Homeowners Associations (HOAs) continue to evolve in response to shifts in housing markets, legal frameworks, and community needs. In parallel, homeowners need to remain vigilant, conducting on-going due diligence to ensure their HOA operates fairly, transparently, and within the bounds of the law. When necessary, homeowners should advocate for reform if their HOA’s rules or practices become oppressive or problematic.

Here’s a look at some of the most significant trends affecting HOAs today, including new laws, innovative management services, and challenges like unenforceable rules that can undermine the effectiveness of HOAs.

We also include insights on the future of HOAs from the founder of The CASA Alliance, Vicki MacHale, a 30+ year veteran of the community association industry.

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New Laws & Homeowners Protection

As HOA communities grow and face increasing legal scrutiny, new laws are being introduced to protect homeowners’ rights and address concerns over HOA governance. There’s a growing emphasis on increasing transparency, and regulating short-term rentals, solar panels, and EV chargers. The following legal updates aim to improve fairness and prevent abusive practices:

 

Strengthened Homeowners’ Rights

  • State Legislation for Transparency: Many states have passed or are considering laws that require HOAs to operate with greater transparency. For example, California passed the Homeowners Association Open Meeting Act, which mandates that HOA meetings are open to all homeowners and that minutes and financial statements be available to the public.
  • Increased Disclosure Requirements: In some states, HOAs are now required to provide homeowners with more detailed disclosures before they purchase a home, such as providing full CC&Rs, financial documents, meeting minutes, and information on any ongoing litigation.
  • Anti-Discrimination Laws: Some states have introduced laws aimed at preventing discrimination in HOAs. For instance, the Fair Housing Act is now being applied more rigorously to ensure that HOAs do not discriminate against homeowners based on race, religion, disability, familial status, or national origin.

 

Protections Against Excessive Fines

  • Limits on Fines: New regulations in certain states limit how much an HOA can fine a homeowner for violations, particularly for minor infractions like lawn maintenance or painting issues. This trend is driven by complaints that excessive fines can be used unfairly or as a means of harassment.
  • Due Process Protections: Many new HOA laws ensure homeowners are granted due process before fines or penalties are imposed. This includes the right to contest fines, attend hearings, and receive written notice of violations before penalties are enforced.

 

Rent Control for Rental Properties

  • HOAs and Rent Control: In response to skyrocketing rental prices, some cities and states have begun to push for rent control policies that apply to properties governed by HOAs. This is especially common in areas with large numbers of rental properties within HOA communities, where rental prices may be out of sync with the local market.
  • Airbnb Regulations: Many HOAs are now instituting rules against short-term rentals like those offered on platforms like Airbnb. Some states, such as New York and California, have introduced laws that give local governments the ability to regulate or limit short-term rentals in HOA communities.

 

Solar Panel and Electric Vehicle (EV) Regulation

  • Solar Panel Laws: New state laws are forcing HOAs to relax restrictions on solar panels. States like Colorado and California now have laws that make it illegal for an HOA to outright prohibit the installation of solar panels, as long as they meet safety and aesthetic standards.
  • EV Charging Stations: Similarly, HOAs are being required to allow the installation of electric vehicle charging stations in homeowners’ garages or driveways. These laws are growing in response to the rise in electric vehicle adoption.

 

New HOA Management Services

HOAs are increasingly turning to modern management services to streamline operations, enhance resident engagement, and improve efficiency. The adoption of digital platforms, professional property managers, and community engagement tools is transforming HOA management, making it easier to communicate, participate, and stay informed. The following tools and services are offering increased convenience and efficiency for both homeowners and board members:

 

Digital Platforms for Communication and Management

  • HOA Management Software: Software tools like AppFolio, Buildium, and HOA Express are becoming more common for managing HOA finances, communication, maintenance requests, and community events. These platforms allow residents to pay fees online, submit maintenance requests, and keep up-to-date with community news.
  • Virtual Meetings: Since the COVID-19 pandemic, more HOAs are conducting board meetings virtually, allowing homeowners to participate in meetings remotely. This trend is expected to continue as more people value the flexibility of attending meetings online.
  • Mobile Apps for Homeowners: Many HOAs are adopting dedicated mobile apps that homeowners can download to pay dues, vote on community matters, report issues, or review meeting minutes. This improves accessibility and convenience, especially for younger homeowners who are used to managing tasks digitally.

