Mediation and Enforcement powers in Florida

I hate to tell you, but MOST states do NOT allow for collection of fines to be the basis of a lien or foreclosure. It is ONLY the non-paying of dues/assessments, special assessments, or not paying back money the HOA spent repairing a violation.

Your really wasting your time taking an owner to small claims court or mediation. If the person is behind in dues, then the HOA should lien them. If they don't respond in a reasonable time with the lien, then foreclosure procedures should follow.

I've stated this several times before. A small claims suit is ONLY a judgement. That doesn't mean they will pay it back anytime soon. You can avoid paying a judgement up to 7 to 10 years in some states. Plus the owner can sell the home and MOVE without paying a dime. The judgement goes with the person NOT the property.

A lien is another form of a judgement. However, a lien doesn't allow for the owner to sell the property without paying the lien. The lien should be setup so that the money keeps accumulating until it is paid off. A owner has to pay the lien if they ever want to move out and leave the HOA. Which I am sure they want to do after receiving a lien notice.

A foreclosure is the absolute LAST step to take. It would take a whole post to explain it alone. Ultimately, it does get rid of the owner from the HOA and the HOA may get it's money. However, it's extremely risky and expensive option to do. I've done it and I wouldn't do it again unless I had to.

If your issue is with violating rules and restrictions, the HOA should have this option available. The ability to correct the violation and send the owner the bill for the repair at the HOA's rate. If the owner doesn't pay that bill, then the HOA can lien them for the amount owed. This is in cases such as erecting illegal structures without approval or areas of possible danger.

The court system can only make a HOA "Whole". If the HOA has to spend money to correct an item that causes it harm if it isn't repaired, then that money is considered an expense that wouldn't have happened if the owner had done the repair. However, if the owner simply leaves his garbage out late sunday afternoon and garbage pickup is on monday evenings, this isn't costing the HOA money. It's simply an issue of "courtesy". Hence why fines aren't really that enforceable. It isn't a loss or damage. The HOA isn't losing anything.

John, the new Statute 720.3085 does have an interesting aspect that might be of use however. It sets forth the order that all payments will be applied within the account.

(3b) says: Any payment received by an association and accepted shall be applied first to any interest accrued, then to any administrative late fee, then to any costs and reasonable attorney's fees incurred in collection, and then to the delinquent assessment. This paragraph applies notwithstanding any restrictive endorsement, designation, or instruction placed on or accompanying a payment. A late fee is not subject to the provisions of chapter 687 and is not a fine.

Consider that any amount not paid by the due date has interest and they will continue to have to pay the late fee and interest on the fine before any is applied to the annual assessment.