Yu v. Broadway Hollywood HOA. (March 22, 2023).

This is an unpublished decision which trail and appeal was litigated by Stephen M. Levine of the Judge Law Firm. The Association is a mixed-use condominium, in which the Association had a duty to provide valet service to residence, businesses and business customers, but not residents' guests. The homeowners challenged the valet fees imposed on her customers claiming the Association had no right to charge fees for a fundamental property right. The Court held that the valet parking fees imposed on the business residents' customers were reasonable and enforceable because: (1) Civil Code §5600 does not prohibit HOAs from imposing fees on third parties; and (2) the revenue generated by the valet fee did not necessarily exceed the Association's parking cost since it was applied toward the following year's parking budget.

MANAGER TAKEAWAY: When imposing fees for rental of community facilities (such as pools, clubhouses, parking lost), managers must look at the costs involved in operating and cleaning the facilities and they must be reasonably related to the revenue generated.