Homeowners associations are not the most beloved institutions by many residents. While some people appreciate the value of shared responsibility for maintenance and amenities, the dark side is that most HOAs have dozens of pages of rules and regulations and elected boards of residents who may not always have the expertise or integrity to expertly manage a community.
Horror stories abound like this one: an 83-year-old homeowner in Houston whose home was taken by foreclosure by her HOA for unpaid dues of $4,000 and sold for $5,000. And this one: A married couple in Florida, both HOA board members, used more than $339,000 of their neighbors money for personal expenses from HOA funds.
Foreclosures by HOAs were up 40% during the first quarter of 2026 compared to two years earlier, according to a report by ATTOM, a property data analytics firm, in part because HOA dues and special assessments have been rising in recent years in response to the impact of higher insurance premiums and inflation on community expenses.
Today, about 35% of homes in the U.S. are part of a homeowners association and, in 2024, 68% of all newly built homes were in one, according to the National Association of Home Builders. That means that many people end up living in an HOA whether they want to or not.
However, while there are plenty of homeowner complaints about HOAs and neighbors, many people appreciate their community association. The 2026 Homeowner Satisfaction Survey by the Foundation for Community Association Research found that:
86% rate their overall community association experience as positive or neutral
82% say their board serves the best interests of the community
77% say they get along well with their neighbors
75% say their community manager provides value and support
Whether they’re satisfied or not, HOA members need to understand their rights within their community and how to advocate for their needs.
“Being informed helps residents know what to expect and be active participants in their community,” according to the Community Associations Institute (CAI). “Homeowners should start with their community’s governing documents, including the declaration or Covenants, Conditions & Restrictions (CC&Rs), bylaws and rules. These documents explain how the community is governed and outline the responsibilities of homeowners and the association.”
Rules about property maintenance, parking, pets, common areas and architectural changes sometimes change, so homeowners should participate in board meetings if possible and read association communications, the CAI recommends.
Common complaints about HOAs, according to CHARM Maryland, an HOA residents advocacy organization, include:
Board members, community managers and attorneys bullying homeowners.
Retaliation against homeowners who complain to their HOA.
Inventive interpretation of rules.
Rules not cited in a violation notice.
Lack of election transparency.
Lack of financial transparency.
Some of the biggest fights between homeowners and HOAs occur over money.
Unexpected and unexplained HOA fees cause more than aggravation: they can create financial distress for homeowners if they’re not in a position to immediately pay more than double their previous monthly dues or must come up with a chunk of cash for a special assessment. A special assessment is a one-time fee, typically for a major repair or maintenance project, when an association lacks financial resources to cover it.
According to the CAI, “Special assessments are an important financial tool that allows a community association to meet significant expenses that cannot be adequately covered by its regular operating budget or reserves. They also may be necessary when unexpected circumstances require timely action, such as an urgent repair or storm damage. Depending on the community’s financial position and needs, other funding options, such as a bank loan, also may be considered.”
One issue HOA resident advocates are trying to fix is the lack of a national standard to govern special assessments. According to the CAI, “a board's authority and the process for adopting an assessment are determined by the association's governing documents and applicable state law.”
The CAI recommends regular reserve studies and adequate reserve funding, which help communities plan for major repairs and replacements and can reduce the need for unexpected special assessments. About a dozen states require a reserve study, while others recommend them.
“When a special assessment is necessary, it can help address essential projects, protect the community’s assets and avoid deferring work that could become more expensive later,” according to the CAI.
So, what can homeowners do if they’re faced with a special assessment or fee hike that they can’t afford or believe is unnecessary?
The CAI recommends starting with a review of the HOA budget, reserve study or reserve funding, project costs and other financial information for context. You can ask board members and community managers questions, but whether you can challenge an assessment depends on your HOA’s documents and any applicable state law, the CAI says.
The same process holds true about HOA fee hikes. However, the CAI points out, “Keeping assessments artificially low does not make these expenses disappear. It can lead to deferred maintenance, underfunded reserves or larger special assessments later. CAI advocates for responsible budgeting, reserve planning and financial transparency so homeowners understand what their assessments support and communities are positioned to meet both current and long-term needs.”
HOA residents can discuss issues with their neighbors and advocate to delay or reduce fee hikes, but ultimately the budget is determined by the elected board.
Whether you’re fed up with dues hikes or have a specific dispute with your HOA, there are some steps to take towards resolution. Ultimately, though, some homeowners end up hiring a lawyer, which can cost hundreds of thousands of dollars. Unfortunately, larger HOAs often have more resources than individual homeowners to resolve issues.
What you can do depends first on the HOA’s governing documents and state law. You can search for an HOA homeowner advocacy group online in your area for local resources.
In Maryland, CHARM recommends a few steps to resolve issues:
Send an email to board members or the community manager to keep a written record of the dispute.
Follow up with an email recapping any verbal discussions.
Ask for a timeline for a response from the board.
Follow up every couple of weeks.
Cite HOA rules and bylaws in your correspondence.
File a complaint with a state consumer protection office.
According to the CAI, “Fair, effective and community-driven alternative dispute resolution (ADR) processes can help protect the rights of both homeowners and associations. Depending on the community and applicable state law, mediation or another form of ADR may provide an opportunity to resolve a disagreement. When outside mediation is appropriate, professionals with community association expertise can help facilitate a fair and informed resolution.”
CAI provides resources, including its Community Association Civility Pledge and Model Code of Ethics for Community Association Board Members, to help foster respectful dialogue, responsible leadership and constructive solutions within communities.
If you’re not satisfied with your HOA board, you may want to send them those resources.
A relatively new option for buyers purchasing a home within an HOA is an HOA Warranty, which is essentially an insurance policy for new HOA residents to cover a future special assessment within certain restrictions. Buyers can ask sellers for an HOA Warranty or purchase one themselves, according to Rhett Graves, founder and CEO of HOA Warranty.
“An HOA Warranty is only available at the point of sale, and confirmed special assessments prior to the close are not covered,” Graves says. “If quotes are received for a future project prior to the close, that's also excluded. Buyers may still choose to purchase or negotiate for the seller to cover an HOA Warranty in these circumstances for things that might come up in the years ahead.”
An HOA Warranty protects homeowners against special assessments for the repair or replacement of covered systems and structures such as roofs, balconies, decks, windows, elevators and more during the warranty period.
“We don’t cover special assessments that are ‘fortuitous events,’ meaning possible but random in nature, as that is beyond the scope of a warranty,” Graves says. “So special assessments related to things like lawsuits, government mandates or monthly fee increases are excluded.”
For sellers, offering an HOA Warranty as part of the listing can help attract buyers. Graves says they’re working on making it easier for real estate agents and lenders to provide HOA Warranty coverage, too.
Currently, the HOA Warranty is priced at $380 for 1 year of coverage, $600 for 2 years and $800 for 3 years. The HOA Warranty, which is available in Colorado, Illinois, Michigan, North Carolina, Ohio and Pennsylvania, with other states added in the future, is not renewable.
Publisher’s Note: This content is made possible by our Today’s Homeowner Campaign Sponsor: ProVia.
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