This post summarizes the challenges of solving HOA disputes and also includes a short list of homeowner advocacy resources at the end of the article.

By Deborah Goonan, Independent American Communities

Post updated October 2024

I get a lot of requests from homeowners and residents seeking help with HOA problems. What can you do when things go wrong with your HOA?

It depends on the issue, but I try to guide readers to limited available resources. The truth is, while the HOA industry is very lucrative for its major stakeholders, it is very loosely regulated – if regulated at all – for housing consumers.

There’s no “HOA consumer hotline.” And, at this time, there is no federal consumer protection agency to regulate HOA developers, management companies, attorneys, collection agencies, or homeowner board members.

HOA professional stakeholder groups exist primarily to promote and protect the business interests of trades and professions serving common interest communities. That includes, primarily, community association managers, HOA attorneys, architects, planners, and builders of residential communities that include the establishment of mandatory Association Governance.

Unfortunately, what works well for HOA-related businesses does not necessarily serve the best interests of housing consumers.

Educate yourself

On this website, you’ll find thousands of articles on a wide range of HOA issues, from a housing consumer perspective. HOA problems prevail across the U.S. and to other developed nations around the world. IAC focuses primarily on HOAs in the U.S.

On this website, you can learn about current legislative and legal trends, the impact of HOAs on your Constitutional and Civil Rights, and the social and moral problems one encounters under HOA regimes.

I highly recommend using the topic list and key word search functions to find the information you need. That said, if you can’t find what you’re looking for, contact me at deborahgoonan@gmail.com

Grassroots help

However, across the US there are many smaller consumer-focused groups and organizations that are educating HOA homeowners and residents, and beginning to make some connections with influential policy makers.

You may also find one or more groups or blogs that you wish to join and follow. At the very least, you have the opportunity to connect with other like-minded people who may be going through similar hardships within their HOA communities.

Solving HOA disputes

How can you resolve a dispute with your HOA? Or replace a rogue HOA, condo, or co-op board? What if you are considering legal action your HOA has filed a lawsuit against you?

What if you’ve attempted to communicate with your HOA Board, but they aren’t willing to listen or compromise?

Your options for resolving most HOA disputes are limited to the following:

• Rally together with other homeowners and try to replace the Board. That means you must be willing to serve as a volunteer to help improve the community. But depending on the Association, it can be extremely challenging or next to impossible to replace some rogue boards hell-bent on power.
• Go into avoidance mode. Swallow your pride and comply with the HOA Board’s demands, in the hopes that they leave you alone.
• Put your home on the market, sell, and get out. Or, conversely, move out and lease your home, although leasing may not be possible if the association restricts rentals.
• If your HOA dispute is unavoidable (the HOA provoked you), you might be forced to take legal action to protect your rights. But be aware of all your options and the challenge of finding a homeowner/consumer-friendly attorney. Understand that HOA lawsuits are stressful, and the outcome is uncertain.

Start by communicating with your neighbors

Don’t assume you have to deal with your HOA dispute alone. There’s a good chance that several of your neighbors have similar concerns and complaints, and they may be experiencing the same problems with your HOA board and management. 

Try talking to your neighbors in person, if possible. Then, if your neighbors are willing, band together to formally address the HOA board as a group. Sometimes this approach is successful in resolving the problem.

However, if homeowners feel intimidated or threatened by the HOA board, its management agent, or HOA attorneys, you will face reluctance of your neighbors to get involved in confronting the problem directly.

How to fight back before turning to a lawsuit

One of the best resources I have found with regard to handling HOA disputes: Shelly Marshall’s HOA Warrior Reports I and II. The reports contain plenty of practical tips based on the author’s personal experience, and keen understanding of human nature. You’ll find well-written and easy to understand, step by step tactics you can take, and, hopefully, avoid an all-out legal war in the process.

Marshall also shares her tips on replacing an out-of-control HOA Board, including what she and her neighbors have learned from their mistakes.

