A $500 Fine for a Sandwich: HOAs and Arbitrary Rules

Last year, on the day of my late husband's memorial service, I got hit with a $500 fine for my guest eating at the pool, which is against the condo bylaws. No warning. No exceptions — just a creepy security camera photo, anonymously slipped under my door. Despite the mitigating circumstances and the fact that I was a newcomer to the building, the board didn't budge a dollar.

I discovered what a lot of empty nesters have learned as they downsize from suburban homeowner to condo-dweller. That a small mistake can result in large fines and even costly lawsuits. Homeowners Associations (HOAs) have imposed arbitrary rules on everything from mailboxes to the whack of pickleball paddles.

For the record, I'm a good citizen. I never litter. I let motorists cut in front of me. I recycle. So this "crime" left me feeling unwelcome in my new community.

Or as one Realtor told me: "If you don't like people telling you what to do, then don't buy in an HOA building."

A Homeowners Association is a board of elected residents who are charged with enforcing the rules and regulations and spending your assessments (U.S. average: $3,600 annually for a single family home.) An estimated 40 million households — or 53% of all homeowners — live in HOA communities. In just the last year, 5,000 new associations were formed, according to iProperty Management, a real estate research company. 

There are lots of benefits to HOAs, including protecting your investment and providing a hedge against your neighbor hanging underwear on a clothesline across their front lawn. The association handles some of the hardest jobs in the complex, such as hiring workers to do landscaping, snow removal or roof repair. It also maintains recreational facilities and shared areas so that everyone can enjoy them.

"HOAs enforce the rules and regulations and ensure that the property is well managed and aesthetically pleasing," said Susan Lichtenfeld, a retired lawyer who sits on the board of her Chicago town home development. "If you are living in a common environment, you want to follow the rules. If not, then you should go buy a home on four acres in the suburbs, where your wind chimes won't bother anyone and you can keep your Christmas lights up all year long."

However, on sites like Buzzfeed and Reddit, there's no shortage of petty HOA infractions. Wrote one online poster: "Our HOA has a decree against sidewalk chalk … SIDEWALK CHALK! This was especially apparent during the pandemic when kids were kept at home and looking for something to do." Others shared stories about getting chastised for having the wrong window treatments or the correct paint color — but the wrong brand.

Sometimes, the policing goes beyond aesthetics. With the presidential election just days away, arguments over political yard signs have heated up everywhere. (One Florida woman found a loophole by putting her Harris sign inside her front window, while another neighbor side-stepped the regulations by using his Trump sign as a sunshade in his car.)

Religion and sexual orientation have also come under fire. HOAs in four states have banned the display of a mezuzah — an unobtrusive and sacred religious object — which for centuries has been placed on the doorposts of Jewish homes. (All of these cases ended up with the homeowners winning in court).

When an HOA told Memo Fachino and his partner, Lance, to remove a pride flag from their Racine, Wisconsin home, they replaced it with rainbow floodlights, which weren't mentioned in the rules.

"I don't hate my HOA," said Fachino, who also sits on the board. "I just wanted to show my individuality while still following the rules," he wrote on Reddit.

Almost always, it's a nosy neighbor or overzealous board member who tips off management to a violation, said Jonathan Dessaules, who specializes in HOA disputes.

Over 20 years, the Phoenix attorney has seen it all when it comes to playing "gotcha."

One client was busted for having four trees on his property — one more than permitted. Despite having bought his home with a quartet of shrubbery, he was responsible for the fines — along with the cost of removal. "It can get crazy," Dessaules said.

Many residents suspect they are victims of a selective enforcement, which is why the leadership needs to be above board about their penalties. Without such transparency, residents think that they are being unfairly targeted.

I believe this is what happened to me, but I can't be sure because I was never allowed to find out who turned me in or see a list of fines even with the names redacted. With no published fine policy, it was impossible for me to know if I was on the hook for $500 while someone else — a friend of the board, perhaps? — received a warning or paid $50 for the same offense.

The amount of money was especially important because, according to Illinois law, the board has the authority to levy reasonable fines. Most people would agree that there's nothing reasonable about a $500 sandwich that, in my city, is double the price of parking in a handicapped spot or driving 30 miles over the speed limit.

Is this about maintaining property values or boosting reserves? Both, Dessaules said.

"There may not be a quota system per se, but sometimes a new management company will come in and say 'It's time for a change.' They're eager to show that they can generate more revenue than the previous company. It's a way of making themselves look good."

After I lost my appeal, some people suggested I move. But I like my building and have made some good friends who have helped cushion the transition from wife to widow. But let's cut down on the spying or, to quote Gov.Tim Walz, "Mind your own damn business."