Indiana HOA Board Procedures: Member-Approved Budgets, Open Board Meetings, Record Access

Ind. Code § 32-25.5-3-3 requires the annual budget to be "approved at a meeting ... by a majority of the members ... in attendance"; members must get the proposed budget (or notice it is available free) and notice of any assessment change beforehand. Without a quorum, the board may adopt a budget up to 100% of the last approved budget - or 110% if the governing documents allow. The same section gives members "the right to attend any meeting of the homeowners association board" (closed session is allowed for delinquent accounts or litigation with counsel), opens financial records to inspection on written request, requires retention of financial-transaction communications for at least two years, and caps record-search fees (first hour free, then up to $35/hour, $200 maximum). Under Ind. Code § 32-25.5-3-4, a board may not enter a contract that creates or increases an assessment by more than $500 per year per affected member unless it holds at least two association meetings. Elections and corporate formalities run under the Indiana Nonprofit Corporation Act, Ind. Code § 23-17.

No specific statutory penalty. If a board adopts a budget without member approval, holds a covered contract vote without two meetings, denies record inspection, or bars members from a board meeting, a member's recourse is to demand compliance and, if needed, seek a court order.