California homeowner spent $100,000 remodeling his garage. Then the HOA sent him a legal notice that left him fuming

Adam Hardesty, a California homeowner who had spent over $100k remodeling his garage into a rental unit, lost a legal battle against the HOA in San Diego County court on Friday, April 3. The ruling came about a year after the dispute was dragged to the court, questioning whether the state housing law applies to all homeowner associations, SFGATE reported. 

It all began when Hardesty decided to convert his condo garage into a habitable unit for an extra income. This, however, didn't sit well with the Mystic Point Homeowners Association, as according to rules, they only allow garages to park vehicles. Despite the opposition, Hardesty went ahead to start construction because he believed a 2019 California law had wiped out HOA restrictions on accessory dwelling units (ADUs).

When the HOA board found it, they immediately decided to sue the homeowner in court. Hardesty fought well but eventually lost to the board. In his ruling, Judge Victor Torres supported the homeowner association, which argued that the law didn't apply to condo developments like Mystic Point. He also explained that if the lawmakers wanted to include condos, then they would have particularly mentioned it in writing.

Moreover, the plaintiff explained to the court that the law in question only applies to residential areas used by single families. And since Hardesty's plot didn't fall under that category, he shouldn't be allowed to convert his garage to a rental unit. Interestingly, even though the California court ruled against Hardesty, Judge Torres believes that the battle may not be over. "I’m sure I’ll hear more education from the Court of Appeal at some point," he added.

A Frontdoor survey of 1,000 American homeowners found that more than half of respondents disagreed with rules enforced by the HOA. In fact, 34% of homeowners said they aren't happy with how the board applies its rules in the community. While respondents mentioned various causes for having issues with the HOA, the lack of communication came out as a top reason. Moreover, although one in six homeowners confessed to being fined by the homeowner association, 14% said they were "unfair" and "excessive." The survey also shared that 70% of American homeowners would prefer to live in a community without an HOA if they were to buy a property today. While Hardesty's case is a bit different from the regular HOA interference, it still emphasizes concerns about homeowner autonomy.

Meanwhile, the homeowner, who lost the case, said he wants to appeal again but doesn't have the financial backing to fight another legal case. "Time, I have, but money? — I think I’m pretty much bone dry," Hardesty said. The homeowner also confirmed that he and his spouse had spent over $100,000 combining the construction costs and legal fees.

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