3-27-2025

1. San Jose, California: Overthrowing an Overreaching HOA Board

In San Jose's Garden Park community, residents successfully ousted nearly all HOA board members after enduring years of excessive and often unfounded fines. Homeowners faced penalties for minor infractions, such as leaving vehicles unattended during grocery unloading or having patio umbrellas of unapproved colors. The newly elected board aims to abolish unjust fines and foster a more community-focused environment. ​The US Sun

2. Loganville, Georgia: Allegations of Harassment and Financial Mismanagement

Residents of the Greighfield community in Loganville have raised serious concerns about their HOA president, Melanie Downing. Homeowners allege harassment and financial mismanagement, with some receiving unexplained fines—one as high as $137,768. Despite a vote for new leadership, Downing reportedly refuses to acknowledge the change, leading residents to pursue legal action for transparency and proper governance. ​The US Sun

3. Charlotte, North Carolina: Misallocation of Funds

In Charlotte's Steele Creek area, homeowners discovered that their HOA dues were mistakenly used to pay another community's bills for two years, amounting to a $10,000 misallocation. This error depleted funds meant for necessary repairs in their neighborhood, leaving residents frustrated and seeking reimbursement. ​The US Sun

4. Aurora, Colorado: Unexpected Special Assessment Fees

Jacob Lively, a homeowner at First Creek Farm Condominiums in Aurora, was surprised with an $8,000 special assessment fee from his HOA for damages caused by a hailstorm over a year prior. Despite his unit sustaining no damage, the HOA required homeowners to contribute to the insurance deductible, calculated as 5% of the building's value. This unexpected fee has left residents scrambling to find funds and questioning the HOA's financial management.

 ​The US Sun

5. Santa Clara, California: Legal Victory Against HOA Negligence

An elderly couple, Doug Ridley and Sherry Shen, were awarded $1.8 million after a seven-year legal battle with their HOA in Santa Clara. The couple's condo suffered severe mold and structural issues due to water pooling from an abandoned well. Despite repeated pleas, the Rancho Palma Grande HOA refused to investigate or address the problem, leading to significant personal expenditure by the couple. A judge ruled that the HOA engaged in extensive deception and fraud, awarding compensation for damages and emotional distress. ​The US Sun

6. West Palm Beach, Florida: Struggles with High HOA Fees

Homeowners in the Village of Sandalwood Lakes are grappling with high HOA fees of $605 per month, which have nearly led to evictions for some residents. In response to concerns about HOA practices, Florida Representative Juan Carlos Porras introduced a bill to allow local authorities to audit and inspect HOAs for fraud, aiming to increase oversight and protect homeowners. ​The US Sun

7. Charlotte, North Carolina: Legal Battle Over Unauthorized Fines

Sherry Loeffler engaged in a five-year legal battle against her HOA after being fined over $12,000 for installing new windows—a modification initially approved but later contested by the HOA. The prolonged dispute resulted in a settlement granting Loeffler $75,000 and highlighting issues of HOA overreach and the importance of homeowners standing up for their rights. ​The US Sun

8. Greenville, South Carolina: Dispute Over Property Modifications

Michael Cassar faced opposition from his HOA after being denied permission to build steps to his backyard, despite initial approval. The conflict led to significant personal expenditure and highlighted the broader issue of power imbalances between homeowners and HOAs. This case has spurred state lawmakers to propose new legislation aimed at addressing such disputes more effectively. ​The US Sun

Colorado Homeowners Burdened by Billions in Development Debt Fight for Financial Control - 2-16-2025  

Residents of The Meadows, Castle Rock's largest neighborhood, are confronting a significant financial challenge: a $434 million debt incurred by the community's special taxing district. This debt, stemming from infrastructure investments, has led to higher property taxes for homeowners, many of whom were unaware of this financial burden when purchasing their homes. In response, a group of neighbors is striving to gain control of the district's board to increase transparency and influence future financial decisions. Their goal is to ensure that residents have a say in managing the community's finances and to address the escalating tax implications. 

CBS News

This situation is part of a broader trend in Colorado, where the combined debt of the state's special metro districts has reached $19 billion, surpassing the state's own debt of $17 billion as of 2019. These districts, often established to fund infrastructure for new developments, have been criticized for operating without sufficient oversight, leading to financial strains on homeowners and local governments. 

