§ 36-4-3-5.2 — Residential developments

Indiana § 36-4-3-5.2

• Jurisdiction: Indiana
• Title 36: LOCAL GOVERNMENT
• Art. 4: GOVERNMENT OF CITIES AND TOWNS
• Ch. 3: Municipal Annexation and Disannexation

Text

2. (a) As used in this section, "homeowners
association" means a corporation that satisfies all of the following:
(1) The corporation is exempt from federal income taxation under
26 U.S.C. 528.
(2) The control and management of the corporation is vested in a
board of directors.
(3) The corporation is organized and operated exclusively for the
benefit of two (2) or more persons who each own:
(A) a dwelling in fee simple; or
(B) a commercial building in fee simple;
within the residential development.
(4) The purpose of the corporation is to:
(A) own, maintain, and operate common areas and facilities;
(B) administer and enforce covenants and restrictions on
property; and
(C) collect and distribute assessments on property;
located within the residential development.
(5) The corporation acts in accordance with the articles, bylaws,
or other documents governing the corporation to:
(A) adopt and enforce rules and regulations necessary for the
enjoyment of common areas, recreation facilities, and other
amenities located within the residential development; and
(B) exercise the corporation's power to:
(i) levy assessments on property within the residential
development; and
(ii) collect assessments on property located within the
residential development by enforcing the corporation's lien
and foreclosure rights.
(b) As used in this section, "municipality" means:
(1) a third class city; or
(2) a town having a population of more than thirty thousand
(30,000) located in a county having a population of more than one
hundred seventy-four thousand (174,000) and less than one
hundred eighty thousand (180,000).
(c) As used in this section, "residential development" means a parcel
of land that is subdivided or will be subdivided upon collection of the
annexation into:
(1) lots, parcels, tracts, units, or interests that:
(A) include an existing Class 2 structure (as defined in IC 22-12-1-5); or
(B) are designated for the construction of a Class 2 structure;
each of which is encumbered by substantively identical restrictive
covenants concerning one (1) or more servient estates located
within the boundaries of the original undivided parcel, or other
governing document of record;
(2) lots, parcels, tracts, units, or interests that:
(A) include an existing Class 1 structure (as defined in IC 22-12-1-4); or
(B) are designated for the construction of a Class 1 structure;
and
(3) a common area.
(d) In addition to annexing territory under section 3, 4, 5, or 5.1 of
this chapter, a third class city may annex a residential development and
a public highway right-of-way that connects the residential
development to the corporate limits of the third class city. A town
described in subsection (b)(2) may annex a residential development.
An annexation by a third class city or a town under this section must
satisfy the following:
(1) This subdivision applies only to an annexation by a
municipality. The residential development is governed by a
homeowners association.
(2) The residential development has at least any combination of:
(A) three hundred (300) proposed or existing, or both, single
family lots within the proposed or existing residential
developments, in the case of an annexation by a third class city;
or
(B) five hundred (500) proposed or existing, or both, single
family lots within the proposed or existing residential
developments, in the case of an annexation by a town described
in subsection (b)(2).
(3) This subdivision applies only to an annexation by a
municipality. The residential development is located in its entirety
not more than four and five-tenths (4.5) miles outside the
municipality's corporate boundaries.
(4) This subdivision applies only to an annexation by a third class
city. The residential development dwellings are or will be upon
construction connected to the third class city's sewer or water
service.
(5) This subdivision applies only to an annexation by a
municipality. The residential development includes a commercial
area containing or proposed to contain buildings intended to be
used and operated for commercial purposes.
(6) This subdivision applies only to an annexation by a third class
city. The residential development is adjacent to the public
highway right-of-way.
(7) This subdivision applies only to an annexation by a third class
city. The public highway that connects the residential
development to the corporate limits of the city is part of the state
highway system (as defined in IC 8-23-1-40).
(8) This subdivision applies only to an annexation by a third class
city. The city's annexation territory includes only the public
highway right-of-way and the residential development.
