If you sit on the board of a homeowners association (HOA), the biggest threat to your peace of mind probably comes from homeowners. Keeping everyone happy can be challenging, and it only takes one unhappy resident to cause you considerable problems.
Understanding the most common reasons residents mount legal challenges to HOAs allows you to do all you can to prevent that situation from ever occurring.
They are concerned about how you manage the finances
You do not need to have done anything wrong with the finances for a resident to suspect you of doing so. Some people are suspicious by nature, while others can imagine negative scenarios because they misunderstood something. Keeping accurate records and acting with transparency at all times will reduce the chance anyone has cause to doubt your use of funds.
They’ve got unrealistic expectations
Some people do not realize that it can take time to fix things, that things can occur that delay the implementation of proposed plans or that their wishes are incompatible with the wishes of the HOA scheme as a whole. The HOA agreement can play a major role in managing expectations, as can regular communication.
They feel you breached housing laws
Some homeowners may be keenly aware of current housing law while others may rely on inaccurate third-hand information. If you, the HOA committee, do not maintain an up-to-date knowledge of housing laws, you could inadvertently find yourself accused of a breach despite not setting out to do anything wrong.
There is help available to learn more about the laws you must abide by and your options if a dispute occurs.