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A home can be foreclosed on for many kinds of debts, not just a mortgage. For example, Home Owner's Association (HOA) can foreclose in some cases for unpaid dues and assessments.
The power of HOAs. 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.
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.
Here are 6 of the most common items that are typically covered: Utilities. Maintenance and repairs. HOA insurance. HOA reserve funds. Property management staffing. Professional property management.
What expenses are typically included in HOA fees? Common expenses covered by HOA fees may include landscaping, maintenance of amenities, utilities, trash services, pest control, security, insurance, administrative fees, reserve funds, and legal fees.
In California, HOA insurance typically includes various types of coverage to protect common areas and liability. These are property insurance that covers common areas, liability that covers personal injuries and property damage and Directors & Officers (D&O) liability that protects board members.
In general, California's HOA laws protect volunteer board members from personal liability. (Civ. Code §5800; Corp. Code §5047.5(b).)
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.
The local law supersedes the rules and regulations of the HOA, meaning that HOAs must ensure they are operating under the law.