A proposed ordinance on local Homeowners Associations (HOA) governance rules has been continued by the Fishers Plan Commission, allowing time for the city staff to meet with industry, HOA representatives and the public on proposals to change the rules on neighborhood covenant changes.

The City Council approved on first reading a proposal to lower the voting threshold for changing HOA covenants from 75% of property owners to a majority, more than 50%.  The public hearing had six speakers, many from the private sector with concerns about the consequences of such an ordinance.

The proposed ordinance would only impact new developments and their HOAs.  Fishers City Councilor Todd Zimmerman, also a Plan Commission member, reminded everyone that only 6% of the land in Fishers is yet to be developed.

One speaker, representing the Builders Association of Greater Indianapolis (BAGI), suggested a continuance to find common ground.  She expressed several concerns, including adding risk for banks financing residential developments and for the builders themselves.  According to BAGI, most HOAs have the rule of 75% of property owners approval for covenant changes for a reason.

Fishers City Councilor Brad DeReamer, who proposed the ordinance change, says the neighborhoods in his Northeast District are all facing problems with the 75% rule.  He also wants the rule for how many property owners must attend a meeting of the HOA to take action (a quorum) be reduced to 20%-25%, rather than the common rule of 50%.  He reminded Plan Commission members that the City Council is elected to represent the people of Fishers, not the developers.

One other member of the public, a local HOA officer, agreed with DeReamer.  But other speakers, some former city planners now working for developers, warned of unintended consequences of lowering the 75% threshold to 50%.

The Commission voted unanimously to continue the issue until the stakeholder meetings take place and staff reports back on what is learned from those sessions.

If the Plan Commission would come up with an ordinance language recommendation for the City Council, it would then be up to the full Council to decide whether a new ordinance on changing HOA covenants for new developments in Fishers would be enacted.