Andrew Lu of FindLaw has done extensive research on the subject of suing a homeowners association and has written a great article on the subject. This could be helpful to those who live in Wynnfield and are thinking about doing the same.
What to Do If You’re Unhappy with Your HOA: Understanding Your Legal Options
If you’re frustrated with your homeowners’ association (HOA) or housing development, you might have the right to take legal action. While HOAs are designed to maintain community standards and protect property values, disputes can arise, leaving homeowners feeling unfairly treated or ignored. Here’s what you need to know about HOA rules, common legal disputes, and how to determine if suing your HOA is the right step.
Understanding HOA Governing Documents
When you moved into a condo or housing development, you likely signed a set of governing documents known as Covenants, Conditions, and Restrictions (CC&Rs). These documents outline what is and isn’t allowed in the community and serve as a contract between homeowners and the HOA. They are typically created by the HOA’s board of directors or management company and dictate:
•Rules for property maintenance and aesthetics
•Standards for landscaping and holiday decorations
•Guidelines for routine inspections and assessments
Violating these rules could result in penalties such as fines, lawsuits, or even forced compliance. However, this relationship is a two-way street: while HOAs can take action against homeowners, homeowners also have the right to sue their HOA under certain circumstances.
Common Reasons to Sue Your HOA
If you believe your HOA has acted unlawfully or unfairly, you may have grounds to file a lawsuit. Here are five common situations where legal action against an HOA may be warranted:
1.Harassment or Discrimination
•HOA rules must comply with housing discrimination laws.
•Rules or actions targeting protected characteristics, such as race, marital status, or family size, are prohibited.
•For example, if the HOA conducts “routine inspections” only on properties owned by specific groups, it could be considered discriminatory.
2.Contract Violations
•The CC&Rs function as a binding contract between the HOA and property owners.
•If the HOA fails to follow its own rules or violates terms in the CC&Rs, homeowners can sue to enforce their rights.
•Example: Installing an expensive amenity or allowing a disruptive business in the community without proper approval could breach the contract.
3.Misappropriation of Funds
•HOA dues should be used responsibly for community maintenance and operations.
•If funds are being misused—such as excessive spending on board member perks or legal fees—you can take legal action to demand financial accountability.
4.Remodeling Disputes
•Disagreements often arise when homeowners want to modify their property, but the HOA denies permission.
•If the CC&Rs don’t specifically address your proposed changes, you may need to sue to resolve the dispute.
5.Failure to Make Repairs
•HOAs are obligated to maintain common areas and address necessary repairs.
•If repairs are delayed or ignored despite the collection of dues, a lawsuit may be necessary to compel the HOA to fulfill its responsibilities.
What Is Selective Enforcement?
One of the most common complaints against HOAs is selective enforcement—when the HOA applies rules inconsistently or unfairly.
•Example: The HOA penalizes one homeowner for a violation (e.g., an unapproved fence) but ignores the same violation for others.
•Legal Implications: Enforcement of rules must be applied equally to all homeowners. If the HOA is selectively targeting certain residents, they may be acting unlawfully.
Can You Sue Your HOA in Small Claims Court?
Yes, you can typically sue your HOA in small claims court if the dispute involves $10,000 or less (this limit varies by state).
•Common Small Claims Disputes: Fines, fees, or minor repair costs.
•Process: You’ll need to pay filing fees and may represent yourself, though some attorneys specialize in small claims disputes for a fee.
Small claims court is often a cost-effective and efficient way to resolve minor conflicts with your HOA without engaging in lengthy legal battles.
When to Consult a Real Estate Attorney
An HOA is responsible for representing the best interests of all homeowners in the community. If it fails to do so, or if it violates its own governing documents, it may be time to consult a real estate attorney.
A lawyer can help you:
•Review your HOA’s CC&Rs and governing documents.
•Determine if you have legal grounds for a lawsuit.
•Navigate the legal process and advocate on your behalf.
Final Thoughts
While HOAs are designed to enhance community living, disputes can arise that leave homeowners feeling powerless. Whether your issue involves selective enforcement, financial mismanagement, or discrimination, it’s important to understand your rights and explore your legal options.
By carefully reviewing your HOA’s rules, gathering evidence, and consulting an experienced attorney, you can take the necessary steps to protect your interests and ensure fairness in your community.