HOA Assessments and Liens in Indiana: What Homeowners Need to Know

Homeowners associations in Indiana have the authority to collect assessments and, in some cases, place liens on properties for unpaid amounts. Here is how the process works.

What Are HOA Assessments?

HOA assessments are the fees that homeowners are required to pay as members of a homeowners association. These assessments fund the association’s operating budget, which usually covers expenses such as maintenance of common areas, landscaping, insurance, utility costs for shared facilities, and reserves for future repairs. Regular assessments are usually set on a monthly, quarterly, or annual basis and are established by the board of directors as part of the association’s annual budget.

In addition to regular assessments, the board may levy special assessments to cover unexpected expenses or major capital improvements that exceed the association’s reserves. For example, if a community pool requires emergency repairs or a shared roof needs replaced, the board may approve a special assessment to cover the cost. The association’s declaration of covenants, conditions and restrictions typically grants the authority to levy assignments.

What Happens When Assessments Go Unpaid

When a homeowner falls behind on their assessments, the HOA has several options for collection. The association will typically begin by sending written notices of the delinquency. Late fees, interest, collection costs, and reasonable attorney’s fees may accrue on unpaid balances as permitted by the governing documents. If the delinquency continues, the HOA may file a lien against the homeowner’s property. Under Indiana law, a homeowners association lien is a legal claim against the property for unpaid assessments, and may also include late fees, interest, and reasonable attorney’s fees incurred during the collection process.

Enforcing an HOA Lien

An HOA may enforce its lien by filing a lawsuit in the circuit or superior court in the county where the property is located. If the court rules in the association’s favor, the lien may be foreclosed in the same manner as a mortgage. This means that in serious cases of prolonged nonpayment, the homeowner could potentially lose their home through a foreclosure action brought by the HOA. It is important for homeowners who are struggling to pay their assessments to communicate with the association early, as many HOAs are willing to work out payment plans before pursuing legal action.

Recent Changes to Indiana HOA Law

Under legislation signed into law in 2026, an HOA may not charge homeowners fees that are not expressly listed in the association’s recorded governing documents. This change is intended to increase transparency and to protect homeowners from unexpected charges.

Whether you are a homeowner facing a lien or a board member seeking to collect unpaid assessments, the real estate attorneys at McNeelyLaw LLP can help. Contact us today by calling (317)825-5110.

This McNeelyLaw LLP publication should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer on any specific legal questions you may have concerning your situation.