HOT SPRINGS, Ark. — A judge in Garland County, Arkansas, has stopped a property owners’ association from collecting a $1,200 special assessment for a new pool and pool house while owners’ lawsuit against the association goes forward. The Hot Springs Sentinel-Record reported the ruling on October 24, 2026.
What happened in court
Division 1 Circuit Judge Ralph Ohm held a hearing after plaintiffs asked him to block the assessment and to stop the demolition of community structures in Diamondhead, a former gated community in Garland County that became a city in 2024. According to the Sentinel-Record, the POA had announced the one-time assessment in September, on top of the $1,300 owners already pay in annual dues.
Teri Hays, the attorney for 19 property owners, told the court that none of the subdivision’s governing documents allow a special assessment. “You can’t charge a special assessment when there isn’t any authority to do that,” she said, as quoted by the paper.
Judge Ohm granted the motion with the defendants’ consent, after their lawyer said the assessment would not be charged. He was careful about what he was and wasn’t deciding. “I’m not making a ruling on if it’s a valid special assessment,” he said, according to the Sentinel-Record. “I’m not saying you can or can’t, but it will not go into effect against property owners until this court rules on the case.”
He also ordered that the front gate, the POA office and the golf course pro shop not be torn down while the case is pending, and he denied a defence motion to dismiss newly added claims of breach of fiduciary duty, civil conspiracy and misappropriation of POA funds. The POA posted a notice that the assessment “will not be collected at this time.”
The bigger dispute
The lawsuit, filed in June 2024, challenges a May 2024 special meeting that gave developer Mark Lane control of the POA board. The paper reports that Lane became the largest landowner after buying more than 1,000 lots in 2018. A five-day jury trial is scheduled for late January.
What it means for owners and boards
The judge did not rule on whether the assessment is valid, so this is not a precedent. It is still a useful reminder of the first question to ask about any special assessment: where does the authority come from?
- Read the documents. A special assessment power normally sits in the declaration (CC&Rs) or bylaws, sometimes with a cap or a requirement for an owner vote above a certain amount. Some states add their own limits. If the documents are silent, that is a serious question for the board.
- Look at the purpose. Assessments to repair existing common property and assessments for new amenities, like a new pool house, are often treated differently in governing documents.
- Act quickly and together. In this case, owners filed a motion within weeks of the announcement. A group of owners with one lawyer is far more effective than individual complaints.
- Boards: before announcing an assessment, get a written opinion on your authority, document the vote, and explain the numbers to owners. It costs far less than defending a court challenge.
Our explainer Special Assessments Explained covers how assessments are approved and when owners can push back. If your association has no reserves for big-ticket items, our reserve study guide explains why that leads to assessments in the first place.
Source: Hot Springs Sentinel-Record, October 24, 2026. The court’s written order was not publicly available at the time of writing. General information only, not legal advice.
