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; and
(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 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
Annual budget; budget meeting; budget approval; records available to members
Sec. 3. (a) A homeowners association shall prepare an annual budget.
(b) The annual budget must reflect:
(1) the estimated revenues and expenses for the budget year; and
(2) the estimated surplus or deficit as of the end of the current budget year.
(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 member; and
(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).
(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 governing documents.
(e) For purposes of this section, a member of a homeowners association is considered to be in attendance at a meeting if the member attends:
(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 association.
(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.
(g) Subject to subsection (k), the financial records, including all contracts, invoices, bills, receipts, and bank records, of a homeowners association must be available for inspection by each member of the homeowners association upon written request. A written request for inspection must identify with reasonable particularity the information being requested. A member's ability to inspect records under this section shall not be unreasonably denied or conditioned upon provision of an appropriate purpose for the request.
(h) If there is a dispute between a homeowner and a homeowners association, the officers of the homeowners association must make all communications concerning the dispute available to the homeowner.
(i) A homeowners association shall make all communications and information concerning a lot available to the owner of the lot or a home on the lot.
(j) Notwithstanding subsections (h) and (i), a homeowners association is not required to make:
(1) communications between the homeowners association and the legal counsel of the homeowners association; and
(2) other communications or attorney work product prepared in anticipation of litigation;
available to the owner of a lot or home.
(k) A homeowners association is not required to make available to a member for inspection:
(1) unexecuted contracts;
(2) records regarding contract negotiations;
(3) information regarding an individual member's association account to a person who is not a named party on the account;
(4) any other information that is prohibited from release under state or federal law; or
(5) any records that were created more than two (2) years before the request.
(l) Nothing in this chapter:
(1) abrogates or eliminates provisions in homeowners association agreements that permit or require additional disclosure or inspection rights not required by this chapter; or
(2) prevents a homeowners association from agreeing to make disclosures or to provide inspection rights not required by this chapter.
(m) A homeowners association may not charge a fee for the first hour required to search for a record in response to a written request submitted under this chapter. A homeowners association may charge a search fee for any time that exceeds one (1) hour. The following
provisions apply if a homeowners association charges a search fee:
(1) The homeowners association shall charge an hourly fee that does not exceed thirty-five dollars ($35) per hour.
(2) The homeowners association may charge the fee only for time that the person making the search actually spends in searching for the record.
(3) The homeowners association shall prorate the fee to reflect any search time of less than one (1) hour.
(4) The total amount of the fee charged by the homeowners association for a search may not exceed two hundred dollars ($200).
As added by P.L.167-2009, SEC.2. Amended by P.L.231-2013, SEC.11.
Approval of certain contracts; meeting; vote
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 association.
(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 occurs.
As added by P.L.167-2009, SEC.2.
Borrowing money; approval by members
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, or welfare.
(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; or
Grievance resolution procedures
Sec. 6. The governing documents must include grievance resolution procedures that apply to all members of the homeowners association and the board.
As added by P.L.167-2009, SEC.2.
Member voting rights
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) months.
As added by P.L.167-2009, SEC.2.
Attorney general's action against association or board member; misappropriation or fraud; remedies
Sec. 8. (a) The attorney general may bring an action against a board or an individual member of a board of a homeowners association if the attorney general finds that:
(1) the association's funds have been knowingly or intentionally misappropriated or diverted by a board member; or
(2) a board member has knowingly or intentionally used the board member's position on the board to commit fraud or a criminal act against the association or the association's members.
(b) A court in which an action is brought under this section may do the following: