Fines for OLD violations

Started by DrewM • 7 replies • 1668 views

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DrewM (Delaware)
Posts: 9

Posted:

Hi,

I live in a small community of 50 homes in DE. Our assocition took over the HOA from the builder about 3 years ago. Our current restrictions or bi-laws do not contain anything for fining a homeowner for violating a restrction. Our BOD and restriction committee do not act on violations and we do have many in our community. Today our board sent the below to all homeowners.

"The Restrictions Committee has decided to add the following to a proposed amendment to enable the BOD to enforce restrictions through a fine levy system.

Enforcement and Fine Structure
Section 1 Private Residences -- Litigation
Section 2 Trailer, Mobile Homes, Etc. -- $100/month
Section 3 Animals and Pets -- $25/month
Section 4 Vegetable Gardens -- $50/month
Section 5 Television and Radio Antennas & Exterior Mechanical Devices, etc -- $50/month
Section 6 Trash Receptacles -- $25/month
Section 7 Prohibited Vehicles -- $50/month
Section 8 Signs -- $50/month
Section 9 Fences -- $100/month
Section 9a Privacy Screens -- $50/mo
Section 10 Swimming Pools -- $50/mo
Section 11 Rentals -- $250/week
Section 12 Lawns, trees, shrubs and Landscaping -- $50/mo
Section 13 Exterior Ornaments and Other Fixtures -- $50/mo
Section 14 Trampolines -- $50/month
Section 15 Clothes Lines -- $25/month
Section 16 Right-of Ways -- $50/month
Section 17 Outbuildings -- $50/month
Section 18 Basketball Goals -- $25/month
Section 19 Easements -- $50/month
Section 20 Review of Plans -- $50/month

This is the proposal from the Restrictions Committee and will be discussed at the next meeting"

My question is, If this is passed by 2/3 vote of the community, can they fine people who broke restrictions over a year ago?

Thanks,
Drew

GloriaM (North Carolina)
Posts: 829

Posted:

Drew:

The board would have to fine Owners in accordance with your State's Planned Community Act. They can't fine more than the state law allows. I am not familiar with DE Planned Community Act, you should definately start there.

However, once an Owner is brought to a hearing in front of the Executive Board, they can render a decision to fine an Owner accordingly.

RogerB (Colorado)
Posts: 5,067

Posted:

Quote:

Posted By DrewM on 04/20/2007 3:32 PM
My question is, If this is passed by 2/3 vote of the community, can they fine people who broke restrictions over a year ago?
Thanks,
Drew

Drew, I would not fine anyone whose violation had been known for over a year and had not been notified of the violation. I believe there are court cases which have denighed such fines. I would establish the fine policy and distribute it to all members and issue violation of restrictions letters giving owners a deadline for correction. Advise them they will be subject to the fine schedule if not corrected after being allowed the right to a Hearing if they wish to contest the violation.

JM2 (Oregon)
Posts: 439

Posted:

Hi Drew:

I agree with the above, start the violation process over for each violation noted.

I would suggest that the Board set a date on which enforcement will begin (at least three weeks after the resolution is passed; send letter with a copy of the resolution to all owners and tenants. Give them the three weeks as time to correct any violations that may be existing currently. This shows a good-faith effort on the part of the Board, to work with homeowners. It also gives time for any changes that have to go through Architectural Review to have time for application (you may want your ARC to schedule some weekly meetings to handle any applications as soon as possible).

I hope that your enforcement resolution includes a due-process procedure. You can view one at the following web address (I am the compliance coordinator for the community so I know the process well)...
http://www.fhhoa.com/web/files/governingdocs/PolicyResolution3.pdf

Be sure to send the letters as directed in either your docs or state law. We send the violation notice 1st class, and any notification of fines/hearning notices/etc. by both 1st class and certified.

Good luck with the process.