Shelly Marshall is an advocate and author of two HOA educational books. The publications include specific tips and suggestions for homeowners seeking to oust an over-controlling HOA board, in order to bring peace and democracy back to their community.

For more information, click on the following links:

HOA Warrior: Battle Tactics for Fighting your HOA, all the way to court if necessary Kindle Edition  

HOA WARRIOR II: Responding to Pets, Paint, & Parking in Your HOA: (templates, forms, letters, and philosophy to use when dealing with your board or when you become the board) Kindle Edition  

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Alternative Dispute Resolution (ADR)

ADR is preferred by HOA industry trade groups, including home builders and community association management trade groups.

But be aware that not all types of HOA disputes are well suited for ADR, especially if the HOA or the homeowner is not willing to work toward a mutual solution in good faith.

State laws or governing documents may require homeowners to exhaust their ADR options before they can file a lawsuit against their HOA.

Read the following information to learn about Arbitration and Mediation, how they work, and how differ from litigation and from each other.

Read about the Pros and Cons of arbitration. Contrary to what you may have been told, arbitration can be just as costly as litigation. It may lead to a quicker resolution, but the homeowner can get stuck with a bad decision that cannot be overturned by the courts.

HOAs or real estate developers often hold the legal advantage in arbitration cases, especially if they choose arbitrators with a history of settling disputes in their favor.

Mediation also has its advantages and disadvantages. Sometimes mediation works to the mutual benefit of homeowners and the HOA. But if either party is resistant to compromise — or in cases where compromise is not a realistic option — mediation can be a waste of time and money.

What to know about HOA lawsuits

Are you seriously thinking of suing your HOA? Has your HOA filed a lawsuit against you?

I’m not an attorney. However, over the past decade, I have been reading legal complaints, case summaries, and generally following the progress of legal disputes in HOA-Governed Housing. I read and analyze pages and pages of dry, verbose information, including legal opinions, to gain a better understanding of exactly how current laws work for or against housing consumers.

In other words, I look for patterns of dysfunction and injustice through the lens of housing consumer protection.

Here’s what housing consumers need to know

Homeowners, condominium, cooperative, and property owners’ associations are collective legal entities – usually incorporated. Governing documents of HOAs – which include Declarations of Covenants, Conditions, and Restrictions (CC&Rs), By Laws, and Articles of Incorporation of mandatory-membership HOAs are legally binding on both individual members and their Association. U.S. courts generally view the relationship as contractual between and among the parties.

But that contract is usually written by and for developers, making it one-sided in favor of the HOA. In addition, governing documents are not subject to state or federal review, and state laws impose minimal restrictions on the terms of HOA contracts.

A buyer or heir to HOA property must agree to all terms without any opportunity for negotiation before taking title to that property. Take it or leave it.

And it’s important to note that state laws governing HOAs are usually written by, and therefore heavily skewed in favor of, real estate industry stakeholders: land developers and home builders, bulk investors, HOA management firms, HOA attorneys, and so on.

HOA regulation is weak at best

The HOA industry is, at best, loosely regulated by a patchwork of inconsistent state laws, and a handful of regulatory agencies. Most often, state Ombuds and regulatory departments of business or real estate – if they exist – are established with virtually no budget to investigate consumer complaints, and no mandate or authority to enforce statutes or HOA governing documents.

I call it Regulatory Window Dressing, as explained in my previous post about HOA legislative “reform” in my home state of Pennsylvania. Many other states are grappling with HOA reform at some level. I have featured various articles on legislative reform efforts in Arizona, California, Colorado, Florida, Georgia, Illinois, Maryland, North Carolina, South Carolina, Virginia, and more. In general, elected officials are eager to provide the appearance of doing something to rein in excessive power and abuse of HOAs. But, in practice, many HOA consumer protection laws can be ineffective because they are weak on enforcement.

That’s why, in most cases, an Association member’s sole option to enforce or defend their rights against their Association is engaging in a legal battle in civil court.

