How to Challenge HOA Fees or Fines: Insights from an Experienced HOA Lawyer

As a homeowner in a homeowner association (HOA), you may receive a notice of a fine or fee for a violation of the rules or regulations. While these fees and fines can serve as a deterrent to rule-breaking, they can also be disputed if you believe they are unjustified. Further, it is not uncommon for a rogue HOA to use fines and/or fees to harass a homeowner. As of January 1, 2025, California law caps HOA fines at $100 per violation unless the board makes a written health and safety finding in an open meeting, and prohibits late fees or interest on fines (Cal. Civ. Code §5850, as amended by AB 130). Homeowners must also be given an opportunity to cure the violation before a fine can be imposed (Cal. Civ. Code §5855). Here are the steps you can take to challenge illegal HOA fees or fines.

Step 1: Review the CC&Rs and Bylaws The first step in challenging an HOA fee or fine is to review the CC&Rs (Covenants, Conditions, and Restrictions) and bylaws that govern the community. These documents will outline the rules and regulations that you are expected to follow, as well as the procedures for imposing fines or fees. You should also review any notices or correspondence from the HOA related to the fee or fine.

Step 2: Gather Evidence If you believe that the fee or fine is unjustified, you will need to gather evidence to support your claim. This may include photographs or documentation that demonstrate that you did not violate the rule or regulation, or that the HOA did not follow proper procedures when imposing the fee or fine.

Step 3: Request a Hearing Once you have gathered your evidence, you should request a hearing with the HOA board or a designated hearing officer. The hearing will provide you with an opportunity to present your evidence and argue your case. You may also be able to request that witnesses testify on your behalf.

Step 4: Consider Alternative Dispute Resolution (ADR) If the hearing does not result in a satisfactory resolution, you may pursue Alternative Dispute Resolution (ADR) such as mediation or arbitration. Under Cal. Civ. Code §5930, parties must attempt ADR before filing enforcement actions in court. Mediation involves a neutral third party helping both sides reach a mutually acceptable agreement, while arbitration results in a binding decision.

Step 5: Consult with an Experienced HOA Lawyer If you are unable to resolve the matter through the above steps or need further guidance regarding these steps, it may be necessary to consult with an experienced HOA lawyer. A lawyer can review the CC&Rs and bylaws, gather evidence, and represent you in a lawsuit if necessary.

At LS Carlson Law, we have more than 15 years of experience representing homeowners in HOA disputes, including disputes over fees and fines. Our attorneys are committed to protecting your rights and ensuring that you are treated fairly by the HOA. If you are facing a dispute over an HOA fee or fine, contact us today for a consultation.