Carlsbad court ruling highlights legal uncertainty over ADUs in HOA communities

A recent court ruling in San Diego County is drawing attention to an ongoing legal question in California’s housing policies: how far state accessory dwelling unit (ADU) laws apply within communities governed by homeowners associations.

In a decision issued by a San Diego County Superior Court judge, a Carlsbad homeowner lost a legal battle with his homeowners association over plans to convert a garage into an accessory dwelling unit, according to reporting by CalMatters.  

The case centers on Adam Hardesty, a condo owner in Carlsbad who attempted to turn his garage into a small rental apartment despite opposition from the Mystic Point homeowners association.

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Dispute Over Garage Conversion

Hardesty argued that a 2019 California housing law effectively prevents homeowners associations from banning ADUs, which are small residential units built on the same property as an existing home.

ADUs — sometimes called backyard homes or granny flats — have been widely promoted by California lawmakers as a way to expand housing supply and improve affordability.

Hardesty believed the state law meant the HOA could not block his project and moved forward with construction after consulting with a planner at the California Department of Housing and Community Development, according to CalMatters.  

However, the Mystic Point homeowners association argued that its governing rules prohibit using garages for anything other than vehicle storage. The association also argued that the state ADU law applies only to properties zoned exclusively for single-family residential use, not to condominium developments like the one where Hardesty lives.  

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Court Sides With the Homeowners Association

San Diego County Superior Court Judge Victor Torres ultimately ruled in favor of the homeowners association.

In the ruling, the judge concluded that the state law did not clearly extend to condominium developments and that applying the statute to Hardesty’s property — which allows multiple housing types — would conflict with the Legislature’s intent, according to findings in the San Diego County Superior Court’s written decision.

The decision ends, at least for now, a year-long legal dispute between the homeowner and the HOA.

Hardesty has said he would like to appeal the decision but may not have the financial resources to continue the legal battle after spending more than $100,000 on construction and legal fees.  

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A Broader Legal Gray Area

The case highlights a larger policy issue surrounding homeowners associations and California’s efforts to increase housing construction.

Over the past decade, the California Legislature has passed numerous laws designed to make it easier to build ADUs by limiting local government restrictions and streamlining approvals. State housing officials say these reforms are intended to help address the state’s ongoing housing shortage by encouraging smaller housing units within existing neighborhoods.

However, the authority of homeowners associations often exists in a legal gray area. Unlike city governments, HOAs are private governing bodies that enforce neighborhood rules for millions of California residents.

More than one-third of California homeowners live in communities governed by homeowners associations, according to housing research cited in CalMatters reporting. Because many state housing laws were primarily written to override city zoning restrictions, legal experts say it is sometimes unclear how those laws apply within HOA-controlled communities.

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Continuing Debate Over Housing Policy

The Carlsbad ruling illustrates the complex balance between statewide housing policy and local community governance.

California lawmakers have increasingly promoted ADUs as a strategy to add housing without requiring large new developments. Thousands of these units have been built across the state since major reforms were adopted beginning in 2017, according to housing policy reporting by outlets such as Los Angeles Times.

At the same time, homeowners associations often exist specifically to regulate how properties are used within a neighborhood — a role that can sometimes conflict with state efforts to expand housing opportunities.

Legal experts say disputes like the Carlsbad case may continue until courts or lawmakers clarify how ADU laws apply to HOA-governed communities.

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Looking Ahead

While the court ruling applies specifically to one development in Carlsbad, the case underscores the legal uncertainties that can arise when statewide housing reforms intersect with private neighborhood rules.

As California continues searching for ways to increase housing supply, policymakers and courts may eventually need to determine more clearly how state housing laws interact with the governing authority of homeowners associations.

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Quick tip: If you live in a community governed by a homeowners association, it’s important to review your HOA’s rules before planning an ADU project. Even though California has expanded ADU rights in recent years, HOA regulations can still influence what types of projects are allowed in certain communities