I regularly hear from owners and residents of Association-Governed Housing. I and other housing consumer rights advocates listen to their frustrations and their personal stories.

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Blaming the victim

After following legal cases and communicating with owners all over the U.S., a pattern emerges. That pattern is that the association digs in their heels and does everything in their power to shift blame to the victim(s) of their abuse. The association must never admit fault, as it might undermine their credibility and authority.

The HOA’s goal is to wear down the “malcontent” financially and emotionally, so that they will give up the fight and move on. The goal is to set an example for other owners and residents, so that they do not dare to question status quo, for fear that they will be the next target of the Association.

That’s the kind of environment that breeds apathy. Ignoring problems and pretending not to care about HOA dysfunction is matter of self-preservation for most homeowners.

What to expect from the HOA litigation process

The legal dispute takes over your life.

Litigation involves a great deal of your time and effort, and the information gathering process can seem invasive. You will be expected to provide documentation of your complaint or facts in your defense. Your attorney or the HOA attorney will demand that you to turn over copies of any and all written correspondence you have had with the board, manager, or collections agency, including emails.

The list of correspondence includes letters, invoices, receipts for payment, violation notices. Relevant photographs, social media posts, voice mails, and recorded phone conversations are also subject to examination by both Plaintiff and Defense attorneys. One or more rooms in your home may be filled with stacks of important papers and files related to your lawsuit.

You may become the enemy.

Most individuals report feeling shunned by their neighbors, and being labeled as “disgruntled,” “unreasonable,” “malcontents” or “troublemakers.” Your HOA board may openly blame you for creating the problem and saddling the Association with unnecessary legal expenses.

You find out who your real friends are. 

In the early stages of a dispute, you’re likely to have several friends and allies. But once the lawsuit is filed, many will shy away from you. Some will support you privately but will not defend you publicly. Those who are willing to support you and stand by you through this ordeal count as true friends.

The dispute strains personal relationships.

Isolation and social rejection spreads to your family members. This puts a strain on couples and families. Friends may also avoid your partner. Play dates with your children may stop, or a child might be bullied at school. Family stress and feelings of rejection can lead to behavior and social problems for children. Some people report that a prolonged lawsuit has led to the end of their marriage, because one partner wants to give up and settle, while the other partner wants to hang tough and fight for justice.

You get the Silent Treatment.

Once litigation begins, your HOA Board and Manager will become less transparent. All communication with your HOA must be directed through the attorneys. Open meetings become less frequent.

Your requests might be ignored or rejected.

Quite often, your HOA will not cooperate with your requests for access to documents. This is one of the most common complaints I hear. In addition, your requests for maintenance, as well as approval for home modifications that require permission from the HOA, may be delayed, ignored, or rejected. Some owners have received “cease and desist” letters from the HOA attorney, accusing them of “harassment,” and threatening legal action.

Retaliation is common.

If you have a bully on your board or in charge of management, aggressive and abusive behaviors often escalate. Some HOAs will go out of their way to humiliate the homeowner by any means possible, including publicly spreading rumors, lies, and false accusations. Particularly bitter disputes may even devolve into physical assault.

Police complaints may be filed, even if there is no basis, as an intimidation tactic. Sometimes arrests are made, and the charges later dropped. But by that time, reputations are already damaged.

Lawsuits often drag on for years.

The Civil Litigation process is anything by Civil.  It is fraught with endless motions, countersuits, depositions, and a long and invasive discovery process. Expect the process to take at least 2 – 4 years. A complex case involving multiple parties or countersuits and appeals can drag on for 5 – 10 years.

You don’t know who you can trust.

I often hear from HOA residents that they are fearful of talking to anyone who might report back to their HOA board or manager. While many of these fears may be unfounded, HOA disputes can divide communities. When your formerly friendly neighbors snub or ignore you, it can destroy your sense of trust in others as well. And when you don’t trust people, you tend to self-isolate, compounding feelings of rejection and loneliness.

