Sec. 5. (a) This section does not apply to money borrowed by a homeowners association that is needed to:
(1) resolve, settle, or otherwise satisfy an act of enforcement against the homeowners association for violating a state or local law; or
(2) address an emergency that affects the public health, safety, or welfare.
(b) A homeowners association may not borrow money during any calendar year on behalf of the homeowners association in an amount that exceeds the greater of:
(1) five thousand dollars ($5,000) during any calendar year; or
(2) if the homeowners association operated under an annual budget in the previous calendar year, an amount equal to at least ten percent (10%) of the previous annual budget of the homeowners association;
unless borrowing the money is approved by the affirmative vote of a majority of the members of the homeowners association voting under this section.
(c) A person who owns a lot, parcel, tract, unit, or interest in land in a subdivision may cast one (1) vote under this section for each lot, parcel, tract, unit, or interest in land in the subdivision that is owned by the person unless the governing documents provide for a different voting procedure.
(d) A vote held under this section must be conducted by paper ballot.
(e) A homeowners association shall distribute paper ballots to persons eligible to vote under this section at least thirty (30) days before the date the votes are to be opened and counted.
(f) Votes cast under this section shall be opened and counted at a public meeting held by the homeowners association.
As added by P.L.167-2009, SEC.2.