Attorney general uses power to uphold transparency of homeowners’ associations

The Indiana Attorney General’s Office has reached a settlement agreement with three former board members of The Harbours Condominiums Association in Jeffersonville, resolving a longstanding dispute that will effect homeowners’ associations throughout Indiana.

The AG filed a lawsuit in 2012 alleging the defendants were using their positions of trust and authority as Harbours board members to make financial deals with association money that promoted their own best interests to the detriment of other association members, without other members’ knowledge or approval.

The Indiana Legislature in 2011 granted the attorney general authority to investigate and take action on allegations of fraud and misappropriation by homeowner’s associations or similar entities.

The legislation was expanded last year to make it easier for homeowners to obtain financial records from associations.

The law also allows for additional penalties in cases of wrongdoing.