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CalAttorney2
CalAttorney2, Lawyer
Category: Real Estate Law
Satisfied Customers: 10237
Experience:  I am a civil litigation attorney with experience representing HOAs, homeowners, businesses and others in real estate matters.
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Hoa president is stealing money, she's written checks out to

Customer Question

hoa president is stealing money, she's written checks out to herself, and some to cash totaling over $13,000. She doesn't hold formal meetings and does what she wants when she wants. She's trying to put a lien on my property. What rights do I have?
Submitted: 3 months ago.
Category: Real Estate Law
Expert:  CalAttorney2 replied 3 months ago.

Dear Customer,

Thank you for using our forum. My name is ***** ***** I hope to assist you today.

I am sorry to learn of this situation, it appears you have a couple of different problems going on with your HOA:

  • Your HOA President is embezzling funds from the HOA
  • Your HOA President is in breach of her fiduciary duty to the HOA
  • You appear to be subject to "arbitrary and capricious" (or "selective") enforcement of the HOA's governing documents (the fine/liens)
  • The HOA board is failing to hold public meetings as required under the Davis Stirling Act (the CA HOA statute).

Given the fact that you have so many issues going on, and that your HOA Board appears to be complicit in this situation, I would recommend that you retain an HOA civil litigation attorney to represent you in this matter (your HOA president and/or board are going to be subject to suit, the board president may be subject to criminal action, and the board may require a new election).

Under the Davis Stirling Act, if you are successful in your litigation, you are entitled to recover your attorney's fees (so there is an incentive to allow you to retain counsel to enforce your rights using an attorney).

You can find local attorneys using the State and local Bar Association directories, or private directories such as www.AVVO.com; www.FindLaw.com; or www.Martindale.com (I personally find www.AVVO.com to be the most user friendly).

Customer: replied 3 months ago.
She held a meeting this year but she was the only board member (1/5) to appear. From my understanding this is not quorum to hold a meeting? Also how can stop further penalties, lien process, i.e. Forclosures on my properties. I've spoken to some homeowners and they are also interested in joining me and hiring an attorney.
Expert:  CalAttorney2 replied 3 months ago.

Quorum rules are going to be set by your HOA's by-laws (each HOA has its own rules for what exactly a quorum is, or what is required for an effective board meeting).

But as far as dealing with the remainder of the issues, I would still recommend retaining an attorney - if you have multiple homeowners that are willing to approach this, representation (and costs) can be split - I have seen this done frequently, and can be extremely helpful in dealing with a "runaway" or "rogue" board.

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