Your Rights Under the Davis-Stirling Act: Filing Claims Against an HOA
If you live in a California common interest development (CID)—like a condominium or planned unit development—chances are your homeowners’ association (HOA) is governed by the Davis-Stirling Common Interest Development Act. This law provides a framework for how HOAs must operate and establishes the rights and remedies homeowners have when disputes arise.
Common Claims Against HOAs
1. Breach of Fiduciary Duty
• Occurs when an HOA board mismanages funds or fails to carry out necessary maintenance, leaving property owners at risk.
2. Failure to Enforce CC&Rs Uniformly
• HOAs must apply Covenants, Conditions, and Restrictions (CC&Rs) fairly and consistently. Selective enforcement can lead to legal challenges.
3. Violation of Transparency
• The Davis-Stirling Act requires HOAs to maintain transparent operations. If board members refuse to disclose finances, meeting minutes, or essential records, homeowners may have grounds for a claim.
4. Board Member Misconduct
• Actions by individual board members that exceed their authority or compromise the association’s integrity can form the basis of a lawsuit.
How Are Disputes Resolved?
Before you can file a lawsuit against your HOA, you must generally go through two steps to try to resolve the dispute outside of court.
1. Internal Dispute Resolution (IDR)
• Informal Process: IDR allows you to meet with board members or HOA representatives to discuss issues directly.
• Non-Binding Outcomes: While IDR can avoid escalation, the results are not legally binding, and homeowners are not obliged to participate.
2. Alternative Dispute Resolution (ADR)
• Mandatory Attempt: For certain disputes—like clarifying CC&R rules or seeking an injunction (compelling or stopping a specific action)—the Davis-Stirling Act typically requires attempting ADR (mediation or arbitration) before filing suit.
• Cost Sharing: The HOA and homeowner usually split ADR costs. Any agreement reached is non-binding unless put in writing and signed by both parties.
Filing a Lawsuit
If the conflict remains unresolved after IDR and ADR, you can proceed with legal action. Depending on the situation, your suit may be directed at the entire HOA or individual board members. Common legal remedies include:
• Financial Compensation
• Damages for loss of property value, unreasonable fines, or even legal fees incurred due to the HOA’s actions.
• Enforcement of Rules
• Court orders requiring the HOA to follow its own CC&Rs or revise discriminatory regulations.
• Injunctive Relief
• A court directive stopping or compelling certain behavior—such as halting improper assessments or enforcing necessary repairs.
• Board Member Removal
• In cases of serious misconduct or negligence, a court may remove individual board members.
Preparing for Legal Action
1. Document Everything
• Keep thorough records of all communications—emails, letters, and HOA meeting minutes—related to the dispute.
2. Engage in IDR or ADR
• Attempting these required steps in good faith can strengthen your position if litigation becomes necessary.
3. Seek Legal Guidance
• The Davis-Stirling Act’s procedures, your CC&Rs, and any additional HOA bylaws must be carefully navigated. Consulting an attorney ensures you meet all legal requirements and deadlines.
How Solum Space Law Can Help
At Solum Space Law, we understand the complexities of resolving HOA disputes under the Davis-Stirling Act. Whether you need help negotiating an internal resolution or must escalate to litigation, we work to protect your rights and seek a resolution that preserves both your property value and peace of mind.
If you’re facing an HOA dispute or have questions about your rights under Davis-Stirling, contact us today for a free consultation. We’re here to guide you through the process and help you achieve the best possible outcome.
