40+ Tennessee Tiny Home Owners Sue Developer for $5M Over HOA Mismanagement

More than 40 residents of Tennessee's Sunset Bluff tiny home community have filed a $5 million lawsuit against developer Claude 'Chip' Hayes III. The homeowners accuse Hayes of unlawfully maintaining control over their homeowners' associations rather than transferring governance to residents. Plaintiffs allege that nearly 80% of one HOA's budget was funneled to a lawn care company owned by Hayes himself. Several amenities that were promised to buyers also reportedly remain incomplete. The lawsuit highlights growing concerns about developer conflicts of interest in HOA management.