Court Prevents HOA Manager from Rejecting Owner’s Tender of Partial Payments Toward Delinquent Assessments

In Huntington Continental Townhouse Association, Inc. v. Miner, a California appellate court recently held that a homeowners’ association (“HOA”) may not reject an owner’s partial payments made toward delinquent assessments. In Huntington, the defendant was an owner of real property in the plaintiff HOA. Defendant was required to pay assessments of $188 per month. He fell behind in his payments. The HOA recorded a lien against his property and initiated foreclosure proceedings. While the lawsuit was pending, defendant tendered partial payments of the amounts due. The HOA rejected the payments taking the position that it was not obligated to accept them. After a court trial, the court awarded the HOA foreclosure and damages of $5,715.93. The owners appealed. The appellate court reversed the trial court’s judgment holding that the HOA was required to accept the defendant’s partial payments.

Shannon B. Jones, Partner, sbj@sbj-law.com