Get HELP!

Why Accountability Matters

Aside from a relative few highly publicized incidents (the June 2021 Surfside collapse, fraud in Florida leading to receivership, Indiana, here, and here and other notable criminal activity), failures of CIC governance go largely unnoticed by both homeowners and the general public. Lack of awareness is due in part to homeowners' lack of access to ensure their associations are accountable (even in states with progressive, robust requirements). Even the prescriptive accountability and transparency requirements of UCIOA (adopted by multiple states) fails to deliver its intended effect because associations (Boards, managers and attorneys) look the other way. Homeowners in most states typically have one final recourse: prolonged litigation with five- and six-digit attorneys’ fees. A Community Association Manager (CAM) with CAI and CAMICB designations and a decade+ of management experience said this in our Candid CAM Interview:

• There’s no meaningful government oversight of CICs.
• There aren’t really any consequences for not doing the right thing.
• The entire industry is geared toward dis-empowering Boards and homeowners.

Alternative Dispute Resolution (ADR): A Critical Tool

California, Florida, and Hawaii have all adopted mandatory ADR provisions. View a list of excerpted ADR statutes and dispute resolution recommendations.

While some CAI chapters offer mediation (example: Washington State), homeowners have rightfully expressed concern about feeding into that ecosystem.

When dealing with potential issues that may result in a cost that would ultimately be charged back to the owner, condo corporations should always consider low-cost collaborative solutions rather than immediate legal letters or legal action. The approach to resolving an issue will depend on the specifics of the issue, but it is important that condo corporations make a reasonable effort to resolve an issue before resorting to other approaches which may be costly and burdensome for both owners and the condo corporation... — CAO re: Owner Chargebacks

Ombudsperson Programs

See what these programs report on the Complaints page.

The quest for accountability in CIC governance and operations has led seven states to establish dedicated CIC/HOA ombuds offices. Are they value-added?

CAI's reporting on the subject is decidedly in the anti-ombuds camp. Many ombuds offices provide non-binding guidance; some states separately provide regulatory or agreed arbitration processes. These offices generally cannot themselves order refunds.

CAI argues against greater community association oversight (in many forms) by framing complaints registered as a percentage of the number of all CICs and/or owners that exist (learn more on the CAI Report Card). Most homeowners are not well versed in state law and/or their association's governing documents. Further and undeniably — and not unlike reporting crime to police departments — only a fraction of all complaints and/or infractions that occur are actually registered. CAI's attempt to rationalize wrongdoing and/or the need for oversight is akin to saying "there are only 100 murders in the state every year, yet there are 3,000,000 residents, so we don't need oversight for murder."

"In many cases, the threat of public accountability is enough to get condo boards to respond to complaints..." — Heather Gillespie has served as the Virginia State community association Ombudsman since 2018.

• READ: Condo Owners Want More Power To Fight Their Homeowners Boards | READ: Condo Wars: State regulators a dead end for desperate condo owners
• Florida, Nevada, and Virginia have ombuds offices with complaint or dispute assistance; enforcement powers, where applicable, are exercised through the state regulator or board.
• Delaware, Illinois, and Minnesota have dedicated ombuds offices;
• Colorado has an information/resource and registration center;
• South Carolina’s Department of Consumer Affairs receives and reports complaints. Minnesota offers informal mediation, currently paused.
• Utah has a Commerce HOA Ombudsman office. 2026 SB 122 requires publication of advisory opinions and educational resources.
• Arizona, Hawaii, Indiana and Maryland all have other remedies with varying scope and approach.

The Condominium Authority of Ontario is proof positive that government-run dispute resolution can be extraordinarily effective ( 2023 statistics):

Did you know that nearly 2/3rds of CAT cases are quickly and affordably resolved through negotiation or mediation? Parties often resolve their disputes in Stage 1 – Negotiation through a settlement agreement, which sets what each party will do to resolve the dispute. — CAO on X

Lawsuits: Often the Only Resort

The average homeowner lacks reasonably affordable, readily accessible enforcement mechanisms to compel compliance with association governing documents and state law. Lobbying efforts from CAI — that are primarily designed to further the needs of its "Business Partners" — have provided false and misleading information to homeowners and vendors. Common interest communities need both precise legislation and easily accessible processes and remedies when things go askew.

