Homeowners associations (HOAs) exist to protect property owners. These organizations establish community standards. They adopt bylaws that govern property maintenance and resident behavior. The HOA board for a community holds regular meetings and manages the budget.
They collect fees every month to help manage shared spaces and community amenities. HOAs may also assess penalties or fines for violations by residents. Living in an HOA community can add hundreds of dollars per month to a homeowner’s property costs. In cases where people experience a sudden reduction in income or where the HOA suddenly starts enforcing rules and imposing costly fines, people may be unwilling or unable to pay those amounts.
HOAs have the right to seek liens and foreclose
The agreements that homeowners enter into with their local HOA clarify the obligations of each party. While the documents may differ slightly from one community to the next, certain provisions are standard.
For example, issuing fines after a property is out of compliance for a set number of days is standard procedure in most communities. So is assessing a late fee for those who do not pay their monthly fees as they should. In some cases, HOAs may limit access to shared spaces and community amenities until property owners pay what they owe.
Other times, they take legal action to resolve outstanding fees. If the owner does not pay promptly or make arrangements to do so, then the HOA could pursue a lien against their property. A lien is an official note on the title records for the property that indicates there is a financial obligation secured by the property.
If the homeowner pays what they owe in full, they can remove the lien. If they do not pay everything in full, then the HOA might try to enforce the lien. Enforcing the lien often involves foreclosure proceedings. People can lose their homeownership because of past-due fees and fines owed to their HOAs.
Property owners living in HOA communities and those serving on the boards in HOA communities often need support when navigating conflicts related to unpaid fees and fines, and that’s okay. Understanding the enforcement methods HOAs can use could lead to a faster resolution of a fee-related conflict.
