Peak Investments v. South Peak Homeowners Ass'n

South Peak Homeowners Association (the Association) appeals from the trial court’s order granting a homeowner’s petition to reduce the percentage of homeowner votes needed to approve an amendment to the declaration of covenants, conditions, and restrictions (CC&R’s). The Association claims the trial court improperly reduced the percentage to less than a simple majority of the homeowner votes. We find the Davis-Stirling Common Interest Development Act (Civ. Code, § 1350 et seq.) requires that a proposed amendment to the CC&R’s be approved by at least a simple majority of the total votes in the homeowners association before the trial court can reduce the percentage of votes set by the CC&R’s. Accordingly, we reverse.

FACTS

Peak Investments and Norman and Rita Lesman (the Lesmans) own lot No. 43 in South Peak, a planned community of custom homes in Laguna Niguel comprising 63 lots. The Association is governed by CC&R’s recorded in April 1984. In 1986, the Association amended the CC&R’s to change the building heights for each lot (CC&R’s, § 6.7.1) and the setback provisions for each lot (CC&R’s, § 6.7.2). These changes were reflected on exhibit 1 to the amendment, entitled…