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Indiana House Bill 1152: Impact on Community Associations

⚠️ URGENT LEGISLATIVE ALERT

Indiana House Bill 1152 Threatens Every HOA in Indiana

We are writing to alert you to a critical issue that directly affects every homeowners association in Indiana.

Indiana House Bill 1152, as currently written, would strip community associations of their ability to set and adjust budgets in accordance with their own governing documents.

In simple terms, this bill would allow the state to override your community’s rules and remove the authority boards need to responsibly fund:

Insurance • Operations • Reserves • Maintenance • Safety & Infrastructure

This is not a minor policy change — it is a fundamental shift in how HOAs are allowed to function.

🚨 What This Means for Your Community

If HB 1152 becomes law in its current form, the real-world consequences will be severe and unavoidable:

• Inability to pay rising insurance premiums
• Deferred maintenance and deteriorating common areas
• Inadequate reserve funding
• More frequent special assessments
• Increased conflict between boards and homeowners
• Higher risk of lawsuits against developers and associations
• Declining property values across Indiana communities

These impacts will be felt by every homeowner, not just board members.

🧾 Additional Impact

HB 1152 also eliminates HOA authority to regulate in-home daycare facilities, removing long-standing community standards related to:

Traffic • Safety • Noise • Neighborhood Operations

This further weakens a community’s ability to protect quality of life and enforce its own governing documents.

🛑 TAKE ACTION TODAY

Indiana legislators are voting soon — and silence will be taken as approval.

If you care about protecting your community’s finances, property values, and right to self-govern, you must act now.

📢 CONTACT YOUR LEGISLATORS

Use this official advocacy link to reach your State Representative and Senator in seconds:

👉 https://www.votervoice.net/CAI/Campaigns/132687/Respond

Tell them to VOTE NO on House Bill 1152 unless it is substantially revised.

Image result for HOA reform

Indiana lawmakers began examining potential changes to how homeowners' associations (HOAs) operate this week. The discussion was prompted by concerns raised by lawmakers, including Rep. Julie Olthoff (R-Crown Point).

Currently, HOAs are required to file their governing documents — known as covenants, conditions, and restrictions — with their local county. However, Olthoff noted that only about 40 percent of HOAs in her county are compliant with this requirement, according to her county recorder.

“They’re not even doing what they’re supposed to, and there’s no oversight,” Olthoff said.

The Indiana Builders Association argued that no changes are necessary to the current system.

However, Kelly Elmore of the Community Associations Institute, an organization that advocates for HOAs, stated that HOAs need additional tools to enforce their rules.

“This would allow community associations to impose penalties when violations or other issues arise,” Elmore explained.

She also proposed that new legislation could address limits on certain fees and penalties.

LAC Update 2024

On June 20,2024, the Indiana Legislative Action Committee (LAC) hosted its annual legal update at the Launch shared worked space in Fishers, Indiana. The overview was presented by Chair Kelly Elmore. More details to come...

CAI’s Indiana Legislative Action Committee (IN LAC) had an active legislative session advocating on behalf of the 840,000 Hoosiers living in 338,000 homes in nearly 5,000 community associations in the state. The 17-member committee volunteered hundreds of collective hours to review bills, draft testimony, meet with legislators and other decision-makers, and testify for or against bills. Indiana legislators introduced more than 1,800 bills and the LAC closely monitored 16 bills that would have directly affected community associations; their top priority bills are summarized below.

CAI Legislative Tracking Map

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INDIANA LEGISLATIVE ACTION COMMITTEE