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IndieS (Colorado)
Posts: 79
Posted:
Yes, I know that anyone can sue anyone else for any reason if they can find a lawyer that will help do it. I suppose they can try to do it pro se as well, though I doubt they would succeed.

Q: If the members of an HOA amend the CC&Rs to allow ADUs within the neighborhood, and the amendment is done in accordance with those CC&Rs and State statutes, can those individuals who were vehemently opposed to the change successfully sue the HOA? Basis of suit would probably be a belief that allowing additional structures would lower property values.

Thanks in advance.
JamesB37 (California)
Posts: 351
Posted:
If it is a state statute - I wouldn't think there would be a need to amend the CC&R's

Allowing ADU's is becoming the law of the land in a lot of places...
MichaelT21 (Arkansas)
Posts: 200
Posted:
I don't believe homeowners can successfully sue an HOA for properly revised CC&Rs, because it's homeowners and not the HOA who change the CC&Rs.

Now, could a homeowner opposed sue a homeowner who signs in favor of the change? Now that would be an interesting question.... In my state, our association attorney is familiar of one case where those who voted in favor were required to pay damages to those harmed by an inappropriate change to the CC&Rs, which was an interesting case.
SheliaH (Indiana)
Posts: 6,964
Posted:
You never know what a judge will decide in anything, so if these people want to roll the dice and really piss off their neighbors in the process, have at it, I guess. The lawyers on both sides get paid regardless, so they'll walk away happy

From what you've said, I doubt this would win because the community amended the documents properly and they'd have to prove ADUs wreck property values. Whatever those are - there are several conversations on this website debating property values, what they are, if HOAs enhance them, etc.

If this is a real situation, I wouldn't worry about it until a summons shows up. Right now these people are in their feelings because they were outvoted. Just because ADUs are now allowed doesn't mean they'll pop up like dandelions by June.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By IndieS on 03/01/2023 5:51 PM
Q: If the members of an HOA amend the CC&Rs to allow ADUs within the neighborhood, and the amendment is done in accordance with those CC&Rs and State statutes, can those individuals who were vehemently opposed to the change successfully sue the HOA? Basis of suit would probably be a belief that allowing additional structures would lower property values.
The rebuttal from the defense would be that all owners bought homes knowing full well that the CC&Rs could be amended via such-and-such vote. The right to amend pursuant to the CC&Rs is a contractual term, enforceable in court.

Courts do throw out amendments at times, but the amendment has to be something that is clearly unconscionable, like saying the 80 owners on the south side of the HOA have to pay no assessments, while the 20 owners on the north side pay all the assessments. For amendments, this is a "tyranny of the majority." The courts are unlikely to enforce such an amendment.
SheliaH (Indiana)
Posts: 6,964
Posted:
I've seen one or two of these ADUs - both were built for elderly parents, and they were tastefully done. If people are concerned about someone renting them out, the association could look into additional amendments to address that. The board might also consider consulting with an architect or designer to help with drafting design standards that could ensure the ADU matches the overall design of the house instead of plopping down something that sticks out like a sore thumb. That could help when considering if an exterior change request for the same should be approved. for them

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
JohnT38 (South Carolina)
Posts: 1,631
Posted:
Quote:
Posted By IndieS on 03/01/2023 5:51 PM
Yes, I know that anyone can sue anyone else for any reason if they can find a lawyer that will help do it. I suppose they can try to do it pro se as well, though I doubt they would succeed.

Q: If the members of an HOA amend the CC&Rs to allow ADUs within the neighborhood, and the amendment is done in accordance with those CC&Rs and State statutes, can those individuals who were vehemently opposed to the change successfully sue the HOA? Basis of suit would probably be a belief that allowing additional structures would lower property values.

Thanks in advance.

It probably doesn't work this way but my hope would be that if the people suing didn't have some hard cold facts backing up this 'belief' that the judge would dismiss the case and make them pay for the HOA's legal fees. We really do live in a sue happy world.
CathyA3 (Ohio)
Posts: 6,299
Posted:
Quote:
Posted By JamesB37 on 03/01/2023 7:30 PM
If it is a state statute - I wouldn't think there would be a need to amend the CC&R's

Allowing ADU's is becoming the law of the land in a lot of places...

I think it will depend on how the state statute is written. Does it say that ADU are not prohibited, or does it say that they must be allowed? If it's the former, then local zoning laws and HOA restrictions could forbid them - if it's the latter, then more restrictive zoning ordinances and HOA restrictions would need to be amended.

