Homeowners associations are generally intended to protect shared property and manage neighborhood costs. But in Branson, Missouri, the Woodlands Property Owners Association is suing its former president, Cheryl Honey, and her husband, Clint Honey, alleging they used more than $30,000 in association funds to pay for repairs inside their condo.
What happened?
In court papers filed in Taney County, the HOA says Cheryl Honey approved three checks totaling $30,886 for water-damage work in her unit and two other condos, according to Realtor.com.
A key issue in the case is whether association money could be used for the repairs. The Woodlands condominium declarations allow HOA funds to be spent on exterior work, not interior repairs. The lawsuit alleges that Honey represented the project as exterior-related even though the work was done inside the condos.
The filing says Honey later "admitted misconduct" after being confronted. It also alleges that, when asked why she did not use homeowners insurance, "she stated that she did not want to do so." Honey resigned as president on July 14.
The HOA wants the court to place a constructive trust on the couple's condo, as well as any later jointly owned property, until the money is repaid. Units in the community typically sell for about $170,000 to $260,000.
Why does it matter?
The case reflects a broader tension around HOA authority.
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Across the country, HOAs have drawn criticism not only over fees and governance issues, but also for blocking homeowners from making money-saving updates such as installing rooftop solar panels or replacing water-hungry grass with native-plant lawns or gardens.
What can I do?
For homeowners looking to make practical, money-saving improvements, it is also worth learning how to work within, or change, HOA rules. Doing so can guide you through navigating bylaws and advocating for updates that allow cost-cutting improvements like solar panels or native landscaping.
The lawsuit describes Cheryl Honey's conduct as a breach of duty, saying she "placed her self-interest ahead of the interest she owed to her fellow members." It also cites the condo declaration, which states, "An owner shall be obligated to keep in good repair and condition" the interior surfaces within the unit.
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