The Latest Legal News for Homeowners’ Associations
With approximately 370,000 community associations across the United States, homeowners’ association (HOA) legal news is a hot topic in boardroom conversations. What happens at the judicial level—and in state legislatures—matters.
The responsibilities of HOA and condominium boards are modified regularly through the amendment of governing documents, frequent changes to state laws, and regular interpretation of both by the courts. Read on to learn about some of the recent legal decisions made in your area, and access a webinar covering 2025 legislative updates for communities in Colorado.
Notable Court Cases Across the U.S.
It’s important that boards are informed of court decisions impacting community associations. By keeping a pulse on court cases across the United States, your community is better equipped to reduce litigation and effectively manage financial risks, HOA governance, and enforcement policies.
HOA Laws in D.C.
Flagstar Bank v. Advanced Financial Investments, LLC
In this case, the court decided that a condo association’s foreclosure sale can extinguish a first mortgage lien. While the foreclosure sale may remain subject to the mortgage, the lien might still be lost. A mortgage lienholder must understand an association’s foreclosure actions and monitor associated auctions.
HOA Laws in South Dakota
Hood et al. v. Straatmeyer et al.
The South Dakota Supreme Court ruled that a restrictive covenant established in the 1970s was unenforceable due to decades of non-enforcement. The covenant prohibited certain construction activities. Although numerous violations occurred over the years, no action was taken. The court stated that enforcing the covenant now, after many years of non-enforcement, would be unfair, rendering it void.
RELATED: “Top Rule Enforcement Strategies: 10 Community Managers' Secrets to Success”
HOA Laws in Montana
The Montana Supreme Court concluded that a motocross course constituted a breach of the community’s restrictive covenants, which limited the use of property to residential or agricultural purposes. Covenants are designed to protect the community’s value, desirability, and attractiveness.
HOA Laws in New York
Mangold v. Board of Managers of Meadow Court Condominium
In this case, the court ruled that the board acted beyond its scope of authority when it required all condo unit owners to replace their in-unit windows. According to the community’s governing documents, the windows are part of individual units rather than common elements of the association. This verdict underscores the importance of adhering to the governing documents.
LEARN MORE: “A Breakdown of HOA Governing Documents”
HOA Laws in Florida
Watts v. Joggers Run Property Owners Association
In this case, the plaintiff claimed racial harassment, unfair rule enforcement, restricted access to amenities, and mistreatment. A district court granted the HOA's request for a dismissal. The Eleventh Circuit Court of Appeals later reversed the dismissal, saying that the allegations are plausible under the Fair Housing Act and Civil Rights Act. Communities must comply with federal fair housing laws for HOAs.
Steinberg v. Fiesta Homeowners Association, Inc.
A court dismissed the case of a man who sued his HOA, claiming that the association failed to make official records fully available to homeowners. The case was dismissed because, under a Florida statute, the plaintiff was required to try mediation before filing the lawsuit. This case clarifies legal risks and reinforces the procedural responsibilities of boards and owners.
HOA Laws in Colorado
Frisco Lot 3 LLC v. Giberson Preserve Homeowners Association, Inc.,
In this case, a planned unit development (PUD) created in 1989 was required to form a homeowners’ association, but never did. Some owners bought lots under the assumption that there was no HOA. When a set of covenants was drafted and recorded in 2017, the HOA tried to assert authority over all lot owners.
The court concluded that the PUD didn’t create a common-interest community because the required covenants imposing obligations, like dues or maintenance responsibilities, were often never recorded or enforced. Thus, many lot owners aren’t bound by the 2017 covenants.
HOA Laws in Colorado: 2025 Legislative Update
Associa Colorado recently hosted a seminar about homeowners’ association legislation. In it, Amanda Ashley, a partner at Altitude Community Law and member of the Colorado Legislative Action Committee, explained that while many bills were introduced, the governor only passed and signed two key pieces of legislation.
SB 25-184 extends the HOA Information Resource Center's existence until 2030, and SB 25-175 prolongs the towing task force's duration to 2035. Amanda noted that the legislative process often results in compromise, with both parties typically agreeing to less-than-ideal outcomes.
Watch the webinar recording to learn more:
HOA Laws are HOA Rules
Homeowners’ association members, including board members, must abide by HOA laws, rules, and regulations. HOA rules are designed to:
- Preserve the aesthetics of an area
- Protect and enhance home values
- Enforce the community’s covenants, conditions, and restrictions (CC&Rs) and bylaws
- Maintain the property of the association and its owners
At Associa, we’ve spent decades helping community members understand the ins and outs of HOA rules. Intended to protect homeowners’ investments and provide a common framework for neighborhood harmony, rules are essential to a thriving community. Read “HOA Rules Guidebook: Everything Residents Need to Know” to learn everything you need to know about HOA rules.