You might go broke.

The legal process can be very costly. Attorneys can quickly burn through a $10,000 – $20,000 retainer. And, because finding a resolution can take years, your legal costs can even exceed $100,000, particularly if your HOA prevails and is awarded their attorney fees by a judge.

By the way, don’t expect an attorney to take your case on contingency. Here’s why.

Don’t misunderstand. Homeowners do sometimes win HOA lawsuits after a long legal battle. But quite often HOAs outspend a homeowner before the case can be appealed and overturned in favor of a homeowner.

Prolonged stress can harm your health.

I have heard reports of depression, anxiety, and sleep disorders. Some owners become so emotionally distraught, they consider or attempt suicide. Sadly, a few have taken their own lives.

Others find that stress exacerbates pre-existing health problems. Some have reportedly developed new illness, such as an autoimmune disorder or cardiac distress. People with disabilities have told me the stress makes it more difficult to cope, especially when the HOA is refusing to accommodate their disability in violation of Fair Housing Laws.

There’s no easy escape.

During the heat of the legal battle, though you might choose to move elsewhere, selling your home can be difficult or next to impossible. That’s especially true if your HOA has filed one or more liens as a result of unpaid assessments. (In many states, unpaid fines turn into unpaid assessments.) If your dispute involves defective construction, environmental contamination, or significant damages that your HOA refuses to repair, your home is probably unsellable.

In the end, you may be forced to move.

Owners and residents are almost always pressured by the HOA and their adversarial neighbors to move. Many ultimately do, even if they “win” their lawsuit, simply to escape community tension and start over in a new neighborhood. It’s fairly common for a legal settlement to require you to sell your property and vacate the HOA.

Out-of-court confidential settlements are common.

Most lawsuits never make it to trial, and instead end outside of court with a settlement. A condition of most settlements is that both parties agree to keep the details confidential. Although you may not be comfortable with a “gag-order,” agreeing to keep quiet about the outcome of litigation may be the best way to put an end to prolonged litigation.

Bottom line – It’s not a fair fight.

It’s not that individual Association members never prevail in HOA litigation. But the odds are stacked against them.

It’s relatively easy for the HOA to meet its burden of proof when suing a member. The HOA can often prove its case against you by referring to what is written into the governing documents. The HOA also gains considerable authority under state law. State laws enable most Associations to take various punitive actions against a property owner, to include issuing fines, placing a lien on your home, and even foreclosing your home to collect on that lien.

On the other hand, it’s relatively challenging for an individual owner or resident to prove a case against the HOA. For one thing, an Association is almost always represented by an aggressive, well-trained HOA attorney – paid by an insurance company – who is very familiar with the law and knows how to defend claims against the Association or board members.

Uneven legal playing field

Very few attorneys will represent a member against the Association, and those that are willing to take a case are not necessarily on equal footing with the HOA’s attorney. If you decide to sue your Association, you (or your attorney) must either prove that the board’s or manager’s actions were unreasonable or done in bad faith. Neither standard is clearly spelled out in the law or governing documents.

And, finally, state law does not specifically obligate an Association-Governed Community to uphold its maintenance responsibilities, as spelled out in the governing documents. For example, most states do not mandate an Association to maintain the common elements and common areas to a minimum standard for health, safety, or habitability. Even if your state requires mandatory building inspections or funding of reserves, you’ll still have to file a legal claim against your HOA if it fails to comply.

One exception: homeowners and residents quite often prevail on Fair Housing complaints, because federal law is quite clear and unambiguous on matters of disability accommodation and discrimination against protected classes. However, there’s such a backlog of fair housing claims that it can take several years to resolve, and, during that time the resident often moves in order to improve living conditions.

Sometimes, even when you win, you lose.

