Homeowner Refuses to Pay HOA Annual Assessment

This case involved a dispute between a homeowner (“Owner”) and his homeowners association (“Association”) over the non-payment of an annual assessment by Owner. The Owner contended that Association had stopped maintaining the common areas in the neighborhood and did not take action against other owners who were not maintaining their properties and who were renting out their homes in violation of the governing documents. After Owner refused to pay his 2018 assessment, Association filed suit against him for the amount of the assessment plus attorney’s fees and costs.

The trial court ruled in favor of Owner after finding that Association’s failures to maintain the property as it is required to do resulted in a “radical change in the community.” The trial court commented on “dead fish” in the community pond, dangerous conditions around the pond, and health and safety issues. In finding in favor of Owner, the Court stated that the maintenance issues “kind of shock my conscience. And when it shocks a trial judge’s conscience, I think it is sufficient.” Association then appealed the judgment in favor of Owner.

The appellate court ruled: