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LindsayM (Idaho)
Posts: 3
Posted:
I live in Idaho and my HOA, which hasn't been enforcing the cc&r's in the 14 years since the association has been established, has decided they are going to have a property management start enforcing them. Now, on the newly created subdivision website, there are "fine" amounts that will be charged to homeowners if they are in violation come August. In our cc&r's, there is nothing stating the amount that will be charged to homeowners, should they violate the covenants. There isn't an amendment, nothing. Just a statement that owners and the association are responsible to enforce any charges or liens. Can my HOA just decide arbitrarily what the fees will be for violations? This just doesn't seem like they can do that.

Thanks!
TimB4 (Tennessee)
Posts: 21,060
Posted:
Lindsay,

Yes and no or it depends.

Does any of your governing documents authorize monetary penalties for violations of the covenants or rules?

Do any of the applicable State laws address monetary penalties?

If the governing documents (CC&Rs, Bylaws, Articles of Incorporation, Resolutions) do, then some State courts are interpreting this as authority to assess monetary penalties. Other States, VA for example, are starting to say monetary penalties can only be collected if the CC&Rs authorize it. Bottom line, it will likely take a legal action from someone within the members to challenge the penalties for you to get a definitive answer to your question.

Please be aware, that some MC contracts are written so the MC retains a portion of any fines for violations. If this is the case in your Associations contract, the MC may become over zealous in enforcement action as it can become an additional revenue stream for them.

Best advice would be to know what your Associations enforcement policy is and if they are in compliance with applicable laws (are warnings required or are hearings required before monetary penalties can be assessed). Then, to make sure that this doesn't become an issue for you, do your best to comply with the covenants, restrictions, conditions and rules you agreed to comply with.

I know that this isn't exactly what you may have wanted to hear. I hope it helps.

Tim
JohnC46 (South Carolina)
Posts: 14,265
Posted:
I am not nor do I play a lawyer.

I say if fines are allowed, then the association can set the amount.

I also say just because they were lax in doing so, does not remove their ability to do so.

LindsayM (Idaho)
Posts: 3
Posted:
Thank you, Tim. Here is the exact verbiage from out current cc&rs on enforcement:

Owners and the association have the right to impose all restrictions, conditions, covenants, lines, and charges now or hereafter imposed by the provisions set forth by this after ten days written notice to the persons violating...

In other places it says the exact amount charged for being delinquent on our yearly assessment, but not for violation or noncompliance.

Thanks again the feedback!
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Lindsay

Our docs specify amount of late fees for dues owed as there is a state usury law limiting such.

There is no law limiting the amount of a fine for a violation like a trash barrel left out over night.

I wonder if a fine could exceed the actual dues......LOL
TimB4 (Tennessee)
Posts: 21,060
Posted:
Lindsay,

Our CC&Rs are similar in that they only mention monetary penalties when it relates to failure to pay assessments on time. However, we have a resolution on enforcement procedures (titled due process) that allows for monetary penalties. Until recently, our State said that this was sufficient authority to impose monetary penalties. However, there have been a few cases go before the courts in VA where the courts have ruled that where the CC&Rs specify how violations may be enforced, the Association can not exceed that authority by adopting rules allowing other methods of enforcement (fines). This has resulted in changes to VA laws to allow for monetary penalties for infraction of rules but not for infractions of the CC&Rs.

As I said earlier, it will likely require someone within your State to challenge such penalties in the courts to get a definitive answer for your State.

GlenL (Ohio)
Posts: 5,491
Posted:
Lindsay what violation are you guilty of and don't think you should be fined for or made to comply with? I know the Board is only giving you until August before they start to enforce but that should be plenty of time to cure most violations.

If it is something along the lines of not allowing you to park a boat or RV next to the house or have a shed or playground equipment, you also have the option to amend the documents so it is allowed.

