Davis-Stirling requires HOAs to offer Internal Dispute Resolution (Civil Code 5900) and Alternative Dispute Resolution (Civil Code 5925+) before most lawsuits between owners and associations. Owners have rights to inspect records, attend board meetings, and receive due process before discipline. Small claims and civil court remain available for unresolved disputes.
The Davis-Stirling Act provides a structured dispute resolution framework before an owner or HOA can file most types of lawsuits. Civil Code 5900 through 5920 requires every association to adopt an Internal Dispute Resolution (IDR) or meet-and-confer procedure, free of charge, that any member may invoke. The process generally involves a written request, a meeting with one or more board members (and the owner, if they choose), and a written summary of the outcome. Civil Code 5925 through 5965 separately requires Alternative Dispute Resolution (ADR) such as mediation or binding arbitration before filing a civil action seeking declaratory, injunctive, or writ relief regarding enforcement of the governing documents or the Act, subject to exceptions for small claims actions, assessment collection, and cross-complaints. Owners have strong procedural rights: the right to inspect the association's records under Civil Code 5200 through 5240 (minutes, financial statements, membership lists with opt-out); the right to attend open board meetings and speak during open forum under Civil Code 4900 through 4955; the right to advance written notice of disciplinary hearings and to appear before the board to present a defense under Civil Code 5855; and the right to run for and vote in board elections conducted under the secret ballot procedures of Civil Code 5100 through 5145. Unresolved disputes can be filed in California small claims court (up to 12,500 dollars for individuals), Contra Costa County Superior Court (Civil or Limited Civil divisions), or through private arbitration if the CC&Rs require it. The prevailing party in an action to enforce governing documents is generally entitled to attorney's fees and costs under Civil Code 5975. Department of Real Estate and the Bureau of Real Estate Appraisers do not regulate HOAs; there is no state agency that adjudicates HOA disputes in California, making private procedures and the courts the primary avenues.
Contact your local code enforcement office for specific penalty information.
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