CC&Rs need to be amended in either case since the CC&Rs probably define the number of homes within the HOA. Assessment calculations would also need to be addressed. If the CC&Rs do define the number of homes within the HOA, I can foresee problems given the somewhat random nature of the ADU construction. How do you have a "planned unit development" when you're unable to plan on how many residences you'll end up with? It's not like homeowners putting up sheds on their lots.

As for the original question, a homeowner who is opposed to ADUs and has enough time and money could choose to challenge the amended CC&Rs as well as state law. Depending on how the state law was written, he may or may not get anywhere. But the HOA is a different thing since it defines the legal and financial contract among the members of the HOA. It would not surprise me one bit to see lawsuits arising over this - heck, people sue over paint colors.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
The biggest issue with ADU is that they don't pay the dues but benefit from the same amenities the HOA has. It's like the owner added another HOA member onto their land but without being an actual paying member. They are attached to the actual HOA member. Not quite a "renter" but not quite an "owner". It would upset the apple cart of the HOA considering the finances are divided amongst it's membership on how much dues one pays. If your basing it on total number of properties this ups that number. If your basing it on size of the unit, then would this owner now have expanded theirs? Thus making them pay more?

This reminds me of the issue a few years ago when the HOA found out people were letting "illegals" live in their garages. Made apartments out of their garages for tenants to live in. The HOA responded by forcing all the owners to keep their garage doors open during the day. Thus exposing their little "enterprise". They of course got sued over this. However, it did bring to light the issue of one "renting a room/space" in the HOA.

I would vote against this idea completely. Someone can sue all they want. Suing your HOA is suing themselves and their neighbors. If they really wanted this change on either side, then they need to follow the rules of getting it voted in.

Former HOA President
SheliaH (Indiana)
Posts: 6,964
Posted:
My townhouse community doesn't have the room for ADUs, but it would seem that yet another amendment to the documents would require some sort of surcharge to the homeowner with an ADU for that reason. It could be based on square footage of the ADU and the design standards I suggested could set a cap on that. This approach could even make the anti ADU people happy.

Regarding garages, there are two units on my block that converted their one-car garages into rooms. Not sure if they got permission for it (I doubt it), but because we have limited parking to begin with, the owners put a self-inflicted wound on their property values (that word again) by at least $5K. One of the units was owned by one of our now deceased presidents, and he told me about the $5K markdown, adding he knew going in this would happen, but he needed the space, so oh well.


If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
CathyA3 (Ohio)
Posts: 6,299
Posted:
Does the resident of the ADU own the structure, or do they rent it from the lot owner? (I've seen both situations in articles about ADUs.) The CC&Rs should spell out which of these is allowed.

Do the residents of the ADUs use any of the common elements? Do they drive on private streets? Do they use any of the amenities?

For example, usually when a homeowner rents their property to a tenant, then the tenant will be able use the amenities - but the CC&Rs often specify that in this case the owner may not use them. Which makes sense - the owner lives elsewhere. But if there are two residences on a single lot and both sets of residents are using the common elements, then that lot owner is basically getting a two-fer for a single assessment.

The increased usage of the common elements will affect their useful life and will increase reserve requirements. Operating expenses would also increase if the hOA provides things like water and trash collection.

In short, if the person living in the ADU is behaving like any other homeowner, then assessments need to be adjusted to account for this.

You can pretty much guarantee that there would be lawsuits if the HOA fails to address these issues. But it would be because of money, not because of the ADUs themselves.

CathyA3 (Ohio)
Posts: 6,299
Posted:
Quote:
Posted By SheliaH on 03/02/2023 7:59 AM
Regarding garages, there are two units on my block that converted their one-car garages into rooms. Not sure if they got permission for it (I doubt it), but because we have limited parking to begin with, the owners put a self-inflicted wound on their property values (that word again) by at least $5K. One of the units was owned by one of our now deceased presidents, and he told me about the $5K markdown, adding he knew going in this would happen, but he needed the space, so oh well.


My CC&Rs prohibit converting garages (or porches) into living space. If it were allowed, it would mess with percentage of ownership that's based in part on square footage. It also would affect property taxes for the same reason.

I'm thankful that ADUs will probably not be a thing in condo communities. It would amount to an unapproved amendment to the CC&Rs since it converts common elements into limited common elements or units and reduces the amount of property in which all other owners have an undivided interest. (This would be an amendment requiring unanimous approval from the membership.) And we don't have enough parking space the way it is...

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