(9) The aggregate external boundary of the annexation territory
that coincides with the boundary of the third class city is greater
than zero (0).
(10) This subdivision applies only to an annexation by a town
described in subsection (b)(2). An existing sewer line extends
from the residential development to the corporate limits of the
town. The residential development is or will be upon construction
connected to the town's sewer and water service.
(11) This subdivision applies only to an annexation by a town
described in subsection (b)(2). The cost of construction of the
residential development is at least five hundred million dollars
($500,000,000).
(12) The aggregate external boundary of the annexation territory
that coincides with the boundary of the town described in
subsection (b)(2) is zero (0).
(e) Unless the articles, bylaws, or other governing documents of the
homeowners association expressly provide otherwise, the board of
directors of the homeowners association may file a petition with the
legislative body of the municipality requesting the municipality to
annex all property within the residential development. The annexation
may proceed only if the municipality adopts a resolution approving the
initiation of the annexation process not more than sixty (60) days after
the petition is filed. If the municipality does not adopt a resolution
within the sixty (60) day period, the petition is void.
(f) If the legislative body of the municipality adopts a resolution
approving initiation of the annexation, the municipality shall prepare
a written preliminary fiscal plan that must be made available to the
public at each of the outreach program meetings under section 1.7 of
this chapter.
(g) Upon completion of the outreach program meetings and before
mailing the notification to landowners under section 2.2 of this chapter,
the legislative body of the municipality shall adopt a written fiscal plan
by resolution that incorporates any revisions to the preliminary fiscal
plan.
(h) The municipality shall hold a public hearing not earlier than
thirty (30) days after the date the annexation ordinance is introduced.
All interested parties must have the opportunity to testify as to the
proposed annexation. Notice of the hearing shall be:
(1) published in accordance with IC 5-3-1 except that the notice
shall be published at least thirty (30) days before the hearing; and
(2) mailed as set forth in section 2.2 of this chapter.
A municipality may adopt an ordinance not earlier than thirty (30) days
or not later than sixty (60) days after the legislative body of the
municipality has held the public hearing under this subsection.
(i) A landowner may file a remonstrance against the annexation as
provided in section 11 of this chapter.
(j) Territory annexed under this section may not be considered a part
of the third class city for purposes of annexing additional territory
under section 3 or 4 of this chapter. However, territory annexed under
this chapter shall be considered a part of the third class city for
purposes of annexing additional territory under section 5 or 5.1 of this
chapter.
(k) For purposes of an annexation by a third class city under this
section:
(1) section 1.5 of this chapter does not apply; and
(2) the landowner of the public highway right-of-way that is part
of the state highway system (as defined in IC 8-23-1-40) is
considered to be the state of Indiana.
(l) The redevelopment commission of a town described in
subsection (b)(2) may only enact a housing tax increment financing
district in Liberty Township in Hendricks County if the housing tax
increment financing district is approved by a resolution passed by the
Mill Creek School Corporation.
(m) The following apply only to an annexation by a town described
in subsection (b)(2):
(1) Any territory that is annexed under this section may not be
considered a part of the town for purposes of annexing additional
territory under section 3 or 4 of this chapter. However, any part of
the unincorporated area (including any property occupied by the
sewer line under subsection (d)(10)) that:
(A) adjoins the boundaries of the annexation territory; and
(B) extends one-half (1/2) mile from the boundaries of the
annexation territory;
may only be annexed by the town if the annexation is under
section 5.1 of this chapter.
(2) Any part of the unincorporated area (including any property
occupied by the sewer line under subsection (d)(10)) that extends:
(A) outside the one-half (1/2) mile area described in
subdivision (1); and
(B) to the corporate limits of the town;
is not a part of the annexation territory or the town for purposes
of annexing additional territory under this chapter.

Legislative History

As added by P.L.70-2022, SEC.6. Amended by P.L.11-2023, SEC.115; P.L.82-2023, SEC.1; P.L.211-2025, SEC.2.