Facts: A Homeowners’ Association (HOA) engaged in a repair project funded by special assessments paid per unit. An owner was unable to make the full payment and attempted to negotiate a payment plan. After the owner made payments under the unconsented to payment plan, the HOA recorded a lien on the unit, failing to notify the owner within the required 10 days. Later, the HOA filed a judicial foreclosure action against the owner.
Claim: The owner sought to void the assessment lien and invalidate the foreclosure proceedings, claiming the HOA failed to perfect the lien since the HOA did not notify the owner within 10 days of recording and thus may not foreclose.
Counter claim: The HOA sought to enforce the lien and foreclose, claiming the lien was perfected despite failing to meet the mandatory notice requirements since the owner was aware of the recording in a matter timely enough to take reasonable action.
Holding: A California Court of Appeals held the HOA may not foreclose since the recorded assessment lien is not valid as it failed to meet the 10 day notice period. [Diamond v. Casa Del Valle Homeowners Association (2013) __ CA6d __]