On September 18, Governor Brown signed Assembly Bill (AB) 1738, authored by Assemblymember Ed Chau (D-Monterey Park), which would clarify that both homeowners and Homeowners Associations (HOAs) may have someone, including an attorney, on hand to assist them, at their own cost, during an Internal Dispute Resolution (IDR) proceeding.

“Disputes between homeowners and homeowners associations often involve serious issues and any agreements reached through IDR are judicially binding,” said Assemblymember Chau.  “I applaud the Governor for signing AB 1738 because it will ensure that all California homeowners are given an equal playing field and increase their chances to resolve a dispute between them and an HOA at an early stage.”

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 unfairly used the absence of such a provision to their advantage. In some cases, associations will have their attorney attend dispute resolution proceedings.  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.