In February, the Fishers City Council passed, on first reading, a measure that would allow new Homeowners Associations (HOAs) a lower threshold in order to change their governing documents. This proposal would only impact newly-formed HOAs, not ones already in place. The ordinance was proposed by City Council Member Brad DeReamer.
The next step in the process is to have a public hearing at the Fishers Plan Commission, then the Commission would vote on a recommendation to the City Council. That didn’t happen at the March Plan Commission session.
DeReamer spoke at the March Plan Commission public hearing in favor of allowing HOAs to change their covenants with the consent of a majority of homeowners, over 50%, Most HOAs in Fishers require a 75% vote to approve such changes , with a few around 67%. In addition, DeReamer pushed for a lower quorum to conduct business at an HOA meeting. Most HOAs require 50% attendance to conduct business – DeReamer wants to lower that to 20-25%.
However, there was pushback from the private sector on DeReamer’s proposal. A representative for the Builders Association of Greater Indianapolis (BAGI) argued that the 75% vote threshold for HOAs is there for a reason and provides an amount of certainty for financial institutions supporting developments and the housing developers themselves. There were others, some former city planners now in the private sector working for developers, that said lowering the HOA voting threshold from 75% to over 50% would likely result in unintended consequences that most people would not like.
As a result, the Plan Commission unanimously voted to delay any vote on the proposal until city staff can organize meetings with the various stakeholders to provide input and ideas on the issue.
So, will there be a new ordinance on HOA governance for future housing developments in Fishers? Time will tell.