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.
Laws always supersede governing documents IF they conflict and the law applies to your HOA. In California, the Davis-Stirling Act may take precedent over general corporation codes because it's specific to HOAs.
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.
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.
How Much Should an HOA Fine? Like all provisions of an association's governing documents, fines must be "reasonable." No statute or case law defines when the amount of a fine is, or is not, reasonable.
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.
While most associations have “tax-exempt” status with the State of California, non-membership income such as interest is taxable. If the association has more than $100 in non-membership income, then a return is required. Failure to file Form 100 can result in significant penalties and interest if tax is owed.
In order to meet tax exempt status in California, the HOA must meet two main test: (1) the organizational test; and (2) the operational test. The test requirements are outside the scope of this post. However, the requirements are very similar to Internal Revenue Code section 528 for federal tax purposes.