United States | Pros and Cons
Why HOAs Are Bad, and Why They Exist
People complain about HOAs because an association can charge fees, fine owners, put a lien on a home and, in some states, foreclose. HOAs exist because shared roofs, roads, pools and walls need someone to collect the money and fix them. State law sits on both sides: it gives the association its powers and gives owners rights against it.
The short answer
- The Foundation for Community Association Research, an industry group, estimates 373,000 associations in the United States in 2025, with 78.1 million residents.
- The complaints: fees can rise, special assessments can arrive, fines can be charged, and unpaid amounts can lead to a lien and foreclosure.
- The reasons: shared property needs one body to insure, repair and save for it, and membership is automatic with the home.
- Owner rights limit the powers: open board meetings, records access, notice before liens, and in Florida recall of any director by a majority vote.
Why people dislike HOAs
- Membership is automatic. California's DRE: "Membership in the association(s) is automatic." A Florida HOA is defined as one where membership is a mandatory condition of owning the parcel.
- Fees can rise. California limits regular increases to 20 percent a year without owner approval (DRE booklet, June 2016). The Florida HOA and Texas HOA sections we read set no cap.
- Special assessments. A Florida HOA without reserves must warn owners that its budget "MAY RESULT IN SPECIAL ASSESSMENTS".
- Foreclosure. Florida, Texas and California law let an association foreclose for unpaid assessments.
- Rules on your own home. Associations enforce the CC&Rs, including architectural control, and can fine owners after notice.
- Volunteer boards. In a small association the board is a few neighbours, and California's DRE notes that "there is no State or local agency that directly regulates associations".
Why HOAs exist
- Shared property needs an owner. The association holds and looks after the common areas: roofs and walls in a condo, roads, pools and parks in a subdivision.
- Insurance. A Florida condo association must keep adequate property insurance, with replacement cost checked at least every 3 years. A Texas condo association must insure the common elements for at least 80 percent of replacement cost or actual cash value.
- Saving for repairs. Florida condos must budget reserves for the roof, painting, paving and items over $25,000.
- One set of rules. The CC&Rs bind every owner, so each owner knows what neighbours may build or change.
- Resale information. Buyers get a disclosure summary or resale documents before closing in Florida and a resale certificate in Texas.
The rules that protect owners
| Protection | Florida | Texas |
|---|---|---|
| Open board meetings | Yes, with narrow exceptions | Yes, with listed closed sessions |
| Records access | 10 business days, $50 a day minimum damages for willful refusal | 10 business days, or a date within 15 |
| Notice before a lien | 45 days | Two notices and 90 days |
| Foreclosure limits | 45 days' notice of intent first | Court order needed; never for fines alone; 180 days to redeem |
| Removing directors | Majority of all voting interests, with or without cause | Set by the documents |
| Late fee cap | Greater of $25 or 5 percent | None found in Chapter 209 |
Owners who run their own association
The same industry review estimates that 30 to 40 percent of associations are self-managed, meaning they hire help for specific jobs but no professional manager. In a small association the owners are the board, so the things people dislike about HOAs, such as the fees, the rules and the notices, are decisions they make together. The law still sets the deadlines, notices and records they must keep.
Florida and Texas rules were read in the statutes themselves on 31 October 2026. California's code site refused every request that day, so California rules come from the Department of Real Estate's booklet RE 39, revised June 2016, and may have changed since. Your own declaration and bylaws can add rules, and other states have their own laws.
Common questions
Why are HOAs bad? +
The common complaints are automatic membership, fees that can rise, special assessments, fines, and the power to lien and foreclose for unpaid assessments in states such as Florida, Texas and California.
Why do HOAs exist? +
Shared property such as roofs, walls, roads and pools needs one body to insure it, repair it, save for it and collect the money from every owner.
How many HOAs are there in the United States? +
The Foundation for Community Association Research, an industry group, estimates 373,000 community associations in 2025, covering 29.6 million homes and 78.1 million residents. Those are its own estimates.
Can I leave my HOA? +
Membership comes with the home. California's DRE says it is automatic, and Florida defines an HOA as one where membership is a mandatory condition of ownership.
Who regulates HOAs? +
It depends on the state. California's DRE says no state or local agency there directly regulates associations. Florida licenses paid managers of associations above 10 units or a $100,000 budget.
Is an HOA worth it? +
It depends on the building and the board. Check the budget, the reserves, the minutes and any special assessments before you buy.
What rights do I have against my HOA? +
In Florida and Texas: open board meetings, access to records within 10 business days, written notice before a lien, and limits on foreclosure. Florida owners can also recall any director by a majority of all voting interests.
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