Mark K. Sahl, Esq.

Imagine this - you receive a call from an angry homeowner complaining about his neighbor.  This never happens, right?  If only you were so lucky. As soon as you hang up the phone, you must make a decision.  Is the complaining neighbor's problem also the Association's problem?  Or is this just a "neighbor to neighbor dispute" that doesn't involve the Association?  The answer is typically determined by a thorough reading of the Association's governing documents and careful consideration of the neighbor's complaint.
 
First, the Association should review its governing documents to determine if the neighbor's complaint is actionable by the Association.  For instance, if an individual is complaining that his neighbor's tree is growing over the fence and dropping leaves in his pool, this might not involve the Association at all (subject to the Association's governing documents of course).  In this case, the Association should inform the complaining individual that this is a "neighbor to neighbor" dispute that needs to be handled by the neighbors.  Or, suppose the neighbor complains about frequent, late night parties held by his neighbor?  This example seems to be the "classic" neighbor to neighbor dispute, right?  Not necessarily.  If the Association's governing documents prevent this type of behavior, or contain a strong "nuisance clause" that addresses this type of behavior, the Association should not quickly dispose of this claim and should perform further research.  If you are unsure, you should consult with the Association's attorney.   A “close call” involving only two owners may not justify Association action.
 
Next, the Association should confirm that a violation exists (if possible).  If a violation exists, then the Association may be obligated to enforce its governing documents (see newsletter articles by Josh Bolen on case law on enforcement from October 10 and 21, 2011).  However, if the Association inspects the neighboring property and sees no violation, then there is nothing to enforce.  The Association should be careful in "taking the complaining neighbor's word as the truth," as this practice could potentially cause the Association to be charged with discrimination, selective enforcement, etc.  For example, if an individual falsely claims that his neighbor is in violation of the CC&Rs solely because his neighbor is Hispanic, and the Association pursues enforcement without confirmation of he violation, the Association may have essentially adopted the complaining individual's discriminating practices.  In turn, it may have bought itself a lawsuit or fair housing complaint.     
 
Finally, the Association needs to determine how to enforce its governing documents.  This decision is left entirely up to the Board of Directors (unless the governing documents require the Association to respond in a specific way to specific violations).  In other words, the complaining neighbor does not get to choose how the Association deals with the neighbor's violation – from letters to lawsuits.  Whatever choice the Board makes, it should ensure that it is treating all neighbors equally and consistently enforcing the Association's governing documents. 
 
The moral of story is this - the Association needs to enforce its governing documents.  However, the Association is not always the "ultimate arbitrator" in all disputes between neighbors and should not become involved unless it is necessary and appropriate under the governing documents.  Associations must "choose their battles" wisely, but sometimes that choice is made by the governing documents.