VA Rules Violation Charges - How to collect

Mike,

Based on VA law, § 55-513 and § 55-516, fines "shall" be treated as an assessment for the purpose of liens. Therefore, (providing the fine isn't being contested) we treat it as a charge to the annual assessment ledger.

Per our resolution on assessments, annual assessment payments are applied first to charges then toward the annual assessment.

I will point out that in hearings that fines must be levied, we typically apply them conditionally. That is, if the issue is resolved within x days the fines are waived (as the goal is to resolve the issue not collect additional funds). We have been very fortunate and have only had to actually collect fines three times over the last 20 years (knock on wood).

Note: If the fine is being contested, the fine is considered in place but not actually levied or collected on.

Tim

Anything that is applied to the assessment ledger that is not considered an assessment or payment is considered a charge.

Here are some examples of charges:

Charge for late payments (10% of the unpaid assessment balance)
Administrative charge
Charge for Disclosure Package
Charges for costs of collection (attorney fees, court costs, postage, etc)
Charge for Violation enforcement (i.e. fines)

Per our documents, any monies received is first applied to any charges on the account and then to the actual assessment due.

Example:

Jun 01 Assessment Due $100
Jul 01 Charge (late fee) $ 10 10% of assessments due ($100)
Jul 01 Assessment Due $100
Aug 01 Charge (late fee) $ 20 10% of assessments due ($200)
Aug 01 Assessment Due $100
Aug 15 Charge (enforcement) $ 50
Aug 30 Payment $100 (applied first to charges than assessments)
Sep 01 Charge (late fee) $ 28 10% of assessment due ($280)
Sep 01 Assessment Due $100

The payment was first applied to pay of the charges (totaling $80) with the remainder applied toward the assessment balance (which totaled $300).

$100 payment
less $80 in charges
equals $20 to be applied to assessments due

$300 assessment balance
less $20 applied (from the $100 payment)
equals $280 assessments due

Clear as mud??

Some years ago we had problems with the respondent complying the day or so before the hearing and then starting the same violation all over again, generally parking related. So he could be in 45 day periods of violation with a few days in between. We changed our Covenants rules so that we would suspend the fine, instead of forgiving it, for missing his re-inspection date. If he did the same violation within a 12 month period the suspended fine was automatically applied and a new hearing was scheduled. That really reduced the repeat offenders.

Paul T

John,

In effect that is what we did. After the first violation and suspension, if there was a repeat within 12 months the suspended fine was automatically applied. Then, if the 2nd violation occurred and he missed his re-inspection date, about 2 weeks after the violation was recorded, we applied a 2nd violation fine which is twice the amount of the 1st violation. Our fine schedule is $200 for the first violation, $400 for the 2nd, and $800 for the 3rd. Or,for the real hard core cases we had the option to fine by the day, week, or month, at the Committee's discretion. In the big scheme of things, as mentioned earlier, when we lost our ability to lien for unpaid fines our fine enforcement is a joke. The only drawback is the property owner loses their amenity privileges and as almost all the violations involve short and long term rentals the landlords, mostly absentee, don't care.

Paul T

John,

That is how we do it, by the property. Short term vacation rental owners sometimes are concerned, but we still have a whole lot of unpaid fines out there. Long term rental owners don't seem to care, for the very most part.

"Hot Buttons", in order,

1. Anything to do with Golf
2. Anything to do with dogs
3. Ammenity fees, any plan one can think of is "unfair"

Public ammenities, as many people as they can cram in there.

Private ammenities, 4 guest passes per property, $8 per guest pass fee.

Thanks for your interest, always looking for new ideas,

Paul T