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MichaelF7 (Georgia)
Posts: 12
Posted:
We have several residents in our community that have boats and trailers parked in their driveways. It is a direct violation clearly stated in the covenants. Everyone in the community received a two page letter two months ago asking for help in following the covenants, especially the items that weren't subject to speculation or "gray areas" in interpretation. One residents has chosen to ignore our requests, others have complied. I am composing one last letter to send to this resident (to be sent certified via the USPS) asking him to comply with the covenants or face a fine for failure to abide by the covenants. Our covenants grant the board the right to fine but doesn't offer guidelines on what the fines could/should be. For those who have had to levy fines for non-compliance, what kind of fines did you levy? Daily/weekly/monthly???????
RogerB (Colorado)
Posts: 5,067
Posted:
With regards to fines I would first establish Rules and Regulations (policies and procedures) on violations and the related fines. Fines vary with associations, severity of the violation, and continuing or repeat violations. Many HOAs we manage start with at least a minimum fine of $50. Some double the fine each time another violation notice is required until the violatin is cured; i.e., 1st violation notice $50, 2nd violation notice $100; 3 violation notice $200, etc. Others double the fine for each repeated violation within a 12 month period; i.e., 1st violation notice $75 fine and violation is cured within the deadline, then 4 months later the same violation notice occurs so the fine is $150.

We first provide a Courtesy Notice before issuing a Violation Notice. The reason is that most homeowners are not even aware there is a restriction being violated by them. Attached is an example which is provided to every homeowner prior to instigating enforcement fines.

Attached is an example.
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πŸ“182343828071.doc(28 KB)
AnnH5 (Florida)
Posts: 304
Posted:
I can't speak for Georgia, but I would advise you to also check your state statutes regarding HOAs. I know that my state's statutes do have some things about fines (maximum allowed by law). As an example from my state:

The association may levy reasonable fines of up to $100 per violation against any member or any member’s tenant, guest, or invitee for the failure of the owner of the parcel or its occupant, licensee, or invitee to comply with any provision of the declaration, the association bylaws, or reasonable rules of the association. A fine may be levied for each day of a continuing violation, with a single notice and opportunity for hearing, except that the fine may not exceed $1,000 in the aggregate unless otherwise provided in the governing documents. A fine of less than $1,000 may not become a lien against a parcel. In any action to recover a fine, the prevailing party is entitled to reasonable attorney fees and costs from the nonprevailing party as determined by the court.
AnnH5 (Florida)
Posts: 304
Posted:
Quote:
Posted By MichaelF7 on 08/02/2014 6:30 AM
We have several residents in our community that have boats and trailers parked in their driveways. It is a direct violation clearly stated in the covenants. Everyone in the community received a two page letter two months ago asking for help in following the covenants, especially the items that weren't subject to speculation or "gray areas" in interpretation. One residents has chosen to ignore our requests, others have complied. I am composing one last letter to send to this resident (to be sent certified via the USPS) asking him to comply with the covenants or face a fine for failure to abide by the covenants. Our covenants grant the board the right to fine but doesn't offer guidelines on what the fines could/should be. For those who have had to levy fines for non-compliance, what kind of fines did you levy? Daily/weekly/monthly???????



After following the steps for notifying the owner to correct the violation, the last letter could be a notification that if the owner did not correct the violation then the matter would be turned over to the Association's attorney for enforcement. Should the matter be turned over to the attorney then the owner would also be on the hook for the Association's legal fees, court costs, etc.

Personally, I don't agree with fines for violations. The last headache I would want would be the obligation to try to collect on fines. I also think it opens up too much possibility for abuse, if not by a current Board then by a future Board. And lastly, fines only go so far with covenant enforcement. I have seen a few owners pay a fine as an inconvenience but that fine didn't stop them from doing what they wanted to do at that point in time.
DaveD3 (Michigan)
Posts: 796
Posted:
Michael,
Do you have a violation escalation procedure? If so, follow it (or change it to be useful if it isn't), and if not, create one.

