Suburban America is sinking into the Homeowner’s Association (HOA) Hole. About 24% of the nation’s population (anow live under the rigid strictures of HOAs. According to some fairly recent statistics from PropertyManagement.com, there are:
- 40 Million households living in HOAs
- 351,000+ HOAs in the United States
- 8,000 new HOAs formed every year in the U.S.
- 24%+ of U.S. population is living in HOAs
HOAs usually have lengthy sets of rules and bylaws that are subject to the interpretation of either elected or un-elected HOA boards. These rules are generally called Covenants, Conditions & Restrictions (CC&Rs).
Some people tout HOAs as “necessary to preserve the resale value of a house investment.” But I would argue that a HOA is the worst form of tyranny, because:
1.) It is almost always self-imposed. If you buy a piece of property inside of a HOA, you know it before you buy, and you become a party to that underlying contract.
2.) There is essentially no legal recourse for extracting yourself from the chains of a HOA, other than A.) Getting a majority of your fellow land owners to vote to abolish the HOA (very unlikely) or B.) You sell and your property, and move out.
3.) Inflation of HOA annual fees is often unlimited, and in many instances they have been increasing at greater than the rate of currency inflation.
4.) They represent another layer of “government” that is largely run by unaccountable private citizen busybodies with a general attitude and outlook on life that ranges between Nazi and Soviet.
5.) You often forfeit some of your due process rights.
6.) Failure to perfectly abide by the HOA CC&Rs (which often can change) leave you open to legal attachment.
7.) A HOA’s set of rules is essentially “a moving target”. In many states, and HOA can change its rules post facto, however they please, as long as any rules do not contradict extant city, state, or federal law.
8.) If you sue your HOA, then you will indirectly pay for their legal costs, and your HOA fees will then rise, in subsequent years.