Adam Hardesty was determined to follow the rules. Before proceeding with his plans to convert the garage of his three-story condo into a ground-floor apartment, he consulted local architects and engineers to ensure a small kitchen, bedroom, and bathroom could safely fit in just 373 square feet. With zoning maps studied, city consultation complete, and a construction permit secured, he meticulously prepared for the project. Seeking and receiving approval from many of his immediate neighbors, Hardesty, an unemployed project manager struggling to find work, saw this endeavor as a way to not only help alleviate the housing crisis but also provide affordable housing while supporting his family financially.
However, what he didn’t anticipate was the opposition from his own Homeowners Association (HOA), especially since he is also the vice president of the association. Hardesty presented the idea to his fellow board members in late summer, leading to months of firm legal letters, stalled negotiations, and heated disputes over property rights that have divided neighbors in the serene hillside subdivision of the Mystic Point Homeowners Association, along the northern coast of San Diego.
The heart of the matter lies in one of California’s most divisive questions: Who has the final say on what is built and where? California’s legislature has been grappling with this dilemma for a decade, passing bills to make it more challenging for neighbors to reject new housing. These bills mandate cities and counties to plan for increased residential density, approve projects without conditions, and penalize non-cooperating governments. Particularly stringent are California’s laws on Accessory Dwelling Units (ADUs), stripping local governments of regulatory power.
While these measures primarily target cities and counties, they also bring into question the role of HOAs, the quasi-private entities governing neighborhood rules in California’s suburbs. Not all state housing mandates apply to HOAs, and legal ambiguities can complicate matters. Even when state law explicitly overrides any association covenant or restriction, there is no clear enforcement body ready to ensure compliance. Disputes may end up in court, leaving the humble HOA as one of the last bulwarks in the battle for local control in California.
### The Community Fabric
The rejection Hardesty faced initially was gentle. The garage conversion would set a “precedent” for Mystic Point, emphasized board member Mike Cartabianco, suggesting that additional units and parking loss could alter the community’s structure. While not outright against the proposal, Cartabianco made it clear that it was an uphill battle. Hardesty was advised to “downsize” the project, possibly by removing the kitchen or using his condo equity to meet financial needs.
Despite the pushback, Hardesty persisted, sending a letter of intent to the entire board. Official opposition soon followed, with a cease-and-desist letter warning him of legal consequences if he persisted. An attorney for the association advised firmly against the application, but Hardesty remained resolute. The dispute over the ADU at Mystic Point is ripe for litigation, as indicated by environmental and land use attorney Marco González, who Hardesty engaged to respond to the cease-and-desist letter.
As the standoff continues, Hardesty, still struggling to find stable employment and having spent over $8,000 of his savings on the project, is focused on construction. Excavation and garage cleanup have commenced, notably without the association’s apparent knowledge or approval.
### Price of Fewer Neighbors
Homeowners Associations, straddling the blurred line between a private club and hyperlocal government, play a pivotal role in property value maintenance. By enforcing rules on property development, they serve a function akin to a city’s planning and construction department. Strict development regulations often enhance property values, as seen in a 2019 national study on HOAs, indicating that HOA-regulated homes, on average, are $13,500 more valuable than comparable non-HOA properties.
However, the legal landscape is murky when it comes to ADUs within HOAs. The interpretation of state law by Hardesty is supported by at least one state housing policy analyst. David Barboza, a housing policy specialist at the California Department of Housing and Community Development, disagreed with the association attorney’s stance, suggesting that state ADU law likely applies to Hardesty’s property since single-family homes are a permitted use.
The legal question is “really confusing for HOAs,” as noted by real estate attorney Jeanne Grove, who often represents HOAs. The debate, while rooted in a relatively limited grammatical issue, holds significance for California’s housing crisis. With many condominium owners unaware of their potential to transform garages into ADUs, the dispute reflects a critical issue in a state grappling with chronic housing shortages and affordability.
### HOA vs. ADU: A “Gray” Legal Area
The nuanced legal battle underscores the complex interplay between state law, HOA regulations, and individual property rights. While state law aims to promote housing density and affordability, the realm of HOAs adds layers of complication. Residents like Barbara Malone, Hardesty’s neighbor, see the potential for ADUs as life-changing. Inspired by Hardesty’s project, Malone, a Lowe’s Home Improvement employee, envisions transforming her garage into a passive income source to supplement her modest retirement funds.
Hardesty’s journey highlights the clash between property rights, community rules, and state law. As he forges ahead with his garage conversion in the face of opposition, the outcome remains uncertain. The intersection of individual property rights and community governance echoes a broader dilemma in California’s quest for housing solutions. Through his perseverance, Hardesty embodies the struggle of many homeowners navigating the intricate web of legalities, regulations, and community standards, underscoring the need for clarity in the evolving housing landscape.
