HOA Power Limits: States Curbing “Dictator” Neighborhood Rules
Homeowners associations (HOAs) are meant to maintain order and preserve property values in neighborhoods, but in recent years, they have been infamous for regulations that some residents consider overbearing and even controlling. From dictating the color of a resident’s home to forbidding certain decorations, HOAs have often faced backlash and accusations of acting like “dictators” within their communities. However, in response to these criticisms, some states have started taking measures to limit the power of HOAs. With this growing trend, let’s take a closer look at HOA power limits and how states are curbing their “dictator” neighborhood rules.
The Role of HOAs
Before delving into the limitations placed on HOAs, it’s essential to understand their role within the community. HOAs are typically created by developers when constructing new neighborhoods or residential complexes. Their purpose is to establish and enforce rules that maintain the aesthetics and functionality of the neighborhood. These rules are usually outlined in a document called the “covenants, conditions, and restrictions” (CC&Rs), which residents must agree to abide by when purchasing a property in an HOA-governed community.
The Current State of HOAs
While HOAs are meant to serve the greater good of the community, their power has often been criticized for being too extensive and oppressive. Some experts believe that the root cause of this issue lies in the lack of government oversight on HOAs. Unlike landlords or local governments, HOAs are not subject to any protective regulations or laws. Therefore, they have the authority to make and enforce rules at their discretion, without any consequence or avenue for appeal.
This free reign has led to numerous incidents of HOAs overstepping their boundaries and regulating trivial aspects of residents’ lives. For example, an HOA in Virginia once demanded a resident take down their pride flag or face a $50 fine for violating the CC&Rs that banned any flags apart from the US flag, state flags, or military flags. Similarly, another HOA in Pennsylvania prohibited a resident from displaying a solar panel on their property, claiming it went against the community’s aesthetics.
States Stepping In
With the growing discontentment towards HOAs, some states are taking action to limit their power. In 2018, California became the first state to pass a law requiring HOAs to provide a detailed account of their finances to residents. This rule aimed to promote transparency and reduce the likelihood of HOAs abusing their power for personal gain.
In July 2019, Colorado passed a bill that made it mandatory for HOAs to register with the state and disclose all their governing documents to residents. Moreover, the bill sought to give residents a platform to raise objections to any rules they deemed unreasonable. This way, residents could actively participate in the decision-making process and have a say in the rules that govern their community.
What’s Next?
While the laws passed in California and Colorado only provide partial solutions, they have paved the way for other states to follow suit in limiting HOA power. In Arizona, a bill was recently introduced that would prohibit HOAs from enforcing rules that restrict residents from using their private property for political or religious expression. Similarly, a bill in Florida aims to ban HOAs from enforcing “restrictive covenants,” which are rules written in CC&Rs and create limitations on how a resident can use their property.
As the trend of HOA power limitations continues to gain momentum, it is essential to strike a balance between allowing HOAs to maintain order and preserving the rights of residents within the community. But until more protective regulations are put in place, homeowners must carefully review the CC&Rs before purchasing a property and make sure they understand the rules they will be expected to follow.
In Conclusion
In recent years, HOAs have faced backlash and accusations of acting as “dictators” within their communities. However, in response to these criticisms, some states have started taking measures to limit their power and promote transparency. With the trend of HOA power limitations on the rise, it is crucial to find a balance between maintaining order and safeguarding the rights of residents. Until then, homeowners must carefully consider the rules of an HOA-governed community before making a home purchase.
