The Homeowners Association dues also pay for building insurance, water, trash, common area maintenance and repair (electricity, elevator, gardener, building cleaning service), etc. The HOA had to have a special assessment to pay for repair and maintenance of the common areas, but this owner has not paid the special assessment either. One owner not paying has made it very difficult on the other four unit owners. The HOA filed a lien but the owner filed Chapter 13 bankruptcy. What else can the HOA do?
HoA has its remedy of placing liens against the defaulting member. Self help via cutting off laundry and TV cable are not advised. You can foreclose on your HoA lien. That should get the attention of the defaulting member.
Yes. In California, HOAs are governed by the Davis-Stirling Common Interest Development Act. An HOA may suspend a homeowner member's rights and privileges so long as the right to suspend is in the HOA's collection policy, AND so long as due process is followed. That being said, there are certain allowable suspensions and certain unallowable suspensions. (See CA Civil Code section 1363. )
Examples of allowable suspensions generally include voting rights, the right to be on the board of directors, the right use of swimming pool, clubhouse or laundry facilities, and valet parking privileges.
Examples of disallowed suspension include elevator service, ingress/egress, trash collection, and utility services.
Frank W. Chen has been licensed to practice law in California since 1988. The information presented here is general in nature and is not intended, nor should be construed, as legal advice for a particular case. This Avvo.com posting does not create any attorney-client relationship with the author. For specific advice about your particular situation, please consult with your own attorney.
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HOA should seek legal advice from an HOA practicing attorney specifically, in connection with the bankruptcy proceeding, AND make sure HOA does not do anything to violate the bankruptcy laws.
The foregoing is for informational purposes only and may not be relied on as attorney-client advice.