2026-09-10 · Indiana · Legislation

What happened. Indiana's 2026 session took a covenant question that has generated quiet disputes in subdivisions for years — whether an owner may mind children for payment at home — and answered it in the owner's favour.

House Enrolled Act 1152 added IC 32-25.5-3.9, effective 1 July 2026. It bars an association from prohibiting or restricting a person from “providing child care in a single family residence” that the person owns, rents or leases.¹

The three limits written into it

This is a narrower provision than a summary suggests, and each limit matters.

It reaches detached single-family residences only. The chapter defines a single family residence as detached and single-family. Condominium units, townhouses and attached dwellings are outside it on the face of the definition.

It covers defined categories of child care — licensed Class I child care homes and certain other statutorily-defined child care. It is not a general licence to run any care operation of any size.

Age-restricted communities are exempt. Communities qualifying under the federal Housing for Older Persons Act are carved out, which is the sensible result: a community lawfully constituted to exclude children is not obliged to host a nursery.

The applicability clause, again

Like the amateur radio chapter enacted in the same bill, this one is prospective as to documents:

“This chapter applies only to a homeowners association's adoption or amendment of governing documents after June 30, 2026.”

An Indiana association whose declaration has prohibited “business use” or “commercial activity” since 1999, and which has not amended it, is not reached. The trigger is when the covenant was adopted or amended — not when the association was formed, and not when the dispute arises.

1. House Enrolled Act 1152 (2026), P.L. 53-2026 — SECTION 7 adding IC 32-25.5-3.9 (child care in single family residences) ↩
2. Office of the Governor, 2026 Bill Watch — HEA 1152 signed Mar. 3, 2026 ↩