Indiana lawmakers begin exploring changes to homeowners association powers

Indiana lawmakers took their first steps this week in exploring whether changes are needed in the ways homeowners associations operate.

A study committee took testimony that was prompted by concerns from lawmakers like Rep. Julie Olthoff (R-Crown Point).

Homeowners associations must file their rules — known as covenants, conditions and restrictions — with their local county. But Olthoff said her county recorder told her only about 40 percent of HOAs are up to date on that requirement.

“They’re not even doing what they’re required to do and there’s nobody watching,” Olthoff said.

The Indiana Builders Association told lawmakers no changes are needed to the system.

But Kelly Elmore from the Community Associations Institute — which advocates for HOAs — said HOAs need more options to enforce their rules.

“That allows community associations, when there are violations or other issues in communities, to assess a penalty,” Elmore said.

Elmore suggested legislation could also include limits on certain fees and penalties.

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Rebecca Richter is the head of a condominium association in Hamilton County. She said organizations like hers need more power, not less.

“People buy into these associations because they like the look, the general look,” Richter said. “And if we can’t enforce the general look with effective tools at our disposal that don’t clog up the courts, it just makes our jobs that much more difficult.”

The study committee likely won’t make any recommendations about potential HOA legislation.

Brandon is our Statehouse bureau chief. Contact him at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.