Legal Ruling: Poor HOA Management Doesn’t Excuse Dues Obligations

Homeowners’ associations (HOAs) often spark controversy, especially when homeowners feel the HOA isn’t living up to its responsibilities—like holding annual meetings, electing directors, or maintaining common areas. But as the Indiana Court of Appeals made clear in Sandoval v. Willow Lake Estates Homeowners Association, frustrations with an HOA’s management don’t excuse homeowners from paying their dues and assessments.

In this case, a homeowner (“Owner”) refused to ay periodic assessments imposed by his homeowner’s association (“Association”), because of his displeasure with the Association’s management in not holding annual meetings, failing to elect new directors, failing to prepare annual budgets and failing to properly maintain common areas. The Association responded by filing liens on Owner’s property and seeking to foreclose on the property. The trial court granted summary judgment in favor of the Association and Owner appealed.

The appellate court rejected Owner’s argument that the Association’s procedural failures invalidated the assessments that the Association levied on Owner’s property. The Court held that the Association’s failures to comply with its duties under the law and governing documents did not excuse Owner from paying the assessments he was responsible for because: