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Indiana’s 2026 legislative session was, by any measure, a landmark year for housing and homeowners association law. Lawmakers enacted a sweeping package of reforms touching local zoning authority, rental restrictions, HOA fee and fine procedures and homeowner rights. Five major enrolled acts in a single session signals to observers of the political process that the General Assembly views housing affordability and access as urgent policy priorities.
HEA 1001
The centerpiece of the session, House Enrolled Act 1001, began as the most ambitious zoning preemption bill in recent memory. As introduced, it would have defined a wide range of residential development as permitted uses without public hearings in most residential zones. Additionally, unless a local unit opted out via ordinance, it would have broadly restricted local control over design standards, parking minimums, lot sizes, setbacks, etc.
After contentious debate and a 6-5 vote in the Senate Judiciary Committee, the final version was considerably scaled back. What remained, however, is still significant. Beginning Jan. 1, 2027, local units must annually report housing data to the state, including median home sale and rental prices, the number of units approved and denied, housing proposal permit processing times and units built by type. Local bodies must also hold a public meeting this year to evaluate development ordinances with the explicit goal of increasing housing supply, considering higher-density development and eliminating regulations related to lot size, setbacks, roof pitches, garage size, etc. The law also caps local permit fee increases after Dec. 31, 2026.
Signed by Gov. Braun on March 4, HEA 1001 is best understood as a framework bill and the first major step to future reform. HEA 1001 set data collection infrastructure and accountability mechanisms that proponents openly describe as scaffolding for future, more proscriptive action, if local compliance lags in the coming years.
HEA 1152
HEA 1152 addresses two distinct issues. On the budget side, existing law allowed HOA boards to approve budget increases of up to 110% of the prior year when the association could not achieve a membership quorum, provided governing documents authorized it. The new law lowers that cap to 105% for associations formed after July 1, 2026, with developer-controlled associations retaining the 110% threshold during the first five years after the first lot or unit sale. Associations formed before the effective date are largely unaffected. Conservative, incremental budgeting and robust reserve planning will matter more to HOAs in the future under the tighter cap.
HEA 1152 also prohibits HOAs from charging a fee for any services provided, other than dues or fines expressly identified in governing documents. Notably, the bill also prohibits any restrictions on residents who operate a Class I child care home. In recent sessions, affordable child care has been a major priority of all caucuses, so it is no surprise to see these issues intersect in HEA 1152.
HEA 1115
HEA 1115 is the most operationally significant bill for HOAs and represents true HOA reform.
Previously, HOAs could only impose fines if governing documents explicitly authorized them. Moving forward, all HOAs have statutory fine authority regardless of governing documents, but only if they follow a prescribed procedure. Associations must adopt a schedule of fines specifying each violation type, fine amount, recurrence and aggregate cap — and must provide written notice before any fine is assessed.
Account balance statements must be provided at no charge moving forward, and associations may no longer charge owners for document inspection and copying under the HOA records statute. Associations may charge for optional services but must publish a board-approved schedule and may not reclassify services already included in regular assessments.
HOA boards must provide at least four days’ written notice of board meetings, including the agenda, by mail or electronic means. Virtual attendance counts as presence for quorum purposes. Annual meeting notices must inform members of their right to demand a special meeting and the required threshold.
Finally, HEA 1115 prohibits HOA governing documents from requiring more than a two-thirds owner vote for matters covered under the act.
HEA 1150
HEA 1150 addresses a collection of homeowner rights issues. HOA governing documents may not prohibit display of the American flag or Indiana state flag, although reasonable restrictions on placement remain permissible. Associations also may not discriminate against motor vehicles or outdoor equipment based on fuel source, meaning EV mandates or gas-powered equipment bans are off the table. Finally, HOAs are prohibited from installing or operating automated license plate readers on association property unless installed by a law enforcement agency with exclusive data access.
HEA 1210
HEA 1210 takes aim at local rental-cap ordinances, like Fishers’ rule limiting rentals to 10% of homes in a subdivision, by preempting locals from adopting or enforcing ordinances that prohibit or restrict residential rentals or have the effect of doing so. Cities may still enforce building codes, safety standards and reasonable occupancy limits, but percentage caps are out. Local units who adopted such an ordinance before 2026 are exempt from the preemption until 2028, and those who adopted short-term rental restrictions before 2018 are permanently exempted.
Within HOAs, the law adds a voting restriction. Beginning July 1, only members who use their property as a homestead under Indiana’s property tax deduction statute may vote on rental prohibitions or restrictions. Investor-owners who do not occupy the property as their primary residence are excluded from those votes.
Looking ahead
Taken together, these five acts represent a deliberate, thoughtful effort to expand housing supply, rein in HOA overreach, and protect homeowner rights, while leaving some battles, particularly on local zoning preemption, to future sessions. If the required reporting under HEA 1001 shows that local governments are dragging their feet on density and permitting reform, expect the 2027 session to arrive with sharper teeth.
For attorneys advising HOAs, developers or municipalities, the July 1 effective dates are the immediate priority. But the larger story of Indiana’s housing transformation is likely just beginning.•
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Garver is a government and regulatory partner at Faegre Drinker, and Berkshire is a government and regulatory counsel.
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