Court Affirms HOA Authority to Suspend Owner Privileges for Rule Violations

A recent federal appellate decision provides strong support for homeowners associations seeking to enforce their governing documents through suspension of privileges. In this case, the court upheld an HOA’s decision to restrict a homeowner’s access to the community pool and other amenities after he refused to comply with the association’s sign restrictions.

The homeowner displayed several large banners in his front yard in violation of the community’s sign rules. After repeated notices and continued noncompliance, the association suspended his access to amenities until he cured the violation. Rather than remove the banners, the homeowner filed lawsuits alleging breach of contract, federal civil-rights violations under the Fair Housing Act (FHA) and Americans with Disabilities Act (ADA), and judicial bias. The homeowner argued that the suspension violated federal housing laws.

Both the trial and the appellate court: