Special assessments are used to force low-income homeowners out of their units

HOA boards can levy special assessments — one-time charges to all homeowners — for major repairs, legal fees, or capital improvements. While sometimes necessary, special assessments are also used strategically: a board dominated by wealthy homeowners votes for an expensive renovation (new pool, lobby remodel, facade upgrade) knowing that lower-income homeowners in the same building can't afford a $10,000-$25,000 sudden charge and will be forced to sell. This matters because for the homeowner who can't pay, the consequences are devastating. The HOA places a lien on their unit immediately. Interest and late fees accrue at 12-18% annually. The HOA can initiate foreclosure — in many states, without even going to court. The homeowner loses their home not because they missed mortgage payments but because they couldn't afford a bill they never agreed to and had no power to prevent. In states like Texas, Colorado, and Nevada, HOA foreclosure can happen for amounts as low as $1,000-$3,000. The broader pattern is that special assessments function as a wealth filter. After a large assessment, the units that turn over are bought by wealthier owners or investors, changing the community's demographics. This is particularly devastating in older condo buildings in gentrifying neighborhoods, where longtime residents on fixed incomes are pushed out by assessments that coincidentally align with rising property values. This persists because most state laws don't cap special assessment amounts or require supermajority homeowner votes for large assessments. A simple board majority (often just 2 out of 3 people) can impose a $20,000-per-unit charge. Payment plan requirements are rare and, where they exist, are short (12-24 months). There's no means-testing, hardship exemption, or required impact analysis. The root cause is that HOA law treats all homeowners as having equal financial capacity simply because they own property. The legal framework was designed for suburban subdivisions of similarly-priced homes, not for mixed-income condo buildings where a studio owner and a penthouse owner face the same per-unit assessment. The one-size-fits-all assessment model creates a structural mechanism for economic displacement that operates entirely within the law.