HOA assessments can be frustrating, especially when the fees seem arbitrary or excessive. But skipping payment can come with serious consequences, including liens, legal action, and even foreclosure. If you disagree with an assessment, here’s how to approach the situation strategically and understand the potential consequences of nonpayment.
1. Check the Governing Documents
The Declaration of Covenants, Conditions, and Restrictions (CC&Rs), along with the HOA’s bylaws and rules, outlines the association’s authority to impose and collect assessments. In Texas, courts generally uphold properly adopted assessments as long as they comply with the governing documents. Review the documents carefully to determine whether the assessment is valid or if the HOA overstepped its authority.
2. Attend HOA Meetings
Owners have the right to attend meetings where budgets and assessments are discussed. These meetings provide an opportunity to ask questions, raise objections, and better understand how assessments are calculated and used. If you’re concerned about how your HOA is being run, consider running for a seat on the board of directors to further influence future HOA management decisions.
3. Dispute in Writing
If you believe the assessment is improper, put your concerns in writing. Be clear, factual, and cite specific provisions in the governing documents that you believe have been violated. Keep a copy for your records. A written dispute shows that you’ve taken good faith steps to resolve the issue and may be helpful if the matter escalates to litigation.
4. Beware of Liens and Foreclosure
Even if you believe the assessment is invalid, failing to pay can result in serious consequences. Many governing documents allow the HOA to place a lien on your property, pursue collections, and recover attorney’s fees. In some cases, continued nonpayment can lead to foreclosure, even for relatively small amounts. It’s important weigh the potential cost of legal consequences before deciding to withhold payment. Homeowners can dispute assessments and remain current to avoid collection and late fees.
5. Legal Challenges
If the HOA has failed to follow its own rules, imposed assessments unfairly, or acted outside its authority, you may have grounds to challenge the assessment in court. Legal remedies may include:
- Seeking a declaratory judgment
- A breach of fiduciary duty claim
- A Breach of contract claim
Each case depends heavily on the facts and the specific language of the governing documents.
6. Consider Negotiation or Mediation
Before escalating to litigation, it may be worth exploring resolution through informal negotiation or formal mediation. Some disputes can be resolved with clarification, compromise, or a payment plan – saving time, money, and stress.
