Court Says Association Can Adopt New Restrictions That Take Away Rights that Previously Existed

This case involved a dispute between a homeowner (“Owner”) and a homeowner’s association (“Association”) over Owner’s right to lease its property for “short-term” periods.

Owner purchased two homes in the community governed by Association in 2014 and 2016, and then improved and furnished the homes with the intention of leasing them for short terms of thirty days or less. Association’s CC&Rs contained a provision that prohibited activities that are not related to single family residential purposes. In 2019, Association members approved an amendment to the CC&Rs that barred leasing homes for less than 180 days. Owner filed a suit against Association for declaratory relief seeking a ruling that Association could not enforce the amendment against her because the amendment imposed new restrictions that take away rights that existed under prior restrictions.

The trial court found in favor of: