California: AB 1738 – What’s the Hubbub About the New HOA IDR Law in California?

Written on by Beth Grimm in IDR

IDR stands for internal dispute resolution. It’s supposed to help HOAs resolve disputes that arise between boards and owners by providing a default process that calls for a face-to-face meeting to discuss differences. It could be called “informal” dispute resolution, at least up until now. With the approval of AB 1738 by the California legislature, some say the “informal” process is out the window.

The position of the owners’ group that sponsored the new law is that owners get the short shrift in an IDR proceeding. And I can understand why it feels that way. Often the entire board is present along with the manager, and sometimes the board brings in an attorney, while the owner is only one person, feeling very small. Odds like that create an imbalance. Some owners don’t feel that they have a chance to be heard, unless they can bring a lawyer to speak for them. And some boards wouldn’t allow that. In any case, IDR never has a chance if there isn’t some transparency and honesty about what to expect, and some congeniality and mutual respect for the process itself.  Read more

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