While board members usually handle day-to-day operations of an HOA, certain functions may need a lawyer. If your HOA is facing a legal dispute or other legal issues, get a lawyer now.
Whether an HOA is establishing new rules, revising old ones, or dealing with a legal dispute with residents, an attorney may be necessary. HOAs are legal entities, and for their rules to be legally enforceable, proper protocols must be followed. A lawyer can help file paperwork with the county or state to create an HOA and guide HOA board members on issues like member voting, enforcing penalties, collecting fines, and initiating formal legal action, including lawsuits.
Begin with a private legal evaluation by calling our HOA lawyers for boards and communities at Halk, Oetinger, and Brown at (602) 759-9205.
When Should an HOA Contact a Lawyer for Help?
There is never a wrong time to contact a lawyer for help. Many HOA’s have a lawyer on retainer or on call whenever legal guidance or representation is necessary.
Creating New CC&Rs and Bylaws
Creating new HOA rules is not a simple process. Our HOA lawyers for boards and communities may review these rules to determine whether they comply with state and federal laws. If they do not, they may be invalid and unenforceable.
Additionally, legal procedures to pass new rules must be followed, including meetings, hearings, and voting. Some rule changes may be so significant that they must be filed with the county or state.
Collecting Fines and Fees
It is normal for homeowners to miss an assessment payment or two or to be late with payments of fines. If it becomes clear that the homeowner will not pay anytime soon, the HOA should hire a lawyer to collect payment.
Collection may begin with a demand letter explaining that if payment is not made, more formal legal action will follow. Is the homeowner disputing the fine? If so, an attorney can help resolve the dispute and collect payment.
Legal Disputes with Homeowners
More serious legal action may include placing a lien on the homeowner’s property, which is a legal claim to property to secure unpaid debts. In serious but uncommon situations, the HOA may initiate foreclosure once the homeowner has been delinquent with assessment payments for at least 18 months or owes at least $10,000, whichever happens first.
The HOA may also hire a lawyer to sue homeowners for unpaid debts or for damage to community property or amenities. Suing a homeowner is often considered an option of last resort, and a lawyer can help your HOA board explore other legal options first.
What to Do if a Homeowner Violates HOA Rules in Goodyear, AZ?
When a homeowner violates the HOA’s CC&Rs, which is a common occurrence in almost any community, an attorney can help the board choose the best legal options to resolve the issue.
Formal Notice of the Violation
If a homeowner breaks the rules, they must be provided with official notice from the HOA. The notice should explain the nature of the violation, when and where it was observed, and evidence of the violation.
In many cases, this is the extent of the legal action necessary to enforce the rules and collect fines. In others, additional action with a lawyer may be required.
Assessment of Penalties
The notice should explain the penalties, which often include fines. Fines must be reasonable in relation to the violation. Additionally, fine schedules must be made publicly available in advance. If the fines in the notice do not match the fines listed in the public fine schedule, your HOA may have a serious problem.
Enforcing Penalties
Does the homeowner refuse to pay the fine? A hearing on the violation may be held if the homeowner wishes to challenge it. Homeowners have a right to a hearing, and the HOA must arrange one if the homeowner demands it.
Is negotiation needed? If the homeowner cannot afford to pay now, is it possible to reach some other arrangement? Are alternative arrangements available under the HOA CC&Rs or bylaws? A lawyer can help you facilitate an alternative resolution.
If all else fails, you can sue the homeowner or place a lien on their property.
How Can an Attorney Protect Your HOA?
An HOA is a legal entity that needs a lawyer who can protect it in case serious legal disputes arise.
Legal Representation
If a homeowner takes legal action against an HOA for any reason, the HOA’s attorney can step in and provide legal representation. This may include representing the HOA in a civil lawsuit or simply communicating with the homeowner on the HOA’s behalf.
Guidance on Fiduciary Duty
The HOA is responsible for maintaining and using funds collected from homeowners for the benefit of the entire community. This creates a major fiduciary duty, and some HOA board members might not fully understand their legal obligations in this matter.
If anyone on the board is unsure of how to collect, save, or spend HOA funds, ask the HOA’s lawyer for guidance.
Alternative Dispute Resolution
Lawsuits or other forms of formal legal action can be expensive and time-consuming. An attorney may be able to help the HOA resolve legal disputes through less expensive and less formal alternative dispute resolution methods.
Mediation and arbitration are common alternative dispute resolution methods and may be included in your HOA’s CC&Rs or bylaws.
Can the HOA’s Lawyer Represent Individual Board Members?
No. The HOA’s lawyer represents only the HOA itself. While board members may be represented if their involvement in the case stems from their official capacity as board members, they must hire their own lawyer for personal legal matters.
Does a Lawyer Need to Be Present During All HOA Meetings and Hearings?
Not necessarily. Day-to-day operations and regularly scheduled HOA meetings usually do not require a lawyer’s presence. However, hearings regarding legal disputes between the HOA and residents should have a lawyer present.
What Happens if an HOA Places a Lien on a Homeowner’s Property?
If an HOA places a lien on a homeowner’s property, the HOA has a legal claim to the property itself. Often, the only way to remove the lien is for the homeowner to pay the HOA whatever they owe. A lien may cloud the title of the property and make it very difficult for a homeowner to sell.
Speak to Our Glendale, AZ HOA Attorneys for Boards and Communities Today
Begin with a private legal evaluation by calling our HOA lawyers for boards and communities at Halk, Oetinger, and Brown at (602) 759-9205.
