Homeowners' Association Alternative Dispute Resolution

Under current law, common interest communities are encouraged to use mediation prior to filing a complaint with the court. The bill requires permits a dispute between a unit owner and a unit owners' association to go through an internal dispute resolution process participate in an informal negotiation and mediation to resolve the dispute before the parties can file a complaint with the court. If the parties are unable to reach a mediation agreement, the bill allows the parties to undergo arbitration or commence a legal proceeding. If the parties are unable to reach an agreement during the informal negotiation, either party may file a complaint with the court and the court must order the parties to participate in mediation, if mediation has not already taken place.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)