💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

PatriciaC14 (Washington)
Posts: 17
Posted:
Statutes give the HOA the power to impose fines, but:
If the Articles of Incorporation, ByLaws, and original CC&R's all give the HOA power to recover expense in enforcement of Covenants, Does that preclude issuing fines? Does the Board have to incur an expense before issuing a fine? Is there a clause that clarifies that? Just checking.
AugustinD
Posts: 3,698
Posted:
Quote:
Posted By PatriciaC14 on 05/23/2022 6:28 AM
Statutes give the HOA the power to impose fines, but:
If the Articles of Incorporation, ByLaws, and original CC&R's all give the HOA power to recover expense in enforcement of Covenants, Does that preclude issuing fines? Does the Board have to incur an expense before issuing a fine? Is there a clause that clarifies that? Just checking.
I see from another thread your HOA was established around 1969. If RCW 64.38 applies, then I think the relevant part is this:

RCW 64.38.020
Association powers.
Unless otherwise provided in the governing documents, an association may:
...
(11) Impose and collect charges for late payments of assessments and, after notice and an opportunity to be heard by the board of directors or by the representative designated by the board of directors and in accordance with the procedures as provided in the bylaws or rules and regulations adopted by the board of directors, levy reasonable fines in accordance with a previously established schedule adopted by the board of directors and furnished to the owners for violation of the bylaws, rules, and regulations of the association;


This site discusses the above statute section at some length: https://www.condo-lawyers.com/requirements

If the governing documents do not prohibit fines but instead, are silent on the subject of fines, then my take is that your HOA's board may impose fines consistent with what is described in the above statute section. No expense must first be incurred.

Befoe fining, I hope your board knows to take seriously what the statute section requires for fines to be lawful.

I keep in mind that fines are different from seeking reimbursement for expenses incurred. Fines are punitive. Expenses incurred are more about measurable damage to the HOA by way of its suffering costs of repairs or cost of labor.

SteveH35 (Washington)
Posts: 339
Posted:
Quote:
Posted By PatriciaC14 on 05/23/2022 6:28 AM
Statutes give the HOA the power to impose fines, but:
If the Articles of Incorporation, ByLaws, and original CC&R's all give the HOA power to recover expense in enforcement of Covenants, Does that preclude issuing fines? Does the Board have to incur an expense before issuing a fine? Is there a clause that clarifies that? Just checking.

Patricia,

Augustin gave you the statutory context for HOAs as an example, but I'd like to provide you the following: statutes generally control whatever is in your governing documents, even conflicting language, unless the statutes specifically defer to your declaration, bylaws, articles of incorporation, etc. I think this statutes reference will help you because it has a picture that describes the hierarchy that forms the basis of the answer to your question.

Regards,
Steve
KerryL1 (California)
Posts: 14,550
Posted:
Our CC&Rs, Patricia, use the language of "enforcement assessments," which our assn. can levy against owners who damage common areas, or to bring their condos back into compliance with architectural rules, or who image other condos. Do your docs have such language?

About once a year, for instance, a housekeeper or resident will use way too much water cleaning their balcony surface so water goes on to one or more balconies & furniture below creating quite a mess. This violation is on our schedule of fines.

The owner in violation of this rule would be called to a hearing and assessed the cost of clean-up of the other balconies. If the board wishes, it also could assess a $100 fine against the owner for violating the rule. I don't think our Board would do the latter unless the owner is a repeat offender.
PatriciaC14 (Washington)
Posts: 17
Posted:
Thank you so much. There's just one more thing. The ByLaws have this quirky clause: "...nor shall these By-Laws be so modified as to permit assessment, charge or lien against members or property owned by them for any purpose other than as herein provided, excepting only as such members, each for himself, may consent thereto in writing"
I only see fines show up in 2015, and that doesn't seem to have been recorded.
AugustinD
Posts: 3,698
Posted:
Quote:
Posted By PatriciaC14 on 05/23/2022 11:29 AM
Thank you so much. There's just one more thing. The ByLaws have this quirky clause: "...nor shall these By-Laws be so modified as to permit assessment, charge or lien against members or property owned by them for any purpose other than as herein provided, excepting only as such members, each for himself, may consent thereto in writing"
I only see fines show up in 2015, and that doesn't seem to have been recorded.
-- I see your HOA's bylaws and some other possible governing documents on the internet. I see what looks like amendments seemingly dated 2015 and seemingly filed with the "auditor."

-- Some background on this HOA's governing documents also appears here: https://www.hoatalk.com/Search/ForumSearch/tabid/87/forumid/1/postid/316504/view/topic/Default.aspx

-- PatriciaC14, have you gone to the county clerk to see whether covenants are on file there?

