Senate committee approves legislation to enhance protections for homeowners undergoing internal dispute resolution proceedings
On June 10 the Senate Committee on Judiciary passed Assembly Bill (AB) 1738, authored by Assemblymember Ed Chau (D-Monterey Park), which would ensure that members of a common interest development have the same right as the homeowner’s association to have an individual of their choice, who may be an attorney, assist them during any internal dispute resolution (IDR) proceeding between the homeowner and the association.
“Homeowner Association covenants, conditions and restrictions and other rules are often difficult for a lay person to comprehend,” said Assemblymember Chau. “In any negotiation over a person’s home or living conditions, both the homeowner and the association should have the benefit of having their attorney or another knowledgeable individual present at, and participating in, the negotiations, especially because any agreement reached through IDR is judicially binding.”
Under the Davis-Stirling Common Interest Development Act, the settlement of disputes between a member or members and the Homeowner Association Board arising under the association’s covenants, conditions and restrictions is strongly encouraged prior to any party filing a lawsuit. To this end, the Act sets out an internal dispute resolution procedure to be utilized by the parties prior to using more formal dispute resolutions, such as mediation or the courts.
There are no specific provisions of the Act governing whether a homeowner may have the assistance of their attorney, or of anyone, during the IDR process. Unfortunately, some homeowner associations have used this absence to their advantage unfairly. In some cases, associations will have its attorney attend dispute resolution sessions. In other cases, the association will have its attorney attend, but will deny the member’s request to have their attorney, or any other individual, participate.
Assemblymember Ed Chau represents the 49th Assembly District, comprised of the communities of Alhambra, Arcadia, El Monte, Monterey Park, Rosemead, San Gabriel, San Marino, Temple City and portions of Montebello, and South El Monte.