Plain English Breakdown
The official source material did not provide specific details on enforcement mechanisms or penalties for non-compliance with the new rules.
Changes to Homeowners Association Rules
This law allows homeowners associations to increase their budgets under specific conditions and prohibits them from charging fees for services they provide.
What This Bill Does
- Allows a homeowners association to increase its budget by up to 110% of the last approved budget within five years after homes are first sold to people not connected with the developer, if certain conditions are met.
- Permits a homeowners association to raise its annual budget without needing a quorum, but only if it does not exceed either 105% of the previous year's budget or the increase in housing costs as measured by the Consumer Price Index for the Midwest over the last year.
- Prohibits homeowners associations from charging fees for services they provide.
- Forbids homeowners associations from making rules that stop people from setting up amateur radio antennas.
- Prevents homeowners associations from stopping residents who live in and own, rent, or lease their homes from running a small child care business.
Who It Names or Affects
- Homeowners association members
- People living in areas with homeowners associations
Terms To Know
- quorum
- The minimum number of people needed to be present at a meeting for the group's decisions to be official.
- Consumer Price Index (CPI)
- A measure that shows how much prices have gone up or down over time for goods and services.
Limits and Unknowns
- The law does not specify what happens if a homeowners association tries to increase its budget beyond the allowed limits.
- It is unclear how strictly homeowners associations will follow these new rules.
- This legislation only applies to Indiana, so other states may have different regulations.