One man takes an HOA power imbalance into his own hands
A recent viral post on X about a homeowner association fine has ignited widespread frustration among residents, highlighting the often-petty and hypocritical enforcement of rules that many feel are out of touch with common sense. Ethan Brooks, posting as @alt_w_v_g, shared a personal anecdote on March 31, 2026, detailing a $50 fine he received for leaving his trash can visible for a mere 11 minutes on collection day.
This seemingly minor incident quickly spiraled into a much larger discussion, resonating with millions and exposing the systemic issues within the HOA industry. Brooks’ initial post laid out the details: a letter, sent via snail mail in 2026, informing him of the $50 penalty. His Ring camera footage confirmed the trash truck arrived at 7:03 AM and he retrieved his can at 7:14 AM, making the fine an astonishing $4.55 per minute of trash can visibility.
The letter was signed by the HOA president Karen, a neighbor who, ironically, still had her Christmas lights up in March. The lights had been displayed for 97 days, a clear violation of Section 4.2 of the HOA bylaws, which mandate seasonal decorations be removed within 30 days of the applicable holiday.
Ethan went in to that meeting, armed with common sense, his legal pad and the 47-page bylaws
Brooks attended the next HOA meeting in a church basement. While Karen spoke about community standards and curb appeal, Brooks interjected. He cited Section 4.2, pointing out her 97-day violation while he was fined for 11 minutes. When she tried to dismiss it as a “separate issue,” Brooks countered that it was “the same bylaws.”
He ultimately paid his 50 fine, but not before filing a formal complaint against the HOA president for her own violation, complete with timestamped photos. As he put it, “Funny how surveillance works both ways.” The fine for seasonal decoration violations is $75 per occurrence, leaving her with a significant bill for her 67 days past the grace period.
The story garnered over 4.4 million views and thousands of replies from homeowners sharing similar grievances. This overwhelming response prompted Brooks to delve deeper, running the numbers on the entire HOA industry in the US. His findings paint a concerning picture.
There are currently 373,000 HOAs across the country, governing 77 million Americans — that’s one in every four people. Collectively, these associations collect $106 billion annually in assessments, a sum greater than the GDP of over 100 countries. The average HOA fee stands at $243 per month, totaling $2,916 a year. For a household earning the median income of $80,000, this represents 3.6% of their gross income.
Brooks argues that this money goes to an organization with “no earnings report, no audited financials, and no fiduciary duty in most states.” He likens it to a company that would never survive due diligence in the private equity world.
The core issue is the governance structure: HOA boards are typically made up of unpaid volunteers, contributing an estimated 97.6 million hours of labor annually, valued at $2.9 billion. While this sounds like a community effort, Brooks believes that when people aren’t paid, they often aren’t accountable.
Another significant concern is the financial health of many HOAs
Brooks found that 70% of HOAs are underfunded on reserves by 70% or more. This means that monthly fees residents pay aren’t being adequately saved for future repairs and maintenance; instead, they’re being spent. Around 60-70% goes to third-party management companies. These companies collect dues, manage vendors, and enforce rules, taking a fee “off the top” before funds even reach essential services or reserve accounts.
Brooks critically calls this a “fee chain” rather than a value chain. Adding to the financial strain, 71% of HOAs plan to raise fees this year, with the majority of those increases projected to be up to 10%. This creates a continuous cycle of rising costs, underfunded reserves, unpaid boards, and often unread bylaws.
Brooks concludes his analysis by describing the HOA model as one where the “product gets worse, the price goes up, and the customer can’t leave.” This inability to exit the system without selling one’s home creates a “captive customer base.”
The widespread frustration voiced by homeowners online reflects a growing recognition of the systemic problems within HOAs. A recent legislative effort in Florida sought to address some of these very issues, though it failed. According to News4Jax, State Representative Juan Porras (R-Miami) filed House Bill 657 back in December, openly blasting HOAs as a “failed experiment.” The bill aimed to provide homeowners with a mechanism to terminate their HOAs.
Under HB 657, a homeowner could initiate the termination by submitting a petition with signatures from at least half of the HOA’s voting members. Had the plan passed, the board would have to liquidate its affairs, settle debts, dispose of assets, and distribute remaining funds equally among members or as specified. The bill also included provisions to punish officers or directors who misused HOA funds for campaigning, failed to hold required meetings, or hid financial records.
Unfortunately for those hoping for reform, HB 657, after passing the Florida House on March 5, did not make it through the Senate before the session concluded on March 13. The bill died in the Senate Rules Committee, meaning it will not become law on July 1 as planned.
(featured image: USACE NY)
Have a tip we should know? [email protected]
