Orchard Estate Homes v. Orchard Homeowners Alliance

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Orchard Estate Homes, Inc., a planned residential development governed by covenants, conditions, and restrictions (CC&R’s), supplemented by rules and regulations, prohibited short term rentals of units for durations of less than 30 days. When Orchard’s homeowners association attempted to enforce this rule against an owner who used a unit for such purpose, a lower court ruled the rule was unenforceable because it was not contained in the CC&R’s. Orchard put the issue to a vote to amend the CC&R’s. After balloting was completed, approximately 62 percent of the owner-members of the homeowners association voted to prohibit short term rentals, but the percentage was less than the super-majority required to accomplish the amendment. Orchard then filed a petition pursuant to Civil Code section 4275 seeking authorization to reduce the percentage of affirmative votes to adopt the amendment, which was opposed by the Orchard Homeowner Alliance (Alliance), an unincorporated association of owner members, who purchased units for short term rental purposes. The trial court granted the petition and the Alliance appealed, arguing that the trial court erred in ruling that voter apathy was not an element of Civil Code section 4275. Finding no abuse of discretion in granting the HOA's petition, the Court of Appeal affirmed. View "Orchard Estate Homes v. Orchard Homeowners Alliance" on Justia Law