(a)A homeowners association shall prepare
an annual budget.
(b)The annual budget must reflect:
(1)the estimated revenues and expenses for the budget year; and
(2)the estimated surplus or deficit as of the end of the current
budget year.
(c)The homeowners association shall provide each member of the
homeowners association with:
(1)a:
(A)copy of the proposed annual budget; or
(B)written notice that a copy of the proposed annual budget is
available upon request at no charge to the member; and
(2)a written notice of the amount of any increase or decrease in
a regular annual assessment paid by the members that would
occur if the proposed annual budget is approved;
before the homeowners association meeting held under subsection (d).
(d)Subject to subsection (f), a homeowners associatio
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(a) A homeowners association shall prepare
an annual budget.
(b) The annual budget must reflect:
(1) the estimated revenues and expenses for the budget year; and
(2) the estimated surplus or deficit as of the end of the current
budget year.
(c) The homeowners association shall provide each member of the
homeowners association with:
(1) a:
(A) copy of the proposed annual budget; or
(B) written notice that a copy of the proposed annual budget is
available upon request at no charge to the member; and
(2) a written notice of the amount of any increase or decrease in
a regular annual assessment paid by the members that would
occur if the proposed annual budget is approved;
before the homeowners association meeting held under subsection (d).
(d) Subject to subsection (f), a homeowners association budget must
be approved at a meeting of the homeowners association members by
a majority of the members of the homeowners association in attendance
at a meeting called and conducted in accordance with the requirements
of the homeowners association's governing documents.
(e) For purposes of this section, a member of a homeowners
association is considered to be in attendance at a meeting if the
member attends:
(1) in person;
(2) by proxy; or
(3) by any other means allowed under:
(A) state law; or
(B) the governing documents of the homeowners association.
(f) If the number of members of the homeowners association in
attendance at a meeting held under subsection (d) does not constitute
a quorum as defined in the governing documents of the homeowners
association, the board may adopt an annual budget for the homeowners
association for the ensuing year in an amount that does not exceed one
hundred percent (100%) of the amount of the last approved
homeowners association annual budget. However, the board may adopt
an annual budget for the homeowners association for the ensuing year
in an amount that does not exceed one hundred ten percent (110%) of
the amount of the last approved homeowners association annual budget
if the governing documents of the homeowners association allow the
board to adopt an annual budget under this subsection for the ensuing
year in an amount that does not exceed one hundred ten percent
(110%) of the amount of the last approved homeowners association
annual budget.
(g) Subject to subsection (k):
(1) the financial records, including all contracts, invoices, bills,
receipts, and bank records, of a homeowners association must be
available for inspection by each member of the homeowners
association upon written request; and
(2) the minutes of meetings of the homeowners association board,
including the annual meeting, must be available to a member of
the homeowners association for inspection upon the homeowners
association member's request, which may be submitted:
(A) in person;
(B) in writing; or
(C) by electronic mail.
In addition to the right to inspect the meeting minutes of the
homeowners association board, a member of a homeowners
association has the right to attend any meeting of the homeowners
association board, including an annual meeting of the board.
However, the board of directors may meet in private to discuss
delinquent assessments. The board of directors may also meet in
private with legal counsel to discuss the initiation of litigation, or
to discuss litigation that either is pending or has been threatened
specifically in writing. As used in this subsection, "litigation"
includes any judicial action or administrative law proceeding
under state or federal law.
A written request for inspection must identify with reasonable
particularity the information being requested. A member's ability to
inspect records under this section shall not be unreasonably denied or
conditioned upon provision of an appropriate purpose for the request.
The homeowners association may charge a reasonable fee for the
copying of a record requested under this subsection if the homeowners
association member requests a written copy of the record.
(h) Subject to subsections (j) and (k), if there is a dispute between
a homeowner and a homeowners association, the officers of the
homeowners association must make all communications concerning the
dispute available to the homeowner.
(i) Subject to subsections (j) and (k), the following apply:
(1) A homeowners association shall make all communications and
information concerning a lot available to the owner of the lot or
a home on the lot.
(2) If a homeowners association initiates communication with any
member about another member's lot, the homeowners association
must give a copy of that communication to the other member
whose lot is the subject of the communication. However, this
subdivision does not apply if the communication concerns
suspected criminal activity, or activity that is the subject of a law
enforcement investigation, involving the member whose lot is the
subject of the communication.
(j) A homeowners association is not required to make:
(1) communications between the homeowners association and the
legal counsel of the homeowners association; and
(2) other communications or attorney work product prepared in
anticipation of litigation;
available to the owner of a lot or home.
(k) A homeowners association is not required to make available to
a member for inspection any of the following:
(1) Unexecuted contracts.
(2) Records regarding contract negotiations.
(3) Information regarding an individual member's association
account to a person who is not a named party on the account.
(4) Any information that is prohibited from release under state or
federal law.
(5) Any records that were created more than two (2) years before
the request.
(6) Information that:
(A) is provided by a member of the homeowners association
about another member of the homeowners association; and
(B) concerns suspected criminal activity involving the other
member.
Except as otherwise provided in this article (including subsection (j)
and this subsection), other applicable law, or the governing documents
of the homeowners association, a homeowners association is not
required to retain a record of a written or electronic communication for
any specific period of time. However, a homeowners association or a
member of the board of a homeowners association shall retain for at
least two (2) years after receipt, and during that period shall make
available to a member of the homeowners association at the member's
request, any written or electronic communication received by the
homeowners association or board member that relates to a financial
transaction of the homeowners association and that is not otherwise
excepted from disclosure under this article or other applicable law.
(l) Nothing in this chapter:
(1) abrogates or eliminates provisions in homeowners association
agreements that permit or require additional disclosure or
inspection rights not required by this chapter; or
(2) prevents a homeowners association from agreeing to make
disclosures or to provide inspection rights not required by this
chapter.
(m) A homeowners association may not charge a fee for the first
hour required to search for a record in response to a written request
submitted under this chapter. A homeowners association may charge
a search fee for any time that exceeds one (1) hour. The following
provisions apply if a homeowners association charges a search fee:
(1) The homeowners association shall charge an hourly fee that
does not exceed thirty-five dollars ($35) per hour.
(2) The homeowners association may charge the fee only for time
that the person making the search actually spends in searching for
the record.
(3) The homeowners association shall prorate the fee to reflect
any search time of less than one (1) hour.
(4) The total amount of the fee charged by the homeowners
association for a search may not exceed two hundred dollars
($200).