Associa, the Dallas-based homeowners association management company, has been sued and investigated on several fronts in recent years: a Maryland federal class action over app payment fees that ended in a settlement and later contempt findings, a Hawaii licensing investigation paired with a separate federal suit against its Hawaii subsidiary, a Fair Housing Act case in Virginia, an older employment discrimination case in Florida, and homeowner complaints alleging financial mismanagement of association funds. The Associa lawsuits below trace what each case claimed and where it landed.
The Maryland Convenience Fee Class Action
The most consequential case is Birks et al. v. Small Community Specialists, LLC et al., filed in Maryland federal court in March 2023. Two homeowners alleged that Associa and its affiliates unlawfully charged a $2.95 “convenience fee” every time Maryland residents paid their monthly HOA dues through the TownSq mobile app.1ClassAction.org. Class Action Claims Certain Maryland Homeowners Charged Illegal Fees on HOA Dues
The defendants included Associations, Inc. (the Associa parent entity), Select Community Services (a local Associa subsidiary), and HOAM Ventures, Inc., which had acquired the TownSq app from Associa in April 2022 and shared the same Texas address as Associa’s headquarters.1ClassAction.org. Class Action Claims Certain Maryland Homeowners Charged Illegal Fees on HOA Dues
The plaintiffs argued the fees were illegal “pay-to-pay” charges, pressing three theories: violations of the Maryland Consumer Debt Collection Act, violations of the Maryland Consumer Protection Act, and unjust enrichment. Central to their case was the claim that the $2.95 charge was not authorized by the homeowners’ governing agreements and functioned as “an unlawful profit center” rather than a legitimate pass-through cost. The complaint also alleged the defendants were collecting these fees without being licensed as collection agencies under the Maryland Collection Agency Licensing Act.1ClassAction.org. Class Action Claims Certain Maryland Homeowners Charged Illegal Fees on HOA Dues
Settlement, Then Contempt
The court granted final approval of a class settlement on December 10, 2024, awarding $236,159.37 in attorney’s fees and $3,840.63 in costs to class counsel, along with $5,000 service awards to each of the two named plaintiffs. The case was dismissed with prejudice the same day.2PACER Monitor. Birks et al v. Small Community Specialists, LLC et al
The settlement did not close the matter. In March 2025, the plaintiffs asked the court to order the defendants to show cause for failing to comply with the settlement terms. In October 2025, the court found the defendants in contempt of its December 2024 order, granting the show-cause motion in part. The court modified its contempt ruling in November 2025 and signed a consent order in December 2025 granting the plaintiffs relief based on the contempt findings.2PACER Monitor. Birks et al v. Small Community Specialists, LLC et al
Hawaii Licensing Investigation and Federal Suit
Associa’s Hawaii arm has drawn both regulatory scrutiny and separate litigation. In April 2023, Civil Beat reported that Associa Hawaii was operating as a property management firm without an active broker’s license, a requirement under Hawaii condominium law. The Hawaii Department of Commerce and Consumer Affairs launched an investigation through its Regulated Industries Complaints Office after the state licensing website listed Associa Hawaii’s license as inactive, with the notation “LICENSE IS INACTIVE UNABLE TO PRACTICE.” Under Hawaii’s real estate broker statute, a company can face fines of up to $5,000 per violation.3Civil Beat. Hawaii Property Management Giant Under Scrutiny
Separately, Ye v. Associa Hawaii was filed in the District of Hawaii in September 2025. The specific claims are not detailed in available records, but the docket shows an active and contested proceeding: the plaintiff filed multiple amended complaints and sought emergency relief including temporary restraining orders and preliminary injunctions. As of May 2026, the case remains ongoing with a scheduling order in place.4CourtListener. Ye v. Associa Hawaii
Fair Housing and Employment Cases
In April 2025, Kurt Kidd sued Associa Community Management Corporation and a Virginia homeowners association under the Fair Housing Act in the Eastern District of Virginia. The complaint included exhibits related to HOA declarations, bylaws, and clubhouse reservation policies. The parties filed a joint stipulation of dismissal with prejudice in October 2025, ending the case.5CourtListener. Kidd v. Associa Community Management Corporation
Earlier, in June 2019, a plaintiff named Lemay filed a civil rights employment discrimination lawsuit against Associa Gulf Coast, Inc. and a Florida condominium association in the Middle District of Florida. That case was transferred to another court in December 2019.6CourtListener. Lemay v. Associa Gulf Coast, Inc.
Homeowner Complaints Alleging Financial Mismanagement
Not every dispute has reached court. A 2026 Better Business Bureau complaint filed by a representative of the Villas of Sanibel Condominium Association in Florida accused Associa of combining operating funds with capital reserve accounts and insurance payments, which the complainant described as an apparent violation of Florida law. The complaint also alleged that vendors went unpaid for months and that the local electric company nearly shut off power to common areas.7Better Business Bureau. Associa Home Office Dallas – Complaints
Associa responded that the electricity issue occurred after its management contract had ended in February 2026. On the association’s attempt to terminate the contract early, Associa said it had informed the association’s attorney that the association would be held financially responsible for the remainder of the agreement.7Better Business Bureau. Associa Home Office Dallas – Complaints No state regulatory action in response to these specific allegations appears in available records.