Having been in a couple of HOA now I can say that they just don't work as advertised.
Basically, in truth the HOA has little power over people who don't (or can't) play along. They can make life hell for people who are trying to be good neighbors with tons of arbitrary rules that do nothing but make the board members feel better about themselves, but if someone wants to be a deadbeat their options are limited.
About the worst they can do is put a lien on a house, but even that threat is of little effect against someone who is letting his house fall apart because he's planning to default on it anyway. The paperwork to put a lien on a house costs money too, so the HOA has to decide if it is worth the effort, especially if it ends up being dismissed in the foreclosure anyway.
HOAs are basically good for one thing: maintaining common areas. If your development has a private park or a clubhouse or something like that then the HOA can be useful. If they only exist to collect dues and boss you around about the exact shade of tan on your mailbox post then they should be disbanded.
Basically, in truth the HOA has little power over people who don't (or can't) play along. They can make life hell for people who are trying to be good neighbors with tons of arbitrary rules that do nothing but make the board members feel better about themselves, but if someone wants to be a deadbeat their options are limited.
About the worst they can do is put a lien on a house, but even that threat is of little effect against someone who is letting his house fall apart because he's planning to default on it anyway. The paperwork to put a lien on a house costs money too, so the HOA has to decide if it is worth the effort, especially if it ends up being dismissed in the foreclosure anyway.
HOAs are basically good for one thing: maintaining common areas. If your development has a private park or a clubhouse or something like that then the HOA can be useful. If they only exist to collect dues and boss you around about the exact shade of tan on your mailbox post then they should be disbanded.