Legal Question in Real Estate Law in California

It is that time of year for our annual HOA elections. A homeowner who has not paid their HOA dues for at least 6 months currently has a lien placed on their property by the HOA for non-payment of said dues. This same homeowner is now trying to get on the board. Unfortunately, our by-laws do not mention that a homeowner must be in "good standing" for purposes of voting, being nominated, or for being elected. Is there a provision in the Davis-Sterling Act, or any other area of California law that may preclude this person from getting on the board?

Asked on 5/14/10, 9:57 am

2 Answers from Attorneys

Maria Kao Feldsott & Lee

Unfortunately, the Davis Sterling Act is silent as to whether a homeowner must be in good standing to be nominated. I would suggest looking to your CC&R's.

You mentioned that the homeowner has a lien placed on the property. If the homeowner has already gotten a Notice of Foreclosure, then the homeowner might not be record holder of the title long enough to serve as a board member. If the homeowner is no longer record holder of title, then he will not be able to serve on the board.

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Answered on 5/19/10, 10:12 am
Terry A. Nelson Nelson & Lawless

The law isn't going to help you keep him off the board. He can run, and if elected, will sit. However, a conflict of interest will prevent him from voting on anything to do with his own debt problem.

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Answered on 5/19/10, 11:22 am

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