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.
The local law supersedes the rules and regulations of the HOA, meaning that HOAs must ensure they are operating under the law.
Department of Real Estate and HOAs The DRE is a licensing and regulatory agency empowered to discipline real estate brokers and agents. The DRE is also involved in overseeing developers of common interest developments. Once a developer turns over control of an association to its members, DRE's oversight ends.
What Happens if Nobody Runs for the Board - Coast Management of California. Directors of HOA boards continue to serve until they are replaced at the next election. If no one runs for the board, existing board members can serve in perpetuity.
Homeowners' Associations in California need to be set up as a corporation and therefore must also adhere to the California Corporation Codes. These codes state that all community associations must be operated by a board of directors. Currently, no government agency regulates homeowners' associations.
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.
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.
Legal Implications of Selective Enforcement In California, HOA governing documents, reinforced by the Davis-Stirling Act, mandate the equal application of rules and regulations. Any deviation from this principle constitutes a breach, opening the door to legal action.
The absence of an HOA board can result in significant risks, including financial mismanagement, where bills go unpaid and dues are uncollected, leading to financial instability. Residents and city officials can also bring about legal actions against the HOA, resulting in expensive court actions.