Annual Probability of Having an HOA Dispute

Approximately 75 million Americans (about 30% of the US population) live in communities governed by homeowners associations (HOAs), condominium associations, or similar community associations. Surveys indicate that about 12% of HOA members experience a significant dispute with their association in any given year, while about 60% report general satisfaction.

The most common sources of HOA disputes include architectural/modification requests (being denied permission to make changes), maintenance and landscaping standards, noise complaints, parking violations, pet restrictions, assessment increases, and special assessments for major repairs. More serious disputes involve allegations of selective enforcement, financial mismanagement, discrimination, and failure to maintain common areas.

Resolution mechanisms include informal discussion, mediation (required before litigation in many states), arbitration, and ultimately, litigation. The average cost of an HOA lawsuit to a homeowner ranges from $5,000 to $50,000 or more. Before purchasing in an HOA community, experts recommend carefully reviewing the CC&Rs (covenants, conditions, and restrictions), financial statements, meeting minutes, and reserve fund studies. About 30% of home sales in HOA communities involve buyer concerns about the association.