A New Mexico homeowners association with dues of just $35 a month says it is being squeezed from multiple directions, including 24 delinquent households, more than $1,000 in monthly collection fees, and a potential $75,000 landscaping bill for a common area the developer never finished.
Here's what to know
In a Reddit post, the president of a 157-home HOA said 24 owners have fallen at least 60 days behind on their assessments. According to the post, 10 of those households have been delinquent for more than a year and already face liens.
The neighborhood is also dealing with unfinished work inherited from the builder. The board said the developer handed over the subdivision before landscaping was completed in several common areas, and finishing just one of those spaces could cost about $75,000.
That expense is hitting an association with very little breathing room. If every owner paid the current $35 monthly dues, the HOA would take in about $5,495 each month, but the board said it is paying its management company around $1,275 monthly for routine management along with collection-related fees that average $1,000 or more, even though many overdue balances remain unpaid.
The dues increase already scheduled for 2027 would bring the monthly charge to $42, but the board said that still may not solve the shortfall.
In the comments, many readers pointed to the basic math. One person wrote, "Your problem is the $35 a month." Another argued that the unfinished landscaping was not the immediate priority, writing, "Landscaping sounds like a nice to have. A functioning budget is a need to have."
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More background
In a follow-up comment, the board president said the HOA's governing documents limit annual dues increases to 20% and permit them only for required maintenance, utilities, and insurance. The board said that restriction prevents a rapid fee increase to shore up the budget.
The board said it is wary of using special assessments, estimating roughly $300 to $400 tied to each common-area project. With about 16% of owners already behind, the president said that approach could make the delinquency issue worse.
The president also raised service concerns about the management company, saying financial reports have sometimes shown up two to three months late and that packets for quarterly meetings have at times been sent only two hours before those meetings.
The HOA said the management company quoted $8,000 for a reserve study and that the management company's preferred bank will not issue a loan while the community's 60-day delinquency rate stays above 10%.
HOA rules can affect whether a home becomes more affordable or more expensive to maintain over time. HOAs across the country have also faced criticism for blocking homeowners from making cost-saving home upgrades, including installing rooftop solar panels or replacing traditional lawns with native plant landscaping.
What can be done?
As a next move, the original poster said the board plans to start calling real estate attorneys about deferred-fee collections work and to review transfer paperwork for any possible avenue to pursue the developer.
The president added that the government offices contacted have not shown interest in stepping in over the unfinished common areas.
Across the replies, the most common recommendation was to focus first on collections, then reassess the management company, and leave the landscaping for later.
Specific suggestions included moving to annual billing to reduce administrative costs and finding attorneys who would add their fees to delinquent owners' accounts instead of charging the HOA upfront.
One commenter dealing with a similarly unfinished development said, "We were able to substantially improve collection," after their HOA hired an attorney at $250 per hour, though they cautioned that foreclosure still may not produce any recovery if a mortgage lender is first in line.
Several commenters also urged the board to consider cheaper landscaping options, such as doing the work in phases or choosing lower-water approaches better suited to New Mexico, instead of borrowing immediately while the association remains above the bank's delinquency threshold.
Where can I learn more?
These stories look at how HOA rules over lawns and landscaping can quickly become expensive for homeowners.
• One homeowner paid years of fees before vague lawn demands kept growing without clear justification.
• In one neighborhood, the HOA was doing everything to stop low-water lawn replacements.
• The HOA sicked lawyers on one homeowner over plants added to the front yard.
• Another resident searched for answers after the HOA planned to chop down mature trees.
• Homeowners across several communities pushed back as native-plant bans drew resistance from frustrated residents.
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