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

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

MarkC3 (Indiana)
Posts: 43
Posted:
I am the President of our HOA which is in Indiana. By state law, we can't fine owners who violate the CCR's. So, with that said, can someone explain to me what is meant by the following section in our CCR's. As you can see, there is a clause for Special assessment for convenant enforcement:

10. Assessments

A. - Creation of Lien and Personal Obligation of Assessments.
Each Owner of any lot in the Development, except the Declarant and the
builder, by acceptance of a deed therefore, whether or not it shall be
so expressed in such deed, is deemed to covenant and agree to pay to
the Association the following:

(i) One-Time assessment at closing by each home buyer,
including re-sales of homes;

(ii) Annual assessments or charges;

(iii) Special assessments for: covenant enforcement,
capital improvements and operation deficits, copies
of Association documents if requested by a member; .
such assessments to be established and collected as
hereinafter provided or established by the Board.

What does that special assessment for covenant enforcement mean?

Thanks
BradD2 (Florida)
Posts: 418
Posted:
It means a fine for violating the covenants. Often the documents that a developer users to initially setup a HOA are generic and not specific to state laws. But State and Federal Laws trump whatever your documents say. To prevent well meaning but ignorate board members from causing problems you might want to ammend your Covenants.
DwightT (Idaho)
Posts: 664
Posted:
I don't agree that it automatically means a "fine". My first thought on reading it was that it allows the HOA to charge the homeowner for any administrative fees (attorney fees, filing fees, etc) that go along with CC&R enforcement. If the HOA has to hire a contractor to correct the violation, they can charge that to the homeowner as well.

I do agree that the wording is currently vague and should be cleared up.
PaulM (Pennsylvania)
Posts: 1,347
Posted:
Mark, the text, "Special assessments for: covenant enforcement, capital improvements and operation deficits, copies of Association documents if requested by a member; such assessments to be established and collected as
hereinafter provided or established by the Board.
I would not normally think of this as an assessment to enforce a fine; rather, I would think of the many 'common areas' the Board/Assn. is required to maintain based on document directives, but that is the second item mentioned..capital improvements...
It would appear then, IMO, it is referring directly to whatever funds are needed to ensure that enforcement is carried out (liens, fines, court costs, attorney, etc.), funded from residents through collection of 'special assessment'.

BradD2 (Florida)
Posts: 418
Posted:
The other idea that is probably legal is to use the most expensive way possible to send notice of a violation and then bill the homeowner. Consider a singing telegraph.
MarkC3 (Indiana)
Posts: 43
Posted:
Thanks all. I agree with PaulM. I think is specifically stating CCR enforcement of common areas, not individual violations.

JM2 (Oregon)
Posts: 439
Posted:
Hi Mark:

I would suggest that you ask the Association's lawyer for an interpretation of how that can be applied, if state law does not allow for fines. It may mean that you're allowed to sue and recover the legal costs, to enforce the covenants...but check with your attorney.

J. Patrick Moore, CMCA

🎯 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