Resource Center For HOA's

Why HOAs Need a Culture of Transparency, With or Without New Laws

Written by CINC SYSTEMS | May 9, 2025 10:09:05 PM

Nearly one in three Americans live in a planned community, and many are speaking up about the experience. Frustration over opaque decision-making, arbitrary rule enforcement, and rising fees has reached a tipping point. 

From petty micromanagement to million-dollar fraud scandals, HOAs have been in the spotlight for all the wrong reasons. Viral social media videos highlight residents fined for the wrong garage door hinges or paint colors, while news stories tell of veterans nearly evicted over emotional support animals and board members arrested for embezzlement. The message from homeowners is clear: it’s time for more transparency, accountability, and fairness.

Legislation is quickly catching up with the changes homeowners have long been demanding: access, fairness, and accountability. Across the country, lawmakers are responding with sweeping reforms designed to rein in overreach and bring greater transparency to HOA operations. Some of the most impactful changes include:

  • Arizona (HB 2119): Sets limits on the fees HOAs and management companies can charge for resale disclosures, lien estoppels, and related services—making homeownership transitions more predictable and transparent.
  • California (SB 900): Requires HOAs to act swiftly on utility service issues in common areas, reinforcing their responsibility to maintain basic livability standards.
  • Florida (HB 1203): Overhauls professional standards for CAMs, mandating education for board members, enhanced recordkeeping, annual meeting requirements, and more.
  • Florida (SB 120): Establishes a statewide ombudsman to provide oversight and give homeowners a dedicated resource for resolving HOA disputes.
  • Texas (HB 614): Compels POAs to adopt clear, written violation enforcement policies—ensuring that fines and penalties are applied consistently and fairly.
  • South Carolina (HB 3568): Introduces quarterly budget transparency requirements, mandates disclosure of collected fines, and prohibits HOAs from paying homeowners’ utility bills—strengthening financial clarity and limiting overreach.

Even if your state hasn’t passed new legislation yet, your residents are already expecting more. Trust in institutions is eroding, and HOAs are no exception. A widespread sense of grievance, amplified by viral stories of fraud, overreach, and so-called “HOA Karens,” has turned HOAs into lightning rods for public frustration—even when boards and management companies are acting in good faith.

How CAMs Can Lead Instead of Follow

What if, rather than sweating new or pending legislation, HOAs and management companies used this moment to build trust? 

Too often, HOAs find themselves in a reactive posture—waiting for new laws to dictate behavior, or scrambling to repair relationships after tensions boil over. But leadership isn’t just about reacting. It’s about anticipating what’s needed and rising to meet it before it’s required. This is a moment to lead.

Jason Delgado of RISE Association Management (part of CINC’s Advisory Circle) put it best:

“During the pandemic, we saw the consequences of disconnection—fractured, mistrusting, and depleted communities. Connection is the hidden fabric that holds a community together, and managers everywhere have the opportunity to strengthen their communities by creating positive experiences that bring people together, build trust, and reinforce that we’re all in this together.”

Both Paths Are Hard—But Only One Moves You Forward

Change is hard, but so is sticking with systems that no longer serve today’s communities. CAMs must choose their “hard”: evolve toward transparency, or struggle to maintain trust with outdated, opaque practices. Fortunately, with the right tools, navigating change doesn’t have to be overwhelming.

CINC’s all-in-one platform makes transparency and compliance operationally easy. For example, Florida’s HB 1203 requires public access to documents and clear enforcement processes. With CINC, documents can be published to the homeowner portal in just a few clicks, while violation tracking tools automate notices and ensure consistency.

Board member education is also easier with centralized access to financials, communications, and real-time updates, which help boards lead more effectively from day one.

Cephai, CINC’s industry-leading AI solution, contributes by instantly responding to homeowner questions with accurate, consistent information, building trust and reducing friction.

With CINC, transparency and compliance aren’t extra steps. They’re built into the way modern associations operate.

Want to stay ahead of the curve?

Learn more about the legislation and trends reshaping the community association management industry and get actionable strategies from a panel of industry leaders!

Download the 2025 State of the Industry Report to prepare, adapt, and lead with confidence.