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Stakeholders clash over HOA transparency, fines, budgets and childcare in committee hearings
Summary
Two homeowners‑association bills — HB 11‑15 (notice, fines and remote participation) and HB 11‑52 (budget/quorum rules and limits on HOA restrictions for home‑based child care) — drew broad testimony from management groups, developers, builders and child‑care advocates; CAI raised budget and retroactivity concerns, lawmakers and supporters pressed childcare access and transparency; no final votes were taken on these bills this week.
The Judiciary Committee heard extensive testimony on two bills aimed at homeowners associations, producing robust stakeholder debate about fines, budget authority, quorum rules and home‑based child care.
Representative Olthoff presented House Bill 11‑15, which would require written meeting notice and agendas four days in advance, authorize remote participation to count for quorum and voting, expand where minutes may be posted, and require an adopted schedule for fines plus a 10‑day timeline for a homeowner to seek a meeting or show a violation was cured. "Help me increase their quality of HOA life by voting yes on this bill," Olthoff told the committee while noting she would work on a possible amendment regarding guardrails on fines.
Kelly Elmore, speaking for the Community Associations Institute, described current statutory grievance and notice procedures for covenant enforcement and said CAI supports portions of HB 11‑15, but worried about unintended consequences in related bills. Elmore explained that Indiana law generally requires at least two formal notices and an opportunity for a meeting before an association may pursue enforcement, and she urged education about the process to owners.
Developer Francois Merchaud testified in support of reforms and offered a dramatic example: he said a homeowners association obtained a court order that produced the demolition and evacuation of two units after construction, describing about $2,200,000 in economic loss. He urged language protecting vested rights and the supremacy of recorded plats.
Representative Lawson introduced House Bill 11‑52, which he said applies only prospectively to HOAs created or whose governing documents are modified after 06/30/2026. Lawson said future HOAs would be required to involve more residents in budget and fee decisions and would not be able to prohibit licenced home‑based child care. "The bill is not retroactive," Lawson said, and he welcomed amendments to address concerns.
Kelly Elmore later testified in opposition to HB 11‑52 as drafted, saying the bill's budget language could leave boards unable to increase a budget when quorum cannot be met, a real concern for underfunded associations that presently can, in some circumstances, raise budgets up to 10% when a meeting fails to achieve quorum. CAI warned the bill might apply retroactively if an association amends governing documents and urged fixes.
Committee members and witnesses also debated the childcare provisions: supporters including the United Way and the Indiana Chamber said the change would expand childcare access and support workforce participation; others warned the bill as written could allow nonresident or corporate operators to buy or lease homes and operate centers, raising concerns about traffic, insurance and enforcement. Several witnesses urged an amendment to require the childcare operator be a resident/owner.
Representative Lawson and stakeholders agreed to continue work on amendments; HB 11‑15 was held for amendment and HB 11‑52 was taken as testimony only. The committee did not record final votes on these bills during the session.
