Some homeowners in Woodstock, Georgia, say their HOA dispute is not really about routine neighborhood enforcement at all. Their complaint is that, in practice, the community's original developer still controls key decisions.
The conflict is getting extra attention because Georgia is preparing an out-of-court process for HOA complaints, although state reviews are not expected to start until January 2027.
Here's what to know
11Alive reported residents of Village of Towne Lake contend that developer David Pearson signed a 2020 contract that keeps the neighborhood tied to Pearson's own property management company through 2040.
The arrangement pays the company at least $79,000 a year, or 20% of the HOA budget if that amount is higher, and assigns it duties typically handled by a homeowner board.
Homeowner Jason Searcy said a fence dispute brought those concerns home for him. After paying about $3,600 for a fence, he said it was removed during a property-line conflict involving Pearson.
"I never received any sort of reimbursement or communication. Just my survey is different than yours," Searcy said.
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Homeowners said that the HOA budget has grown threefold, raising the management company's compensation to $190,634.
A resident who sought comparison quotes from other property managers found much lower prices, with the highest coming in at about $40,000 to $45,000.
More background
In written responses, Village of Towne Lake HOA President Becky Repic said the community's setup is "unique" and that the board's responsibilities "are more limited vs what you may expect to see in a traditional HOA."
Repic said most residents are pleased with the neighborhood and described the homeowners who objected to the arrangement as "a few bad seeds that like to complain about things."
Attorney Randy Lipshutz, who helped draft Georgia's HOA law in the 1990s, said the management fee might not be illegal if it was properly approved, but he raised separate concerns about shifting board authority to the company.
"Frankly, I don't think that's permissible under the nonprofit corporation code," he said.
HOAs across the country have faced criticism for blocking or delaying money-saving home upgrades, including rooftop solar panels and native plant lawns.
When an association controls budgets, violations, and approvals, it can influence everything from utility costs to property improvements and even how comfortable homeowners feel in their own yards.
What's being done?
Georgia's new complaint system could offer homeowners a less expensive and more accessible alternative to court.
The Secretary of State has already opened a portal for residents to file disputes, but the agency says it will not begin reviewing them until procedures are finalized in January 2027.
Within Village of Towne Lake, homeowners have also been pressing for more visibility into the finances. A limited review of records went ahead, but a broader independent audit sought by residents stalled after DPC said it would use its own auditor under the new law.
Searcy said the problem is simple: "Not having a say and having visibility or transparency to how our money is being spent is quite frustrating."
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