By Marc Fong
This article first appeared in the CAI California North Chapter, The Voice Magazine, Fall 2025 Issue.
Disagreements in homeowners’ associations are nothing new. When people live close together and share common areas, it’s only natural that conflicts occasionally arise.
Whether it’s a debate over landscaping, a late-night noise complaint, or frustration over how rules are enforced, tensions can build quickly. The question isn’t whether disputes will happen— it’s how we handle them when they do.
In California, the law often requires that certain HOA disputes go through some form of alternative dispute resolution (ADR) before proceeding to litigation. Under California Civil Code §§ 5900–5920, part of the Davis-Stirling Common Interest Development Act, parties must attempt ADR—usually mediation or arbitration—before filing most types of civil lawsuits involving enforcement of HOA governing documents.
But here’s the thing: even when the law doesn’t mandate it, mediation is still one of the most effective ways to resolve HOA conflicts. And often, it’s the best way.
LIVING TOGETHER REQUIRES COOPERATION
One key difference between HOA disputes and other legal issues is proximity. In most civil cases, the parties resolve the dispute and go their separate ways. But in HOA communities, neighbors stay neighbors. You might still live next door, serve on the same committee, or sit across from each other at the pool.
When a dispute escalates into formal legal action, it can permanently damage those relationships. Mediation provides a way to resolve issues with dignity and respect—and without generating lasting hostility. In fact, many disputes that seem deeply personal are simply misunderstandings that get magnified over time. Mediation offers a chance to clear the air before things spiral out of control.
IT’S LESS EXPENSIVE AND FAR MORE EFFICIENT
Litigation is expensive. Attorneys’ fees, court costs, expert witnesses, and discovery expenses can add up quickly. And in HOA cases, those costs are often passed on to all homeowners in the form of increased assessments or special assessments—even when only a few individuals are involved.
By contrast, mediation is cost-effective. A typical mediation session costs a fraction of what litigation does and can often resolve a matter in a day or less. It also saves time. Civil litigation in California can drag on for months or even years. Mediation is far more streamlined, which means fewer delays and quicker resolutions.
The law recognizes this as well. Under Civil Code § 5975, if a party refuses to mediate a dispute that should be handled under ADR, that refusal may later be considered by the court when awarding attorneys’ fees and costs. So, not only is mediation faster and cheaper, but declining to mediate can carry financial consequences later.
MEDIATION ALLOWS REAL PROBLEM-SOLVING
Judges are limited in what they can do. They can interpret and enforce the law, but they don’t have the flexibility to craft solutions that go beyond what the statutes or governing documents allow. Mediation is different. It gives participants the opportunity to think creatively and develop practical solutions tailored to the community’s needs.
For example, a dispute over a noisy air conditioning unit might not be resolved by a simple yes-or-no legal answer. In mediation, the parties might agree to install noise-reducing fencing, adjust usage hours, or split the cost of new equipment. These kinds of collaborative solutions are rarely available through the courts but are common in mediated settlements.
Moreover, the process is cooperative, not adversarial. Mediators are neutral third parties who guide the conversation, keep it focused, and help uncover shared interests. The result is more satisfying for every- one involved.
MEDIATION KEEPS IT PRIVATE
Lawsuits are part of the public record. That means that once a complaint is filed, the dispute becomes accessible to anyone—neighbors, reporters, future buyers, and even potential employers. Sensitive issues involving finances, property use, or neighbor behavior can quickly become public knowledge.
Mediation, by contrast, is confidential. Nothing said in mediation can be used later in court (except in rare legal exceptions). This confidentiality protects everyone’s privacy and allows parties to speak more freely, explore options, and express concerns without fear of judgment or exposure. Confidentiality fosters trust—and trust leads to better resolutions.
PEOPLE FOLLOW AGREEMENTS THEY HELP CREATE
One of the strongest benefits of mediation is buy-in. When people have a hand in shaping the resolution, they’re much more likely to honor it. That’s very different from a court order, which is often viewed as imposed by an outside authority.
In mediation, both sides get to explain their perspective and help determine the outcome. That leads to a greater sense of ownership and accountability. And because the process encourages compromise and mutual respect, it often helps repair strained relation- ships—or at least cool them down enough for peaceful coexistence.
Buy-in is especially important in HOAs, where violations of settlement terms can lead to future conflicts and enforcement efforts. Mediation helps reduce the chance of repeat disputes and improves long-term community dynamics.
BOARDS AND HOMEOWNERS BENEFIT ALIKE
For HOA boards, mediation demonstrates transparency and fairness. Boards have fiduciary duties to act in the best interest of the entire association (see Lamden v. La Jolla Shores Clubdominium Homeowners Assn. (1999) 21 Cal.4th 249). This includes resolving disputes efficiently, protecting association funds, and fostering a positive environment.
Mediation supports all of those goals. It helps boards avoid costly litigation, reduces exposure to liability, and improves community morale. Homeowners, meanwhile, gain a voice in the process and an opportunity to resolve issues without being labeled as “difficult” or “noncompliant.”
EARLY RESOLUTION IS THE BEST RESOLUTION
Most conflicts don’t begin as full-blown disputes. They often start small—a letter, a complaint, a disagreement at a board meeting. But when left unresolved, small problems can grow into major legal conflicts. Mediation works best when used early, before parties become entrenched in their positions or spend money preparing for litigation.
Some associations now include voluntary mediation programs or offer “neighbor-to-neighbor” mediation services to address interpersonal issues before they escalate. Even if the association’s governing documents don’t require it, a proactive approach to dispute resolution makes a significant difference.
“Confidentiality fosters trust—and trust leads to better resolutions.”
MEDIATION HELPS PROTECT INSURANCE AND REPUTATION
Repeated litigation can have ripple effects. Insurance carriers take note of how often associations end up in court. Too many claims can lead to increased premiums or even canceled coverage. Associations that demon- strate a willingness to mediate are viewed more favorably—they’re seen as managing risk responsibly.
In addition, prolonged or highly visible lawsuits can damage the association’s reputation, making it harder to attract new residents or maintain property values. Mediation offers a lower-profile, more community- friendly alternative.
THE SPIRIT OF COMMUNITY
At its core, mediation aligns with the values most HOA communities strive to uphold: respect, shared responsibility, and cooperative living. It’s not about winning or losing. It’s about finding workable, realistic solutions that help people move forward—not apart.
When board members, homeowners, and property managers embrace mediation, they’re not just avoiding lawsuits. They’re investing in the long-term health of the community. That leads to smoother meetings, friendlier neighbors, and fewer sleepless nights.
FINAL THOUGHT
California law strongly encourages mediation in HOA disputes—and with good reason. It’s faster, less expensive, more private, and far better suited to maintaining harmony than litigation ever will be.
But beyond what’s required by the Civil Code, mediation is simply good practice. It’s a way to resolve conflict without damaging relationships, draining association resources, or dividing a neighborhood. Whether you’re on the board, a homeowner in a dispute, or a property manager seeking solutions, consider mediation not as a legal box to check—but as a powerful tool for building a stronger, more peaceful community.
Disclaimer:
The content is intended for general informational purposes only and should not be construed as legal advice. If you require legal or professional advice, please contact an attorney.