a brief description of any other
real property for which the person has applied for a deduction
under this section for the 2008 assessment date.
(e) This section expires January 1, 2011.
SOURCE: IC 32-25.5; (09)HE1071.1.2. -->
SECTION 2. IC 32-25.5 IS ADDED TO THE INDIANA CODE AS
ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1,
ARTICLE 25.5. HOMEOWNERS ASSOCIATIONS
Chapter 1. Applicability
Sec. 1. This article applies to the following:
(1) A homeowners association established after June 30, 2009.
(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
Chapter 2. Definitions
Sec. 1. The definitions in this chapter apply throughout this
Sec. 2. "Board" refers to the board of directors of a
Sec. 3. "Governing documents" includes:
(1) the articles of incorporation and bylaws of a homeowners
association and all adopted amendments to the articles of
incorporation and bylaws; and
(2) any applicable declaration of plat.
Sec. 4. "Homeowners association" means a corporation or
another entity that:
(1) is organized and operated exclusively for the benefit of two
(2) or more persons who each own a dwelling in fee simple;
(2) acts, in accordance with the articles, bylaws, or other
documents governing the corporation or entity, to:
(A) acquire, transfer, manage, repair, maintain, or engage
in construction on or in the land and improvements on the
land related to the use of the dwellings owned by the
members of the corporation or entity;
(B) purchase insurance to cover a casualty or an activity
on or in the land and improvements on the land;
(C) engage in an activity incidental to an activity described
in clause (A) or (B); or
(D) engage in more than one (1) of the activities described
in clauses (A) through (C); and
(3) may be governed by a board that serves the purpose of
setting policy and controlling or otherwise overseeing the
activities or functional responsibilities of the corporation or
Sec. 5. "Subdivision" means the division of a parcel of land into
lots, parcels, tracts, units, or interests in the manner defined and
prescribed by a subdivision control ordinance adopted by a
legislative body under IC 36-7-4.
Chapter 3. Homeowners Associations
Sec. 1. (a) A homeowners association shall maintain:
(1) a current roster of all members of the association; and
(2) the mailing address and legal description for each member
of the association.
(b) The homeowners association shall also maintain any
electronic mail addresses or facsimile (fax) numbers of those
members who have consented to receive notice by electronic mail
or facsimile (fax). Electronic mail addresses and facsimile (fax)
numbers provided by a member to receive notice by electronic mail
or facsimile (fax) shall be removed from the association's records
when the member revokes consent to receive notice by electronic
mail or facsimile (fax). However, the association is not liable for an
erroneous disclosure of an electronic mail address or a facsimile
(fax) number for receiving notices.
(c) The mailing addresses and legal descriptions maintained by
a homeowners association under subsection (a):
(1) shall be made available to a member of the homeowners
association upon request;
(2) may be used by a member of the homeowners association
only for a purpose related to the operation of the homeowners
(3) may not be used by a member of the homeowners
association for personal reasons.
(d) Except as provided in subsection (c), a homeowners
association may not sell, exchange, or otherwise transfer
information maintained by the homeowners association under this
section to any person.
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
least one (1) written demand for the special meeting that:
(1) describes the purpose for which the meeting is to be held;
(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
the 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
Sec. 3. (a) A homeowners association shall prepare an annual
(b) The annual budget must reflect:
(1) the estimated revenues and expenses for the budget year;
(2) the estimated surplus or deficit as of the end of the current
(c) The homeowners association shall provide each member of
the homeowners association with:
(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
(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) Subject to subsection (f), 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 association's
(e) For purposes of this section, a member of a homeowners
association is considered to be in attendance at a meeting if the
(1) in person;
(2) by proxy; or
(3) by any other means allowed under:
(A) state law; or
(B) the governing documents of the homeowners
(f) 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.
However, the board may adopt an annual budget for the
homeowners association for the ensuing year in an amount that
does not exceed one hundred ten percent (110%) of the amount of
the last approved homeowners association annual budget if the
governing documents of the homeowners association allow the
board to adopt an annual budget under this subsection for the
ensuing year in an amount that does not exceed one hundred ten
percent (110%) of the amount of the last approved homeowners
association annual budget.
Sec. 4. (a) This section does not apply to a contract entered into
by a board that would resolve, settle, or otherwise satisfy an act of
enforcement against a homeowners association for violating a state
or local law.
