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PaulC4 (Pennsylvania)
Posts: 13
Posted:
Our association is reviewing its policy on fines and procedures for imposing same.
Is there a source of policies or guidelines for adopting such a policy?
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By PaulC4 on 07/25/2013 4:38 PM
Our association is reviewing its policy on fines and procedures for imposing same.
Is there a source of policies or guidelines for adopting such a policy?

A great and valid question. I hope no one pi$$e$ and another repi$$e$ on it. I think all know who I am talking about.
AllisonD (Florida)
Posts: 449
Posted:
Is there a way to email someone here directly without posting my email address? If so, please contact me and I will be happy to send you my association's policy.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By AllisonD on 07/25/2013 4:49 PM
Is there a way to email someone here directly without posting my email address? If so, please contact me and I will be happy to send you my association's policy.

Allison

Please send same to me.

[email protected]

Thanks.
MikeR15 (Massachusetts)
Posts: 389
Posted:
You have a policy for fines?

Are fines allowed per the by-laws or CCRs?

Because if they are not, then you have no authority to levy them.

PaulC4 (Pennsylvania)
Posts: 13
Posted:
Allison:
I would appreciate having a copy of your board's policy on fines.
Thank you.Paul
[email protected]
PaulC4 (Pennsylvania)
Posts: 13
Posted:
Our governing documents do allow for the imposition of fines.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Most HOA's do allow for fines. They just lack the definition of what to fine for and the amounts. Plus fines can't be used for the basis of liens or foreclosures in many states. So it's best to check with your state to see it's stands on limitations on fines/interest and what enforcement your HOA can have.

We did not do fines in my HOA. Never had to. However, each HOA is different and each approach to the violation is different. I consider fines like speeding tickets. They aren't a source of income and are just a way to financial punish someone to get in line. However, I found establishing a solid collection policy of 6 months we placed a lien, got people in line. That's because those who violate the rules tend to also "Protest" paying the dues. Which opened us up to liening them for unpaid dues.

There is another option if your HOA has enough money in it's budget. That is if the owner does not fix the violation, the HOA can do it and send the owner the bill. If that owner does not pay that bill, then that bill can be liened against. A bit stronger option. I think this works better than fining. That is because the HOA can set up a set amount like $100 to clean up or choose the highest contractor bid. Letting the owner know that the HOA cost isn't the lowest bid or that it's going to cost them $100 on top of things, may get them to fix the violation. It's similar to placing fines but has more teeth to it in the long run.

Former HOA President
TimB4 (Tennessee)
Posts: 21,059
Posted:
Paul,

Our policy requires warnings and a hearing prior to any fines being imposed. Additionally we typically waive the fine if the issue is resolved within x days after imposing the fine.

Our procedure for adopting any policy is:

1) Draft policy (be it from an individual or committee) is presented to the Board.
2) An individual is asked to review the draft with applicable State/Federal laws and make a report to the board which includes recommendations to bring the draft into compliance with the law.
3) Board makes changes as needed.
4) Draft policy is sent to the membership for review
5) Special meeting of the membership is called to discuss the draft
6) Board makes changes to the policy based on the meeting discussion
7) Board may or may not (depending on the policy) send this revised draft to the attorney for review and comment.
8) Board, if needed, reviews attorney's comments and makes changes as desired based on those comments.
9) Final draft is voted on by the Board (another option would be to have the membership vote on it, we use the discussion meeting instead).
10) Adopted policy is published (printed and mailed) to the membership and effective 7-10 days after being published.
11) VA law allows the membership to repeal or amend any policy or rule by a majority of votes cast at a special meeting of the membership. Even if your State doesn't have such a law, I think it's a good policy to adopt as this allows the membership some control over any board who has an agenda for a specific issue.

PaulC4 (Pennsylvania)
Posts: 13
Posted:
Thanks, Melissa. I find your underlying philosophy refreshing.
PaulC4 (Pennsylvania)
Posts: 13
Posted:
Thanks, Tim
Looks like a sound approach. I like your idea of involving the membership
in the drafting of the policy. That, too, is refreshing. My Board feels that
everything should spring from their heads like, they have a monopoly on brains
and common sense.

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