Facts: An absentee owner of a property in a common interest development (CID) managed by a homeowners’ association (HOA) rents out their property to short-term vacation renters. Additional fees and rules for absentee owners are not included in the HOA’s covenants, conditions and restrictions (CC&Rs), but later adopted by the HOA. The absentee owner refuses to pay the fees and abide by the new rules.

Claim: The absentee owner seeks to avoid payment of the fees claiming the new HOA fees and rules may not be enforced since they were not in the CC&Rs.

Counterclaim: The HOA seeks collection of the unpaid fees and compliance with its new rules by the absentee owner, claiming the HOA may impose the fees and rules since the CC&Rs authorize them to create and adopt fees and rules that benefit the CID.

Holding: A California court of appeals holds the HOA may impose additional fees and rules on the absentee owner since nothing in the CC&Rs disallows the HOA to create or enforce new fees and rules for short-term rentals. [Watts v. Oak Shores Community Association (March 24, 2015) ___ CA4th ________ ]


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