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JosephH6 (California)
Posts: 4
Posted:
Hello: I live in California. The previous Board held a disciplinary hearing in 10/2019 regarding the use of a home as an AirBnb. Our CCRs forbid rentals less than 30 days. The owner appeared and was found in violation. The Board did not send out a letter regarding its determination, and the option to appeal its decision. The Board exercised its discretion NOT to fine, but did have its lawyer send a 'cease and desist" letter.

The violation has continued since the disciplinary hearing.

A new Board has been nominated. Does this new Board need to hold a new disciplinary hearing to fine the owner and file a lawsuit?

JohnT38 (South Carolina)
Posts: 1,631
Posted:
Quote:
Posted By JosephH6 on 05/04/2020 1:56 PM
Hello: I live in California. The previous Board held a disciplinary hearing in 10/2019 regarding the use of a home as an AirBnb. Our CCRs forbid rentals less than 30 days. The owner appeared and was found in violation. The Board did not send out a letter regarding its determination, and the option to appeal its decision. The Board exercised its discretion NOT to fine, but did have its lawyer send a 'cease and desist" letter.

The violation has continued since the disciplinary hearing.

A new Board has been nominated. Does this new Board need to hold a new disciplinary hearing to fine the owner and file a lawsuit?

How odd. I believe this same post showed up before with a different username.


SheliaH (Indiana)
Posts: 6,964
Posted:
Yep, I think you're right.

Joseph - or Mike, or whatever the help you name is, just stop this. Pay the fine, don't rant out your house short term and move the hell on. The response probably won't change, no matter how hard you try to rephrase the question or change your name. Either follow the rule, petition your neighbors to change it or buy another house in an area with no rules like this. Then you can rent to your heart's content

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
JosephH6 (California)
Posts: 4
Posted:
I'm sorry, but this is not a similar post. I'm am making a legitimate inquiry.

I want to make sure that if fines are imposed, they cannot be invalidated by the owner. I want the fines to stick and have some bite. My hope is that new disciplinary hearing does not need to be held, and the new Board can proceed with fining.

I thought I could get some useful information here from experienced members.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Does the HOA have a fining schedule and the right to fine? What would the lawsuit be for? What are the damages?

Seems if there was a cease and desist order in play why isn't being enforced?

Too many questions but what actual powers does your HOA have in this situation? It may be less power than you and the board thinks...

Former HOA President
SheliaH (Indiana)
Posts: 6,964
Posted:
I believe that was addressed in the last not so dissimilar conversation. If a fine was assessed, the next board should uphold it, although it could vote to settle the matter another way, such as reduce the fine or drop it altoghther. Since we're talking about a rule violation, I wouldn't change the ruling unless I had a really good reason. You said the violation continues, so it doesn't sound like it.

If you weren't the Mike in the last conversation, I apologize for the mix up. Although it wouldn't be first time someone came on this board asking the question in a different way, hoping to get validation on whatever it is he or she wanted to do all along.

To start, what is YOUR interest in all this? Are you the owner or a board member? If it's the latter, are you new to the board of part of the old group? Has any of this been discussed with the association attorney, especially when it became clear this might head to court?

That's one of the keys to rules enforcement - you should assume someone is going to try the process to see how long and how far to push and to see who will be the first to blink. When attorneys get involved you really need to have all your facts straight because the little things can turn a lawsuit on its head.

To wit, I agree with Melissa that there should have already been a fine schedule in place and sent to the homeowners so they will know what will happen. A good rules policy also has an appeals process because there are times when you can come to an agreement on an issue without going to court of threatening to do so and if you do get there, you may as well have something airtight so you'll increase the chances of winning. Otherwise, why bother.

Now this is beginning to sound like there's no solid rules policy and some suggested a fine, but somehow that changed to sending the nastygram from the attorney. If you're on the board, you need to go back to the former members (the entire new board) and figure what happened and when.

