What Can and Can’t an HOA Do?

Living in an HOA community can come with many perks—shared amenities, increased curb appeal, and a well-maintained neighborhood are all at your fingertips. But no HOA comes without its cons, and a common issue many homeowners have is with HOAs that attempt to enforce unfair or unlawful rules and regulations on the neighborhood. You may wonder what degree of power HOAs truly have over homeowners and whether there are any HOA laws that regulate them.

While HOAs do have a level of power over the neighborhood residents, they do not have unlimited reign over the community, so it’s crucial to know your options when living under an HOA. That starts with understanding basic HOA laws and what HOAs can and cannot do. We’ve got the rundown on the limits of HOA power so you can fully grasp what your rights are in an HOA community.

What an HOA Can Do

While HOA horror stories often circulate, the purpose of a homeowner’s association is simply to help with the upkeep and maintain property values in your neighborhood. HOAs may maintain common areas and amenities, enforce neighborhood rules about home appearances, and even host community events. To do this, HOAs have a number of rights and responsibilities that you as a resident are obligated to comply with. Below are several examples of what HOAs can do in your neighborhood.

Create and Enforce Rules and Regulations

One of the main responsibilities of an HOA is to create rules, called covenants, conditions, and restrictions (CC&Rs). HOAs then enforce these CC&Rs to provide a more pleasant living experience for members of the neighborhood.

Many new homeowners in an HOA ask, “can an HOA change rules after purchase of a property?” The answer is yes, but not whenever the HOA decides they want something to be changed. HOAs can create or amend rules by proposing new guidelines or changes to homeowners and allowing them to vote new regulations in.

In terms of enforcing these rules, HOAs may inspect your property directly, take complaints from neighbors, or monitoring committees who keep a watchful eye on the community. When a homeowner violates an HOA rule, they will receive a notice of the violation, and if the problem persists, fines or other penalties may be imposed on the homeowner.

Collect Dues from Residents

For an HOA to run, it must have funding for maintenance and upgrades in the neighborhood. To get these funds, the HOA charges dues to each resident in the neighborhood that cover these costs. The specifics of your dues will rely on your unique HOA and community size—the amount, the frequency, and the uses for the funds are different from neighborhood to neighborhood, but the HOA reserves the right to collect the dues, charge late fees, or put a lien on your property for nonpayment.

Impose Fines for Violations

A tactic that HOAs will use in enforcement of the CC&Rs of the neighborhood is imposing fines on residents. This is usually not a first response to a rule violation, but is a common one that HOAs have the right to charge. Fines should be expected for repeated or severe rule breaking, like painting your entire house neon purple with no warning or leaving your trash and recycling bins out every week for months.

Read more: What Key Legal Powers Does an HOA Possess?

What an HOA Can’t Do

HOAs do serve a purpose, but that doesn’t mean they have complete control over you as a resident or your property. There are HOA laws that limit the power of an HOA, and if an HOA breaks these rules, community members could pursue legal action. Below are several examples of what an HOA can’t do in your neighborhood.

Discriminate Against You

Many think of Fair Housing Act laws in the context of landlords and tenants, but HOAs are legally required to follow FHA laws, too. An HOA cannot discriminate against you based on race, color, religion, sex, disability, familial status, or national origin. This means an HOA cannot create rules that disproportionally affect specific groups or enforce general rules in a targeted manner.

Restrict Lawsuits

As a homeowner in an HOA community, you are entitled to pursue legal action against your HOA if needed. Your HOA cannot stop you from doing so, but many HOAs do require members to complete an internal conflict resolution process first. If the problem cannot be resolved, homeowners may move forward with litigation.

Impose Unreasonable Fines

As previously covered, HOAs do have the power to fine you—the fines must be reasonable for the severity of the rule broken, though. Leaving a holiday wreath on your front door too long should never constitute thousands of dollars in fines. If your HOA charges a fine that seems unfair, you can generally appeal it with proper evidence.

Read more: What Are Your Rights as a Homeowner in an HOA?

Can You Leave an HOA?

If your HOA is overly strict or even breaking their own rules, you may be wondering how to leave an HOA. While leaving an HOA is possible, it can be very difficult and oftentimes requires you to sell your property and move elsewhere.

• Petition for removal from the HOA: HOA governing documents sometimes (though rarely) include de-annexation clauses that allow you to submit a formal petition to be removed from the HOA.
• Dissolve the entire HOA: The most complex method by far, dissolving your HOA altogether is a way to leave it. This route requires a supermajority of votes from homeowners and dissolution paperwork, and is extremely difficult to pull off.
• Sell your property: The best (and sometimes only) way to get out of an HOA in a community that has one is to sell your property and move to a neighborhood that has no HOA.

Be sure to check your HOA’s governing documents for specific information or clauses surrounding de-annexation before attempting to petition for removal.

Conclusion

Every HOA operates differently with unique rules and regulations within their communities. There are, however, key limitations on what an HOA can and can’t do, and it’s important to understand these limitations as a homeowner so you can better follow the rules and protect yourself when things go wrong. With this new knowledge, you’ll be ready to tackle any HOA issues you come across.

FAQs

What powers does an HOA legally have?

HOAs can enforce community rules, collect dues, maintain common areas, and issue reasonable fines for violations outlined in their governing documents.

Are HOA rules legally enforceable?

Yes, HOA rules are legally enforceable as long as the rules are reasonable, properly adopted, and do not conflict with state or federal law.

What happens if I don’t pay my HOA dues?

If a homeowner fails to pay their HOA dues, the HOA can charge late fees, impose fines, and in some cases place a lien on your property for nonpayment.

What should I do if I disagree with an HOA violation or fine?

Homeowners who disagree with a violation or fine should review the governing documents, gather evidence, and use the HOA’s appeal or dispute resolution process.

Can an HOA prevent me from suing them?

No, an HOA cannot prevent you from filing a lawsuit against them. While an HOA may require internal dispute resolution first, it cannot prohibit homeowners from pursuing legal action.

Can an HOA change its rules after I buy my home?

Yes, HOA can change their rules after you purchase your home–but rule changes must follow the process defined in the HOA’s governing documents, which usually includes homeowner notice and a vote.

Is it possible to leave an HOA?

Leaving an HOA is difficult and often requires selling the property, though rare options like de-annexation or dissolving the HOA may exist depending on governing documents.