Regarding Mobile Apps, MacHale reminds us of the need to guard our privacy:

The apps can be a great thing, but once an owner downloads the app, they may have just agreed to turn over their rights to privacy and how their data will be used. Therefore, even if the board chooses to cut ties with the management company—that firm will have access to the homeowner data going forward—their data is often sold to other companies or can be used to track and monitor their online habits for marketing purposes.

 

Professional HOA Management Services

  • Third-Party Property Management: Many HOAs are opting for third-party management companies to handle daily operations, accounting, and maintenance. This allows boards to focus on policy-making and community development, while professionals manage the logistics. Top-tier management services can also help HOAs navigate legal issues and maintain compliance with state laws.
  • Specialized HOA Management Firms: There are now firms that specialize in managing particular types of HOAs, such as those focused on luxury or resort-style communities, and those in larger urban or suburban areas. These firms often offer a more personalized approach, including concierge-level services for high-end properties.

 

Community Engagement Tools

  • Online Voting Systems: Many HOAs are adopting secure online voting systems to allow residents to participate in board elections, approve budgets, or vote on other important matters remotely. This increases participation and reduces the burden on homeowners who can’t attend in-person meetings.
  • Community Events and Forums: Some modern management services are incorporating features like event calendars, neighborhood forums, or social networking tools, which help foster a greater sense of community. These tools enable residents to connect, plan events, or even crowdsource solutions to neighborhood problems.

 

55+ Active Adult Communities

As HOAs evolve to meet the demands of an aging, yet vibrant population, 55+ active adult communities are leading the charge in redefining communal living through innovative wellness-focused amenities. These rapidly growing enclaves—such as Amblebrook at Gettysburg with its 2,000 annual events and expansive 45,000-square-foot clubhouse, or Del Webb Lost Pines‘ walkable trails along the Colorado River—are investing significantly on holistic health, integrating physical fitness centers, social clubhouses, intergenerational spaces, and sustainable designs under HOA management to foster not just longevity, but purposeful reinvention in later life.

We asked MacHale her thoughts on this particular type of HOA communities, as they will assuredly continue to grow in numbers for many years to come:

MacHale:

I actually really like the idea of 55+ communities. Especially back in the day when they were basically set up to bring seniors together, have some parties, and provide avenues which allowed for social interaction through crafts, book clubs, and woodworking.

The biggest issue I’ve seen in the past—think Florida—is that seniors often have a “kick the can down the road” mentality, such as having attitude of “I’m 75, I’m not raising or paying higher assessments—let’s let the next guy figure it out.” And that is frightening.

I recently saw a job opportunity for a Manager for a large scale 55+ community that terrified me. This wasn’t just an HOA, it was an HOA combined with a long-term care facility. The job stated a salary of $250K, and upon reading it, I was shocked as they were lumping a single manager “PCAM” (Professional Community Association Manager) preferred into a medical care facility. An HOA manager does not have the expertise to be guiding these type of decisions. Just like a long-term care person doesn’t have HOA knowledge.
Not knowing the governance structure, my initial thoughts on this listing were twofold:

  1. This is a job for 3 people, and
  2. I was terrified that a board would submit such a job listing and cannot fathom their rationale for approving such an unrealistic role and corresponding requirements.

 

The Dark Side of HOAs: Unenforceable Rules & More

While HOAs serve to maintain order, not all of these rules are practical, fair, or easy to understand. Some rules can be overly restrictive, vague, or selectively enforced. Homeowners often face issues with unenforceable or problematic rules that create frustration and division within the community. Financial mismanagement can also undermine an HOA’s stability.

Here are the most common types of challenges homeowners can encounter while living in an HOA community:

 

Unenforceable Rules

  • Unlawful Rules: Unenforceable HOA rules refer to restrictions or requirements imposed by an HOA that cannot be legally upheld because they violate federal, state, or local laws, constitutional rights, or the association’s own governing documents (Covenants, Conditions, and Restrictions, or CC&Rs). These rules often overstep boundaries on personal freedoms, fair housing protections, or specific exemptions, rendering them invalid despite the HOA’s attempts to enforce them through fines or other penalties.

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Overly Restrictive or Vague Rules

Even when HOA rules are lawful, and thus can be enforced, they can still be problematic by being overly restrictive or poorly defined:

  • Unrealistic Aesthetic Standards: Some HOAs impose rules that are so strict or vague that they leave little room for personal expression. For example, prohibiting any “decorative” items like flags, certain types of plants, or holiday decorations can feel excessive and lead to frustration.
  • Architectural Review Conflicts: Unclear or overly strict rules about architectural changes (e.g. paint colors, fencing types, or additions) can lead to conflict when homeowners feel they can’t modify their homes to suit their personal preferences. These rules may be poorly enforced, resulting in inconsistent outcomes and resentment.

