Davis-Stirling: Foreclosure Notice Requirements are Strictly Construed

  The Sixth Appellate District holds that the pre-foreclosure notice requirements of the Davis-Stirling Common Interest Development Act must be strictly construed to create a valid lien. Only valid liens may be recorded and subsequently foreclosed by the association. The case is Diamond v. Superior Court (Casa Del Valle Homeowners Association). The notice and procedural requirements can be found in Civil Code sections 1367.1 and 1367.4 and are summarized here.  Continue reading

Davis-Stirling: Only Members Have a Right to Attend Meetings

  The Davis-Stirling Common Interest Development Act, found at Civil Code sections 1350 et seq., governs common interest developments. Civil Code section 1363.05(b) provides that “[a]ny member of the association may attend meetings of the board of directors of the association . . . .”  Subdivision (h) of that section provides that “[t]he board of directors of the association shall permit any member of the association to speak at any meeting of the association or the board of directors, except for meetings of the board held in executive session.” Continue reading

Unpaid HOA Assessments: Your Rights Under Davis-Stirling

  Under the Davis-Stirling Common Interest Development Act the amount of any unpaid association assessment, plus the reasonable costs of collection, late charges, and interest, constitutes a debt of the owner. After complying with notice requirements an association may record a lien for delinquent assessments against the property of an owner. The lien may then be enforced through the nonjudicial foreclosure process applicable to powers of sale in mortgages and deeds of trust. Continue reading

Binding Arbitration of Construction Dispute Between HOA and Developer Required by CC&Rs

  The California Supreme Court in Pinnacle Museum Tower Assn. v. Pinnacle Market Development reverses the Court of Appeal and holds that a clause in the recorded CC&Rs of a common interest development providing that the HOA and the individual owners agree to resolve any construction dispute with the developer through binding arbitration in accordance with the Federal Arbitration Act is binding on the HOA and is not unconscionable.

Fee Award to HOA Reversed Though Plaintiff’s Action Frivolous

   There was an interesting twist in a case brought by a homeowner against his HOA last week. The homeowner brought a civil action, asserting violations of association rules and the relevant statutory scheme. The trial court granted a second demurrer without leave to amend and granted the HOA attorney’s fees of approximately $15,000 pursuant to Civil Code section 1636.09(b). The trial court specifically found that the homeowner’s causes of action under Civil Code section 1636.9 were frivolous because the homeowner knew when the action was filed they were barred by the one-year statute of limitations. The appellate court reluctantly reversed the fee award in That v. Alders Maintenance Assn. Continue reading