A Richmond, Texas homeowner was recently cited by her local HOA for displaying strip club-themed skeletons in front of her house in a goofily raunchy sense of Halloween spirit. The members of her local HOA were not amused.
After deciding that the homeowner’s burlesque skeleton display was an aesthetic affront to the family values ethics of the HOA local community rules, she was told to remove it. The dispute gained local media attention. Perhaps in a face-saving decision, the HOA gave the homeowner 30 days to remove the skeleton display, which legally allowed the homeowner to keep the display up during Halloween anyway.
While disputes over minor infractions like garden gnomes often make headlines, they underscore the serious, binding nature of HOA obligations. Escalation can lead to costly litigation and, in extreme cases, forced removal from the HOA, resulting in the loss of one's home.
HOA membership is mandatory and contractual upon property purchase. Homeowners must strictly adhere to the governing documents, primarily the Declaration of Covenants, Conditions, and Restrictions (CC&Rs). Violations can lead to formal disciplinary action, including fines, privilege suspension, and expulsion.
The most critical obligation is the timely payment of mandatory, non-refundable HOA fees (monthly, quarterly, or annually). These dues fund the community's operation, maintenance, and stability, covering:
Non-payment severely jeopardizes the HOA's financial health, triggering penalties such as late fees, interest, suspension of amenities, property liens, and ultimately, foreclosure. These fees are a foundational legal and financial commitment for community functionality.
Before discussing HOA fees, let’s first talk about HOAs in general.
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A homeowners’ association, or an HOA, is a local community organization that comprises members of the local community. The HOA director, the board of directors, and other HOA members are all neighborhood members. They will be your neighbors.
An HOA creates and legally enforces rules relative to how its members take care of their homes and properties within the boundaries of the HOA’s neighborhood borders.
Depending on the HOA you join, there could be very restrictive rules stipulating what HOA members can and can’t do with their homes and properties.
You must be interviewed, vetted, and accepted to join an HOA community. Unless accepted, you cannot move into an HOA community, which is essentially a de facto gated community.
HOAs are especially common in planned communities, condominiums, and newer suburban developments. If you’re buying a condo or townhome, there’s a good chance an HOA is part of the deal. Before signing anything, read the full governing documents so you know exactly what you’re agreeing to.
Homeowners Association (HOA) rules are established in the covenants, conditions, and restrictions (CC&Rs) to uphold a uniform neighborhood appearance, protect property values, and foster community harmony.
These regulations are mandatory for all residents and range from stringent architectural and design mandates, such as requiring pre-approved paint colors and specific material types, to restrictions on seasonal decorations. Compliance is essential; unfamiliarity with the rules does not excuse a homeowner from adherence.
Violations result in an escalating enforcement process. This typically begins with a formal written warning (a cease and desist letter). Persistent non-compliance can lead to monetary fines (daily or weekly), suspension of access to community amenities (pools, gyms), or even legal action.
In severe cases involving accrued, unpaid fines and fees, the HOA may place a lien on the property or, rarely, initiate foreclosure. Disputes over these rules, especially egregious or repeated transgressions, can become public, often highlighting the friction between individual property rights and collective community standards.
A Murfreesboro, Tennessee HOA member was cited by his HOA for posting a large football-themed sign on his front yard, a violation of local HOA rules. The homeowner decided to pay the undisclosed HOA fine instead of taking the sign down.
In Arizona, the members of an elite, upscale HOA community are embroiled in a 30-person web of lawsuits alleging petty defamation and infighting over HOA rules.
At the most extreme end of the HOA rules spectrum, you could be sued or legally forced to vacate your home and the neighborhood for breaking its rules. While this does happen, sometimes lawsuits, fines, and petty squabbles are drawn out until a conclusion is reached.
While being part of an HOA could be a bureaucratic and headache-inducing experience, what’s interesting is that HOA members pay regular HOA fees for the privilege.
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HOA fees are a kind of annual or monthly dues that are collected from every HOA member. HOA fees are used for a variety of purposes but are mainly used to maintain the aesthetic and cleanliness standards of the HOA community.
For example, HOA fees may be collected to help pay to clean communal parks, swimming pools. Or, HOA fees could be used to help pay for the construction of community projects, like a new tennis court. In fact, homeowners association fees often cover shared community expenses like landscaping, pest control, and exterior building maintenance.
The amount you pay in HOA fees depends on the HOA you join. There are no uniform HOA fee standards. You could pay anywhere from $250 to $2,500 annually to satisfy your HOA fees. That said, HOA fees can vary widely depending on location and amenities, with luxury communities in high-cost areas running significantly higher.
Beyond monthly dues, it’s also worth knowing that special assessments may be charged when reserves are insufficient to cover major repairs or unexpected expenses. These are one-time charges on top of your regular fees and can add up fast. If you’re not already thinking about all the extra costs, understanding the hidden mortgage costs most homeowners overlook can help you put together a much more realistic budget.
That is a lot of money to pay, relatively speaking, for the privilege of being part of an HOA. So, what are the pros and cons of being part of an HOA?
There are a few advantages to being a part of an HOA and paying its fees.
To help mitigate and quell neighbor feuds before they get out of hand, feuding neighbors can elect to mediate their issues with the local HOA board.
So, if you have issues relative to fence boundaries, barking dogs, or loud music with a neighbor, you can take it up with your HOA board and accept their decision.
If you join an HOA with a rigorous cleaning and maintenance process for the neighborhood, your property values will benefit.
Being part of an HOA usually grants you automatic membership in the community gym, swimming pool, and other perks.
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Pay attention to the minutiae of your HOA contract agreement. It might be very restrictive relative to what you can and can’t do on your own property.
You may be only allowed to paint your house a color approved by the HOA. Or, you may only be allowed to have a certain kind or a certain number of pets in your household.
Furthermore, you may not be allowed to have pets if your HOA is located in an apartment building condominium. For buyers considering condos or attached housing, it’s worth asking whether are condos a good investment given these added restrictions.
If you are living check to check or on a set budget, paying for HOA fees could wreck your personal finances.
Even if you are not kicked out of your home for breaking HOA rules, legally fighting with your HOA can be a financially draining experience.
The biggest disadvantage of belonging to an HOA is that an HOA can assume an inordinate amount of control over your home, personal life, and finances.
For buyers in California, HOA fees and rules can be especially significant given the state’s high housing costs. If you’re a first-time home buyer in California, understanding HOA obligations before you close can prevent costly surprises down the road.
Joining an HOA is not a decision to undertake lightly. Why would you want to join one? What would you get out of it?
Think about your lifestyle, your budget, and how much control you want over your own property. Some people thrive in HOA communities because they value the order and shared amenities. Others find the restrictions frustrating and the fees hard to justify. There’s no universal right answer, but going in with clear expectations makes a real difference.
You may want to talk to people who are already members of an HOA. Your best option may be to talk to professionals in the mortgage industry.
Ready to buy into an HOA community and want to fully understand your financing options? Talk to an expert at Mares Mortgage before you commit so you can go in with a clear picture of what the fees will mean for your budget.
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