(b) A board may not enter into any contract that would result
in a new assessment or the increase in an existing assessment
payable by the affected members of the homeowners association in
the amount of more than five hundred dollars ($500) per year for
each affected member of the homeowners association unless:
(1) the board holds at least two (2) homeowners association
meetings concerning the contract; and
(2) the contract is approved by the affirmative vote of at least
two-thirds (2/3) of the affected members of the homeowners
(c) A board shall give notice of the first homeowners association
meeting held under subsection (b):
(1) to each member of the homeowners association; and
(2) at least seven (7) calendar days before the date the meeting
Sec. 5. (a) This section does not apply to money borrowed by a
homeowners association that is needed to:
(1) resolve, settle, or otherwise satisfy an act of enforcement
against the homeowners association for violating a state or
local law; or
(2) address an emergency that affects the public health, safety,
(b) A homeowners association may not borrow money during
any calendar year on behalf of the homeowners association in an
amount that exceeds the greater of:
(1) five thousand dollars ($5,000) during any calendar year;
(2) if the homeowners association operated under an annual
budget in the previous calendar year, an amount equal to at
least ten percent (10%) of the previous annual budget of the
unless borrowing the money is approved by the affirmative vote of
a majority of the members of the homeowners association voting
under this section.
(c) A person who owns a lot, parcel, tract, unit, or interest in
land in a subdivision may cast one (1) vote under this section for
each lot, parcel, tract, unit, or interest in land in the subdivision
that is owned by the person unless the governing documents
provide for a different voting procedure.
(d) A vote held under this section must be conducted by paper
(e) A homeowners association shall distribute paper ballots to
persons eligible to vote under this section at least thirty (30) days
before the date the votes are to be opened and counted.
(f) Votes cast under this section shall be opened and counted at
a public meeting held by the homeowners association.
Sec. 6. The governing documents must include grievance
resolution procedures that apply to all members of the
homeowners association and the board.
Sec. 7. A homeowners association may not suspend the voting
rights of a member for nonpayment of any assessments unless:
(1) the governing documents provide for suspension; and
(2) the assessments are delinquent for more than six (6)
SOURCE: IC 32-28-14-8; (09)HE1071.1.3. -->
SECTION 3. IC 32-28-14-8, AS ADDED BY P.L.135-2007,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 8. (a) A homeowners association may enforce a
homeowners association lien by filing a complaint in the circuit or
superior court of the county where the real estate that is the subject of
the lien is located. The complaint:
(1) may not be filed earlier than one (1) year; and
must be filed not later than
one (1) year five (5) years;
after the date the statement and notice of intention to hold a lien was
recorded under section 6 of this chapter.
(b) If a lien is not enforced within the time set forth in subsection
(a), the lien is void.
(c) If a lien is foreclosed under this chapter, the court rendering
judgment shall order a sale to be made of the real estate subject to the
lien. The officers making the sale shall sell the real estate without any
relief from valuation or appraisement laws.
SOURCE: IC 32-28-14-9; (09)HE1071.1.4. -->
SECTION 4. IC 32-28-14-9, AS ADDED BY P.L.135-2007,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 9. (a) A homeowners association lien under this
chapter is void if both of the following occur:
(1) The owner of the real estate subject to the homeowners
association lien or any person or corporation having an interest in
the real estate, including a mortgagee or a lienholder, provides
written notice to the owner or holder of the lien to file an action
to foreclose the lien.
(2) The owner or holder of the lien fails to file an action to
foreclose the lien in the county where the real estate is located
thirty (30) days one (1) year after the date the owner or
holder of the lien received the notice described in subdivision (1).
However, this section does not prevent the claim from being collected
as other claims are collected by law.
(b) A person who gives notice under subsection (a)(1) by registered
or certified mail to the owner or holder of the homeowners association
lien at the address given in the recorded statement may file an affidavit
of service of the notice to file an action to foreclose the lien with the
recorder of the county in which the real estate is located. The affidavit
must state the following:
(1) The facts of the notice.
(2) That more than
thirty (30) days have one (1) year has passed
since the notice was received by the owner or holder of the lien.
(3) That an action for foreclosure of the lien is not pending.
(4) That an unsatisfied judgment has not been rendered on the
(c) The recorder shall record the affidavit of service in the
miscellaneous record book of the recorder's office. When the recorder
records the affidavit under this subsection, the real estate described in
the homeowners association lien is released from the lien.
(d) An affidavit recorded under subsection (c) must cross reference
SOURCE: ; (09)HE1071.1.5. -->
SECTION 5. An emergency is declared for this act.
HEA 1071 _ CC 1
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