1. (a) If:

   1. (1) a meeting of a homeowners association is called in accordance with the requirements of the homeowners association's governing documents, regardless of whether the meeting is:

      1. (A) an annual meeting;
      2. (B) a special meeting; or
      3. (C) any other meeting called by the board or the members;
   2. (2) a purpose of the meeting is the election or appointment of members of the board of directors of the homeowners association; and

   3. (3) the number of members of the homeowners association in attendance at the meeting does not constitute a quorum as defined in the governing documents of the homeowners association;

      the members of the board of directors at the time of the meeting may continue to serve until their successors are selected and qualified, regardless of the length of any member's term or the number of terms the member has served.

2. (b) The failure of a homeowners association to achieve a quorum at a meeting described in subsection (a) does not exempt any member from, or create an affirmative defense for any member with respect to:

   1. (1) the member's obligations under the homeowners association's governing documents; or

   2. (2) the member's obligations to otherwise abide by covenants regulating:

      1. (A) the use of real estate; or
      2. (B) the payment of assessments.

3. (c) If a homeowners association's governing documents permit both the homeowners association and members of the homeowners association to enforce provisions of the governing documents, the homeowners association has authority both:

   1. (1) as a corporation or an entity; and

   2. (2) as derived from the members of the homeowners association's board;

      to enforce the governing documents of the homeowners association.

4. (d) Beginning after the effective date of this subsection as added by HEA 1210-2026, only members of the homeowners association who use their property as a homestead (as defined in IC 6-1.1-12-37 ) are eligible to cast a vote on a matter regarding either of the following:

   1. (1) A prohibition or restriction of an owner of a privately owned residential property from using the property as a rental property.
   2. (2) A prohibition or restriction regarding the use of property as a rental property.

5. (e) A developer is not subject to subsection (d) while the developer maintains ownership of lots within the homeowners association. For purposes of this subsection, "developer" means any person or entity that is engaged in the business of acquiring land for the purpose of:

   1. (1) improving the land, including the subdivision of land for the purpose of constructing a residential building or structure on a lot; and
   2. (2) selling or leasing a residential building or structure to another person.

As added by P.L.27-2017, SEC.3. Amended by P.L.157-2026, SEC.225.