1. (a) A homeowners association may assess a fine for a member's violation of a covenant described in IC 32-25.5-2-3 (2) if the board first adopts a schedule of fines that sets forth:

   1. (1) the covenant violations that are subject to a fine;
   2. (2) the amount of the fine that applies to each violation identified under subdivision (1);

   3. (3) if any of the fines listed in subdivision (2) will be assessed on an ongoing or recurring basis:

      1. (A) for a defined period or a specified number of days; or

      2. (B) until the violation is cured or another contingency occurs;

         a statement of that fact, along with a description of how the fine will be calculated and assessed; and

   4. (4) a maximum aggregate fine amount for any single violation. A fine assessed on an ongoing or recurring basis may not exceed the maximum aggregate amount stated in the schedule of fines.
2. (b) If the board will adopt a schedule of fines under this section at a meeting of the board, the board shall give notice of the meeting to members in accordance with the homeowners association's governing documents. The notice must include the proposed schedule of fines.

3. (c) A schedule of fines adopted under this section must be available to any member for inspection upon the member's request, which may be submitted:

   1. (1) in person;
   2. (2) in writing; or
   3. (3) by electronic mail or other electronic means.

4. (d) The board may, from time to time, amend or repeal a schedule of fines adopted under this section if notice of:

   1. (1) the amendment or repeal, including the amended schedule of fines in the case of an amendment; and

   2. (2) any meeting held to adopt the amendment or repeal;

      is given to members in accordance with the homeowners association's governing documents.

5. (e) Members may submit to the board under section 2 of this chapter a written demand for a special meeting of the members of the homeowners association for the purpose of voting to amend a schedule of fines adopted under this section. An amended schedule of fines shall be:

   1. (1) adopted as proposed; or

   2. (2) revised and adopted;

      if so approved by a majority of members present at the meeting.

6. (f) After a schedule of fines has been adopted under this section, the board may assess a member a fine for a violation included in the schedule of fines under subsection (a)(1) if the board first provides notice to the member of:

   1. (1) the violation for which the fine will be assessed;
   2. (2) the amount of the fine;
   3. (3) the date on which the fine will be assessed; and

   4. (4) if the fine will be assessed on an ongoing or recurring basis:

      1. (A) for a defined period or a specified number of days; or

      2. (B) until the violation is cured or another contingency occurs;

         a statement of that fact, along with a description of how the fine will be calculated and assessed.

7. (g) If a member is assessed a fine under this section, the amount of the fine that has accrued must be available to the member upon the member's request, which may be submitted:

   1. (1) in person;
   2. (2) in writing; or
   3. (3) by electronic mail or other electronic means.
8. (h) The assessment of a fine by a homeowners association under this section does not operate as a waiver of the homeowners association's rights to pursue alternative remedies provided for in the homeowners association's governing documents, including any right to injunctive relief or to pursue a claim for damages.

As added by P.L.155-2026, SEC.6.