GeorgerwilliamsW (Indiana)
Posts: 975
Posts: 975
Posted:
Homeowners associations in Indiana currently operate under laws designed for condos in a "horizontal property" statute.
Due to the increasing number of associations being formed and the increase in litigation and complaints to the Attorney General about rouge association boards, there is some interest in drafting new legislation specifically for homeowners associations. In the past three legislative sessions there have been two bills introduced that addressed specific issues, but were not comprehensive approaches. Neither saw the light of day in committee.
I am aware of the work that has been (is being)done by the NCCUSL, but it is not very far along.
Currently, Indiana prohibits homeowner associations from assessing fines. The best they can do to enforce covenants or rules is to seek an injunction or sue to force compliance, a costly and time consuming effort. As a result, it is only possible to address the most egregious violations.
Indiana courts view covenants under existing contract law with a couple of reservations. The court has held that "Indiana law permits restrictive covenants but finds them disfavored and justified only to the extent they are unambiguous and enforcement is not adverse to public policy." When courts are called upon to interpret restrictive covenants, they are to be strictly construed, and all doubts should be resolved in favor of the free use of property and against restrictions. http://www.in.gov/judiciary/opinions/pdf/11170605ewn.pdf
I am meeting with my state senator on August 19th to discuss potential legislation.
Can anyone suggest an existing state statute anywhere in the U.S. that could serve as a model for drafting a bill in Indiana? I am looking for the very, very best.
Also, what are the best mechanisms for handling disputes between the association and a homeowner? Should we propose defined mediation/arbitration, appeal to an oversight commission within the office of the Attorney General along the lines of a consumer protection agency, or an outright regulatory commission?
I am looking for some really good advice. Appreciate anything you are able to share.
Due to the increasing number of associations being formed and the increase in litigation and complaints to the Attorney General about rouge association boards, there is some interest in drafting new legislation specifically for homeowners associations. In the past three legislative sessions there have been two bills introduced that addressed specific issues, but were not comprehensive approaches. Neither saw the light of day in committee.
I am aware of the work that has been (is being)done by the NCCUSL, but it is not very far along.
Currently, Indiana prohibits homeowner associations from assessing fines. The best they can do to enforce covenants or rules is to seek an injunction or sue to force compliance, a costly and time consuming effort. As a result, it is only possible to address the most egregious violations.
Indiana courts view covenants under existing contract law with a couple of reservations. The court has held that "Indiana law permits restrictive covenants but finds them disfavored and justified only to the extent they are unambiguous and enforcement is not adverse to public policy." When courts are called upon to interpret restrictive covenants, they are to be strictly construed, and all doubts should be resolved in favor of the free use of property and against restrictions. http://www.in.gov/judiciary/opinions/pdf/11170605ewn.pdf
I am meeting with my state senator on August 19th to discuss potential legislation.
Can anyone suggest an existing state statute anywhere in the U.S. that could serve as a model for drafting a bill in Indiana? I am looking for the very, very best.
Also, what are the best mechanisms for handling disputes between the association and a homeowner? Should we propose defined mediation/arbitration, appeal to an oversight commission within the office of the Attorney General along the lines of a consumer protection agency, or an outright regulatory commission?
I am looking for some really good advice. Appreciate anything you are able to share.