Georgia HOA Fines and Penalties

Started by JannaC • 10 replies • 9335 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

JannaC (Georgia)
Posts: 11

Posted:

Recently a neighborhood HOA taped letters to mailboxes reminding all homeowners of the covenants and restrictions. At the bottom there was a reminder that a fine structure was in place and will be enforced. No homeowner could find a copy of the fine structure in the bylaws or covenants. When confronted, the board posted a basic fine structure on their website two days ago, but the actual form was dated in 2008 and no homeowner recalls ever receiving this notice nor had it been posted until now. Could the board have a legality issue if someone now wanted to fight the fine they may start to impose. This is in the state of Georgia. Also, up until now, compliance letters were few and far between.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Janna,

Providing the Association is going through a proper enforcement process that complies with State Laws, it wouldn't matter if the fine structure was dated the day it was posted. The membership has been informed.

You can access GA laws at this site:

http://www.lexis-nexis.com/hottopics/gacode/.

Here are the appropriate sections that may apply:

The Georgia Condominium Act, O.C.G.A. § 44-3-70 to § 44-3-117 (if applicable)
Georgia Property Owners’ Association Act, O.C.G.A. § 44-3-220 to § 44-3-235

If your Association is also incorporated (most are) it's likely that the following would apply as well:

Georgia Nonprofit Corporation Code, O.C.G.A. § 14-3-101 to § 14-3-1703

Note: § 44-3-70 = Title 44, Chapter 3, Article 70

Hope this helps,

Tim

JannaC (Georgia)
Posts: 11

Posted:

Thanks Tim. I think what concerns the homeowners is the method. The document itself looks as though it is a discussion from minutes of the meeting and also don't contain an appeal process. The covenants states the HOA is to communicate through USPS which this document was never mailed out. It's the method that is of concern.

BruceF1 (Connecticut)
Posts: 2,535

Posted:

Quote:

Posted By JannaC on 07/08/2012 10:08 PM
Recently a neighborhood HOA taped letters to mailboxes reminding all homeowners of the covenants and restrictions. At the bottom there was a reminder that a fine structure was in place and will be enforced. No homeowner could find a copy of the fine structure in the bylaws or covenants. When confronted, the board posted a basic fine structure on their website two days ago, but the actual form was dated in 2008 and no homeowner recalls ever receiving this notice nor had it been posted until now. Could the board have a legality issue if someone now wanted to fight the fine they may start to impose. This is in the state of Georgia. Also, up until now, compliance letters were few and far between.

Tsk Tsk. It looks like your HOA violated Federal law:

"Except under 2.11, the receptacles described in 1.1 may be used only for matter bearing postage. Other than as permitted by 2.10 or 2.11, no part of a mail receptacle may be used to deliver any matter not bearing postage, including items or matter placed upon, supported by, attached to, hung from, or inserted into a mail receptacle. Any mailable matter not bearing postage and found as described above is subject to the same postage as would be paid if it were carried by mail."

The fine for an organization doing this can be as much as $10,000.

JannaC (Georgia)
Posts: 11

Posted:

Agreed and also there is no amendment added to the covenants that has the "opt-in" for Georgia POA.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Quote:

Posted By JannaC on 07/09/2012 4:52 AM

he document itself looks as though it is a discussion from minutes of the meeting and also don't contain an appeal process.

If your Association doesn't have a separate committee tasked with enforcement (our Association gives that authority to the Architectural Committee) and the Board must also be the enforcer, there would be no appeal process because there is no one to appeal to.

When this happens, it becomes a contract dispute (the contract being your CC&Rs). Contract disputes that can not be settled between the parties typically use a mediator or the court system to settle the dispute.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Janna

Most any association has the right to fine so one has to accept that.

The main problems have been no consistency in procedure, amount of fines, selective enforcement, appeals, etc.

If done properly, it can be a great deterent. It must be done fairly and consistently with a reasonable amount of notice given for the offender to correct the problem.

Just because an association has not dome such, does not void there right to do so.

Hope this helps.

JannaC (Georgia)
Posts: 11

Posted:

Thanks for the advice all! I am being encouraged to run for the board and I wanted to see what kind of hornets nest I may be getting myself into. I will keep looking at the website once I am on the board for a little guidance.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I am soo glad we could make another board member to serve in their HOA!!! Good going! You will find the job a thankless one but one you will be thankful to have! Good luck and hope you win!!!

Former HOA President

CaroleJ (Georgia)
Posts: 70

Posted:

Janna -

Take a look at And Now a Few Words About Fines, written by the law firm that originated most of the boilerplate templates used by HOAs in Georgia, or at least in Atlanta.

Fines and Hearings are covered in our by-laws like this:

Article V. Rule Making and Enforcement

Section 2. Fining and Suspension Procedure

(a) Notice. If any provision of the Declaration or Bylaws or any Association rule is violated, the Board shall send the violator written notice identifying the violation and fine(s) being imposed and advising the violator of the right to request a hearing before the Board to contest the violation or fine(s) or to request reconsideration of the fine(s). Fine(s) may be effective or commence upon the sending of such notice or such later date specified in such notice, notwithstanding the violator's right to request a hearing before the Board to challenge the fine(s). In the event of a continuing violation, each day the violation continues or occurs again constitutes a separate offense, and fines may be imposed on a per diem basis without further notice to the violator.

(b) Hearing. If a written request for hearing is received from the violator within ten (10) days of the date of the violation notice provided above, then the Board shall schedule and hold in executive session a hearing affording the violator a reasonable opportunity to be heard. The minutes of the meeting shall contain a written statement of the results of the hearing.

Note that even though it is the BOD that imposes the fine, it is also the same BOD that holds the hearing. The written notice may be hand delivered or sent via US Mail.

Good luck!

JannaC (Georgia)
Posts: 11

Posted:

Thanks to all this has really helped. The bylaws do not have any kind of language like the one listed above. The covenants states official notice is by usps or hand delivery no mention of website or email. The board is calling posting of fine structure on website official. One board member has told a homeowner that whatever the newly elected board member brings to a vote will automatically be voted down by the other two. It's a mess. I understand this will be a thankless job but so is being a parent, I am used to it. The homeowners are ready for a board that conducts themselves professionally and works to build a community, not just a neighborhood.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here