The new HOA law in California, passed in September 2024, includes amendments to the Davis-Stirling Act of 1985. These amendments make it possible for HOAs to conduct elections online rather than through costly and time-consuming paper balloting.
Filing a lawsuit against an HOA is typically done in small claims court. The first step is to determine how much compensation is required. Small claims is bound by a limit for damages, and any cases seeking damages above this amount must either waive the excess or file in regular court instead.
What are unenforceable HOA rules? Keep you out of court. Hush up litigation. Discriminate indiscriminately. Enter your home without cause or notice. String you out on the (clothes)line. Fine you for fun. Change rules on the fly. Demand you take down your dish.
An HOA has the authority to enforce the rules and regulations of the community using the community rules, or “bylaws and covenants.” These rules are considered “agreed upon” since homeowners approve them through board-elected representatives.
Like any corporation, an HOA may be dissolved. But as discussed in this article, dissolving the legal entity that manages the common interest development will not disband the common interest development or get rid of the Declaration of Covenants, Conditions and Restrictions (“CC&Rs”).
In 2024, the California legislature passed an amendment that allowed online elections to be held within HOAs. It recognized that this could open the door to digital vote manipulation within the HOA's management, though, so the state mandated that each HOA election needed to have an independent inspector of elections.
The winding up process includes, among other things, giving notice of the dissolution to creditors of the HOA (Corporations Code § 8618), paying all known liabilities and debts (Corporations Code §§ 8713, 8714), selling assets (Corporations Code § 8710), and distributing any remaining assets to homeowners.
HOAs are usually governed by a board of directors or governors that is elected by the homeowners to make decisions about the HOA and enforce its rules. Most HOAs in California are set up as nonprofit mutual benefit corporations, but some may be structured differently.
In some states, such as California, HOA bylaws are considered public record and must be made available upon request.
Other states are more specific about rule change procedures. For instance, in California, Civil Code Section 4360 contains provisions on how an HOA board must go about rule changes. ing to these provisions, the board must provide the membership notice at least 28 days prior to changing the rules.