You Bought Into an HOA – Now What?

Buying a home in a homeowners association (HOA) community can feel exciting—until the stack of governing documents, rules, regulations, and unfamiliar legal terms land on your desk. Suddenly, you’re not just a homeowner; you’re part of a common interest development governed by a board of directors, with CC&Rs (Covenants, Conditions, and Restrictions) shaping what you can and cannot do with your property.

If you’ve just closed escrow in a private neighborhood or neighborhood association, it’s time to understand the legal framework you just signed onto. Whether your HOA is well-run or on the verge of creating headaches, knowing the community’s rules, procedures, and basic rights and responsibilities can help you protect your property values, avoid unnecessary HOA disputes, and make the most of your community privileges.

Your HOA’s Structure

An HOA in California is commonly organized as a nonprofit mutual benefit corporation (or, sometimes, an unincorporated association), but don’t be fooled by the word “nonprofit.” Owners are members of the association, and the board of directors is generally responsible for governance and oversight.

- Board Members: Elected homeowners who make policy decisions, enforce governing documents, and oversee maintenance obligations.

- Management Company: A vendor hired to handle day-to-day operations, dues collection, and communication. They are not the decision-makers—the board members are.

- Governing Association: The legal entity representing your common interest development and enforcing your recorded CC&Rs.

Key takeaway: The board of directors typically holds decision-making authority. The management company works at the board’s direction.

The Hierarchy of Governing Documents

Every HOA runs on a stack of legal documents that dictate community operations. Understanding the hierarchy can help when interpreting or challenging a rule.

1. Declaration of Covenants, Conditions, and Restrictions (CC&Rs)

- This is the backbone of your HOA, often referred to as recorded CC&Rs or deed restrictions.

- They’re recorded with the county, binding you and future owners.

- Amendments typically require member approval in the percentage stated in the CC&Rs (and in some cases may be governed by the Davis-Stirling Act).

2. Bylaws

- Define how the board members are elected, their powers, and meeting procedures.

3. Rules and Regulations

- Detail day-to-day restrictions—pool hours, parking policies, architectural guidelines, etc.

- Unlike CC&Rs, operating rules are often adopted or modified by the board of directors through a statutory notice-and-comment process, and they generally cannot contradict the covenants, conditions, and restrictions.

Pro Tip: If a rule conflicts with the CC&Rs, the CC&Rs generally prevail.

Common Areas and Maintenance Obligations

Your common area might include greenbelts, clubhouses, pools, roads, and shared roofs. Maintenance obligations for these spaces are outlined in your governing documents, sometimes with a detailed maintenance matrix.

Common area disputes often arise when:

- A common area repair delay causes damage to an individual unit.

- The board of directors claims it’s a homeowner’s responsibility when it’s actually an HOA duty.

- Owners make unauthorized changes to common areas without approval.

Remember: Maintenance responsibilities are defined primarily by the CC&Rs and related governing documents. Disagreements about maintenance can sometimes lead to internal dispute resolution, alternative dispute resolution, or, in some situations, court proceedings.

The Role of Community Standards and Architectural Guidelines

Your HOA’s community standards aim to preserve property values and create a cohesive look. This includes architectural guidelines for paint colors, exterior modifications, and landscaping.

You’ll typically need board approval (or an architectural committee’s approval) before making changes. Denials can sometimes feel arbitrary, especially if owners perceive inconsistent application of standards. This can be a common source of HOA disputes.

Tip: Consider submitting requests in writing and keeping copies. If denied, you can ask for the specific policies and guidelines or sections of the CC&Rs the HOA relied on.

Fines, Penalties, and Special Assessments

An HOA can issue fines and penalties when owners violate rules and regulations or property-use restrictions. Under California law, discipline generally requires notice and an opportunity for a hearing before the board (often referred to as a “due process” hearing), followed by written notice of the decision.

Special financial measures include:

- Upkeep fees: Regular dues for ongoing maintenance.

- Special assessments: One-time charges for big-ticket repairs, such as roof replacements or infrastructure upgrades.

- Assessment increases: Higher regular assessments, which may or may not require member approval depending on the amount and the association’s governing documents.

Warning: Special assessments can be a shock for new owners. When evaluating a purchase, it may help to review disclosures and HOA materials for pending projects or funding issues.

The Homeowner Experience: What to Expect

Your homeowner experience will vary depending on the HOA’s culture and management style. Signs of a healthy community association may include:

- Transparent communication from the board of directors.

- Well-maintained common areas.

- Reasonable and evenly applied rules and regulations.

- Sound financial management intended to reduce the likelihood of surprise special assessments.

In dysfunctional neighborhood associations, you may see:

- Inconsistent enforcement of policies and guidelines.

- Poor maintenance that may contribute to declining property values.

- Board members or management companies acting beyond the authority granted by the governing documents or California law.

Home Buyer Tips: Protect Yourself Before and After Closing

If you’re a home buyer considering a property in a housing cooperative or common interest development, do your homework:

- Review the recorded CC&Rs, and rules and regulations for potential deal-breakers.

- Ask for the HOA’s budget and reserve study to assess financial health.

- Inspect common areas for signs of neglect or deferred maintenance.

- Search local court records for legal action involving the HOA.

- Talk to current residents about their homeowner experience.

Bottom line: Knowing what you’re signing up for can help reduce frustration and the risk of costly HOA disputes.

Dispute Resolution and When to Seek Legal Help

If you find yourself in conflict with your HOA over maintenance obligations, fines and penalties, or a misapplication of architectural guidelines, common options in California may include:

1. Informal Communication

- Contact the management company or attend a board meeting to share your concerns.

2. Internal Dispute Resolution (IDR)

- California law provides an internal dispute resolution process (often called “meet and confer”) that may be available before litigation.

3. Alternative Dispute Resolution (ADR)

- For many HOA-related disputes, the Davis-Stirling Act requires an offer of ADR (such as mediation) before filing certain types of lawsuits.

4. Legal Action

- Some disputes proceed to court, depending on the facts, the governing documents, and applicable California law. In situations with significant financial impact or complex issues, some owners choose to speak with a California attorney familiar with HOA law.

Take Control of Your HOA Experience Today

Facing unfair fines, surprise special assessments, or disputes over maintenance can be stressful. Understanding your association’s governing documents and the Davis-Stirling Common Interest Development Act can help you evaluate options and communicate more effectively within the HOA process.