Studies show that 5 out of 4 people have problems with fractions
LindsayM (Idaho)
Posts: 3
Posted:
The one I'm worried about is the "2 animal" rule. It states we can only have 2 animals. Period. I have 3 dogs that are locked up at night and when I am gone, in the house. They are less of a nuisance than the 6 kids that live next door. I'm really not worried about the enforcement of the covenants, but more of how they can just arbitrarily set the fine amount without discussion by the body and approval...
SheliaH (Indiana)
Posts: 6,964
Posted:
Then ask if the board will consider a grandfather allowance for people who already had 3 dogs. If so, you should be allowed to keep them until one or two pass away and then you'll be limited to two dogs.

As everyone else has said, the governing documents will say whether the board can impose fines without homeowner approval, although it is a good idea to do so. You may want to check the previous board meeting minutes to see what sort of discussions have been going on - maybe they haven't determined an exact amount yet and are waiting to see what violations come up and go on from there. Keep an eye on it and talk to them about whatever ideas you may have.

Personally, as pets go, I'm for fining the owner the costs of cleaning up dog poo (I continue to be amazed at dog owners who seem to behave as if the entire neighborhood is a toilet for their pets!) As far as your neighbors are concerned, what sorts of things are these kids doing? If they're trespassing through your yard and tearing up your flower bed, for example, it seems that would be a dispute between neighbors issues and you and the parents of said kids need to have a sit down to discuss the matter and how to fix it - that's not necessarily an Association issue.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
GlenL (Ohio)
Posts: 5,491
Posted:
Lindsay you can also try to get your neighbors to amend the Covenants to allow more than two pets.

Now for the tough love part: I know you are upset because the Board decided to start enforcing the Covenants but you are the one who arbitrarily decided the two pet limit didn't apply to you or your family.

Studies show that 5 out of 4 people have problems with fractions
RichS4 (California)
Posts: 3
Posted:
lindsey, you are admittedly in violation of the pet rule. you state that your cc&rs say "Owners and the association have the right to impose....charges now or hereafter imposed by the provisions set forth by this after ten days written notice to the persons violating..."

this looks like the association through the board has the ability to change charges imposed and i don't see anything that restricts it to delinquent monthly or other assessments. generally states will give a board the power to create a fine system if the cc&rs give the board general powers of enforcement of the rules and regulation and cc&r provisions.
JohnB26 (South Carolina)
Posts: 1,569
Posted:
if you believe it is illegal ~ contact law enforcement

if you believe it to be a contract violation ~ contact an attorney

but

YOU had better not be in violation
MelissaP1 (Alabama)
Posts: 13,836
Posted:
This is what we refer to as a "Fining Schedule". A HOA does have the right to fine for violations. However, the documents seem to always lack the amount and for what. This issue is resolved by having an announced and agreed upon "Fining schedule" that is to be passed out amongst the owners after the board creates/approve it.

Ironically, fines can not really be enforced as well if you don't have a fine schedule. A HOA having the power to lien and lacking definition for what for is a big issue. It's why we never used fines to enforce rules. Plus fines can not be against renters. The owner's can be fined for renter's violations but not the renter's directly. Renters are NOT HOA members and therefore not required to obey the HOA rules unless it's part of the lease agreement between the owner and themselves.

It's rather complicated but the management company by establishing this list is doing it correctly. That is what needs to be done in order to enforce restrictions if you choose fines/monetary way of enforcement. There are other ways other than issuing fines. However, most people don't know or understand that process and choose the fining system instead.

Fines can not be the basis of foreclosures or liens. Now that's not to say it can't happen. A HOA/MC can apply what you pay going toward the fines owed and not your dues. It's a bit "tricky" and I think unethical. By doing it this way, they can place liens as it looks like it's for unpaid dues. Which is one of the reasons you can lien. Foreclosures usually are more restrictive and just for unpaid dues.

It's a good thing but bad thing to have this fine system. It depends if your the one getting the fine. I compare fines in HOA like speeding tickets. They are not considered "income" for a HOA. They are considered "punitive costs" for enforcing rules.

Former HOA President
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By GlenL on 04/23/2014 7:26 PM
Lindsay what violation are you guilty of and don't think you should be fined for or made to comply with? I know the Board is only giving you until August before they start to enforce but that should be plenty of time to cure most violations.

If it is something along the lines of not allowing you to park a boat or RV next to the house or have a shed or playground equipment, you also have the option to amend the documents so it is allowed.

Nice read that she was in violation.

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