Court Finds HOA Acted Unreasonably, Awards Homeowner $52,000 for Denial of Casita Project

This case involved a dispute between a homeowner (“Owner”) and his homeowners association (“Association”) over Owner’s right to construct a backyard casita with a pergola. After obtaining plans and approval for his project from the local governing authorities, Owner requested approval of the project from Association’s Design Review Committee (“DRC”). At the time of submittal to the DRC, Association’s guidelines included a statement that, “Structures shall be visually connected to the main building with walls, courtyards, trellis or other major landscape elements….” Despite the fact that a similar structure was allowed on another lot within the community, the DRC denied Owner’s request  because the proposed structure was not “visually connected” to the main house.

Owner then had his architect revise the plans so that the proposed casita would be visually connected to the main house with a travertine walkway. During this time-period, Association adopted “Revised Design Guidelines” which included a new provision that the rear wall of the proposed new structure could not extend past the original rear wall of the home. Based on this newly added provision, Owner’s second request for approval was denied because the plans did not call for the casita to be built on the side of Owner’s home.

Owner filed suit against the Association asserting claims for breach of: