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What legal recourse do I have against my HOA, specifically the HOA President, for not performing his fiduciary duties?

Glendale, CA |

While trying to get FHA approval for HOA so mom could get a reverse mortgage, it has come to my attention that the HOA President isn't doing his job . He doesn't hold meetings. He makes all decision on his own without consulting the homeowners. He holds no elections. We have no board of directors or any other officers for that matter. He handles all financial matters--both deposits and expenses. He provides no yearly budget, income and expense statement, etc. HOA has no reserve budget or account--just a single account with a balance of less than $1,000. We are 12 units paying $245.00 each a month. Only major expenses are water, rubbish, landscaping, and maintenance (if you can even call if that). How can he be forced to disclose how money is spent, and force him to be more transparent.

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Attorney answers 2


You have many remedies under the Davis-Stirling Common Interest Development Act. You can retain an attorney to force the association to comply with that law or you can read up on the act yourself. A good place to start is with the specific ADR requirements in your CC&Rs and/or Rules and Regulations.

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Not specific to your state, but I'd urge you to consult your HOA documents regarding the right to a financial audit and/or special meetings of the HOA. If you can't force action internally, obtain the services and advice of an experienced California attorney.

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