Disagreements between residents and the HOA don’t always need to end up in court. For California associations, following the HOA internal dispute resolution process provides a formal way for both sides to work towards a resolution.
What is IDR?
The internal dispute resolution process, also called “meet and confer,” is a set of procedures your association can adopt to resolve disputes between a resident and the HOA.
According to the Davis-Stirling Act, associations in California must have a fair and reasonable procedure for handling such disputes involving resident rights, rules, HOA duties, and liabilities. These issues may involve state law and policies set by the HOA’s governing documents.
Simply put, the IDR is a structured way of discussion and conversation. Both parties would have the opportunity to explain their position and discuss the issue in good faith. The goal is to reach a resolution that is acceptable to both the association and the resident without needing to seek legal mediation.
Under California Civil Code Section 5905, associations must have an appropriate IDR procedure. If your HOA doesn’t have one yet, Civil Code Section 5915 outlines a default process that can apply to the situation.
What Types of HOA Disputes Can Go Through IDR?
Many kinds of HOA disputes can arise, but for some of them, IDR isn’t the right process for finding a solution. In general, this process only involves disputes between a homeowner and the association. The issues typically involve the HOA’s authority and duties, resident rights, as well as rules and regulations in the community
Some common disputes may include:
- Rule enforcement and fines
- Architectural guidelines and applications
- Access to association records
- Elections and other association actions
- Assessments
- Violations and fine limits
Additionally, the dispute may be governed by IDR if it stems from state law, other applicable nonprofit legislation, your HOA’s governing documents, and other enforceable policies within the association.
By contrast, the IDR isn’t really made to resolve personal conflicts between homeowners, especially if the HOA doesn’t have the legal authority to serve as a mediator.
Why Internal Dispute Resolution Matters for HOA Boards
A well-managed IDR process gives boards an opportunity to address disagreements before positions become more entrenched. It also provides a formal setting in which both sides can clarify facts, review governing documents, and discuss possible solutions.
Your HOA’s compliance also matters in such a procedure. According to Civil Code Section 5910.1, an association cannot file a civil action regarding a dispute for which a member requested IDR unless the association has first engaged in good-faith internal dispute resolution procedures.
Boards should therefore avoid treating an IDR request as a nuisance or an informal complaint that can simply be ignored. The association should follow its adopted procedure, respond within the required time frame, and make a documented good-faith effort to address the dispute.
How to Handle HOA Disputes Through IDR
Good preparation can make HOA dispute resolution more productive. Before the meeting, the board should review the homeowner’s written request, identify the governing provisions, and understand the authority the designated director will have during discussions.
Choose the Board Representative Carefully
The selected director should understand the dispute and be able to listen without turning the meeting into an argument. A board may also decide in advance whether the representative can approve a resolution or must bring any proposed agreement back to the full board.
Keep the Discussion Focused
The meeting should stay centered on the specific dispute raised in the IDR request. Both sides should be allowed to explain their positions and identify realistic options for resolution.
Boards should avoid approaching the session as though the outcome has already been decided. The statutory requirement to confer in good faith makes meaningful participation an important part of the process.
Put Any Resolution in Writing
A verbal understanding can create confusion later. If the parties settle the dispute, the terms should be clear, written, signed, and consistent with the governing documents and applicable state laws.
How the HOA Dispute Resolution Process Works
An association may create its own internal dispute resolution procedure as long as it satisfies California’s minimum legal requirements. The procedure should also be described in the HOA’s annual policy statement.
Requesting IDR in Writing
Either the homeowner or the association can invoke IDR, but the request must be in writing. The association’s procedure must establish clear deadlines and specify the maximum time the HOA has to act on an IDR request.
Participation works differently depending on who starts the process. If a member invokes IDR, the association must participate. If the association initiates it, the homeowner may decline.
Meeting and Conferring in Good Faith
Under the default procedure, the board designates a director to meet and confer with the homeowner. The meeting should take place promptly at a mutually convenient time and place.
Both sides should have a genuine opportunity to explain their positions. The goal is not simply to restate demands. The parties are expected to confer in good faith and explore whether the dispute can be resolved.
California law also allows either side to receive assistance from an attorney or another person when explaining its position. Each party is responsible for its own costs for that assistance. The HOA cannot charge the member a fee simply for participating in IDR.
Documenting an Agreement
If the parties reach a resolution, it should be put in writing and signed. Under the default procedure, the board’s designated representative signs on behalf of the association.
A qualifying written agreement can bind the parties and be judicially enforceable. It must not conflict with the law or the governing documents. It must also fall within the authority granted to the board’s designee or be ratified by the board later.
A Clearer Path Forward
HOA internal dispute resolution provides California boards and homeowners with a fair, calm way to handle association disputes directly and in good faith. If both the association and the resident involved follow the procedures and arrive at a mutually agreed-upon resolution, things can become more manageable.
Optimum provides expert management services to community associations in Southern California. Call us today at (714) 508-907 or contact us online to learn more!
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