Legal Question in Real Estate Law in California

Re: Hoa

There have been some recent changed to to the way California HOAs handle liens and foreclosures for deliquent assessments.

If the amount of a debt includes less than $1,800 in delinquent assessments (not including accelerated assessments, late charges, interest or cost of collection), the association: (1) may not collect the debt through judicial or nonjudicial foreclosure; (2) may file a small claims action; (3)may record a lien (However, the lien will not be foreclosable until the assessments

exceed $1,800 or are more than 12 months delinquent).

If the debt exceeds $1,800 in assessments only, the association may commence judicial or non-judicial foreclosure BUT, as set forth above, prior to initiating foreclosure, the association must offer alternative dispute resolution, and if the owner

requests alternative dispute resolution, the association must participate. Binding arbitration is not available if the association intends to initiate judicial foreclosure because the foreclosure will be reviewed by a judge prior to sale of the property.

Civil Code Section 1367.4 (c)(2) states that the Board must make the decision to foreclose; this decision may not be delegated to an agent. The approval must be by a majority vote in executive session, and recorded in minutes of next open Board meeting

(reference is to be by parcel number only.

Civil Code Section 1367.4 (c)(3) states that if the board makes a decision to foreclose, the board must provide notice to the owner via personal service if the owner

resides in the unit, or via first class mail to off-site owners.

Civil Code Section 1367.4 (c)(4) sets forth right of redemption 90 days following sale (see Code of Civil Procedure Section 729.035).