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Feldsott Lee Pagano & Canfield
Orange County Homeowners Association Law Firm

When homeowners' association boards fall victim to others

Providing services and enforcing the covenants, conditions and restrictions, along with other rules, of a California residential community could take a toll on those responsible. Homeowners' association boards make numerous decisions regarding the communities they serve, but not all of those decisions work out as planned. In some cases, a board may fall victim to someone, and rectifying the situation may require involving the civil courts, or even the criminal courts in some instances.

For example, an HOA board in another state recently decided to involve law enforcement in its dispute with a former property manager. It became necessary to terminate that relationship and hire a new management company. When the board asked for its funds, books and records back, the company failed to comply with the request.

It reached the point where the board found it necessary to file a lawsuit requesting that the court order the former management company to turn over the items. The court entered the requested order back in February, but the defendant has yet to comply. This led the HOA board to contact law enforcement with accusations of embezzlement and making false information. While legal actions proceed, the homeowners in this Kansas community could end up suffering irreparable harm.

Unfortunately, homeowners' association boards encounter these types of problems more often than anyone would like to admit. HOAs here in California who run into these issues may benefit from obtaining an understanding of their legal rights and options. Working with an attorney with experience in this area could prove invaluable.

Source: kansascity.com, "Olathe HOA's 'significant shortfall of money' could end up costing homeowners", Judy L. Thomas, April 13, 2018

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