Indiana does not require reserve studies for any community association, but it does mandate reserve funding for condominiums: Indiana Code § 32-25-4-4 requires condominium assessments to include the establishment and maintenance of a replacement reserve fund. Non-condominium HOAs governed by the Indiana Homeowners Associations Act (IC 32-25.5) face no statutory reserve study or reserve funding requirement. There is no statutory reserve study cycle in Indiana.
Verified against the statute 2026-07-07
The replacement reserve fund mandate applies only to condominiums under the Indiana Condominium Act (IC 32-25). Planned-community HOAs under the Indiana Homeowners Associations Act (IC 32-25.5) have budget and record-keeping duties but no statutory reserve requirement.
No statutory cycle — Indiana never requires a formal reserve study for condos or HOAs.
Condominium assessments must be set using generally accepted accounting principles and must include a replacement reserve fund kept in a separate interest-bearing account (or invested as political-subdivision funds may be) and used only for capital expenditures and repair/replacement of common areas. No minimum funding percentage or formula is specified, and no funding requirement exists for non-condo HOAs.
Indiana has no statutory requirement to disclose a reserve study or reserve balance to buyers. IC 32-25.5-3-3 requires HOAs to present an annual budget to members and make financial records available for inspection on written request, which in practice exposes reserve balances to owners.
Requires all sums assessed by a condominium association to be established using generally accepted accounting principles and to include establishment and maintenance of a replacement reserve fund held in a separate interest-bearing account (or invested as political-subdivision funds may be under IC 5-13-9), usable only for capital expenditures and repair/replacement of common areas — not usual and ordinary repairs. Unchanged since 2002 (last amended by P.L.192-2002(ss)).
Requires non-condo HOAs to prepare an annual budget, present it for approval at a meeting of the members, and make financial records (contracts, invoices, bills, receipts, bank records) available to members for inspection on written request, but contains no reserve study or reserve funding mandate. Amended through the 2026 session (P.L.53-2026; P.L.155-2026) on budget-quorum and fee matters — still no reserve requirement.
Verified directly against the official primary source. The iga.in.gov SPA serves only a JS shell to non-browser clients, but the General Assembly's official bulk Indiana Code download is served as a static file (a browser User-Agent is required — the zip endpoint also returns the JS shell to non-browser clients): fetched https://iga.in.gov/ic/2026/2026-Indiana-Code-html.zip (2026 Indiana Code official HTML edition, published June 23, 2026; URL confirmed from the IGA site's own JS bundle, which builds it for the /laws/ic/downloads page) and read Title 32 in full. IC 32-25-4-4 confirmed verbatim: subsection (c) requires assessments set using GAAP to include establishment and maintenance of a replacement reserve fund, held in a separate interest-bearing account or invested as political-subdivision funds under IC 5-13-9, usable only for capital expenditures and replacement/repair of common areas and not usual and ordinary repairs; credits read 'As added by P.L.2-2002, SEC.10. Amended by P.L.192-2002(ss), SEC.172' (unchanged since 2002, matching the 2009 Wayback capture of the official www.in.gov/legislative/ic/code/title32/ar25/ch4.html page, also fetched). IC 32-25.5-3-3 confirmed verbatim: annual budget (a), member-meeting approval (d), and financial-records inspection on written request (g); credits show amendments through P.L.53-2026 and P.L.155-2026 (HEA 1152, enrolled PDF also fetched from iga.in.gov/pdf-documents — 2026 changes address budget-quorum options, child care homes, and fee limits, not reserves). Title-wide scans of the official 2026 edition: 'reserve study' appears zero times in Title 32, and the only reserve-fund mandate in Articles 25/25.5 is 32-25-4-4(c). Statute URLs updated to the verified 2026 edition. Independent audit (July 2026) re-fetched the official zip (43.5 MB, application/zip, from iga.in.gov) and the 2009 Wayback capture, and re-confirmed both section texts verbatim, both credit lines, the HEA 1152-2026 budget-quorum/child-care/fee scope (from the code text itself, which cites HEA 1152-2026), and the zero-hit 'reserve study' scan. Informational only — not legal advice. Confirm with the primary source and a community-association attorney licensed in Indiana. Report an issue.
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