As Americans prepare to celebrate the nation's 250th birthday, homeowners in an upscale Southern California community say they're being threatened with fines for flying Old Glory.

Residents in San Marcos, whose townhome community is governed by the Ambiance Owners Association, are refusing to remove American flags displayed outside their homes despite notices from the homeowners' association.

Real estate websites show townhomes in the community are valued at just under $1 million.

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Documents reviewed by Fox News Digital show the dispute dates back at least three years. In May 2023, the HOA notified one homeowner that sports flags were prohibited while stating that "the American flag is the only approved flag to be hung on and within common property."