-- Just before you bought into the HOA, did you receive a copy of the covenants (not just the bylaws)?

-- I am asking these questions because the covenants may play as much a role, or potentially a greater role, as the bylaws here.

-- I gather you are not pleased about fines now being imposed. Correct?

-- This forum might help you prepare for a meeting with an attorney. I am not sure this forum will be able to come even close to nailing any answers for you. This is largely due to the age of your HOA and how things have evolved with HOAs since the late 1960s.

-- In your posts, please name the person to whom you are responding. The software for this forum is rather frills free. One cannot tell to whom another is responding unless the respondent provides the name.

-- Regarding someone else's assertion I was posting a statute section "as an example": I do not know what this means. I posted what so far appears to be at least one of the relevant statute sections for this situation.
KerryL1 (California)
Posts: 14,550
Posted:
From your Bylaws, Patricia, "...for any purpose other than as herein provided, " what is or are the "purpose[s]" listed or named in your bylaws?
PatriciaC14 (Washington)
Posts: 17
Posted:
AugustinD: Thank you for your advice. No, I am not opposed to fines. These documents are old and we are trying to get them up to date. That one clause troubles me, but I'm pretty sure others have dealt with this issue who can give me some advice. Thanks again.
AugustinD
Posts: 3,698
Posted:
Quote:
Posted By PatriciaC14 on 05/23/2022 11:29 AM
The ByLaws have this quirky clause: "...nor shall these By-Laws be so modified as to permit assessment, charge or lien against members or property owned by them for any purpose other than as herein provided, excepting only as such members, each for himself, may consent thereto in writing"
I only see fines show up in 2015, and that doesn't seem to have been recorded.
Little comment here about the (amended) covenants speaking of fines while the (1) bylaws do not; and (2) the bylaws might even be prohibiting fines.

The courts, including apparently Washington courts, say that, in instances where the covenants conflict with the bylaws, the covenants control.

I think your board will have to determine what covenants were lawfully established (via votes for amendments; recording; and disclosure to owners pursuant to Washington law and covenants). In addition, I think your board may want to research whether the authority to fine can be added by amendment. Washington courts, for one, are not wild about adding amendments that radically change things and may represent a tyranny of the majority. This was discussed a bit in the earlier thread (linked above).
PatriciaC14 (Washington)
Posts: 17
Posted:
In 1969 this area depended on fishing, shellfish, and timber. This area was undeveloped, and in fact much of it has been added as dunes by Mother Nature. In 1969 I am told my backyard did not exist. The ocean was right there. I think these Documents give the HOA the job of maintaining a couple of assets, and supervising construction, and maintaining a water system which no longer exists. That seems to be about it. Since then it has become a retirement, vacation, and second home neighborhood. People are parking their 401K's here. Their expectations are different from people who have been here since the beginning, and are feeling disrespected.
So these documents and the Statutes around them are about the only resource to guide the process.
Thank you for your good counsel.
PatriciaC14 (Washington)
Posts: 17
Posted:
In 1969 this area depended on fishing, shellfish, and timber. This area was undeveloped, and in fact much of it has been added as dunes by Mother Nature. In 1969 I am told my backyard did not exist. The ocean was right there. I think these Documents give the HOA the job of maintaining a couple of assets, and supervising construction, and maintaining a water system which no longer exists. That seems to be about it. Since then it has become a retirement, vacation, and second home neighborhood. People are parking their 401K's here. Their expectations are different from people who have been here since the beginning, and are feeling disrespected.
So these documents and the Statutes around them are about the only resource to guide the process.
Thank you for your good counsel.
TimB4 (Tennessee)
Posts: 21,061
Posted:
This should be noted:

The statute defers to the governing documents.
Most Covenants I have read specify that the Association may enforce through a court of law or equity.
A Virginia case I've mentioned several times (farren vs. bellhaven) had a ruling that by the mentioning of one method of enforcement excludes all others.

I suspect that over time, other States will go with similar rulings if fines are challenged.

Here is a link to the thread from several years ago:

Subject: VA Associations, Do you still have the authority to use monetary penalties for violations?

I expect that some of the links in that thread will be broken. Therefore, I've attached the ruling (had to break into two parts)
📎 Attachments (2):

⏸ Downloads temporarily unavailable

📄1524553910071.pdf(147 KB)
📄1524553930354.pdf(161 KB)

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

  • ✓ Ask follow-up questions
  • ✓ Share your experience
  • ✓ Get expert advice
  • ✓ Access 350,000 discussions
Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here