← Reports and unpublished papers

Homeowner Association Foreclosures and Property Values in Harris County, 1985–2001  

12 October 2002

Christopher Adolph

In recent years, homeowner associations (hoas) in Harris County, Texas have filed thousands of lawsuits threatening foreclosure against residents who owed dues, late fees, or fines. An event count analysis of hoa foreclosures by neighborhood from 1985—2001 shows the bulk of these filings occur in neighborhoods with low median home values. Overall, homeowners in the bottom quartile of home value face more than ten times the risk of hoa foreclosure proceedings as those in the top quartile. Legal changes in 1987 and 1995 also seem to have encouraged hoas to bring more foreclosures to court: across the spectrum of home values, the annual pace of filing after 1995 is roughly double the previous decade’s rate. Although hoa foreclosures are ostensibly motivated by efforts to improve property values, neither foreclosure activity nor hoas appear linked with above average home price growth.

Replication:  Data are drawn from HOAdata, which should be consulted for more recent data.