9 Common Homeowners Association Lawsuits

As with any other organization, homeowners associations are vulnerable to legal action. More often than not, the community members challenge the association. HOAs must familiarize themselves with the most common homeowners association lawsuits to better prepare for any possibilities.

THE MOST COMMON HOMEOWNERS ASSOCIATION LAWSUITS

There are around 355,000 community associations in the United States. Out of these, it is not hard to find an HOA that has not faced any form of legal action from homeowners or vendors because many homeowners use lawsuits to deal with disputes and problems in an HOA community. And while a lot of these are frivolous, some carry weight.

Here are the most common homeowner association lawsuits:

ALLEGED MISUSE OF FUNDS

Homeowners associations handle money used to pay for the community's various expenses. But, where there is money, there is always a risk of theft and fraud.

Sometimes, board members will misuse the association's funds. They will use HOA money to pay for personal expenses or use it to pay for expensive dinners exclusively for the board. While the latter isn't technically stealing, it is still considered a misuse of funds since it is not used for the community's best interest.

When this happens, homeowners can sue the HOA or board under a breach of fiduciary duty or the law. The matter can even escalate to HOA litigation in more severe cases.

Architectural Request Denials

Another typical HOA lawsuit has to do with architectural requests. Generally, homeowners who want to make architectural changes to their homes have to apply to the HOA. It will be denied if the change does not coincide with the association's architectural standards. Disgruntled homeowners who receive such a denial may take legal action to challenge the board's decision.

Of course, there are times when the board's decision to deny the change is unfounded. The homeowner's architectural plans may be in line with the guidelines, and the board rejected the application either on a whim or because they disliked the homeowner. In either case, the homeowner can sue the board for not following the association's regulations.

Board Action Disagreement

Boards make all sorts of decisions, but not everyone will agree with these decisions. Suing HOA board members out of disagreement is not uncommon. Many homeowners deal with their dislike of the board's findings in this manner. They feel that suing the HOA will stop the dispute. More often than not, such polarizing decisions have to do with expenditures that homeowners have to pay.

Discrimination

Discrimination suits are very prevalent in the United States, and homeowners associations are no exception. A disabled or disabled homeowner may sue the HOA under the Fair Housing Act or the Americans With Disabilities Act which usually happens when the association has failed to make reasonable accommodations for the person.

Failure to Comply with a Request

Homeowners will sometimes request to see or inspect certain association records, but they can't grant the requests. Some of them will take legal action to force the board to comply when that happens.

As with other lawsuits on this list, homeowners are not always right. There are cases where homeowners will request to inspect sensitive or confidential records, such as a list of delinquent homeowners. In such a scenario, the board's decision to deny the request is reasonable.

FAILURE TO MAINTAIN COMMON ELEMENTS

One of the more unique lawsuits against HOA communities involves the failure to maintain common elements or areas and is also perhaps the most common HOA lawsuit.

Homeowners associations are responsible for common area maintenance and repairs. Failing to fulfill this responsibility can be grounds for legal action. When an association fails to maintain or repair a common element or area, homeowners will complain and even sue the HOA. The same applies even if a natural disaster causes damage. Insurance may cover some of the expenses, but it is up to the HOA to have contingency funds precisely for such an event.

PERSONAL INJURY

People have also sued homeowners associations for personal injury, otherwise known as a slip and fall lawsuit. Suing HOA for negligence is one of the more common lawsuits an association can encounter. Based on the neglect theory, the HOA was negligent in its maintenance that caused the person to injure themselves. For example, if the HOA failed to repair the damages to a flight of stairs and someone trips over it, it could be liable for that person's injury.

PET DISPUTES

When discussing homeowners association lawsuits, pets don't usually come to mind. But, surprisingly, homeowners have sued HOAs over pet disputes which generally happens when a homeowner disagrees with an HOA's rules concerning pets. They sue in an attempt to change the rules or to force the HOA to allow them as an exception. For instance, a homeowner may want to keep more than three pets even though the HOA has a three-pet limit.

VIOLATIONS

When homeowners violate the community's rules, the HOA may assess a fine against them. While some homeowners settle the fine, others will challenge the violation and sue HOA board members.

WHAT HAPPENS WHEN AN HOA LOSES A LAWSUIT?

Homeowners associations are not the end-all, be-all of housing authorities. Homeowners associations can lose lawsuits — it does happen. If an HOA fails a case in a lower court, it can usually file an appeal in a higher court.

Losing a lawsuit certainly spells out many adverse effects for the association. For one thing, they have to give the homeowner what they want. Another downside is that the HOA has to pay for all legal fees and may have to cover the cost of the homeowner's legal fees.

The financial burden will be lighter if the HOA has the appropriate insurance coverage. But, if it does not have insurance, the HOA will have to pay for the costs using its funds, which technically come from the homeowners. The HOA will need to levy special assessments or increase regular dues to make up for these funds. Therefore, even though the homeowner wins the lawsuit against the HOA, everyone else has to suffer the financial consequences.

SEEKING LEGAL COUNSEL

Homeowners association lawsuits happen frequently. Sometimes, the HOA is wrong, and the homeowner has grounds to sue. But, other times, the HOA is doing its job correctly, and the homeowner has decided to file a lawsuit to get what they want. In any case, association boards should be prepared for any possibility.

An HOA management company offers legal assistance and connections to a vast network of reputable HOA lawyers. Start your search for the best one in your area using our .