New legislation limits a HOA’s ability to fine recent purchasers of foreclosed properties for failing to maintain those properties…
Homeowners Associations (HOAs) have encountered problems with recent purchasers of foreclosed properties that have failed to maintain those properties. Existing law imposes a fine of up to $1,000 per day on purchasers of foreclosed property for their failure to maintain those properties. SB 1427 (Price), effective January 1, 2011, provides these purchasers with an opportunity to cure the violation before fines can be imposed, provided that the violation does not pose a public threat. Additionally, Price puts a limitation on the costs recoverable by a HOA for abating a nuisance to the “actual and reasonable” costs of abating the nuisance. Price was enacted in an attempt to strike a balance between a HOA’s desire to maintain the aesthetics of its community and a homeowners ability to address maintenance issues before being subject to HOA fines. Price adds Civil Code §§ 2929.4, 2929.45 (Foreclosures).
| Price limits a HOA’s ability to fine recent purchasers of foreclosed properties for their failure to maintain those properties. HOAs should observe these new limitations before commencing enforcement actions on properties which may have been newly acquired through foreclosure and sale. |