Court Says Prohibition on Short Term HOA Rentals is a Matter for the City not HOA

This case involved a dispute between homeowners (“Owners”) and their homeowners association (“Association”) over the enforceability of Association’s policy that banned short term HOA rentals in their common interest development. Owners’ property is situated in an area of California that is subject to the California Coastal Act which requires the obtaining of a coastal development permit for any “development” that results in a change in the intensity of use of or access to land in a coastal zone. Because Association did not obtain a coastal development permit before adopting a ban on short term HOA rentals, Owners contended the policy prohibiting short term HOA rentals was invalid and unenforceable. In their action, Owners sought an injunction prohibiting enforcement of Association’s policy that prohibited the short term rentals.