Bill Text: IN HB1058 | 2011 | Regular Session | Introduced
Bill Title: Homeowners associations.
Spectrum: Bipartisan Bill
Status: (Passed) 2011-05-16 - Effective 07/01/2011 [HB1058 Detail]
Download: Indiana-2011-HB1058-Introduced.html
Citations Affected: IC 23-17; IC 32-25.5-3.
Synopsis: Homeowners associations. Provides that the statute that
authorizes judicial dissolution of nonprofit corporations applies to
homeowners associations. Requires a homeowners association to
comply with its grievance resolution procedure upon receiving a
complaint or grievance from a member. Prohibits the board of directors
of a homeowners association from making a material misrepresentation
to a member concerning the procedures or application of the
procedures to a complaint or grievance. Authorizes the attorney general
to bring an action against the board of directors of a homeowners
association or the homeowners association to enjoin knowing or
intentional violations of the statute governing homeowners
associations. Provides for judicial remedies for violations of the statute
governing homeowners associations.
Effective: July 1, 2011.
January 5, 2011, read first time and referred to Committee on Judiciary.
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Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
property.
(b) The term does not include a foreign corporation.
(1) In a proceeding by the attorney general if one (1) of the following is established:
(A) The corporation obtained the corporation's articles of incorporation through fraud.
(B) The corporation has continued to exceed or abuse the authority conferred upon the corporation by law.
(C) The corporation is a public benefit corporation or a homeowners association (as defined in IC 34-6-2-58) and the corporate assets are being misapplied or wasted.
(D) The corporation is a public benefit corporation and is no longer able to carry out the corporation's purposes.
(2) Except as provided in the articles of incorporation or bylaws of a religious corporation, in a proceeding by fifty (50) members or members holding at least five percent (5%) of the voting power, whichever is less, or by a director or a person specified in articles of corporation, if one (1) of the following is established:
(A) The directors are deadlocked in the management of the corporate affairs, and the members, if any, are unable to break the deadlock.
(B) The directors or those in control of the corporation have acted, are acting, or will act in a manner that is illegal, oppressive, or fraudulent.
(C) The members have deadlocked in voting power and have failed, for a period that includes at least two (2) consecutive annual meeting dates, to elect successors to directors whose terms have, or would otherwise have, expired.
(D) The corporate assets are being misapplied or wasted.
(E) The corporation is a public benefit or religious corporation and is no longer able to carry out the corporation's purposes.
(3) In a proceeding by a creditor if either of the following is established:
(A) The creditor's claim has been reduced to judgment, the execution on the judgment returned unsatisfied, and the corporation is insolvent.
(B) The corporation has admitted in writing that the creditor's claim is due and owing and the corporation is insolvent.
(4) In a proceeding by the corporation to have the corporation's voluntary dissolution continued under court supervision.
(b) Before dissolving a corporation, a court must consider the following:
(1) Reasonable alternatives to dissolution.
(2) If dissolution is in the public interest if the corporation is a public benefit corporation.
(3) If dissolution is the best way of protecting the interests of members if the corporation is a mutual benefit corporation.
grievance resolution procedures that apply to all members of the
homeowners association and the board. The board must comply with
the grievance resolution procedures upon receiving a complaint or
grievance from a member. The board may not make a material
misrepresentation to a member concerning the procedures or
application of the procedures to a complaint or grievance.
(b) A court in which an action is brought under this section may do the following:
(1) Issue an injunction.
(2) Order the board or the homeowners association to make restitution to the homeowners association or to a member.
(3) Order a board or a homeowners association to reimburse the state for reasonable costs of the attorney general's investigation and prosecution of the violation of this article.
(4) Impose a civil penalty of not more than five thousand dollars ($5,000) per violation.
