Running a homeowners association (HOA) can be incredibly challenging at times. Residents won’t always agree with everything you do, despite you doing them to protect the interests of the HOA and the residents in general.
Dealing with a legal challenge from one or more residents can be frustrating, time-consuming and costly for an HOA. Understanding some of the most common reasons for challenges can help you anticipate and, hopefully, avoid them. Here are a few to consider:
They question what you have spent money on
You need to be able to justify all expenses. Being careful with record keeping and being transparent about what you spend on and the cost of things you propose to do is crucial to gain people’s confidence. Fail to do any of these and suspicions could arise.
They want to diverge from the agreed decoration or building scheme
If your HOA has a rule saying all buildings must be painted white, you could encounter problems if one resident wants to paint their place blue. Similar can occur over many matters where rules exist.
They feel you are discriminating against them
You should ensure you are fully aware of and comply with all relevant laws regarding fair housing and so forth. Making even the tiniest error here could give a resident cause to feel something you do or say is based on their race, gender, disability, nationality or another such protected characteristic. They might not even believe this, but simply use it as an excuse to try and get their own way.
Being proactive about getting legal assistance can help you comply with all laws and try and solve issues before they go further and reach a court.