Common interest developments, including homeowners’ associations, are the fastest-growing form of housing in the United States. If you are one of the over 60 million Americans who lives in an HOA, you may wonder about the legality of your association and the power they have to enforce their laws.

Most HOAs are incorporated, and while oversight of associations varies from state to state, it is generally pretty minimal. In exchange for the increased property value, additional security, and other amenities afforded them, homeowners can expect their HOA to legally enforce the rules and regulations agreed to when they entered their contract.

Is Membership Mandatory?

Can an association force membership on its homeowners? Generally, yes. When you buy a property within an HOA, you automatically become a member, without the option to opt out. The purchase of your home becomes a binding contract in which you agree to obey all rules as well as pay dues and any special assessments required. The only exception to joining an HOA is if it is organized retroactively. Residents who have already purchased their home when the HOA is formed cannot be forced to join.

Regulations

HOAs reserve the right to regulate things like additions to the association, as well as the types of homes allowed in the community. They may also impose restrictions on details such as home businesses, landscaping, the number of pets allowed in a home or cars parked in a driveway, or the type of mailboxes a homeowner can install. HOAs also fully regulate the fees that homeowners are required to pay to the association.

Enforcements

It’s important for potential members to understand the contractual obligations to which they will be bound when they purchase a home within an HOA, and what aspects of their ownership the association will have control over:

  • Many homeowners mistakenly assume the contract they signed is ironclad. However, the rules and bylaws in an HOA’s governing documents can legally be amended or altered by the board as they deem necessary to improve the association.
  • Many HOA contracts give the association a great deal of control over the details of a homeowner’s property – including paint and trim color, plant and flower selection, shutter options, and even details like garage height and the time and duration it can be left open.
  • When a homeowner is non-compliant with contractual obligations, most HOAs issue a warning, followed by a citation or fine. If left unpaid, the HOA adds penalty fees to monthly dues. If still unpaid, the HOA can apply the penalties to the member’s mortgage and may eventually enforce foreclosure proceedings.

Limitations

HOAs are not allowed to impose any regulations that are in violation of the Fair Housing Act of 1968. For example, HOAs cannot refuse to sell a home within the association based on race, religion, disabilities, sex, or familial status. The HOA must also allow for modifications to accommodate people with disabilities, even if it violates rules set forth in its governing documents.

Related: How to Run a Remote HOA Board Meeting

Be Prepared

With all of the benefits, many buyers are eager to purchase a home within a homeowners’ association without fully understanding the contract into which they are about to enter. Potential members should be sure to fully review the HOAs regulations to make sure they can abide by them comfortably and enjoy life as a member to the fullest extent.