Overview
California HOA boards are entrusted with broad authority over budgets, common-area maintenance, and enforcement of rules. That authority is not unlimited. When boards cross the line from governance into misconduct, the consequences are serious: property values can decline, homeowner finances can be damaged, and trust in the community can collapse.
Board misconduct is more than poor leadership or unpopular decisions. It occurs when directors violate their fiduciary duties, ignore statutory requirements, or misuse the authority granted to them by the Davis-Stirling Act and the governing documents. This Fact Sheet explains the most common forms of HOA board misconduct and what California homeowners can do in response.
You can review a quick-guide to one of the most common (and serious) forms of HOA misconduct by clicking on my Fact Sheet “California HOAs and Fiduciary Duty: What It Means and Why It Matters.”
Key Points
HOA board misconduct isn’t about style or personality conflicts. It happens when directors violate their fiduciary duties, ignore statutory obligations, or abuse their authority in ways that directly harm homeowners and property values. The most common forms of misconduct in California HOAs include the following:
- Breach of fiduciary duty. Directors owe a duty of loyalty and care to act in good faith and in the best interests of the association. Self-dealing, conflicts of interest, decisions made for personal gain, or willful neglect of statutory obligations are the most common forms of misconduct and expose the board to serious liability. Many of the examples of misconduct described below also happen to be examples of breach of fiduciary duty.
- Financial mismanagement. Boards must comply with Civil Code 5300–5310 (budgets and disclosures) and Civil Code 5550 (reserves). Misusing reserve funds, levying assessments without proper notice, or spending outside the scope of authority are examples of misconduct.
- Selective enforcement of rules. Civil Code 4340–4360 authorizes operating rules, but they must be applied consistently. Targeting certain homeowners while overlooking violations by others is misconduct and undermines the enforceability of the rules.
- Abuse of rulemaking authority. Civil Code 4340–4360 requires specific procedures for adopting operating rules. Boards that impose restrictions without following these procedures, or that create rules exceeding what the CC&Rs allow, are engaging in misconduct.
- Failure to maintain common areas. Civil Code 4775 requires boards to maintain, repair, and replace common areas. Ignoring safety hazards, deferring necessary repairs, or refusing to maintain common areas are all examples of misconduct.
- Discrimination and unlawful restrictions. Both state and federal fair housing laws prohibit discriminatory enforcement. HOAs must allow reasonable accommodations for disability access and may not enforce rules that unlawfully discriminate based on race, religion, gender, disability, or other protected categories.
- Lack of transparency. Civil Code 5200 et seq. gives homeowners rights to inspect association records, and Civil Code 4935 strictly limits what may be discussed in executive session. Boards that refuse records, conceal disclosures, or use executive session to deliberate on matters that must be handled in open meetings are engaging in misconduct.
HOA board misconduct is more than unpopular decisions. It occurs when directors ignore statutes, abuse their authority, or misuse the powers granted by the Davis-Stirling Act. These actions have real consequences for California homeowners, but the law gives you tools to respond and protect your rights.
Although it may seem like it, homeowners are not powerless when boards cross the line. California law provides several remedies, including: (a) demanding records under Civil Code 5200 to gather evidence; (b) compelling compliance through ADR, or if necessary, pursuing injunctive relief or damages in court for breaches of fiduciary duty or statutory violations; (c) or even organizing a recall election to remove directors who abuse their authority.
And that’s when you can call us at MBK Chapman, and we’ll hold your HOA accountable.
FAQs
What are the most common types of HOA board misconduct in California?
The most frequent forms include financial mismanagement, selective enforcement of rules, abuse of rulemaking authority, breach of fiduciary duty, refusal to provide records, and operating in secrecy without proper notice or disclosure.
Where does an HOA board get its power?
Boards derive their authority from two sources: California’s Davis-Stirling Act (Civil Code 4000 et seq.) and the association’s governing documents, including the CC&Rs, bylaws, and operating rules.
How is board authority supposed to be exercised?
Directors must act within the scope of the statutes and governing documents, and they must do so in good faith and in the best interests of the association. When they exceed that authority or use it for improper purposes, it becomes misconduct.
Is every unpopular decision by a board misconduct?
No. Boards have discretion in many areas, and not every disagreement rises to the level of misconduct. Misconduct occurs when statutory duties are ignored, authority is exceeded, or decisions are made for improper or inconsistent reasons.
What role does transparency play in preventing misconduct?
Transparency is required by law, and a lack of transparency is an example of misconduct. Homeowners have a statutory right to review records (Civil Code 5200 et seq.), receive notices of meetings, and be informed about budgets and reserves. Civil Code 4935 also restricts what may be discussed in executive session, and a lot of HOA boards from HELL like to abuse that rule by discussing topics in executive session that aren’t supposed to be discussed in that forum.
What should I do if I suspect HOA board misconduct?
Document what you observe, make a written request for records, and consult an HOA attorney. Remedies may include IDR, ADR, or court action to enforce compliance.
About MBK Chapman Fact Sheets
Homeowners searching for answers online will often come across articles that appear authoritative, but are actually written as search-engine marketing content rather than by an experienced HOA lawyer. These pieces tend to prioritize keyword density over clarity, accuracy, or legal context, which often leaves homeowners more confused than informed.
At MBK Chapman, our Fact Sheets are part of our HOA Law Library and are written by Michael Kushner, an HOA lawyer with decades of hands-on experience representing California homeowners. In fact, Michael Kushner is the HOA lawyer who pioneered the systems and strategies used by some of California’s most successful homeowner-side HOA law firms.
Each Fact Sheet is deliberately concise, statute-based, and designed as a quick-reference guide to help homeowners understand key HOA laws and enforcement rules at a glance.
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