Effective July 1, 2015, Indiana’s House Enrolled Act 1286 (HEA 1286) introduced a major change for Homeowner’s Associations (HOAs) and condominium associations. This Indiana HOA law requires communities to follow a structured grievance resolution process before filing lawsuits, helping reduce legal costs and promote collaboration.
What Is HEA 1286 and Why Does It Matter?
The goal of this Indiana HOA law is simple: resolve disputes before litigation. Lawsuits can be expensive and divided, so the statute provides a clear process for handling claims internally first.
This law applies to:
- Disputes over interpreting or enforcing HOA governing documents.
- Claims about the rights or duties of the association or board.
- Issues related to subdivision maintenance.
- Other disputes involving the association or its members.
It does not apply to exempt claims like unpaid dues, emergency actions, or cases already resolved in court.
Step-by-Step Grievance Resolution Process
Before any legal action can be filed, the following steps must be taken:
1. Send a Notice of Claim
The claimant (owner or HOA) must provide:
- Details of the violation (date, time, location, parties involved).
- Governing document provisions or laws involved.
- Requested corrective action.
- Notification of the right to request a face-to-face meeting within 10 business days.
2. Face-to-Face Meeting
If requested, the HOA board and the homeowner meet to negotiate in good faith. Both parties should have access to relevant property for inspection if needed.
3. Impasse and Mediation
If no resolution is reached, either party can request mediation or binding arbitration within 10 days. The requesting party pays the mediator or arbitrator’s fees.
4. Legal Action
Only after these steps and if mediation or arbitration fails can a lawsuit or administrative action be filed.
Impact on Indiana HOAs and Property Managers
This Indiana HOA law changes enforcement procedures:
- Violation notices must cite specific covenants.
- Boards must actively participate in negotiations.
- Documentation is critical dates, times, photos, and details matter.
- Costs may increase, so HOAs should budget for enforcement.
Example Scenario
A homeowner parks a boat in their driveway, violating HOA rules. Under the grievance resolution process:
- The HOA sends a formal notice citing the covenant and offering a chance to correct the violation.
- The homeowner can request a meeting or opt for mediation.
- If unresolved, the HOA may proceed with legal action but only after following the required steps.
Why Compliance Is Essential
HEA 1286 promotes fairness and communication. It gives homeowners and associations a chance to resolve issues collaboratively, saving time, money, and stress. For boards and managers, compliance means updating governing documents and enforcement procedures.
Action Steps for Indiana HOAs
- Review and update your governing documents.
- Train board members on the grievance resolution process.
- Document violations thoroughly.
Budget for potential mediation or arbitration costs.
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