J. Patrick Moore, CMCA

HaroldS1 (Arizona)
Posts: 314

Posted:

Enforcement and Fine Structure
Section 1 Private Residences -- Litigation
Section 2 Trailer, Mobile Homes, Etc. -- $100/month
Section 3 Animals and Pets -- $25/month
Section 4 Vegetable Gardens -- $50/month
Section 5 Television and Radio Antennas & Exterior Mechanical Devices, etc -- $50/month
Section 6 Trash Receptacles -- $25/month
Section 7 Prohibited Vehicles -- $50/month
Section 8 Signs -- $50/month
Section 9 Fences -- $100/month
Section 9a Privacy Screens -- $50/mo
Section 10 Swimming Pools -- $50/mo
Section 11 Rentals -- $250/week
Section 12 Lawns, trees, shrubs and Landscaping -- $50/mo
Section 13 Exterior Ornaments and Other Fixtures -- $50/mo
Section 14 Trampolines -- $50/month
Section 15 Clothes Lines -- $25/month
Section 16 Right-of Ways -- $50/month
Section 17 Outbuildings -- $50/month
Section 18 Basketball Goals -- $25/month
Section 19 Easements -- $50/month
Section 20 Review of Plans -- $50/month

Has anyone read this list? I mean, are all these items covered in the existing CC&Rs? Is that what the section numbers are referring to? Rentals - $250 a week? Vegetable gardens? Review of plans is a fine?
I don't understand the monthly fine bit either. Is that per occurance or does that mean the fine is the same if I have one or 30 of the same violation in a month? So then it probably wouldn't bother me to pay $25 a month for a basketball goal - sure would save the pain of taking it in and out all the time.
This is really weird. I have a feeling if put to a vote, it will sink like a cement boot - hope they don't have the BOD attached to it! Harold

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Here's some really confusing issues with fines. Yes, your HOA most likely can agree to setup this "fine system". IF the majority of residents have approved this system and are willing to abide by it. A HOA can create it's own rules with majority vote of the owners. (What a HOA is about essentially).
However, here is the "real" issue. Fines are NOT ways for a HOA to fund itself or raise money. They are "Punishments" for violating rules. Fines can NOT be considered any form of "income" or revenue. I fear that many boards can go out of control with fines and start using them for the wrong reasons over time. Although I agree with some forms of fining for serious offenses, I don't for overly "picky" reasons. If we had someone park in front of the dumpster on trash day and the garbage didn't get picked up, then that I would consider fining for the return trip of the garbage truck.
I am NOT sure what state you are in. However, MOST states do NOT allow liens or foreclosures to be done based on fines. NOT every state allows this, but some do. A HOA can ONLY lien/foreclose for 2 reasons: 1. NOT paying dues. 2. If the HOA corrects a violation (wrong house color, fence work etc...) that is a homeowner's responsibility to fix, and the homeowner doesn't pay back the association.
In the end, if your state doesn't allow fines to be part of a lien/foreclosure, then your HOA won't be able to enforce these fines "officially". That means if someone wants to fight it in court, they can. However, if the members/owners are willing to accept paying fines amongst themselves, the system may work. It's really when the subject is "pushed" that the fines may lose. The fine system needs to be put either in the CC&R's and/or by-laws for them to have any kind of "teeth". Then that means a rewrite and approval of the majority membership to put such a system in. Most likely it won't fly.

Former HOA President

BradP (Kansas)
Posts: 2,640

Posted:

All I can say is good luck fining people on television and radio antennas and clotheslines. I don't know if clotheslines are protected in all states, but some states allow them because of energy savings.

I agree with Harold, the list is ridiculous. Swimming pools, basketball goals, privacy screens and trampolines is that a fine for having them or not submitting plans. I would take a step back and re-evaluate this.

RonaldW (South Carolina)
Posts: 901

Posted:

Some of those restrictions (vegetable gardens) surprise me.

Now you can't realistically fine someone each day (or month or year) for a permanent swimming pool that they put in years ago but you could fine someone for beginning construction without approval.

I made a statement a while back on another post that I was not in favor of "fines" as such. I have since changed my mind because assessing fines is much easier and faster than having the attorney write a letter and then collecting the legal fees. Fines still should be used as a compliance tool, not a revenue source.

On thing not considered in the fine schedule posted or other fine schedules I have seen is the effect of inflation on the "value" of the fines. Ten years from now a $25.00 fine might be "pocket change". Since this is going to be a permanent ammendment, fine amounts might be better specified as a percentage of the annual assessment.

Ron
SC

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