Homeowners Associations

The Client

Our client was a large homeowner’s association (HOA) representing a custom home neighborhood. The HOA’s primary responsibility was to uphold the neighborhood’s aesthetic and structural standards by reviewing and approving designs for new homes.

The Challenge

The HOA faced a lawsuit from a developer who claimed it was being unfairly treated during the review and approval of proposed designs. The developer argued that the HOA’s discretionary review process was being misused to block their building plans. However, the HOA was simply exercising its discretionary authority as outlined in the community’s covenants and restrictions.

Key challenges included:

• Document Analysis: A thorough review of the HOA’s covenants, restrictions, and architectural guidelines was necessary to confirm their rights and responsibilities.
• Litigation Complexity: The lawsuit involved intense litigation over issues that could potentially have been resolved with improved processes and clearer communication.

For more on how we assist in property disputes and HOA matters, visit our Property Disputes and Property Contract Disputes page.

Our Approach

To address this matter effectively, we took the following steps:

1. Comprehensive Document Review: We carefully analyzed the HOA’s covenants, restrictions, and architectural review committee documents. These documents granted the HOA broad discretionary power in approving or disapproving building plans.
2. Mediation and Settlement Negotiation: Recognizing that a drawn-out court battle would be costly and divisive, we engaged both parties in mediation and extended settlement discussions. This process allowed us to establish a fair, transparent procedure for design approvals moving forward.

Through mediation, both parties reached an agreement that clarified the review process, enhancing communication between the HOA and the developer and preventing future conflicts.

If you’re dealing with similar challenges within your HOA, we’re here to help. Contact us to discuss your case and see how we can support you.

For more information about our experience with property disputes, check out our Property Disputes and Property Contract Disputes page.