Indiana HOA Reserves: Statute Is Quiet, Documents Govern

Indiana HOA Reserves: Statute Is Quiet, Documents Govern

Indiana has a relatively quiet HOA statutory landscape. The Indiana Homeowners Association Act sits at Indiana Code 32-25.5. The Condominium Act sits at IC 32-25. Neither act mandates a reserve study, and Indiana boards rely on their governing documents and fiduciary common law. The Indiana Attorney General consumer protection division handles HOA complaints, and the Indiana Real Estate Commission licenses community managers.

What IC 32-25.5 actually requires

IC 32-25.5 sets a baseline of disclosure and meeting rules but does not impose specific reserve obligations. IC 32-25 for condos requires reserves consistent with the master deed.

The framework leaves most reserve decisions to the governing documents. Indiana communities formed in the past 15 years typically have reasonable reserve language in their declarations. Older communities often need a refresh.

What good Indiana practice looks like

Four practices distinguish Indiana boards.

First, commission a reserve study every 5 years even though state law does not require it.

Second, document reserve decisions in minutes that survive an owner records request.

Third, separate operating and replacement reserves at the bank.

Fourth, follow CAI Indiana chapter legislative bulletins. The chapter publishes a session recap each year.

Recent Indiana developments

The Indiana General Assembly has considered HOA reform bills in recent sessions, mostly tightening enforcement procedures. None of the proposals introduced a reserve study mandate. Boards should still track CAI Indiana updates because session momentum can shift quickly.

What your board should do this quarter

Take three actions.

1. If your last reserve study is older than 5 years, contract a new one.
2. Confirm operating and reserve accounts are separate.
3. Read the latest CAI Indiana session recap.

This is general information for board members, not legal advice. Consult your attorney for your specific situation.

How Manorway helps

Manorway is an AI assisted executive governance platform that helps Indiana boards keep their reserve work, disclosures, and filings in one audit ready place. The reserve narrative writes itself once your study is loaded. Book a free governance checkup, no strings attached.