When you buy into a homeowners association (HOA) community in California, you expect fairness, transparency, and professionalism. But what happens when an HOA board member crosses the line—bullying homeowners, misusing funds, or violating fiduciary duties? These aren’t just frustrating experiences; they could be grounds for legal action.
California homeowners are not powerless. State law provides several protections and legal remedies when HOA board misconduct becomes harassment, overreach, or outright abuse. At LS Carlson Law, we help homeowners understand their rights and take effective legal steps to hold HOA board members accountable. We’ve built our practice around empowering clients facing difficult HOA disputes and board abuse. 

What Qualifies as HOA Board Misconduct in California?

HOA board misconduct generally refers to any action (or failure to act) by a board member that violates the law, governing documents, or fiduciary duties. In California, HOA boards are bound by the Davis-Stirling Act, the Nonprofit Mutual Benefit Corporation Law, and other parts of state law, such as California corporate law and California embezzlement laws. These laws set clear standards of care and require board members to act in the best interest of the community.
Common types of HOA board misconduct in California include:
Breach of fiduciary duty: Board members must act in good faith and avoid self-interest. If they make decisions that benefit themselves personally—known as HOA board self-dealing—this is a clear violation.
Board member conflicts of interest: Financial ties or personal relationships that influence board decisions must be disclosed and avoided.
Failure to maintain or disclose financial records: HOA funds, financial statements, and the reserve fund must be managed transparently.
Selective enforcement of rules or targeting certain homeowners: This could violate the Fair Housing Act or the Fair Employment and Housing Act, especially if discrimination is involved.
Abuse of power: For example, using fines or restrictions to retaliate against a homeowner who speaks out. 
Understanding the definition of board misconduct is the first step. Once it’s clear that misconduct may be occurring, homeowners can begin to consider legal remedies.

Legal Standards for Board Conduct Under the Davis-Stirling Act

The Davis-Stirling Common Interest Development Act is the central piece of legislation governing HOAs in California. It outlines duties regarding:
Transparency in Board Meetings
Maintenance of HOA records and financial documents
Notice requirements for special meetings
Use of common areas and community resources
The Act also imposes a standard of care on board members, holding them to the same standards as corporate directors under California nonprofit corporations law. This includes acting with due diligence, avoiding conflict of interest, and exercising reasonable business judgment.
Violations of these standards—whether intentional or due to negligence—can form the basis of a lawsuit.

How to Document and Address Suspected Board Misconduct

If you suspect corruption on a California HOA board, it’s essential to document everything. Courts and state agencies rely heavily on records and evidence.
Here’s what homeowners can do:
Collect evidence: Save emails, letters, board meeting minutes, fines, and other written records that support your claims.
Review governing documents: Familiarize yourself with the HOA’s Covenants, Conditions, and Restrictions (CC&Rs), bylaws, and rules.
Request financial records: California law gives homeowners the right to review financial statements, HOA funds, and related records.
Attend board meetings: Ask questions and raise concerns publicly. Keep detailed notes or recordings when allowed.
Seek internal resolution: Some associations have formal complaint or dispute resolution processes. Use them if available.
File reports with authorities: In cases of serious misconduct or fraud, you can report the matter to the Office of the Attorney General, county district attorney, or Department of Real Estate.
Contact a law firm experienced in HOA disputes: Legal guidance is often the most effective way to protect your rights.

Legal Remedies Available to Homeowners

When internal action isn’t enough, legal intervention may be necessary. California law provides several remedies:
Civil lawsuits for damages or injunctive relief: You can sue the HOA board for misconduct, such as breach of fiduciary duty or mismanagement of funds.
Mediation and arbitration: Sometimes required by the governing documents or preferred as a quicker resolution path.
Removal of board members: Under certain circumstances, homeowners can organize and vote to remove board members for misconduct.
Claims under the Fair Housing Act or Fair Employment and Housing Act: In cases involving discrimination, you may have federal and state protections.
Claims under California embezzlement laws or HOA fraud statutes: If a board member is stealing or misusing funds, criminal and civil actions may be possible.
Insurance claims: Fidelity insurance or other HOA insurance policies may help recover stolen or misused community funds.

Case Examples of Successful Actions Against Board Misconduct

While every case is unique, here are a few real-world scenarios where California homeowners have successfully held their HOA accountable:
A board president was removed and ordered to repay $80,000 after using HOA funds for personal travel and luxury items. The case involved violations of fiduciary duty, financial mismanagement, and self-dealing.
A group of homeowners sued and replaced the board after it selectively enforced parking violations against tenants of color. The court found violations of the Fair Housing Act.
A property manager and two board officers were held liable for failing to maintain common areas, which led to health and safety violations. The court ordered repairs and imposed fines.
These cases show that homeowners can take action—and win—when HOA board misconduct crosses the line.

Preventative Measures HOAs Should Implement

While legal action may be necessary, prevention is ideal. HOAs should adopt the following practices to avoid disputes and potential lawsuits:
Enforce clear conflict of interest policies and require board members to disclose personal ties.
Establish transparent financial reporting practices and regular audits of HOA funds.
Train board members on the Davis-Stirling Act, corporate fiduciary duties, and ethical governance.
Ensure access to HOA records for all members.
Use licensed professionals for property management and legal compliance.
Promote a fair and inclusive environment that respects the rights of homeowners.

Take Action: Protect Your Rights with Trusted Legal Guidance

If you’re dealing with board misconduct, harassment, or corruption in your HOA, don’t wait until the damage gets worse. At LS Carlson Law, we understand the complexities of HOA disputes and fight aggressively to protect homeowners. Contact us today to learn how we can help you hold your HOA accountable and restore fairness in your community.