On the topic of Architectural Review Conflicts, MacHale shares these real world scenario:

Some are so restrictive that homeowners cannot even change seasonal flowers without approval—not many, but enough where it can cause an issue. Imagine having to wait up to 30 days to get approval to change your pansies to dragonfly’s —and an additional $75 to $100 for the application—and in the meantime, you’re getting violation letters for an unmaintained yard. And then the approval comes and you go to Home Depot only to find that there are no more drangonfly’s. So now you have to submit a new application. I know this sounds crazy and nitpicky, but it happens.

 

Inconsistent Enforcement of Rules

  • Selective Enforcement: One of the most common complaints among homeowners is selective rule enforcement. This occurs when an HOA enforces rules against certain residents but ignores violations from others—often based on personal biases or relationships. This can create a hostile environment and undermine trust in the HOA.
  • Discriminatory Practices: Some homeowners report discriminatory practices by HOA boards, such as enforcing rules selectively based on race, family status, or the perceived social status of homeowners. These issues are not only legally problematic but also lead to community tensions.

 

Rules That Don’t Reflect Community Needs

  • Unrealistic Parking Rules: Some HOAs enforce parking rules that are impractical, such as restricting street parking or imposing stringent rules on visitor parking. These can cause frustration, particularly in areas where parking is already limited.
  • Lack of Flexibility: HOAs sometimes fail to adapt to changing needs or new trends. For example, they may prohibit the installation of solar panels, prohibit rentals (which could be a solution to housing shortages), or limit the use of outdoor spaces for modern needs like small home offices or vegetable gardens.
  • Conflict with State or Local Laws: Certain HOA rules conflict with evolving state or local laws, such as those related to housing, rental laws, or environmental regulations (e.g., the banning of energy-efficient home improvements like solar panels or EV charging stations). When these rules are unenforceable, the HOA may be sued, leading to further complications.

 

Financial Mismanagement and Lack of Accountability

  • Unfunded Reserve Accounts: Some HOAs fail to maintain proper financial reserves for large-scale repairs or emergencies. This can lead to sudden special assessments or an increase in fees without prior notice or homeowner approval.
  • Opaque Finances: When an HOA’s financial records aren’t transparent, homeowners may feel distrustful of how money is being spent. This could lead to residents questioning fees, dues, and the overall financial health of the community.

 

Vicki MacHale: Thoughts on the Future of HOAs

To wrap up our piece about where HOAs are headed, we asked MacHale to share her thoughts on the future of HOAs, with any advice for homeowners and associations alike.

Vicki MacHale:

The Common Development Industry is set to experience more explosive growth, as more and more municipalities attempt to balance their budgets through the approval of HOAs as a means to offload maintenance and financial obligations typically paid for through taxes. What was once a cottage industry designed to market communities to those who wanted amenities and white-washed communities has now become the preferred business model of American housing.

The industry is going through a major transition right now, years of poor planning, tightening legislation, and now an insurance crisis has backed boards into an uncomfortable position, where all of the pennies they saved in the past are now going to cost them dollars.

In the meantime, big business in the form of major conglomerations, private companies, financial institution relationships, and private equity have been banking on this, as there is money to be made in chaos. The collapse of the Surfside condominium, along with the insurance crisis, has, in my opinion, triggered “go-time” for these interests.

In the short-term, loans will be available, deferred maintenance will get addressed, and overall communities will become viable again. However, as is often the case with these entities, challenging long-term issues will arise requiring problematic long-term solutions.

The issue I see is that short-term convenience is being traded for long-term pain: as associations become more dependent on private equity money and their management agencies to get them “whole” again, homeowners and associations are becoming financial feeding grounds for these entities. Big business typically does not move in to help because they love homeowners, they move in because they see an untapped source of revenue.

While I see the short-term benefit, I also see what is already happening. It is a matter of time before associations are so intertwined with these large companies, that it will difficult to ever escape the tentacles of financial mining from their grasp. And, as smaller firms cannot compete with the pricing or technology of these firms, choice will continue to diminish in the future. One day, people will simply forget that it wasn’t always this way. Read George Orwell’s “Animal Farm.”

 

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