In September of 2005, residents of the Majestic Oaks subdivision in Ocala, Florida, were informed by their homeowners association that their deed restrictions prohibited them from welcoming Hurricane Katrina evacuees into their homes. A minister in the community had traveled to New Orleans in order to bring back three families who had lost their homes; when board members learned of the minister’s intent, they immediately sent out a warning flyer to each of homes in the subdivision. Apparently refugees are bad for property values.
An article in the Tampa Tribune in June 2008, told the sad tale of the Green family, who lived in a subdivision in Texas until 2005, when Mr. Green’s health deteriorated, and he was forced to quit his job and go on disability. The family’s finances suffered, and they fell behind on their dues to their homeowner’s association. The HOA board placed a lien on the house for $264 in November 2006, and their debt eventually grew to $580 in back dues. The HOA board and its president refused to negotiate with the Greens, and insisted on being paid a lump sum. In April 2007, the HOA filed a foreclosure lawsuit against the Greens. The court set a foreclosure sale for September 26, and the HOA purchased the Green’s home for $100. The Greens moved to a rental house four miles away. “These are neighbors,” said Mr. Green, “Neighbors are supposed to be compassionate.”
The HOA tried to sell the property, but was unsuccessful. The Association then decided against making the mortgage payments, and the lender repossessed the home. The Green’s house is now sitting empty.
According to lawyers who represent hundreds of homeowners and HOAs, instances of HOAs seizing homes in order to recoup a few hundred dollars in fines or dues, have increased tenfold in Florida in the past four years.


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