I keep warning about the impending crash of the American Homeowners Association as we know it. You bought into your HOA because you thought it would protect property values. A few HOAs actually did maintain their value for a while. But just give it time. Throw a few lawsuits around, fine a few dozen homeowners for petty violations that could easily have been handled in a more genteel way. But there’s a moment coming when homeowners will just lease out their homes to get away from screaming board members.
A funny thing happens when the number of rental homes reaches a certain percentage: Mortgage companies quit lending. Then more homes are converted to rentals. More nastiness from the board. At some point your $200,000 investment becomes worth about twenty or thirty thousand. Then you have a neighborhood like the one linked below. Imagine owning a home in TymberSkan on the Lake.
From Florida to Overland Park, Kansas to Nevada and Crooked California a growing number of once thriving Homeowners Associations desperately need to be bulldozed.