Homeowners’ Associations (HOAs) play a crucial role in maintaining communities across the Greater Houston area. From landscaping and security services to amenity upkeep and neighborhood improvements, HOA fees fund essential services that keep neighborhoods safe, clean, and functional.

However, when homeowners fail to pay their HOA assessment fees, they risk facing late penalties, legal action, and even foreclosure. Understanding the consequences of nonpayment can help homeowners make informed decisions and avoid costly disputes.

Why Are HOA Fees Important?

HOA fees are designed to cover the costs of maintaining shared spaces and community services. These assessments fund:

• Landscaping and common area maintenance

• Security and neighborhood patrols

• Community pools, parks, and recreational facilities

• Road and sidewalk repairs

• Insurance and administrative expenses

According to Austin Barsalou, an attorney with Barsalou & Associates, a Houston-based law firm specializing in HOA and POA law, consistent assessment payments are vital for community stability. “Regular assessment payments keep communities running and vibrant,” Barsalou explains. Without them, essential services can suffer, impacting property values and neighborhood appeal.

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What Happens When HOA Fees Go Unpaid?

1. Late Fees and Interest Charges

If an HOA payment is missed, the first consequence is typically a late fee. Some associations also impose interest charges on overdue balances, making it even more expensive to catch up on payments.

2. Collection Notices and Legal Action

After multiple missed payments, the HOA will issue collection notices and may involve an attorney to seek payment. Homeowners who continue to ignore their dues could face a lawsuit, which could lead to a court judgment against them.

3. Liens on the Property

In Texas, most HOAs have the legal authority to place a lien on a property when fees remain unpaid. A lien is a legal claim against the home, which means the homeowner cannot sell or refinance their property without settling the debt.

4. Foreclosure Risk

If a homeowner continues to default on their dues, the HOA may pursue foreclosure on the lien. In extreme cases, a homeowner could lose their property over unpaid assessments. While foreclosure is typically a last resort, it remains a legal tool available to associations to recover outstanding dues.

Resolving HOA Disputes Early

Both homeowners and HOAs benefit from resolving assessment disputes early in the process. Open communication and negotiating a payment plan can often prevent escalation to legal action.

“Associations and owners alike have a shared interest in resolving disputes over assessments early on,” says Barsalou. “Ignoring HOA fees only makes matters worse, and it’s always best to address financial difficulties before they lead to serious legal consequences.”

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How to Avoid Issues with HOA Fees

• Review HOA governing documents to understand fee structures and payment deadlines.

• Communicate with your HOA board if you’re facing financial difficulties.

• Set up automatic payments to avoid accidental missed payments.

• Attend HOA meetings to stay informed about fee adjustments and community projects.

Wrapping It Up

HOA fees are an essential part of maintaining neighborhood quality and property values. Nonpayment can result in late fees, legal action, property liens, and even foreclosure. Homeowners who find themselves struggling to pay assessments should take a proactive approach—communicate with the HOA and explore possible solutions before the issue escalates.

For those dealing with HOA dues issues in the Greater Houston Area, consulting a property owners’ association attorney like Barsalou & Associates can provide guidance on the best course of action.

By Tiffany Krenek, My Neighborhood News 

Tiffany Krenek has been on the My Neighborhood News team since August 2021. She is passionate about curating and sharing content that enriches the lives of our readers in a personal, meaningful way. A loving mother and wife, Tiffany and her family live in the West Houston/Cypress region.