Legal Question in Real Estate Law in California

In general, arbitrators can give the same awards that a judge could in a civil matter, including money damages and injunctive-type orders that a party do or refrain from doing something in the future. California has a Civil Arbitration Act which probably covers your arbitration with the HOA. There is also a Federal arbitration law, which is probably inapplicable. The California law is found in the Code of Civil Procedure at sections 1280 through 1294.2, available on line.

You should be able to "negotiate" to some extent during an arbitration proceeding, and the arbitrator will encourage anything that leads to a voluntary settlement or even a narrowing of the issues. However, the mainstream of an arbitration proceeding is that each side gives the arbitrator its strongest case, and the arbitrator renders an award, after weighing the facts and legal arguments presented by the parties. The arbitrator is a "rent-a-judge" and while the proceedings may be somewhat less formal than in court, it's basically a trial.

The arbitrator's award is binding and pretty much final (generally non-appealable) and can be turned into a court judgment by presenting it to a court with jurisdication and requesting a judgment based upon the award.

One sometimes hears an expression "non-binding arbitration" but this has an uncertain legal meaning and arbitration is generally considered binding, just as mediation is non-binding as such (although hopefully the parties to mediation will settle and enter into a voluntary and binding settlement agreement).