1. (a) This section does not apply to a contract entered into by a board that would resolve, settle, or otherwise satisfy an act of enforcement against a homeowners association for violating a state or local law.

2. (b) A board may not enter into any contract that would result in a new assessment or the increase in an existing assessment payable by the affected members of the homeowners association in the amount of more than five hundred dollars ($500) per year for each affected member of the homeowners association unless:

   1. (1) the board holds at least two (2) homeowners association meetings concerning the contract; and
   2. (2) the contract is approved by the affirmative vote of at least two-thirds (2/3) of the affected members of the homeowners association.

3. (c) A board shall give notice of the first homeowners association meeting held under subsection (b):

   1. (1) to each member of the homeowners association; and
   2. (2) at least seven (7) calendar days before the date the meeting occurs.

As added by P.L.167-2009, SEC.2.