§ 32-25-4-4 — Contributions for expenses

Indiana § 32-25-4-4

• Jurisdiction: Indiana
• Title 32: PROPERTY
• Art. 25: CONDOMINIUMS
• Ch. 4: Ownership Interest in Condominiums

Text

(a) Except as provided in subsection (d) or (e),
the co-owners are bound to contribute pro rata, in the percentages
computed under section 3 of this chapter, toward:
(1) the expenses of administration and of maintenance and repair
of the general common areas and facilities and, in the proper case,
of the limited common areas and facilities of the building; and
(2) any other expense lawfully agreed upon.
(b) A co-owner may not exempt the co-owner from contributing
toward the expenses referred to in subsection (a) by:
(1) waiver of the use or enjoyment of the common areas and
facilities; or
(2) abandonment of the condominium unit belonging to the
co-owner.
(c) All sums assessed by the association of co-owners shall be
established by using generally accepted accounting principles applied
on a consistent basis and shall include the establishment and
maintenance of a replacement reserve fund. The replacement reserve
fund may be used for capital expenditures and replacement and repair
of the common areas and facilities and may not be used for usual and
ordinary repair expenses of the common areas and facilities. The fund
shall be:
(1) maintained in a separate interest bearing account with a bank
or savings association authorized to conduct business in the
county in which the condominium is established; or
(2) invested in the same manner and in the same types of
investments in which the funds of a political subdivision may be
invested:
(A) under IC 5-13-9; or
(B) as otherwise provided by law.
Assessments collected for contributions to the fund are not subject to
adjusted gross income tax.
(d) If permitted by the declaration, the declarant or a developer (or
a successor in interest of either) that is a co-owner of unoccupied
condominium units offered for the first time for sale is excused from
contributing toward the expenses referred to in subsection (a) for those
units for a period that:
(1) is stated in the declaration;
(2) begins on the day that the declaration is recorded; and
(3) terminates no later than the first day of the twenty-fourth
calendar month following the month in which the closing of the
sale of the first condominium unit occurs.
However, if the expenses referred to in subsection (a) incurred by the
declarant, developer, or successor during the period referred to in this
subsection exceed the amount assessed against the other co-owners, the
declarant, developer, or successor shall pay the amount by which the
expenses incurred by the declarant, developer, or successor exceed the
expenses assessed against the other co-owners.
(e) If the declaration does not contain the provisions referred to in
subsection (d), the declarant or a developer (or a successor in interest
of either) that is a co-owner of unoccupied condominium units offered
for the first time for sale is excused from contributing toward the
expenses referred to in subsection (a) for those units for a stated period
if the declarant, developer, or successor:
(1) has guaranteed to each purchaser in the purchase contract, the
declaration, or the prospectus, or by an agreement with a majority
of the other co-owners that the assessment for those expenses will
not increase over a stated amount during the stated period; and
(2) has obligated itself to pay the amount by which those expenses
incurred during the stated period exceed the assessments at the
guaranteed level under subdivision (1) receivable during the
stated period from the other co-owners.
[Pre-2002 Recodification Citation: 32-1-6-22.]

Legislative History

As added by P.L.2-2002, SEC.10. Amended by P.L.192-2002(ss), SEC.172.