We’ve discussed HOA legal obligations and HOA Board responsibilities this month, which leads us to the top reasons HOA Boards get sued.
Maintenance Failures
The top reason is the failure of the association to maintain, repair, or replace common elements within the association. The HOA is responsible for the upkeep and maintenance of common areas. Failure to do so may result in an angry community and eventual litigation.
Pursuing Violations
The HOA creates the Covenants Conditions & Rules (CC&R) to ensure the community remains safe and maintains a high property value. Regulations vary from community to community, but all HOA members are expected to follow the rules. Some legal disputes can arise from breaches of the rules, regulations, and bylaws. At the same time, others can come from arguments about how the association assesses fines and collects delinquencies. Other common disputes are over attorneys’ fees and late charges.
Board Actions
There are also lawsuits where owners don’t like what the Board is doing. These typically involve expenditures homeowners don’t want to pay for, so they’ll try to stop them. However, if the HOA does not breach its fiduciary duty, it will be safe from litigation.
Discrimination
A common topic of litigation against an HOA is failing to adhere to the Americans with Disabilities Act. A disabled person can sue if the HOA fails to make accommodations like installing ramps or handrails in common areas.
If the HOA follows proper procedures, knows their fiduciary duties, and gets legal advice before legal action is pursued, they can remain out of litigation. The best policy is to be reasonable and cooperate with the community to accommodate their requests as much as possible.
Managing a community can seem daunting, but with a strategy and a plan, the Board can create a sustainable community that everyone will love to call home. If you need help managing your community, contact Prism Realty Management. Give us a call at 512-676-5842 — we’d be happy to talk to you about who we are, the services we offer, and our process.
