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.

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