You may have legitimate claim against an HOA, but an owner still must pay assessments regardless of any claim pursued.
Q: When is it legal not to pay HOA dues/fees because an HOA is not fulfilling its duties? I’ve had emergency leaks and made calls and sent emails that they never returned. I have had animal control issues that they do not attend to unless I go into the office. I have proof of emails sent. — V.B., Chula Vista
This issue was resolved in the 1994 case of Park Place Estates v. Naber, in which Mr. Naber had some complaints about repair work completed by the HOA. He argued that his offsetting monetary claims against the HOA allowed him to withhold his assessment payments, but the appellate court said that the trial court was correct in not allowing Naber to use alleged HOA errors to justify his nonpayment of assessments.
Q: Our HOA was suspended by the Secretary of State and Franchise Tax Board. The HOA continues to ask me for their dues, but I have been told that I do not need to pay them since they are suspended and no longer viable. The treasurer who is asking me for the dues is not the treasurer on file with the Secretary of State and no change in treasurer was ever filed. Also, the HOA has collected dues for each year since from all homeowners. Is this legal? — S.H., Grass Valley.
The state refuses to recognize the existence of a corporation during the suspension. A huge consequence is that courts will not allow suspended corporations to file, maintain or defend lawsuits, so the HOA could find its lawsuit dismissed or a default entered against it as a defendant.
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