Overview

California HOA boards wield extraordinary power over homeowners. They control not only the look and feel of a community but also its finances and enforcement machinery. Boards can issue fines, impose special assessments, record liens, and even foreclose on homes. While those powers exist to maintain property values and community order, they can easily become tools of intimidation when exercised without restraint or legal justification.

The Davis-Stirling Act gives HOA boards broad authority, but it also sets firm limits on how that authority must be used. Boards that ignore those limits or misuse their enforcement power, by acting arbitrarily, selectively enforcing rules, or disregarding homeowner rights, are engaging in misconduct in violation of the Davis-Stirling Act and other California laws.

This Fact Sheet explains what constitutes HOA board misconduct under California law, including examples of overreach, misuse of authority, and violations of the Davis-Stirling Act. It also explains how homeowners can recognize unlawful actions and what steps they can take to hold their boards accountable.

Key Points

Here are the essential things California homeowners should know about HOA board misconduct and overreach:

• HOA authority has legal limits. HOA boards derive their power from the Davis-Stirling Act (and a variety of other California laws) and their governing documents. Boards that exceed those limits by creating unlawful rules, enforcing selectively, or acting outside the scope of their authority commit misconduct. And homeowners can take definitive steps to correct such misconduct.
• Privacy rights matter. HOAs may not invade homeowners’ privacy through unauthorized inspections, surveillance, or unreasonable demands for personal information. Any legitimate investigation must comply with governing documents and California privacy laws.
• Fines and assessments must be reasonable. The Davis-Stirling Act prohibits boards from imposing excessive or arbitrary assessments that are not tied to actual maintenance or operational costs. Penalties issued without due process are invalid and unenforceable (Civil Code 5605-5610, 5855).
• Selective enforcement is misconduct. Boards must apply their rules consistently. Singling out certain homeowners for enforcement while ignoring others constitutes a breach of fiduciary duty (Corporations Code 7231, Civil Code 5855). For a deeper analysis on the issue of selective enforcement, see my article: “HOA Selective Enforcement in California: What It Is and How Homeowners Can Fight Back.”
• Architectural and property modification rights. While HOAs are given broad discretion to regulate aesthetics under the Davis-Stirling Act, they may not act arbitrarily or capriciously (Civil Code 4765), and they must allow reasonable modifications for disability access (FHA, FEHA), or other legitimate needs. HOAs must also abide by other laws that address California public policies regarding certain type of improvements, such as those relating to drought resistant landscaping (Civil Code 4735), ADUs (Civil Code 4751), or solar energy systems (Civil Code 714, 714.1, and 4745).
• Personal use restrictions have limits. HOAs may regulate community standards, but they cannot impose rules that substantially interfere with a homeowner’s private use and enjoyment of their property unless clearly authorized by the governing documents and consistent with California law.
• Discrimination is strictly prohibited. HOAs may not enforce or adopt any rule that discriminates based on race, religion, national origin, gender, disability, family status, or any other protected category. Doing so violates both federal and state fair housing laws (FHA, FEHA).
• Retaliation is illegal. HOA boards may not retaliate against a homeowner for asserting their legal rights, requesting records, filing complaints, or demanding accommodations. Retaliation can take many forms, including selective enforcement, sudden violation notices, social ostracism, or blocking access to amenities. Such conduct violates the Davis-Stirling Act, the FHA and FEHA. For a quick-guide on how bad HOA boards engage in retaliatory conduct, see my Fact Sheet, “HOA Retaliation in California: Illegal Board Conduct Explained.”
• Transparency is mandatory. The Davis-Stirling Act gives homeowners the right to inspect association records, contracts, and financial statements. Boards that conceal or refuse access to these documents are guilty of misconduct (Civil Code 5200).
• Misconduct often takes familiar forms. Common examples of director misconduct include:
  • Imposing excessive fines or illegal assessments.
  • Exerting powers and authority not authorized under the governing documents or California law.
  • Enforcing rules inconsistently or based on personal bias (i.e., selective enforcement).
  • Denying disability accommodations or access modifications.
  • Infringing on privacy through improper surveillance or gossip.
  • Using HOA funds for unauthorized or self-serving purposes.
  • Retaliating against homeowners who are exercising their legal rights.
  • Breaching fiduciary duties of care and loyalty.

When HOA boards exceed their legal authority, ignore statutory requirements, or act in bad faith, they are not managing, they are violating the law. Homeowners have the right to challenge such conduct and put a stop to it.

FAQs

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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