Fine and collections

We have a unit that has been fined multiple times and now are approaching $500 in fines. They have basically told us go F**K yourself we're not paying and you can try to collect it from the next owner if we ever sell our home.

If I remember correctly in California we can place a lien on a property when its $1800 past due on its HOA membership fee but what about fines. Is your only recourse for fines the use of Small claims court?

David

Fines aside, are they current and up to date with dues/assessments?

I am going to tack on this question here, because I don't know the answer:

Can the HOA sell the debt to a 3rd party debt collector? If so, that may give some psychic remedy, at least. I would try to find the scummiest group out there, and turn them loose on the scofflaws to collect. Even if they never collect, just thinking of repeated phone calls in the night, etc. would give me some perverse pleasure.

Secondly, I believe that should the HOA themselves care to do so, they could attempt to collect in a large variety of ways that are legal for them to do, but illegal for 3rd parties. I won't mention any here, but the Fair Debt Collection Act lists a LOT of things that are illegal for 3rd parties to do. By contrast, all of those methods are legal for 1st/2nd party debt collectors to do.

David - What were the fines for?

Not necessairly true with small claims in collecting. Not all collection agenies collect all forms of court judgements. It costs money to hire a collection agency that isn't part of judgemnt. It is money straight out of pocket. Judgements have to be renewed about every 7 years if not paid. How many HOA's are going to remember that after 7 years? Especially if the person has sold and moved?

It is best to lien than to sue. It is better to counter sue than initiate a lawsuit. Since a HOA is incorporated a lawyer is needed to represent the HOA in court. (Unless the BOD approves a representative). A lien would include this legal charge but a lawsuit would need to request the court to reimbusrse. A lien accumulates and a lawsuit may not. All considerations when deciding to lien or small claims.

Thanks for the replies

Our HOA has a fine schedule with specific procedures and processes that must occur before a fine is imposed which is distributed annually to all Owners.

The background to what the fine(s) were for is irrelevant to this converstation but let's suffice to say our current Board is not pre-disposed to handing out fines. We only do so on the most egregious of issues and only after trying to remediate with the homeowner to address the issuue.

We don't really have any facilities such as pool and work out room to withdraw rights from. The guest parking is one avenue and removal of rights to use the general patio area but we went a different route. We charge a $100 move-in/out fee to cover the cost to reprogram the two programable property call box phones. We indicated on the 1st and 2nd fine that all fines must be paid regardless if a move-in/out fee is paid before we will reprogram the unit. As the issue revolves around rental tenants as soon as they move the Homeowner has to pay the fine or we won't reprogram the call boxes for the new renter.

Finally, a 3rd complaint was just fielded that was comprised of may owner complaints against the unit. As such the Board will be taking up fining again. At this point I think if and after fines reach 90 days we'll move to small claims. If won at small claims and not paid I think we can lien or go after a variety of payment options.

Again thanks for replies.

Yes completely understand this. The renter responsibility is to the Owner. We require each renter to sign that they have received, read, and will comply with our CC&R's and Rules, Policies and Procedures before they can move-in.

David

Along the lines of what Mel said, I think you might be putting the cart before the horse.

In this day and age if a unit is not behind in dues and/or assessments, consider that good news and get off their butt.

If the association needs money, do not look at ways to fine/punish certain type owners like those that rent their units. Look at ways to properly fund the association.

I did ask if the owner telling you to got have sex with yourself is behind in dues. Please answer that question.

Thanks