After several years and appeals, you might prevail on your case, or at least end up with a fairly good settlement offer. But by the time you deduct legal expenses for the attorneys, you may find you’re not that far ahead of the game. In fact, the net amount of your award or settlement may not even cover your total damages, especially if your property has been devalued, sold at a loss, or lost to foreclosure.

And you may think that a judge will order the HOA to pay your legal costs. But don’t count on it. First of all, not all state laws have a “loser pays” provision. And even if your state law does stipulate that the prevailing party is entitled to reimbursement of attorney fees, a judge may find that you only partially prevail, or that both parties prevail on different issues. If that’s the case, both parties will still be covering a good portion of their own legal expenses.

So, what can a homeowner do?

There’s no doubt about it. Engaging in litigation with your Association-Governed Community is not something you should take lightly.

The biggest obstacle for many homeowners is finding legal representation, since the vast majority of attorneys represent HOAs rather than homeowners. That’s because the Association has the combined financial resources of all of its members, including insurance policies that protect HOA board members from personal liability.

Homeowners have limited resources, and few can afford expensive legal representation, when they are able to identify attorneys that will represent the homeowner’s interests.

However, the political landscape is beginning to change. Several HOA consumer advocacy groups are forming and working toward legislative reform of homeowner and condominium associations. Below is a list of organizations that I am familiar with.

Homeowner/Consumer Advocacy groups

Jan Bergemann, President, CCFJ (Florida)

Bergemann is President of Florida’s largest homeowner advocacy organization, Cyber Citizens for Justice. The extensive CCFJ website contains a treasure trove of news reports and editorial opinions. The content includes information relevant to homeowners’, condominium, and cooperative associations in Florida. The organization also advocates on behalf of home and condo owners and tracks relevant HOA and condo legislation in the Sunshine State.

Mark B. Hirsch and Ann Hirsch, US Coalition for Association Reform (USCFAR)

According to their mission statement:

The mission of the US Coalition for Association Reform (USCFAR) is to protect and promote the rights of property owners in association communities first and foremost.

We will achieve this through collective action, legal support, and lobbying for legislative reform.

Our aim is to restore balance, harmony and to create a more respectful environment, while fighting abuse and corruption within the system.

USCFAR is based in Florida but envisions taking its movement to a national level. Check out the website for a list of key issues.

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Dennis Legere, Founder, Arizona Homeowners Coalition (AZHOC)

Dennis Legere serves as a lead advocate and lobbyist for the Homeowners Coalition that he founded in 2013. Legere works directly with state legislators to enact legislation that benefits housing consumers and property owners in HOA-governed communities. 

AZHOC seeks to protect and restore the Constitutional and Common Law rights of HOA-governed property owners in Arizona.

AZHOC maintains a website (https://hoatruth.com/) where Arizona homeowners can register themselves as members of the Coalition, track legislation and bill related to HOA-governed common interest communities and condominiums and review relevant case law. 

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Nancy Kozanecki, HOA Reform Coalition (Texas)

HOA Reform Coalition has been advocating for consumer-friendly laws that protect the rights of owners and residents in HOA-governed communities in Texas. The group has also worked with state Legislators to repeal bad laws that harm HOA housing consumers.

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Marjorie Murray, Center for California HOA Law

Marjorie Murray is the President of Center for California HOA Law, an owner’s advocacy organization that provides educational resources pertaining to state laws and relevant case law affecting owners of property in HOA-governed common interest communities. 

The CCHAL website includes information about current legislative action, dispute resolution, and how to file HOA complaints in small claims court.

CCHAL is a 501(c)(3) organization that has sponsored HOA consumer-friendly legislation in California on behalf of property owners and residents of HOA-governed common interest developments.

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I encourage you to share this page:

• with your state and federal elected legislators.
• with other property owners and residents in Association-Governed Communities,
• your family and friends
• anyone who may be contemplating purchase of a home in a HOA, condo or cooperative association
  

Disclaimer: this post is provided for information only. I am not an attorney. – Deborah Goonan, IAC