Strong Towns

For more details, read the full stories here: CBS News and Strong Towns.

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Johnstown HOA Embezzlement Arrest - 1-6-2025 

In November 2024, after a 16-month investigation, Johnstown Police arrested 48-year-old Sandra Oldenburg. As a representative and partner in Poudre Property Services (also known as RCE Inc. and NOCO Real Estate Solutions), she was accused of embezzling nearly $650,000 from multiple northern Colorado HOAs. Oldenburg faces several felony and misdemeanor charges, including theft, cybercrime, fraud by check, second-degree forgery, and money laundering. 9News

Increased HOA Fees: Residents in affected communities, such as the Enchantment Ridge subdivision in Loveland, have experienced substantial hikes in their HOA dues. Homeowner Pam Crabb reported her fees nearly doubling from $600 to $1,000 annually, attributing the increase to the alleged theft and subsequent financial shortfalls. She expressed frustration, stating, "You're penalizing those of us who live here and got ripped off." The Sun

State Regulatory Challenges: Colorado's regulatory environment has faced scrutiny regarding oversight of HOA management companies. In 2019, the state discontinued its licensing program for community association managers, limiting the government's ability to investigate complaints about mismanagement or fraud. This regulatory gap has left homeowners with limited recourse when facing issues with their HOAs. ProPublica

 Recommendations for HOAs: Experts advise that to mitigate the risk of fraud, HOAs should implement robust financial controls, conduct regular audits, and ensure transparency with homeowners. Educating board members about fiduciary responsibilities and establishing checks and balances can also help prevent embezzlement. Spectrum Asset Management

1-6-2024

Rising Insurance Premiums

Homeowners' associations (HOAs) across the United States are currently facing significant challenges related to insurance costs and reserve fund management. These issues have intensified over the past three months, impacting both associations and their members.

HOAs are experiencing substantial increases in insurance premiums, driven by factors such as natural disasters and higher rebuilding costs. For instance, the Highland Park Community Association in Mission Viejo, California, saw its insurance quote soar to over $170,000—more than four times the amount in 2022—primarily due to wildfire risks. This surge necessitated a 20% increase in residents' dues to cover the additional expense.

Wall Street Journal: Big Jump in Insurance Cost Strikes Condos (Subscription Required)

Similarly, in South Florida, condominium owners are grappling with escalating HOA fees. New state laws require condo boards to allocate reserves for repairs and maintenance, leading to higher costs for residents. In Miami-Dade County, median monthly HOA fees have risen from $567 in 2019 to $900 in 2024, prompting a surge in property listings as owners struggle to manage the financial burden.

New York Post: Rising HOA fees lead to surge in listings.

Reserve Fund Challenges

Adequate reserve funding is crucial for HOAs to manage long-term maintenance and unexpected repairs. However, many associations are underfunded, leading to sudden special assessments and financial strain on homeowners. A recent report indicates that numerous HOAs fail to meet the 70% funding benchmark considered necessary for financial stability.

AZ Reserve Analyst: The State of HOA Reserve Funding

In Maryland, the implementation of House Bill 107 mandates reserve studies and adequate funding for community associations. While aimed at preventing structural failures, this legislation has resulted in significant financial obligations for condo owners, with some facing five- to six-digit bills to comply with the new requirements.  

Wikipedia: Maryland House Bill 107

Impact on Homeowners

The financial pressures from rising insurance premiums and the need for sufficient reserve funds are leading to increased HOA dues and special assessments nationwide. In some cases, homeowners are compelled to sell their properties due to the unaffordable costs. The unpredictability of these expenses adds to the challenges faced by residents, particularly in regions prone to natural disasters or with aging infrastructure.  

Wall Street Journal: Big Jump in Insurance Cost Strikes Condos (Subscription Required)

What the Experts are Saying

Industry experts advise HOAs to adopt more rigorous budgeting and financial planning practices. This includes conducting regular reserve studies, increasing reserve contributions, and educating board members and homeowners about the importance of financial preparedness. Proactive financial management can help mitigate the impact of rising costs and ensure the long-term stability of community associations.