The Davis-Stirling Common Interest Interest Development Act, located in California Civil Code section 4000-6150, governs HOAs in California. This statute covers all common interest developments with individual units and common elements, as well as association memberships.
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.
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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.
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.
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.