Meanwhile, you have someone who's breaking the rule, so if you want that stopped, either take him or her to four and see if you policy stands up, or find a way to come to a settlement. Then you can take another look at your po!icy and tweak as needed.

If you are the owner, I stand by my original statement - straighten up and fly right!

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
JosephH6 (California)
Posts: 4
Posted:
Thanks for all the feedback.

The previous Board did not want to find for reasons unclear to me.

This is the extent of our fine language:

"Fines assessed shall not be less than fifty dollars ($50.00) nor more than two hundred and fifty dollars ($250.00) per violation. Fines may be levied daily, weekly, per occurrence, or in any other manner as the Association determines necessary in order to bring compliance."

Is the above language sufficient for a fine schedule?

The previous board never documented the outcome or its determination of the past disciplinary hearing. Where does that leave the new Baord? Does the new Board need to start back to square one in order to fine?

MarkW18
Posts: 1,290
Posted:
Quote:
Posted By JosephH6 on 05/04/2020 7:48 PM
"Fines assessed shall not be less than fifty dollars ($50.00) nor more than two hundred and fifty dollars ($250.00) per violation. Fines may be levied daily, weekly, per occurrence, or in any other manner as the Association determines necessary in order to bring compliance."

Is the above language sufficient for a fine schedule?

NOPE
BenA2 (Texas)
Posts: 1,273
Posted:
Quote:
Posted By JosephH6 on 05/04/2020 7:48 PM
Thanks for all the feedback.

The previous Board did not want to find for reasons unclear to me.

This is the extent of our fine language:

"Fines assessed shall not be less than fifty dollars ($50.00) nor more than two hundred and fifty dollars ($250.00) per violation. Fines may be levied daily, weekly, per occurrence, or in any other manner as the Association determines necessary in order to bring compliance."

Is the above language sufficient for a fine schedule?

The previous board never documented the outcome or its determination of the past disciplinary hearing. Where does that leave the new Baord? Does the new Board need to start back to square one in order to fine?


I think I would have a new hearing, especially if the previous board did not document their findings. Also, if the violation is for rentals under 30 days, it would constitute many separate violations, not a continuing violation, which is more reason to have a new hearing. I doubt you would have to have a new hearing for each violation but I'm not familiar with CA law.

Since the previous hearing and cease & desist had no effect, I would impose the maximum fine for each violation.

What I would do first, is get the advice of the HOA attorney.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
I say the BOD does not have to rehash the whole thing. I say fining can commence assuming there is a fining schedule.
MikeW22 (California)
Posts: 4
Posted:
"Fines assessed shall not be less than fifty dollars ($50.00) nor more than two hundred and fifty dollars ($250.00) per violation. Fines may be levied daily, weekly, per occurrence, or in any other manner as the Association determines necessary in order to bring compliance."

I want to get some consensus as to whether the above would constitute a fine schedule?

This information was mailed out to each of the members regarding the Board's enforcement policy.

Personally, I believe this is enough to serve as a fine schedule.
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By MikeW22 on 05/05/2020 2:09 PM
"Fines assessed shall not be less than fifty dollars ($50.00) nor more than two hundred and fifty dollars ($250.00) per violation. Fines may be levied daily, weekly, per occurrence, or in any other manner as the Association determines necessary in order to bring compliance."

I want to get some consensus as to whether the above would constitute a fine schedule?
In my experience, this is not a schedule of fines on which a court of law would put its stamp of approval. What you posted would allow a board to charge one fine to one member and a different fine to another member who committed the same violation. Or the board might fine a violator once, then the violator fails to correct the situation within, say, 30 days. From where does the board draw its authority to keep fining for the same violation? Only from 'making it up as they go along,' a.k.a. caprice. Courts do not tolerate caprice. Courts want to see "due process" in the administration of HOA/Condo fines. Due process should be pretty exacting, even if it is "only a HOA/condo." It's a mini-city, with the board and manager having a lot of power over how people enjoy or do not enjoy the use of their homes.

More clues on the subject appear at: https://www.davis-stirling.com/HOME/Fine-Policy

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