Lifestyle

6 More Things Your HOA Hopes You Never Find Out

By Mike Harper · September 16, 2026

The first HOA piece covered fines, architectural restrictions, and the board’s power over your property. Here’s what we didn’t get to — including the financial risks most homeowners never examine.

The reserve fund may be dangerously underfunded. Every HOA maintains a reserve fund for major repairs and replacements — roofs, parking lots, pools, elevators, siding. An underfunded reserve means those costs get passed directly to homeowners as special assessments — one-time charges that can range from $2,000 to $50,000 per unit depending on the scope of the deferred maintenance. Ask for the reserve study — every well-managed HOA has one — and check the funding level. Below 70% funded is a red flag. Below 50% is a financial emergency waiting to happen.

Special assessments can be levied without your vote in many states. Depending on your state’s laws and your CC&Rs, the board may have authority to levy special assessments up to a certain dollar amount without a homeowner vote. That threshold varies — some governing documents set it at $5,000, others at $10,000 or more. Above the threshold, a membership vote is typically required. Below it, the board decides and you pay.

The board can place a lien on your home for unpaid dues. If you fall behind on HOA dues, the association can — in most states — file a lien against your property. In some states, the HOA can then foreclose on the lien and force a sale of your home — even if your mortgage is current. The amount owed can be as little as a few thousand dollars. The consequences can include losing your home.

Board elections may not be as democratic as they appear. Many HOA elections are conducted by mail ballot or proxy, with minimal participation. A small number of engaged homeowners — sometimes just 10% to 15% of the membership — can determine who controls the board. Once elected, board members make decisions about budgets, assessments, enforcement, and vendor contracts that affect every homeowner in the community. Low participation gives disproportionate power to the few who show up.

Management companies work for the board — not for you. The property management company your HOA hired manages day-to-day operations, collects dues, and enforces rules. But their contract is with the board, and their incentive is to keep the board happy — not individual homeowners. If you have a dispute with the board and the management company is handling the communication, you’re arguing with the board’s employee. Escalating to the board directly — in writing, at a board meeting — is the only way to be heard by the decision-makers.

You can run for the board — and most homeowners don’t realize how easy it is. HOA boards typically have three to seven members serving staggered terms. Nominations are often open to any homeowner in good standing, and the most common reason seats go uncontested is that nobody runs. If your HOA is making decisions you disagree with, the most direct remedy isn’t a complaint — it’s a candidacy. One additional vote on a five-member board changes the majority.