1. Lack of enforcement mechanisms often requires owners to file lawsuits to remedy "open and shut" requests for record disclosures.
2. Enforcement is about changing behavior. Court should be a last resort for homeowners to correct behavior that directly contradicts the law.
3. To borrow from Irene Calboli, professor at Texas A&M University School of Law:

   "The system is very much skewed toward those who have more money... expensive litigation ... can be enough to intimidate people and stop them from doing “something that might be perfectly lawful.”

4. Lyrissa Lidsky:

   Although winning a defamation lawsuit is difficult, filing one is easy. That enables association boards to use the law as a weapon. “You can cause a lot of pain with a lawsuit,” Lidsky said, “and defamation law lends itself to inflicting that kind of pain.”

   READ: Condo Wars: Boards can use defamation laws to stifle dissent

FLORIDA 2022 - 2023: State Rep. Juan Carlos Porras worked with Hammocks residents Villalobos and Real to draft the “HOA Bill of Rights" House Bill 919.

But the amended law, as passed, remains weak, say homeowners and [Florida Attorney General] Fernandez Rundle. Read AG Rundle's December 2022 op-ed.

“The DBPR needs the authority to give citizens an avenue to fight for themselves against big-money associations and big-money lawyers they’ve hired to bleed you dry...The lobbyists for the big management companies and real estate law firms argued that criminal penalties would have a chilling effect on volunteers who want to serve on boards.”

Four times since 2016, Fernandez Rundle has attempted to strengthen laws protecting HOA members and condo owners by making boards more accountable and subjecting dishonest ones to criminal charges. Four times, her proposals died in the Florida Legislature. She tried again during the spring session to add “criminal bite” to the law and open access to HOA financial records to “allow owners to expose wrongdoing long before money can disappear or be stolen.” But said the law fell short of expectations, she said. “While the amended law does not include all the protections I proposed, it does criminalize kickbacks and various forms of election fraud, making it a positive step forward,” she said. — Miami Herald: Florida’s largest HOA is unraveling the mess caused by its ex board. It’s costing millions

FLORIDA 2023 - 2024: State Sen. Jennifer Bradley, whose District 6 might have the state's smallest condominium footprint, sponsored SB1178 that flew through the 2024 legislative session and was eventually substituted with HB1021and enacted into law. Combined with HB1203 and SB50 (which was substituted by and enacted as HB59), Florida's 2024 legislative session created a sweeping overhaul of DBPR and homeowner-centric legal protections.

SUMMARY OF HB1021 + HB1023

Legal fees should not be prohibitive to seeking justice ... — Attorney Jesmany Jomarrón: Homeowners need more legal resources to combat corrupt HOAs

The current system is very good IF the Board are good actors. BUT if the Board is corrupt and if the Board are bad actors…it is my opinion that the current system is NOT adequate. — Spencer Hennings, former Florida Condominium Ombudsman (excerpted from coverage by CBS Miami)

Ebony Lucas, an attorney at The Closing Firm, said it is difficult and expensive for longtime owners to use the protections provided by the Act in court:

"At one time there was a discussion about a condo ombudsman, so people don't have to spend so much money in litigation, and there's no arbitration," Lucas explained. "I think it would be helpful to owners to not have to go through very costly lawsuits for issues that are clearly violations of the Act." — Article

2021 - 2022 Listen & Learn Tour Final Report from the Colorado Access to Justice Commission

...There is an intersection of need and opportunity with respect to access to civil justice...Lack of access to justice is a problem that has serious social, legal, economic, and political consequences;

...Access to justice is a basic principle of the rule of law, and it ensures that all persons, institutions, and entities, public and private, including the state itself, are accountable to laws that are publicly promulgated, equally enforced, and independently adjudicated. In the absence of access to justice, people are unable to have their voice heard, exercise their rights, challenge discrimination, or hold decision makers accountable.

In 2021, the commission undertook a systematic statewide study to better understand the challenges facing those trying to resolve civil legal problems...The study revealed that, due to the complexity of legal matters and the prohibitive cost of legal help, barriers to access impact Coloradans of all backgrounds and from all walks of life...