Davis-Stirling: Partial Payments Reducing Assessments Must Be Accepted

  The Court of Appeals affirms, in Huntington Continental Town House Ass. v. Miner, that a homeowners’ association is required by the Davis-Stirling Common Interest Development Act to accept partial payments from an owner of a separate interest when the owner is delinquent in paying assessments.

  The fact that a lien has been recorded against the owner’s interest does not alter this requirement, nor does the manner of foreclosure make a difference: the requirement to accept partial payments applies equally prior to both judicial and nonjudicial foreclosure proceedings.

  Held: Pursuant to Civil Code section 5655, subdivision (a), a homeowners association must accept a partial payment made by an owner of a separate interest and must apply that payment in the order prescribed by statute. The obligation to accept partial payments continues even after a lien has been recorded against an owner’s separate interest for collection of delinquent assessments. The remedies available to an association under Civil Code section 5720 depend upon the amount and the age of the balance of delinquent assessments following application of the partial payment.

  The holding has significance because an association may not foreclose on an owner’s separate interest “until the amount of the delinquent assessments secured by the lien, exclusive of any accelerated assessments, late charges, fees and costs of collection, attorney’s fees, or interest, equals or exceeds one thousand eight hundred dollars ($1,800) or the assessments secured by the lien are more than 12 months delinquent.” [Civil Code section 5720(b)(2).]

  An earlier post is here: Davis-Stirling: Partial Payments Reducing Assessments Must Be Accepted.


   Mr. Daymude consults with clients and accepts cases involving liens and foreclosure proceedings, including those under the Davis-Stirling Common Interest Development Act. For other types of cases accepted, please scroll the Home and My Practice pages. If you are seeking a legal consultation or representation, call Michael Daymude at 818-971-9409.

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