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Common reasons residents may sue an HOA

On Behalf of | Oct 20, 2023 | Real Estate Law

Being on a Homeowners’ Association (HOA) board can sometimes feel thankless. Never more so than when you face a lawsuit from one of the residents for whose benefit you are trying to manage the place.

Here are some of the most frequent reasons homeowners or residents file lawsuits against HOAs:

They feel the design scheme is too limiting

A well-designed HOA will soon cease to be attractive if every resident can just make alterations as they want. Let’s say the architect designed the place to have a Mediterranean vibe, with all buildings painted white. If a homeowner feels the place needs a bit more color, they may take you to court to try and get an exception to your white-walls-only rule.

They fail to understand why you can’t just do something they want

Maybe you have scheduled work to improve or repair something for next year because the HOA does not have the financial resources to do it in this financial year. A resident who feels you should get the work done now may accuse you of failing to meet your upkeep responsibilities.

They think you have been wasting ‘their’ money

Transparency is crucial when you are on the committee of an HOA. Residents have the right to know what the HOA is spending funds on. Yet, even if you are transparent, some may accuse you of misappropriating funds or favoring certain contractors to get a kickback.

They believe you have discriminated against them

People may claim you are discriminating against them when you take action against them because of their behavior. It’s important to stay up to date with fair housing laws.

Disputes between the HOA and residents can soon escalate. Learning more about your legal options can help you take the steps needed.