Why You Should Consider Joining a Startup Accelerator: Lessons Learned at GoodFences
Accelerators, Plug In Ventures, & GoodFences
Why in the World are there HOAs?
Community associations have not always existed. They are relatively new to the way humans organize their living. They have always been political. In the United States, they were a product of builders not wanting to integrate their communities racially or religiously. In Pasadena, California, the Arroyo Seco Improvement Association was established in 1905 to establish an “upscale” community(1). Associations have continued to grow in numbers, size and influence. Community associations govern millions of people worldwide. Associations were and continue to be legally incorporated; their existence is codified by law. They self-fund their existence through dues paid by owners within the community. They have evolved in various forms to serve various purposes.
How Do We Go From Neighbors To Litigants?
Why is it when you mention Homeowners’ Associations (HOA’s) people get angry? There is almost a collective hatred among homeowners regarding the existence of HOAs. It is hard to reconcile when the owners knew of the HOA’s existence prior to moving into their home, but understandable given the litigious nature of the industry. Edmonson (2024) noted a Rocket Mortgage study that discovered 37% of homeowners in the study do not like living in an HOA community and 31% believe their HOA has too much power(1). Statistically, one in three neighbors are not happy with their HOA.
How do HOA’s go from a group of neighbors volunteering to support the community to an Orwellian dystopia of abuse of power, rampant favoritism and criminal fraud, willing to sue their neighbors to further their own gains? Conversely, how does homeowner anger at their HOA turn into litigation? The answers are as complicated as the diversity of HOA’s, neighborhoods, and families.