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HeatherG5 (Ohio)
Posts: 1
Posted:
Received a fine for a violation. Hearing requested by homeowner w/i 10 days.
Prior to receiving the date & location of the hearing, an invoice was received by
the homeowner to remit payment of the fine. Homeowner indicated on the invoice that
a hearing was requested and that no payment would be made at that time.

After hearing date & location information received, homeowner received another invoice
for payment of fine. Homeowner again indicated on the invoice that a hearing was scheduled and
that no payment would be made at that time. Homeowner also emailed property management company
representative and requested that no further invoices be sent because hearing had been scheduled.
No further invoices were received by the homeowner after this.

Hearing took place with 2 board members and property management company representative present.
One week after hearing, homeowner was notified that fine would remain.

Ohio Revised Code states that "the board shall not levy a charge or assessment before holding
any hearing requested pursuant to individual lot assessments".

After reading this online, homeowner requested reimbursement of the fine since the board did not
follow Ohio law in this matter.

Any thoughts/help would be greatly appreciated. Did board violate standard practice of
collecting fine? Can board members be the only ones to vote on fines? Should a separate committee be
organized for this purpose?

Thank you.
SheliaH (Indiana)
Posts: 6,964
Posted:
Scribbling notes on invoices is usually not a good idea in any situation because invoices are often processed by another department and those folks don’t automatically set aside the invoice because of a note therein because their primary job is to get the checks and what not deposited and credit the account accordingly. Don’t do that again.

As for the rest, you’re asking a legal question and since most of us here aren’t attorneys and don’t all live in Ohio, your best bet is to talk to an attorney in your state (what’s good in Ohio may not be in California or Indiana, or vice versa).

Having said that, some HOAs issue fines after a warning letter has been sent to the homeowner, giving him/her a chance to fix the problem or file an appeal. Some may still require the fine to be paid until the board decides on the appeal and then reimburse the owner or credit his/her account if the owner prevails. So, what happened to you –did you get the warning letter, failed to fix the violation (or refused to) and then got another letter announcing the fine? How much time passed between the time you got the letter and the hearing date? And did you tell anyone at the hearing you hadn’t paid the fine because you were filing an appeal and wrote a note to this effect on the invoice (which you now know might not have been read anyway?)

Take another look at the violation letter – the first one - and see what it says. Ideally, there should have been something about appeal rights and what would happen if you didn’t file one or fix the problem, and that’s where the fine would have been mentioned. If the board just skipped to fining you that might be an issue because you weren’t given a chance to respond and then I might see your argument. You did lose the appeal, so your best bet might be to just pay the thing and learn from it. But that’s just my opinion and I’m not an attorney, so….

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
JanetB2 (Colorado)
Posts: 4,219
Posted:
Welcome to the forum ...

Quote:
Posted By HeatherG5 on 12/05/2017 1:05 PM
Received a fine for a violation. Hearing requested by homeowner w/i 10 days.
Prior to receiving the date & location of the hearing, an invoice was received by
the homeowner to remit payment of the fine. Homeowner indicated on the invoice that
a hearing was requested and that no payment would be made at that time.

After hearing date & location information received, homeowner received another invoice
for payment of fine. Homeowner again indicated on the invoice that a hearing was scheduled and
that no payment would be made at that time. Homeowner also emailed property management company
representative and requested that no further invoices be sent because hearing had been scheduled.
No further invoices were received by the homeowner after this.

Hearing took place with 2 board members and property management company representative present.
One week after hearing, homeowner was notified that fine would remain.

Ohio Revised Code states that "the board shall not levy a charge or assessment before holding
any hearing requested pursuant to individual lot assessments".

After reading this online, homeowner requested reimbursement of the fine since the board did not
follow Ohio law in this matter.

Any thoughts/help would be greatly appreciated. Did board violate standard practice of
collecting fine? Potentially yes Can board members be the only ones to vote on fines? Depends on your governing documents and State Statutes Should a separate committee be organized for this purpose? Some HOA’s do and some do not. Again, depends on the HOA, governing docs, and state laws.

Thank you.


