Labrador Letter: Cracking Down on Illegal HOA Fees

Dear Friends,

My office recently reached settlements with two Idaho homeowners' associations and an HOA management company after receiving complaints that homeowners were charged transfer fees that were never disclosed in their governing documents, in violation of the Idaho Homeowners Association Act and the Idaho Consumer Protection Act.

Idaho law requires HOAs to explicitly disclose any transfer fees in their Conditions, Covenants, and Restrictions. Management companies have no authority under Idaho law to charge transfer fees. The Idaho Legislature enacted the Idaho Consumer Protection Act to protect consumers, businesses, and Idaho's marketplace from unfair or deceptive acts or practices in trade or commerce, and it gives my office authority to enforce it.

The settlements involved Pristine Springs Homeowners Association of Ada County, Armstrong Park Homeowners Association of Kootenai County, and Park Pointe Management Services of Ada County. Park Pointe contracts with approximately 70 HOAs across Idaho. My office will monitor all three entities' fee practices under the agreements.

Armstrong Park must refund $195 to any homeowner improperly charged a transfer fee within 30 days. Park Pointe must identify and refund all homeowners from whom it improperly collected transfer fees within 90 days.

Idaho families work hard to buy a home, and they deserve to know every cost before they sign. Hidden fees collected without legal authority violate Idaho law, and my office will hold HOAs and the companies that manage them accountable.

If you have concerns about HOA fee practices, I encourage you to file a complaint with our Consumer Protection Division.

Best regards,