AG right to hold HOAs accountable for fees

A Homeowners Association (HOA) is a private organization that manages a residential community, enforcing rules and maintaining shared amenities funded by member dues. These associations typically oversee greenspaces, clubhouses, and pools, and ensure residents adhere to agreed-upon standards.

This service comes at a cost. Monthly HOA fees can range from a few hundred dollars to more than $1,000 depending on location and amenities, while some single-family communities may charge closer to $500 annually. Importantly, these fees are disclosed upfront, giving buyers a clear understanding of their financial obligations before purchasing. While fees may rise over time, they are not meant to be a surprise.

That is precisely why transparency matters.

While HOAs can and often do serve a valuable role — and no one is required to purchase a home within one — their authority depends on trust and strict adherence to the law. That’s why Attorney General Raúl Labrador’s recent action is significant. 

His office said Friday it reached court settlements with two Idaho HOAs, including one in Kootenai County, and a management company after determining that homeowners were charged undisclosed transfer fees in violation of both the Idaho Homeowners Association Act and the Idaho Consumer Protection Act.

Idaho law is clear: any transfer fees must be explicitly outlined in an HOA’s governing documents. Management companies, meanwhile, have no independent authority to impose such fees at all. These are not gray areas. They are established legal boundaries.

The violations prompted Assurances of Voluntary Compliance from Pristine Springs and Armstrong Park HOAs, along with Park Pointe Management Services, which oversees roughly 70 HOAs statewide. The consequences are tangible: Armstrong Park must refund improperly charged fees within 30 days, while Park Pointe must identify and return all such fees within 90 days. The Attorney General’s Office will also monitor their practices moving forward.

This outcome sends an important message. HOAs are not inherently problematic, but when they step outside their legal authority, particularly by imposing hidden costs, they erode trust. When they collect hidden fees without legal authority and violate Idaho law, they must be held accountable. We appreciate the AG's efforts to do that. Homeowners agree to fees that are clearly disclosed, not ones quietly added later.

There is often a negative connotation association with HOAs, which is unfortunate because we don't believe they are negative. They can and do serve a good purpose. But they also must be held accountable for their fees.