7 common reasons why HOAs get sued

Written by

Kim Brown

Published on

January 10, 2025

Lawsuits are expensive, time-consuming and stressful. For these and other reasons, people should only seek help from a judge as a last resort.

But, as most HOAs have experienced firsthand, some problems cannot be resolved independently. When an owner sues their homeowners association, boards should remain calm, work with their manager, and take proactive steps to prepare for what might come next.

Though each lawsuit is unique, it can almost certainly be placed into 1 of 7 categories.

    

Table of contents

    

7 reasons why HOAs get sued

    

1. An individual believes the association is responsible for a repair

This is one of, if not the most common type of lawsuit filed against an HOA. An owner is adamant that it is the association’s responsibility to repair or replace something, even though the association disputes the assertion. These claims often involve things like roofs and pipes. Some HOAs hand off those types of maintenance responsibilities to owners, but that’s not always the case.

    

2. An individual believes the association should pay for costs associated with injury or damage

In this situation, the owner filing the lawsuit believes the HOA is responsible for property damage or an accident resulting in personal injury. They want the association to pay for the costs associated with the incident. For example, if someone trips on a cracked sidewalk, and sprains their ankle, they may sue the HOA for any medical costs they had to pay for.  This type of claim is often filed in tandem with a “failure to repair” claim.

    

3. An individual believes the association has done something wrong

An owner will file this type of claim if they think the board has acted improperly or failed to do something. This category is broad, but some examples include decision-making during board meetings, discrimination, and mismanagement of funds.

Discrimination suits are prevalent in the United States, and HOAs are no exception. Associations must be careful not to do anything that contradicts the Fair Housing Act or the Americans With Disabilities Act. Problems occur when the association denies a person something based on their race, age, ethnicity, etc., or fails to make reasonable accommodations for someone with a disability.

Sometimes, board members do misuse the association’s funds or approve budgets that exceed acceptable increases. When this happens, owners can sue the HOA for breach of fiduciary duty, or the law.

Other times, lawsuits are filed because an owner wants to stop the association from acquiring a loan, or wants the board to start following a specific procedure.

    

4. The individual believes the board has acted unfairly

Another typical HOA lawsuit category concerns the enforcement of rules and architectural requests. If violations are issued inconsistently, or a request that should be approved gets denied, the owner may complain that the board is being selective about rule enforcement.

Some owners may challenge the HOA specifically because of a violation relating to pets. A neighbor may complain that an owner’s dog is creating a nuisance, but the owner believes the pet is always well behaved.

    

5. The individual is reacting to a claim made by the association

While rare, if an HOA has sued an owner, that person might respond by making a counterclaim. Often, the association is required to win its case to be successful in both lawsuits.

    

6. The individual is trying to get ahead of a claim made by the association

Instead of filing a counterclaim, an owner will sue before the association has a chance to file. In this case, the owner believes they have a stronger case than the HOA. They know the association intends to sue, and they want to get the upper hand.

    

7. The individual believes the association improperly handled an election

The last category covers cases where an owner believes election results were incorrect, or the election did not follow processes written in the HOA’s bylaws.  

    

What to do if someone sues the HOA

Lawsuits can be scary, especially if your board has never dealt with one before. The good news is that many cases won’t make it before a judge. But if and when one does, follow these steps so that your board is prepared to make a convincing case.  

    

Inform the HOA’s attorney

All lawsuits are subject to strict filing deadlines. Typically, an answer to a lawsuit must be filed within 30 days of service. As a result, the board should reach out to the association’s attorney as soon as the HOA is served.

Though other owners might ask questions, the board should avoid discussing the case with anyone outside of the legal team to prevent miscommunication or additional legal complications.

    

Contact the HOA’s insurance company

The association must also notify its insurance carrier upon service of the lawsuit. Some types of litigation may be covered. The sooner the insurance provider receives information about the lawsuit, the sooner the company can make a decision.

    

Collect evidence to support the HOA

Assuming the association only has a month to file an answer, it must not procrastinate. The board needs to evaluate its defenses and potential counterclaims, and the most effective way to do that is to organize information and/or evidence relevant to the lawsuit.

Evidence will usually consist of governing documents, correspondence and communication between the parties, transaction history of the litigant, if applicable, and any other relevant documents that would support the HOA’s case.

    

Are individual board members ever at risk of being sued?

There is always a chance that individual board members could be personally sued by another owner, but this is very rare.

Several protections exist to shield board members from the financial ramifications of most lawsuits. After all, board members are volunteers, and HOA members would be far less likely to fill board positions if they were held personally responsible for issues that go to court.

Most governing documents include an indemnification clause, meaning the association, rather than individual board members, will bear legal costs and potential judgments that arise from lawsuits, provided members act in good faith.

The association also has special insurance (D&O insurance) that protects board members from personal liability arising from their actions as members of the board. It can cover defense costs, settlements, and judgments. However, some actions won’t be covered.

Board members essentially forfeit protections if they act outside the scope of their duties, with gross negligence, or with malicious intent.

    

Minimizing HOA lawsuits

HOA lawsuits are particularly challenging because laws and expectations are not standardized.

While there are certain commonalities and federal regulations that all HOAs adhere to, bylaws and rules can vary greatly from one community to another.

That is just one reason why board members must be familiar with the HOA’s governing documents as well as HOA state laws. Fewer mistakes are made when the board members understand what they should and should not do.

Below are additional steps board members can take to reduce the number of lawsuits filed against the HOA.    

    

Ensure bylaws, rules and policies are useful and enforceable

Bylaws and rules must help the community in some way. At times, rules may become irrelevant or cumbersome. Periodically review and update the HOA’s governing documents to ensure the rules serve the community’s evolving needs.

Similarly, keep an eye out for rules that contradict existing HOA laws established by the state.

    

Check for new HOA laws  

Legal requirements are added and amended all of the time. The HOA’s attorney or manager can help board members ensure the association operates within the bounds of the law, which helps protect it from potential lawsuits.

    

Prioritize transparency and communication

Good communication is the best way to prevent small problems from becoming big issues. Taking questions and complaints seriously, and regularly updating owners about decisions, financial matters, and projects helps to eliminate frustrations and misunderstandings.

Give owners easy access to the governing documents and request forms to make it easier for them to understand and follow the rules.

    

Establish a grievance procedure

Give owners a simple way to submit concerns or complaints. A grievance procedure provides HOAs the opportunity to resolve problems before they escalate to legal action. Make sure someone is available to respond to complaints, or at least bring them to the attention of the board.

    

Stay on top of routine maintenance

The HOA is legally responsible for maintaining common areas. Schedule preventive maintenance ahead of time to reduce the likelihood of accidents.

    

Conclusion

Lawsuits are never pleasant, and even if the HOA wins, the owner who filed the claim may continue to create problems for the community.

If an issue can be resolved outside of court, parties are encouraged to keep lines of communication open and find a solution that everyone can live

Let us bring the answers to you.

We’ll make sure the leading HOA/condo news, trends and tips get to you first.

Protected by reCAPTCHA.
Confidential and Secure.
Privacy Policy

Useful Resources

Time is money. Save both.

Learn more

Latest posts

More from the blog

View All