Ours goes something like this:
1) Friendly letter requesting compliance within some time period, noting penalties for failure to comply
2) Official notice of a violation with set amount of time to comply, noting penalties for failure to comply
3) Notice that they're in default of the violation notice

At that point we can do any/all of the following (supported directly by our governing documents):
Seek a court order
Fine them
Enter upon their property to correct the violation

For repeat violations, we can skip past the first 3.

The more I deal with these things, the more I'm inclined to go the legal route.
Why?
A fine can turn into an unpaid lien. i.e. it has no teeth unless the HOA wants to eventually foreclose
I'm not willing to have a violation corrected by the HOA without a court order supporting it.
Plus, the delinquent unit pays court costs & attorney fees (here anyhow) so it costs the HOA nothing.

TimB4 (Tennessee)
Posts: 21,061
Posted:
Michael,

Does your Covenants allow for fining? If not, fines may or may not hold up if challenged in a court of law.

This has happened in VA and depending on the County, one may get away with fines and one may not.
VictorL2 (CA)
Posts: 16
Posted:
I agree with Ann - "Personally, I don't agree with fines for violations. The last headache I would want would be the obligation to try to collect on fines. I also think it opens up too much possibility for abuse, if not by a current Board then by a future Board." I've seen cases of abuse and Boards inconsistently go after certain residents while bypassing others. And that opened up a whole new case.

Additionally, I don't think that a fine can become a lien on the property. HOA fees and fines are separate issues. If the resident wasn't paying the HOA fees then there could be a lien placed on the property. But I'm not sure about fines.
RogerB (Colorado)
Posts: 5,067
Posted:
Our experience as a management company is that fines are a much more effective means to enforce Covenants than the other option when a homeowner does not chose to cure a violation of a restriction. One HOA we manage can not levey fines so the alternative is to take the violator to court. This gets very expensive when the violator is found guilty. The Judge has ordered the violator to cure the violation plus pay the HOA's legal fees plus their own.

Someone posted they would just go onto the violators property and cure the violation. We would never recommend doing this without first getting a court order. After which we would recommend having a sheriff's deputy present with us when we have a contractor cure the violation.
DaveD3 (Michigan)
Posts: 796
Posted:
Quote:
Posted By VictorL2 on 08/02/2014 12:34 PM
I agree with Ann - "Personally, I don't agree with fines for violations. The last headache I would want would be the obligation to try to collect on fines. I also think it opens up too much possibility for abuse, if not by a current Board then by a future Board." I've seen cases of abuse and Boards inconsistently go after certain residents while bypassing others. And that opened up a whole new case.

Additionally, I don't think that a fine can become a lien on the property. HOA fees and fines are separate issues. If the resident wasn't paying the HOA fees then there could be a lien placed on the property. But I'm not sure about fines.

Victor,
Whether or not fines can become liens is a state by state matter. Some states permit it while others do not, which is why so many answers to questions are dependent on where the HOA is located.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By DaveD3 on 08/02/2014 11:55 PM
Posted By VictorL2 on 08/02/2014 12:34 PM
I agree with Ann - "Personally, I don't agree with fines for violations. The last headache I would want would be the obligation to try to collect on fines. I also think it opens up too much possibility for abuse, if not by a current Board then by a future Board." I've seen cases of abuse and Boards inconsistently go after certain residents while bypassing others. And that opened up a whole new case.

Additionally, I don't think that a fine can become a lien on the property. HOA fees and fines are separate issues. If the resident wasn't paying the HOA fees then there could be a lien placed on the property. But I'm not sure about fines.


Victor,
Whether or not fines can become liens is a state by state matter. Some states permit it while others do not, which is why so many answers to questions are dependent on where the HOA is located.

This is true and in while some state you cannot lien for fines what you can due is use their HOA Dues to pay unpaid fines thus their HOA Dues payment is short and you can lien for that. There ere often several ways to skin a cat.
VictorL2 (CA)
Posts: 16
Posted:
Yes, absolutely agree. I've been a HOA resident in three states, and the laws varied state by state.

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