The following summaries are of recent published decisions of the California appellate courts, the Ninth Circuit, and the United States Supreme Court. The summaries are presented without regard to whether Severson & Werson represented a party in the case.
As in Branches Neighborhood Corp. v. CalAtlantic Group, Inc. (2018) 26 Cal.App.5th 743, the CC&Rs for a condominium tower required a majority vote of member owners in favor before the association could bring suit against the developer (which of course wrote the CC&Rs). This decision holds that Civ. Code 5386, which renders such provisions null and void and which expressly… Read More
This decision affirms a judgment against the plaintiff holder of the first deed of trust on a Nevada dwelling that was foreclosed upon by the homeowners association for nonpayment of association dues. The decision holds that the CC&R clause that expressly subordinated the association's lien for unpaid dues to the first deed of trust did not render the foreclosure sale… Read More
A provision in a homeowners' association's covenants, conditions, and restrictions that banned "any business or commercial activity" did not prevent a homeowner from maintaining a vineyard on his property, since the CC&R in question should be interpreted to promote its evident purpose of maintaining the residential character of the neighborhood, not so as to impose any added restrictions not needed… Read More
A homeowner association’s recorded CC&Rs, which contained a provision granting the association a first-priority lien on an adjoining golf course if for maintenance fees the association paid after the course's owner failed to do so, gave association’s lien priority over a mortgage that was recorded after the CC&Rs but before the fees were paid. Read More
Homeowners association could not invoke the Davis-Stirling Act to pursue claims in its own name without joining its individual owners since that Act only applies if the homeowners have mutual or reciprocal easements appurtenant to their separate interests (which was not true in this case). Read More
Arbitrator did not exceed his powers in dismissing plaintiff HOA’s claims against developer on the ground that HOA violated its own CC&Rs by bringing the claims without first having obtained approval from a majority of homeowners. Read More
Securitized mortgages that Freddie Mac or Fannie Mae held in trust for investors are considered the property of the Federal Housing Finance Agency, so HOAs cannot obtain a super-priority lien for unpaid dues that will take precedence over the mortgage loan. Read More
The Coastal Act bans changes in the intensity of use without a permit and so prevented an HOA from adopting a ban on short-term rentals of property within the Coastal Zone. Read More
Homeowners associations may sue a public entity in inverse condemnation for damage caused to common areas. Read More
Nevada statute giving super-priority lien to homeowners’ associations for non-payment of dues is pre-empted by federal Housing and Economic Recovery Act, so HOA liens cannot trump Freddie Mac’s secured interest. Read More
A homeowners’ association may recover costs, but not attorney fees, from a homeowner who brings a frivolous suit to inspect the association’s records. Read More
