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RichardB20 (Nevada)
Posts: 4
Posted:
Is the purpose of a Courtesy Letter to avoid a Hearing? If the HOA wants to have a Hearing they send a Hearing Notice, but not for every little infraction or mistake; so is the Courtesy Letter to remind people of something in the CC&R's, and if corrected there would be no point in having a Hearing? In other words, what is the difference between a Hearing Notice and a Courtesy Letter?
SusanW1 (Michigan)
Posts: 5,202
Posted:
I see it as a warning letter.

It should state the violation and outline the steps that would be taken if it is not corrected/stopped, including fine amounts, etc.

It's a good idea.

I am curious as to why you ask this question.

FredB4 (Ohio)
Posts: 375
Posted:
I also wonder why you ask.
We send a "warning letter" stating the problem along with the procedure and consequences of what will happen if the problem is not fixed in X amount of time.
After that time period, if the problem is not corrected, the owner is fined and is, at that point, given the opportunity to request a hearing.
It basically has nothing to do with the size of the violation.
CarolR11 (Colorado)
Posts: 2,563
Posted:
In our HOA, a Courtesy Letter, as Susan & Fred explain, is a warning letter & must contain the Rule or CC&R that is being violated, a time period to cure the problem and that the unit owner will be called to hearing is not cured.

If Owners don't comply, they're called to a hearing before the board when they can state their side of the issue. The board then decides whether to assess a fine.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Hi Richard:

Welcome to HOATalk.

The purpose of a courtesy letter is to inform an individual of any violation so that they have an opportunity to correct. In some states the statutes require or have certain notice provisions that an individual be given an opportunity to stop the violation before the association can assess a fine.

The NV Common Interest Ownership Act states in the following (if you are Condo could be slightly different):

http://www.leg.state.nv.us/NRS/NRS-116.html#NRS116Sec31031

4.  The executive board may not impose a fine pursuant to subsection 1 unless:
(a) Not less than 30 days before the violation, the unit’s owner and, if different, the person against whom the fine will be imposed had been provided with written notice of the applicable provisions of the governing documents that form the basis of the violation;

And this is just one small area discussing fines, but in this statute section a courtesy letter would insure that an individual had proper notice especially in situations where the owner has a tenant who actually committed the violation.

As further example another section states:

2.  The executive board may not impose a fine pursuant to subsection 1 against a unit’s owner for a violation of any provision of the governing documents of an association committed by an invitee of the unit’s owner or the tenant unless the unit’s owner:
(a) Participated in or authorized the violation;
(b) Had prior notice of the violation; or
(c) Had an opportunity to stop the violation and failed to do so.

Your association just needs to insure that any time frames are allowed for per your governing documents and state statutes before assessing a fine.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Yes, call it a Courtesy Letter versus a Warning..we will get you..Letter.

Many HOA BOD's start the trouble by firing a warning shot, versus sending a Informational/Courtesy Letter.

I might even say:

1. Day 0ne. Courtesy/Informational letter.

2. Day 30. Reminder letter.

3. Day 30. Warning letter.

4. Day 75. Fining procedure starts.

I say 30 days as many BOD's meet every 30 days.

FredB4 (Ohio)
Posts: 375
Posted:
John,
Do you find that the nicer coursey letter works ? We briefly tried that and found it works if the owner is a first time "I didn't know" owner and didn't work for the "I'm going to do what I want" owner.
FredB4 (Ohio)
Posts: 375
Posted:
Janet,
I don't know about Colorado but here the owner is responsible for anyone they allow onto the property including tenants and their guests. We don't deal with the renter directly but must go through the owner to resolve any issues and the owner can be fined for non-compliance by themselves or their tenants or the guests of either. I imagine it depends on the state statues and association CC&R's.

For awhile the FHA had a restriction in their lending guidelines disqualifying associations who required that tenants obey the rules, regulations, Declaration and Bylaws. They have since changed that guideline to allow that provision in the CC&R's.

Our Declaration states that any lease for renters must state in the lease that they are subject to the same governing documents as owners.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Fred

The I am going to do as I wish owner will always be such, no matter the procedure. My first brush with an HOA was a garden flag I was flying over my deck. I got a nice letter with a copy of the regulation prohibiting such and the flag came down the next day. Now they did not know if I was a do as I wish owner but the letter was very polite.

FredB4 (Ohio)
Posts: 375
Posted:
I agree that the majority of owners respond according to how they are treated.
TimB4 (Tennessee)
Posts: 21,059
Posted:
We do the following:

Informal notice - can be written or verbal
Formal notice - written (30 days after informal)
Hearing Notice - sent via certified mail (30 days after informal notice)
Hearing results - written within 10 days of hearing

In the 4 years I've been involved, most violations are corrected at the informal notice level. 2 have gone to hearings and been resolved at the hearing.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By FredB4 on 03/01/2012 1:29 PM
Our Declaration states that any lease for renters must state in the lease that they are subject to the same governing documents as owners.

Hi Fred:

Most documents I have read make that statement. And generally the owner is responsible for anyone they allow onto the property including tenants and their guests. However, some states which have higher potential rentals such as Florida, Nevada, etc. tend to have provisions such as those above for Nevada preventing HOA’s from fining the owner without giving them an opportunity to mitigate a violation caused by a tenant. These probably came about due to some HOA’s in the past fining owners who rented units with excessive fines committed by the tenants and not allowing appropriate time to resolve the problem, especially if the owner lived out of state. All those type past actions did is unfortunately make more statutes for everyone else.

You are correct it greatly depends on the various state statutes and governing documents. Ohio statutes are pretty short compared to some other states.
FredB4 (Ohio)
Posts: 375
Posted:
Janet,
As usual the government has managed to screw things up royally ... it seems more so in state like Florida, Nevada and Arizona.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Fred … In many instances I would agree with you as it should be much simpler and up front instead of reading between the lines and bouncing between various statutes. However, to be fair sometimes homeowners do it to themselves when certain actions incur the courts being swamped with lawsuits. This in turn pushes legislators to pass more laws, to in their view fix the problem.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By FredB4 on 03/03/2012 6:18 AM
Janet,
As usual the government has managed to screw things up royally ... it seems more so in state like Florida, Nevada and Arizona.

Actually, Arizona has relatively few statutes regulating HOA's. As a result, there have been a number of stupid lawsuits arising from HOA's. In one case, one owner was sued by his HOA because when he repaired the back wall of his unit he was accused of not using the same stucco texture as the original and painting the repaired wall with the wrong shade of Navaho White. My favorite, however, was one HOA member being sued by her HOA because she left her back porch light on all night and another member a quarter mile away complained that it kept them awake. These stupid lawsuits should be proof enough that HOA's are quite capable of screwing things up royally without government assistance.
FredB4 (Ohio)
Posts: 375
Posted:
That certainly is the truth ... didn't mean to imply that there was not enough blame to go around. I was thinking along the lines of how rental restrictions or lack there of, now play such a big role in whether associations are eligable for mortgage loans and refinancing but that is a topic for another post.

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