Indiana capped HOA amendment thresholds at two-thirds
Indiana capped HOA amendment thresholds at two-thirds
2026-09-10 · Indiana · Legislation
What happened. A great many Indiana declarations were drafted with amendment thresholds high enough that nobody has ever cleared one — 75 percent of all owners, sometimes with a separate mortgagee-consent requirement layered on top. Since 1 July 2026 those thresholds are capped.
House Enrolled Act 1115 amended IC 32-25.5-3-9 so that:
“The governing documents may not require that the consent of more than… two-thirds (2/3) of the owners is [required]… for consent”
The same two-thirds ceiling applies to requirements for the consent of first mortgage holders — historically the harder of the two to satisfy, because it depends on lenders who have no interest in responding.
What stays at 95 percent
The cap is not universal. A 95 percent owner threshold remains permitted for two specific things:
- conveying the common areas, and
- dissolving the association's plan of governance.
That distinction is sensible. Those two acts extinguish the community itself rather than adjust how it operates, and they are the ones a supermajority protection is genuinely for.
Why this is the sleeper provision of the 2026 package
An association that cannot amend its declaration is frozen at whatever its developer's lawyer wrote, often in the 1980s or 1990s. That is how Indiana communities end up with rules that reference obsolete technology, architectural standards nobody applies, no workable enforcement mechanism, and a lien clause that does not secure what a modern collection action needs.
Reducing the ceiling from 75 percent to two-thirds sounds incremental. In practice the gap between those two numbers is the difference between an amendment that is theoretically possible and one that a well-run campaign can actually pass.
And it reaches every association
IC 32-25.5-3-9 is one of the items in IC 32-25.5-1-1(b) — the list that applies to all Indiana homeowners associations regardless of formation date or opt-in status. Older associations, which tend to be the ones carrying the highest thresholds and the most outdated documents, are inside this provision.
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