California HOAs enforce recorded CC&Rs and architectural rules, but Civil Code section 4765 requires architectural decisions to be fair, reasonable, and in good faith, and sections 5900-5965 require internal dispute resolution plus an attempt at alternative dispute resolution before most enforcement lawsuits can be filed.
Where governing documents require approval for physical changes, Civil Code section 4765 requires fair, reasonable procedures with prompt deadlines; decisions must be made in good faith and "may not be unreasonable, arbitrary, or capricious," and disapprovals must explain why and describe a reconsideration process the member may appeal at an open board meeting. For disputes, Civil Code section 5905 requires every HOA to offer a "fair, reasonable, and expeditious" internal dispute resolution (IDR) procedure. Before filing an enforcement action over the governing documents or the Act, section 5930 provides the parties "may not file" suit unless they have first endeavored to submit the dispute to alternative dispute resolution. Small claims and assessment disputes are exempt.
Owners who violate CC&Rs may face fines (after notice and hearing), forced correction, injunctive relief, and attorney's fees to the prevailing party. An HOA that skips the required ADR offer before filing suit risks dismissal or loss of fees under Civil Code section 5930.
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