Dispute or not

My friend is behind in dues. Board is going to lien property. My friend has asked for dispute a resolution. Board says they don't have to. Is this true?

I think one or both sides needs a lawyer and we'd need more info. See below:

Civil Code §1367.4. Limitations on Foreclosure.
(a) Notwithstanding any law or any provisions of the governing documents to the contrary, this section shall apply to debts for assessments that arise on and after January 1, 2006.

(b) An association that seeks to collect delinquent regular or special assessments of an amount less than one thousand eight hundred dollars ($1,800), not including any accelerated assessments, late charges, fees and costs of collection, attorney's fees, or interest, may not collect that debt through judicial or nonjudicial foreclosure, but may attempt to collect or secure that debt in any of the following ways:

(1) By a civil action in small claims court, pursuant to Chapter 5.5 (commencing with Section 116.110) of Title 1 of the Code of Civil Procedure. An association that chooses to proceed by an action in small claims court, and prevails, may enforce the judgment as permitted under Article 8 (commencing with Section 116.810) of Title 1 of the Code of Civil Procedure. The amount that may be recovered in small claims court to collect upon a debt for delinquent assessments may not exceed the jurisdictional limits of the small claims court and shall be the sum of the following:

(A) The amount owed as of the date of filing the complaint in the small claims court proceeding.

(B) In the discretion of the court, an additional amount to that described in subparagraph (A) equal to the amount owed for the period from the date the complaint is filed until satisfaction of the judgment, which total amount may include accruing unpaid assessments and any reasonable late charges, fees and costs of collection, attorney's fees, and interest, up to the jurisdictional limits of the small claims court.

(2) By recording a lien on the owner's separate interest upon which the association may not foreclose until the amount of the delinquent assessments secured by the lien, exclusive of any accelerated assessments, late charges, fees and costs of collection, attorney's fees, or interest, equals or exceeds one thousand eight hundred dollars ($1,800) or the assessments are more than 12 months delinquent. An association that chooses to record a lien under these provisions, prior to recording the lien, shall offer the owner and, if so requested by the owner, participate in dispute resolution as set forth in Article 5 (commencing with Section 1368.810) of Chapter 4.

Randy,

This is pretty much a black-and-white issue. The assessments are owed but not paid. The resolution is to pay. Just what is that your friend hopes to accomplish through dispute resolution?

From what you posted, I do not see where he has anything in his favor.

It's not a dispute, he does not deny that he owes the money. Talk to the board, on the board I'm on we have 5-6 residents that are behind in payment. We don't want to place a lien as that costs the HOA money.

We have "agreements" with the 5-6 residents that are behind to make at least a partial payment each month until they get their affairs in order. A "Good Faith" jesture is in order for both parties.

I kind of missed the dispute resolution by a third party. We have an "in house" dispute resolution process which is kind of an unofficial, ahead of time, type of an appeal process. IIRC, some time back, I think I read about the State requiring HOA's to establish some sort of in house dispute resolution process or policy?

Paul T

The OP did not say/ask about a 3rd party dispute resolution. He did not say his friend is disputing the back dues amount. He almost implied his friend was looking to beat the amount.

If his friend agrees he owes the amount then the best he can do is pay what he owes now or maybe arrange a time payment schedule. While the BOD does not have to allow a time payment schedule, they would be follish not to at least discuss the issue before they make a decision.

Randy. Does your friend dispute the amount owed?

Gee that couldn't be what the "friend" has in mind do you think, slowing down the process? IMO the Board should have liened months ago and started foreclosure proceedings when he reached the minimum mark for it in CA.

It may depend on your documents, but generally the Board doesn't have to do a dispute resolution, especially in this case. Dispute resolutions are usually done when there's a issue over CCR violations or perhaps an architectural change request that got denied, but your friend is legally obligated to pay dues as a HOA member and hasn't.

The Board has a fidicuary duty to protect the Association's intereest, so a lien would be appropriate (it can be removed as soon as your friend brings the account current). So, have your friend explain to the board why he's delinquent - if there's been a job loss, major illness or something like that, he and the board may be able to negotiate a payment plan. However, if he hasn't paid because he's upset a rule hasn't been enforced or received a violation notice, he's in the wrong because that has nothing to do with his/her obligation to pay fees.

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There is no dispute resolution for this. He owes and hasn't paid. Is he disputing he owes the money?

He can work out a payment plan and maybe they wont lien, but if I was on the board I would lien anyway. If your friend is $2900 behind, he has huge financial issues and its unlikely he is going to catch up. Foreclosure is probably in his future. The lien is only one of his worries, if it was my HOA, if no payment plan was made or he failed to make payments on a plan, I would also sue him in small claims court, get a judgement, garnish wages, etc.

If he doesnt pay his dues, that means I'm paying his dues. And I dont like to fund other people's bad choices in life.

If she cant afford the house, she either needs to leave on her own or be forced out. Its sad, but true.

So if your friend worked out a deal with the board wouldn't the other members say that she had preferential treatment? It's a two way street there. The "Friend" of the HOA most likely worked out a deal to avoid the lien. Just like your friend wants to do. So not seeing why make a fight out of this instead of working on a solution. It's clear the other person did this on friendly terms on got what they wanted. Your friend isn't working on friendly terms and getting what they deserve...It's time to put the big girl pants on and work on a payment plan like an adult...Harsh words I know but no other words to describe the drama that this is with the dispute and preferential treatment statements...That's drama...HOA's don't do drama when it comes to paying their bills only in rule disputes...