2026-09-10 · Indiana · Legislation

What happened. Indiana associations that cannot get enough members to a meeting to approve a budget now face a ceiling on how much they may increase it anyway — and the ceiling depends on how old the community is.

House Enrolled Act 1152 (Public Law 53-2026) replaced a single rule with a tiered structure, effective 1 July 2026.¹

The three tiers

The default: 100 percent. Absent a quorum, the board may adopt a budget no larger than last year's.

New IC 32-25.5-3-3.2 — the developer window: 110 percent. For an association within five years of the first non-developer lot sale, the board may adopt up to 110 percent of last year's budget without a quorum — but only if the governing documents expressly allow it.

New IC 32-25.5-3-3.3 — after the window: the lesser of 105 percent or CPI. Once past that five-year period, the ceiling drops to the lesser of 105 percent of last year's budget, or last year's budget increased by the Consumer Price Index for Housing, Midwest region, over the prior twelve months. Again, only where the governing documents expressly allow it.

New IC 32-25.5-3-3.1 — the grandfather. Associations whose governing documents already permitted 110 percent before 1 July 2026 keep that figure — unless those documents are amended or renewed after 30 June 2026.

Read the condition twice

Both operative tiers are conditional on the governing documents expressly allowing the increase. This is the detail most likely to be missed. The statute does not hand every Indiana board a 105 or 110 percent power; it sets a ceiling on a power the documents must independently grant.

An association whose declaration is silent gets the default. No quorum, no increase.

1. House Enrolled Act 1152 (2026), P.L. 53-2026 — adding IC 32-25.5-3-3.1, 3-3.2 and 3-3.3 ↩
2. House Enrolled Act 1115 (2026), P.L. 155-2026 — remote attendance counting toward a quorum ↩
3. Office of the Governor, 2026 Bill Watch — HEA 1152 signed Mar. 3, 2026 ↩