Indiana Statewide Rule
Indiana HOA Fines: Declaration-Based, No Statutory Cap or Hearing Mandate
Key Facts
- Authority to fine
- Declaration / bylaws / rules only - no Indiana fining statute
- Statutory dollar cap
- None - Ind. Code § 32-25.5 sets no cap
- Notice and hearing
- Not mandated by statute - set by the governing documents
- Records on fines
- Retained 2 years; member may inspect (Ind. Code § 32-25.5-3-3)
Summary
Indiana has no statute granting HOAs fining power or capping fine amounts. Authority to fine must come from the recorded declaration, bylaws, or rules; if the governing documents do not authorize the violation or the amount, the fine is not permitted. The Homeowners Associations Act (Ind. Code § 32-25.5) sets no fine schedule, cap, or mandatory hearing timeline.
A homeowners association may assess a fine for a member's violation of a covenant described in IC 32-25.5-2-3(2) if the board first adopts a schedule of fines that sets forth: (1) the covenant violations that are subject to a fine; (2) the amount of the fine that applies to each violation identified under subdivision (1); (3) if any of the fines listed in subdivision (2) will be assessed on an ongoing or recurring basis: (A) for a defined period or a specified number of days; or (B) until the violation is cured or another contingency occurs; a statement of that fact, along with a description of how the fine will be calculated and assessed; and (4) a maximum aggregate fine amount for any single violation. A fine assessed on an ongoing or recurring basis may not exceed the maximum aggregate amount stated in the schedule of fines.
Full Breakdown
The Indiana Homeowners Associations Act (Ind. Code § 32-25.5) does not address fines, so an HOA's power to impose them is entirely contractual - it must be expressly authorized by the declaration, bylaws, or duly adopted rules. If the fine schedule in the governing documents does not cover the alleged violation, or does not authorize the amount charged, the fine is not permitted. Unlike Florida or Ohio, Indiana's Act sets no statewide dollar cap, no specific notice timeline, and no mandatory hearing procedure for fines. Any required notice, opportunity to cure, or hearing therefore flows from the declaration and the board's adopted rules. The Act does separately protect the member's right to inspect records relating to fines, which must be retained for at least two years (Ind. Code § 32-25.5-3-3).
Violations & Penalties
A fine that is not authorized by the recorded declaration, bylaws, or rules - or that exceeds the amount those documents allow - is not permitted. Properly authorized but unpaid fines may be pursued under the governing documents and, where the declaration provides, added to the assessment lien.
Frequently Asked Questions
Is there a maximum HOA fine in Indiana?
Can an Indiana HOA fine me without authority in the governing documents?
Does Indiana law require a hearing before an HOA fine?
Sources
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