Arbitration provision in CC&Rs created before creation of homeowners’ association (HOA) is enforceable

Facts: A developer constructed a common interest developmentA condominium project, cooperative or single family residence in a planned unit development. (CID), drafting and recording the covenants, conditions and restrictions (CC&Rs) before any unit was purchased or a homeowners’ association (HOA) was formed. The CC&Rs included a provision stating if the HOA found a construction defect, it would pursue the developer through arbitration. Buyers purchased the units in the CID and signed the CC&Rs, thereby forming the HOA. A construction defect was found in the common area. The HOA sought to pursue the defect claim in court and the developer sought to have the dispute settled through arbitration.