Question:
Our HOA is charging all 212 home owners $1080 to fix an erosion issue around 3 ponds. The issue is was first discovered around 2019 and poses no impending danger. They decided this without a vote from the homeowners. We have reached out to the board regarding the Indiana statute that states that they cannot charge more than $500 without a 2/3 positive vote and the board responded that this statute only applies to HOA boards formed prior to 2009 and this board was established in 1997
– Jennifer
Answer:
Hi Jennifer,
If your HOA board is referring to the Indiana Homeowners Association Act, it does apply to HOAs established after June 30, 2009. However, if the HOA elects to be governed by this Act, as determined by a majority vote, then the Act shall apply to the HOA. Make sure to check if your HOA previously voted to be governed by the Act.
As for your assessment issue, it is best to check your governing documents to see if there are any limitations that would prevent the board from charging such an amount or if there are any requirements to be followed prior to the charge (such as a vote or notice). It is also important to keep in mind that, while the erosion poses no immediate danger, it may cause problems in the future. Your HOA board might just be choosing to deal with the problem now instead of waiting a few years for it to worsen, at which point the cost of repairs may be more significant. Ask your HOA board about their reasoning behind the decision to fix the erosion issue now.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
