California requires HOAs to offer internal dispute resolution (IDR) and alternative dispute resolution (ADR) before litigation under the Davis-Stirling Act. Either party may request IDR under Civil Code 5900-5920, and ADR is mandatory before filing certain lawsuits (Civil Code 5925-5965).
The Davis-Stirling Act provides two levels of dispute resolution for San Francisco HOAs. Internal Dispute Resolution (IDR) under Civil Code 5900-5920 allows either the homeowner or the board to request a meeting to resolve disputes informally. The board must participate in IDR if requested. Alternative Dispute Resolution (ADR) under Civil Code 5925-5965 requires that before filing most enforcement-related lawsuits, the parties must attempt mediation or arbitration. A pre-filing certificate must be filed with the court showing ADR was attempted or the other party refused to participate. The San Francisco Bar Association and local mediation services offer HOA-specific mediation programs. San Francisco Superior Court also has a mandatory settlement conference program. The California Department of Real Estate (DRE) handles complaints about common interest developments. Attorney fees may be awarded to the prevailing party in HOA enforcement actions (Civil Code 5975).
Failure to attempt ADR before filing suit may result in the case being stayed until ADR is completed. The losing party in litigation may be ordered to pay the prevailing party's attorney fees under Civil Code 5975.
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