Disputes are an unavoidable part of community association life. How your board handles these conflicts matters for the immediate outcome and for the long-term health of the community. The good news is that most HOA disputes can be resolved without ever stepping into a courtroom.
Common Types of HOA Disputes
Most HOA disputes fall into a few predictable categories:
CC&R enforcement is the most frequent source of conflict. A homeowner makes an unapproved modification or lets their landscaping deteriorate. The board issues a violation notice, and the homeowner pushes back.
Assessment disputes arise when homeowners contest amounts owed, challenge a special assessment, or object to collection actions.
Maintenance responsibility conflicts occur when it is unclear whether the association or the homeowner is responsible for a repair. This is common in condominium communities where the boundary between "common area" and "separate interest" is ambiguous.
Neighbor-to-neighbor conflicts over noise, parking, pets, or shared walls often land in the board's lap, even when the board has limited authority to intervene.
Pre-Litigation ADR Requirements
Many states require alternative dispute resolution (ADR) before an HOA or homeowner can file a lawsuit. California is particularly specific. Under Civil Code Section 5930, either party must offer to participate in ADR before filing a civil action. If the other party refuses, that refusal can be used against them in court.
Even without a formal ADR requirement, attempting resolution before litigation is the smarter approach. A dispute resolved in a two-hour mediation for a few thousand dollars can easily cost $50,000 or more once litigation begins.
Mediation: A Collaborative Approach
Mediation is a voluntary, confidential process in which a neutral third party helps the disputing parties reach a mutually acceptable agreement. The mediator does not decide the outcome. Instead, they facilitate conversation and help both sides explore solutions.
- Cost. A half-day mediation typically costs $1,500 to $5,000, split between the parties.
- Speed. Most mediations can be scheduled within 30 to 60 days. Lawsuits take months or years.
- Relationships. Because mediation is collaborative, it preserves the relationship between parties who continue living next to each other.
- Flexibility. Mediated agreements can include creative solutions a court could never order, such as adjusted payment plans or modified rules.
The primary limitation is that mediation only works when both parties negotiate in good faith.
Arbitration: A Binding Decision
Arbitration is a more formal process in which a neutral arbitrator hears evidence from both sides and issues a binding decision.
- The outcome is binding. Once the arbitrator decides, the result is enforceable in court with very limited grounds for appeal.
- It is more structured. Parties present evidence and make arguments, similar to a courtroom proceeding but less formal.
- Cost falls between mediation and litigation.
Boards should understand that binding arbitration means giving up the right to a trial. Some governing documents include mandatory arbitration clauses, so review your CC&Rs and bylaws to know what applies.
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When Litigation Becomes Necessary
Some disputes end up in court despite best efforts. Litigation may be necessary when the opposing party refuses ADR, the dispute involves significant financial exposure, the matter requires judicial interpretation, or a court order is needed to stop ongoing harm.
Always discuss the expected budget and timeline with your attorney before authorizing a lawsuit.
How to Choose a Mediator
Subject matter knowledge. A mediator who understands HOA governance will be far more effective than a generalist. Many bar associations maintain panels of mediators with community association experience.
Neutrality. Both parties need to trust the mediator. Ask for references and check for any prior relationship with either party.
Style. Some mediators are "facilitative," letting the parties drive toward solutions. Others are "evaluative," offering their own assessment of each side's position.
Preventing Disputes Through Better Communication
The best dispute resolution strategy is preventing disputes from escalating in the first place.
Explain the "why" behind decisions. A denial letter that explains the concern and offers guidance on resubmitting is far more effective than one that simply cites a CC&R section number.
Respond promptly. Even if the board needs time to investigate, acknowledge receipt and provide a timeline for a response.
Hold open forums. Regular opportunities for homeowners to voice concerns can defuse tensions before they escalate.
Documentation for Dispute Proceedings
Thorough documentation strengthens your position in any proceeding. Maintain organized records of written correspondence, violation notices, photographs, governing document provisions, and board meeting minutes.
Start documenting early. By the time a dispute reaches formal proceedings, reconstructing a timeline from memory is unreliable. Good records often determine the outcome.
Disputes are stressful, but they do not have to be destructive. With the right approach, most conflicts can be resolved fairly while preserving the sense of community that makes your neighborhood worth living in.