Attorney General and HOAs
The Office of the Attorney General has limited discretionary authority to intervene on behalf of homeowners who are denied certain prescribed rights provided by the California Corporations Code. Since homeowners associations are usually set up as non-profit, mutual benefit corporations, the Office of the Attorney General has discretionary authority under section 8216 of the California Corporations Code to intervene on behalf of non-profit, mutual benefit corporation homeowners association members who are denied certain specified rights and submit a complaint to the Attorney General. A summary of the homeowner association complaints that fall under their jurisdiction is provided below.
- Corp. Code § 7510(b) Failure to hold a regular meeting of the members.
- Corp. Code § 7510(e) Failure to hold special meeting after demand by 5 percent or more of members.
- Corp. Code § 7511 Failure to provide notice of a meeting to members.
- Corp. Code § 7511(a) Failure to provide timely notice of meeting to members.
- Corp. Code § 7512 Transacting business not otherwise authorized in the bylaws at a meeting of members with less than a quorum.
- Corp. Code §§ 7513, 7514 Failure to provide members with properly conformed written ballot or proxy as authorized in the bylaws.
- Corp. Code § 7520 Failure of mutual benefit corporation to provide for reasonable means of nominating and electing persons as directors.
- Corp. Code § 7615 Failure to abide by its bylaws authorizing cumulative voting for directors.
- Corp. Code § 8320 Failure to keep books and records, minutes of proceedings, or list of members.
- Corp. Code § 8321(a) Failure to prepare an annual report.
- Corp. Code § 8321(a) Failure to provide annual report to member upon written request.
- Corp. Code § 8330(1) Failure to allow inspection and copying of names and addresses of members upon written request.
- Corp. Code § 8330(2) Failure to send a list of names and addresses of members upon written request.
- Corp. Code § 8333 Failure to allow inspection of books and records.
- Corp. Code § 8334 Failure to allow a director to inspect and/or copy books, records, and documents of the corporation.
- Corp. Code § 8215 Falsification of or tampering with association reports or Records.
According to their website (www.leginfo.legislature.ca.gov), homeowners should use a private attorney for complaints involving:
- The Davis-Stirling Common Interest Development Act (California Civil Code section 4000 et seq.)
- The HOA's rules, commonly referred to as Covenants, Conditions and Restrictions (CC&Rs)
- Services and amenities, or maintenance issues
- Property management companies
- Accountability for common interest assets, i.e., landscaping, pools, and clubhouses
- Parking and the towing of vehicles
- Dues, assessments, and citations
- Costs related to written document production requests, such as copying or redaction fees
- Foreclosure proceedings
- Poor management, misappropriation, or negligent handling of corporate assets
Department of Real Estate and HOAs
The Department of Real Estate does not regulate homeowner associations or their management companies, nor does it have jurisdiction over the enforcement of CC&Rs, bylaws, or Civil Code sections. The DRE is a licensing and regulatory agency empowered to discipline real estate brokers and agents. The DRE is also involved in overseeing developers of common interest developments. Once a developer turns over control of an association to its members, DRE's oversight ends.
Davis-Stirling Act
The Davis-Stirling Act is the primary body of law regulating how community associations operate. It covers matters such as budgets and reserves, financial oversight, collection of assessments, maintenance, rules enforcement, board meetings, elections, recordkeeping, dispute resolution, etc. Enforcement of the regulations is through the courts.
Corporations Code and HOAs
The Corporations Code is a secondary source that serves as a "gap filler" to address matters not covered by the Davis-Stirling Act or an association's bylaws. Enforcement is through the Office of the Attorney General or the courts.
Court Regulation of HOAs
Although the courts are not regulatory agencies, they can be used to sort out the legal rights and duties of parties, provide injunctive relief, and award damages. Some matters involving the Davis-Stirling Act can be addressed by small claims courts, while others must be addressed through superior courts (following an offer of alternative dispute resolution).
ASSISTANCE: Associations needing legal assistance can contact us. To stay current with community association issues, subscribe to the Davis-Stirling Newsletter.