In South Africa, HOA governance is entering a new era defined by transparency, accountability, and legal clarity. For years, many homeowners have felt sidelined by decision-making that hasn’t been transparent and by trustees who operate with little oversight. But 2025 marks a turning point, with new expectations for how Homeowners’ Associations (HOAs) should be run.
Why HOA Governance is changing
A recent research article outlines a compelling shift in how HOAs are expected to operate. Trustees are no longer shielded by informal practices or vague interpretations of their duties. Instead, they are being held to the standards set out in the Companies Act, the Protection of Personal Information Act (POPIA), and the Consumer Protection Act (CPA).
This means trustees must:
- Act in good faith and in the best interests of the HOA
- Avoid conflicts of interest
- Ensure financial transparency
- Protect homeowners’ personal data
- Comply with legal and fiduciary duties
Trustees are now expected to behave like directors of a company and must accept the responsibilities that go with this.
The impact of better HOA Governance
For homeowners, this shift is empowering. It means you have the right to ask questions, request financial records, and expect clear communication from your HOA. It also means that if something goes wrong, for example, funds are mismanaged or decisions are made without proper consultation, you have legal recourse.
For trustees, the message is clear: ignorance is no longer an excuse. If you’ve volunteered for the role, you must understand your obligations and act accordingly. Failure to do so could result in personal liability, reputational damage, or even criminal charges.
Common HOA Governance pitfalls
We’ve investigated quite a few cases where HOA governance has gone wrong. Some of the most common issues include:
- Unexplained levies or special assessments
- Lack of audited financial statements
- Decisions made without a quorum or proper voting procedures
- Trustees awarding contracts to friends or family
- Failure to disclose conflicts of interest
These issues undermine trust, and they can also lead to financial loss for the HOA and its members.
The role of forensic investigation in HOA Governance
When things go wrong, forensic investigation can play a vital role in uncovering the truth. From tracing missing funds to analysing irregular contracts to reviewing governance procedures, our team provides independent, expert analysis that helps HOAs resolve disputes and restore integrity.
We also assist trustees and managing agents in proactively reviewing their HOA governance practices to ensure compliance and reduce risk.
Empowering homeowners through better governance
There is a growing frustration among homeowners who feel excluded from decision-making or misled by trustees, which calls for a more democratic, transparent approach where homeowners are informed, involved, and respected.
This aligns with our own experience. When homeowners are empowered to ask questions and participate in HOA governance, the entire community benefits. There’s less conflict, better financial management, and a stronger sense of trust.
Five steps Trustees can take to improve HOA Governance
If you’re a trustee, here are five practical steps you can take to align with the new HOA governance expectations:
- Educate yourself
Familiarise yourself with the Companies Act, POPIA, and CPA. Understand your fiduciary duties and legal obligations. - Review governance documents
Ensure your HOA’s constitution, rules, and procedures are up to date and compliant with current legislation.
- Provide financial transparency
Provide regular, clear financial reports to members. Consider independent audits or reviews. - Declare conflicts of interest
Be transparent about any personal or financial interests that could influence your decisions. - Engage with homeowners
Communicate openly, hold regular meetings, and encourage feedback. HOA governance should be collaborative, not authoritarian.
What homeowners can do to support good HOA Governance
- Attend meetings and vote on key decisions
- Request access to financial records and governance documents
- Ask questions and hold trustees accountable
- Report concerns to the relevant authorities if necessary
- Support trustees who act with integrity and transparency
The Future of HOA Governance in South Africa
HOA governance in South Africa is changing, and that’s a good thing. With clearer legal frameworks, greater accountability, and more informed homeowners, we’re moving towards communities that are better managed, more transparent, and ultimately more harmonious.
At Loxton Forensics, we’re proud to support this transformation. Whether you need help investigating irregularities, reviewing governance practices, or navigating legal complexities, our team is here to help.
Because when it comes to your home, your finances, and your community—clarity and accountability aren’t optional. They’re essential.
Need help with HOA governance or forensic investigation?
Contact our team for expert advice.