Van Nuys, CA asked in Real Estate Law for California

Q: Can the Board revoke rental privilege if the owner is constantly late on Condo monthly dues ? Calif.

Landlord/ unit owners get $thousand of dollars in rent, yet can not pay $400.00 in monthly dues on time. chronic late payers.

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James L. Arrasmith
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  • Sacramento, CA
  • Licensed in California

A: In California, a homeowners' association (HOA) or condo board has the authority to enforce its governing documents, including bylaws and CC&Rs (Covenants, Conditions, and Restrictions). However, the ability to revoke rental privileges due to late payment of dues depends on the specific provisions outlined in these governing documents.

Here are a few key points to consider:

1. CC&Rs: If the CC&Rs allow for the restriction or revocation of rental privileges as a consequence of late payment of dues, the board may have the authority to do so.

2. Delinquent assessments: California Civil Code Section 5650 allows HOAs to impose late fees, interest, and reasonable costs of collection for delinquent assessments, but it does not specifically address rental privileges.

3. Due process: Before taking any action, the board must provide the owner with proper notice and an opportunity to be heard, as required by California law and the HOA's governing documents.

4. Legal action: If the governing documents do not provide for the revocation of rental privileges, the HOA may still have the option to pursue legal action against the delinquent owner to recover the unpaid dues and assessments.

It is essential to review the specific language in the HOA's CC&Rs and bylaws to determine the extent of the board's authority in this situation. If the governing documents are unclear or do not address this issue, it is advisable to consult with an attorney specializing in HOA law to determine the best course of action.

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