If you hadn’t already heard, homeowners associations are evolving into mini-governments with extraordinary powers that could land you out on the street. There have been cases of homeowners losing their homes over disputes as low as $100. There are also a number of states where homeowners associations can seize your home and foreclose on you. They then auction off your home, which wipes out all the equity you have. According to the L.A. Times, 40 percent of new homes in the state of California are in covenant communities. So, people need to be aware of the power HOA board members possess. A recent story of a Florida man who erected a large flagpole in his front yard is a prime example. Apparently, the man’s flagpole was taller than the height stated in the rules book of the community, and he is now fighting to keep his house. Community covenants should have the right to fine individuals that choose to live in rule-abiding communities. However, if this type of neighborhood isn’t for you, don’t move in.