My HOA is forcing my family out of our home after fee jumped to $750 – it’s all because they lost a legal battle
RISING homeowners association fees are forcing a woman and her family out of their home.
The woman says her HOA fees rose from $400 to a staggering $750.
“My husband and I and our two kids are feeling forced out of our house because of a legal situation with our HOA,” Meagan, the woman, told the hosts of the investing podcast The Ramsey Show.
The rising HOA fees come after a legal battle between her HOA and a construction company.
Some of the townhomes in her neighborhood had major damages, causing the HOA to sue a construction company asking them to come clean up the damages, according to Meagan.
The HOA lost the lawsuit and now are responsible for funding the reparations of the damaged houses.
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In response to losing the lawsuit, the HOA is nearly doubling its fees.
The HOA has yet to officially double the fees, but Meagan claims it seems likely.
In response to the rising fees, Meagan and her family are now heavily considering selling their Salt Lake City, Utah, condo.
The hosts of The Ramsey Show were shocked and advised her to sell as soon as possible.
What is an HOA?
One in five Americans live in an area with a Homeowners' Association - or HOA. But what exactly is it that they do?
- An HOA is a homeowner's association - an organization that aims to maintain a clean and cohesive place to live for its residents.
- Entire neighborhoods, subdivisions, condominiums, family homes, or townhouses within "a planned development" will often make up an HOA.
- They also act as a governing body for tenants, who run and fund the HOA through monthly fees.
- Their principal aims are to keep the community functioning and visually appealing and to maintain property values.
- They primarily focus on common areas of a neighborhood, such as roads, parks, and pools - but may also stipulate what residents can do with their properties, such as yards and driveways.
- Often these restrictions enforce uniformity on properties, for example, ensuring most houses look the same and all driveways are clear of weeds.
- An HOA rulebook of covenants, conditions, and restrictions (CC&R) is distributed to all residents, and an elected volunteer board of directors enforces these regulations.
- Breaking these rules can result in penalties such as fines and even litigation - as most HOAs are incorporated and subject to state law.
- HOAs are often the subject of controversy, with some members feeling that the rules are too punitive and restricting, or that the leadership has too much power.
- But others like that HOAs give communities the power of self-governance, and can ensure a degree of harmony between residents.
Commenters under the video clip of the podcast were just as outraged as Meagan and the hosts of the show.
Many commenters said they would refuse to buy any home that involved an HOA.
“The minute the realtor mentioned HOA when attempting to show us a house, we opened both doors and jumped out,” one commenter wrote.
“HOA is a Non Starter. I've lived in my house for 37 years and I still haven't met most of my neighbors. I like it like that.”
“I would NEVER EVER live in a community or home with an HOA,” another wrote.
Other commenters commiserated with Meagan, sharing their own HOA horror stories.
“I've lived in a condo for more than 20 years and I've come to hate the whole HOA thing,” a sympathetic viewer wrote.
“And I say that as someone who is on the board and was on the executive board for several years,” he continued. “The problem is when you have people in charge of something like that, they feel as though they need to ‘do something’ at all times.
“What tends to happen is that the real problems of infrastructure like roads and water mains and sidewalks tend to get ignored while they focus on petty sh*t.”