Potentially if was notified the fine would remain ... it is a moot point. Yes the BOD should have waited until after the hearing to fine the owner; however, the owner did loose the hearing and would have been fined and had to pay anyway. In the future the BOD needs to make sure they follow the proper laws regarding fines and not make the same mistake twice.
KerryL1 (California)
Posts: 14,550
Posted:
Heather wrote: "Ohio Revised Code states that 'the board shall not levy a charge or assessment before holding
any hearing requested pursuant to individual lot assessments.'"

It looks to me like the whole Board or at least a quorum of the Board needs to hold the hearing. If two didn't constitute a quorum, the fine may not be proper.
KerryL1 (California)
Posts: 14,550
Posted:
Heather wrote: "Ohio Revised Code states that 'the board shall not levy a charge or assessment before holding
any hearing requested pursuant to individual lot assessments.'"

It looks to me like the whole Board or at least a quorum of the Board needs to hold the hearing. If two didn't constitute a quorum, the fine may not be proper.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By KerryL1 on 12/05/2017 2:37 PM
Heather wrote: "Ohio Revised Code states that 'the board shall not levy a charge or assessment before holding
any hearing requested pursuant to individual lot assessments.'"

It looks to me like the whole Board or at least a quorum of the Board needs to hold the hearing. If two didn't constitute a quorum, the fine may not be proper.


Partially correct as also stated:

“Hearing took place with 2 board members and property management company representative present.
One week after hearing, homeowner was notified that fine would remain.”

Therefore, the BOD determined the fine would remain.

KerryL1 (California)
Posts: 14,550
Posted:
My question still is: were the two directors a quorum of the Board???? If not, "the Board" did not meet with her and proceeded improperly.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Heather

Is this a procedure or a you do not agree with the violation in question?

Procedure might be questionable but is the violation questionable? If not, correct the violation, pay the fine, and move on versus try and wiggle out of it on a procedure argument.

KerryL1 (California)
Posts: 14,550
Posted:
John makes a good point, Heather.
KerryL1 (California)
Posts: 14,550
Posted:
John makes a good point, Heather.
BenA2 (Texas)
Posts: 1,273
Posted:
I'm not sure a quorum is relevant unless Ohio law or your governing documents state that the entire board has to hold the hearing. For example, in Texas you are entitled to a hearing but nothing stipulates who the hearing is before. The board could appoint one or two members to hold the hearing.

I think any invoice sent BEFORE the hearing would be invalid but an invoice sent AFTER the hearing is compliant with "the board shall not levy a charge or assessment before holding
any hearing.”
KerryL1 (California)
Posts: 14,550
Posted:
In CA, "the Board" holds hearing per state Civil Code. In the CA, "the board" means a quorum of directors. "Entire" would be redundant. "The board" does not mean one or more board representatives or a fraction of a quorum of the Board.

The wording might be different in OH and seems to be in TX. Or perhaps silent in TX?

I agreed earlier with JohnC--even if the procedure was flawed, i.e., a quorum of the Board needed to be present, Heather should comply if in violation. And move on.

RichardP13 (California)
Posts: 3,868
Posted:
I have been involved where the HOA will have a fining committee, made up of two directors (less than quorum) who hear the case(s) and then give their report at which time the Board will make the final decision. Much like how a ARC such generally operate.
KerryL1 (California)
Posts: 14,550
Posted:
Can you tell me, Richard, where I can find the CA statutes that permit fewer than a quorum of the board to hold a hearing?
RichardP13 (California)
Posts: 3,868
Posted:
Quote:
Posted By KerryL1 on 12/06/2017 5:26 PM
Can you tell me, Richard, where I can find the CA statutes that permit fewer than a quorum of the board to hold a hearing?

Boards don't have to hold hearings, it can be delegated to a committee. They bring their findings to a meeting and the whole Board votes on the finding.

Specific Corporation Code is 7210.
KerryL1 (California)
Posts: 14,550
Posted:
Thanks, Richard. Corps Code 7210 is well-known and doe, indeed, give Boards the right to delegate many duties with few exceptions. Since it doesn't say boards cannot delegate hearings or even fine amounts, CA HOAs could have a Fining Committee, or less than a quorum of the Board could hold hearings.

Since we have only 6 or so hearings a year, I think we'll stick with An executive session meeting of the Board as we've done in the past.

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