Do Bylaws allow fining for violation?

Started by JosephH2 • 6 replies • 1524 views

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JosephH2 (Pennsylvania)
Posts: 57

Posted:

Our bylaws say:

"Abating and Enjoining Violations by Unit Owners.
The violation of any of the Rules and Regulations adopted by the Executive Board, the breach of any Bylaw contained herein or the breach of any provision of the Declaration or the Act shall give the Executive Board the right, in addition to any other rights to enjoin, abate or remedy by appropriate legal proceedings, either at law or in equity, the continuance of any such breach."

Can anyone tell me if this means we can fine for violations?

MelissaP1 (Alabama)
Posts: 13,836

Posted:

You can fine for violations if it's in your CC&R's and you have a fining schedule. That fining schedule must be known by all the owners and approved. What adds to the confusion to this situation is that the verbage is not always that clear. It will state a HOA can indeed fine but does not define what the fine amount is or what for. That is why a fine schedule needs to be defined, approved, and understood.

However, keep in mind that fines can NOT be used for the basis of liens or foreclosures. That is for unpaid assessments in most states. Fines work like speeding tickets and are punitive measures only. They aren't for profit or supplement income of the HOA. Just a way to enforce the rules and corrections.

Former HOA President

JeanneK3 (Maryland)
Posts: 562

Posted:

Melissa:
Unfortunately, in Maryland fines can be used as the basis of liens and foreclosures. A bill was introduced the year before last to make it illegal and passed in the Maryland Senate but not the House. It will be reintroduced.
Jeanne

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Like I said, most states don't allow fines to be basis of liens or foreclosures. There used to none but now a few gung-ho HOA members wanted to take things out of their hood and put it on everyone in their state. So it's kind of a be careful of what you wish for and go to your legislation about HOA laws...Some laws need to be created on the state level like rental restrictions and such. However, some just need to stay in house. This is one of those that could be either/or if you wanted to argue it...

Former HOA President

TimB4 (Tennessee)
Posts: 21,059

Posted:

Joseph,

since the document you cited said "in addition to any other rights" an argument could be made that this is allowing the Board to adopt a fining process to try and bring violators into compliance.

To test this argument, you would have to go to court.

If I were on the board, I would seek out a legal opinion if this is a valid argument.

EricH8 (Virginia)
Posts: 116

Posted:

Quote:

Posted By MelissaP1 on 08/12/2012 8:11 AM
However, keep in mind that fines can NOT be used for the basis of liens or foreclosures. That is for unpaid assessments in most states.

In my HOA they take our regular HOA dues payment and apply it first to paying off the fine, then claim that the HOA dues have not been paid, allowing foreclosure. Is that legit?

TimB4 (Tennessee)
Posts: 21,059

Posted:

Eric,

This is certainly possible.
If the fines were valid and the Association's policy for payments specify, the payments could be applied to the fines first.

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