The bill would prohibit homeowner associations from entering into potentially harmful contracts without the approval of members who would be affected. It also requires that the associations cannot enter into a certain amount of debt without the approval of a majority of members.
Rep. Murphy has offered similar legislation in the past. Facing the biggest recession Hoosiers have seen this century, this small bill to protect homeowners has gained plenty of supporters.
"Franklin Township homeowners, in particular, need the protections provided by this legislation," said Rep. Murphy. "I'm impressed, but not surprised, that this bill received bipartisan support. Hoosier families need help now. We all know that. This is a great indicator that we're willing to work together in this time of economic crisis."
The bill passed with a 54-41 vote. HB 1071 will now head to the Senate for consideration.
The bill applies to homeowners associations created after July 30, 2009, although current associations can choose to be governed by its principles.
This week is the halfway point of the 2009 legislative session. Successful House and Senate bills will switch chambers next week.