Is there a point that we shouldn't waive fines?

Started by MichaelT21 • 8 replies • 360 views

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MichaelT21 (Arkansas)
Posts: 462

Posted:

We have an difficult homeowner who we have fined 5 times in the last year for the same violation. The 5 fines were levied after several warnings. At his request, we have held two hearings for the same issue, both of which resulted in the denial of his request.

He has the impression that eventually, we'll waive all of the fines.

I know it's our Board's decision to make, but is there a certain point that fines need to be collected rather than waived? We agreed to pause the fines for a little bit during the holiday season, but will start in up January. It just seems a bit ridiculous to waive this many fines after this length of time of non compliance.

Our property manager says that we should hand this over to our attorneys after the fines have aged enough to send to the attorneys per our collection policy. This will happen in January/February, and I'm thinking we just need to do that.

JohnT38 (South Carolina)
Posts: 1,631

Posted:

Quote:

Posted By MichaelT21 on 11/08/2022 8:27 AM
We have an difficult homeowner who we have fined 5 times in the last year for the same violation. The 5 fines were levied after several warnings. At his request, we have held two hearings for the same issue, both of which resulted in the denial of his request.

He has the impression that eventually, we'll waive all of the fines.

I know it's our Board's decision to make, but is there a certain point that fines need to be collected rather than waived? We agreed to pause the fines for a little bit during the holiday season, but will start in up January. It just seems a bit ridiculous to waive this many fines after this length of time of non compliance.

Our property manager says that we should hand this over to our attorneys after the fines have aged enough to send to the attorneys per our collection policy. This will happen in January/February, and I'm thinking we just need to do that.

If you are going to waive the fines for a 5 time violator then stop issuing fines all together and rip up your rules. Why not file a lien?

ND (PA)
Posts: 792

Posted:

Before getting to this point, Step 1 should be to come up with a process and follow it precisely . . . the process could include the possible consideration of waiving fine(s) under certain conditions but also includes a point where such a consideration would no longer be entertained.

Given the apparent 5 fines already and 2 hearings, there should be no decision-making to occur at this stage, your process would just continue to occur on auto-pilot, increasing in severity of punishment for the violator, eventually culminating in steps that would result in fines being PIF or some other defined end stage.

Agreeing to pause during the holiday season is silly and indicates lack of process and/or lack of the Board's own commitment to process . . . at which point, why have a process at all if it isn't being implemented/followed or if it varies to such a degree that every stage is a decision to be made and treatment of violators from one to the next is different.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By ND on 11/08/2022 9:08 AM
Before getting to this point, Step 1 should be to come up with a process and follow it precisely . . . the process could include the possible consideration of waiving fine(s) under certain conditions but also includes a point where such a consideration would no longer be entertained.

Given the apparent 5 fines already and 2 hearings, there should be no decision-making to occur at this stage, your process would just continue to occur on auto-pilot, increasing in severity of punishment for the violator, eventually culminating in steps that would result in fines being PIF or some other defined end stage.

Agreeing to pause during the holiday season is silly and indicates lack of process and/or lack of the Board's own commitment to process . . . at which point, why have a process at all if it isn't being implemented/followed or if it varies to such a degree that every stage is a decision to be made and treatment of violators from one to the next is different.

Sound advice.

MichaelS56 (Minnesota)
Posts: 859

Posted:

Increase the amount of the fine.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By MichaelS56 on 11/08/2022 12:46 PM
Increase the amount of the fine.

It seems the issue is they do not enforce anything. They just keep fining and the owner keeps appealing. I say slap a Lien on the owner. Let him know the BOD is serious.

JohnT38 (South Carolina)
Posts: 1,631

Posted:

Quote:

Posted By JohnC46 on 11/08/2022 1:28 PM

Posted By MichaelS56 on 11/08/2022 12:46 PM
Increase the amount of the fine.

It seems the issue is they do not enforce anything. They just keep fining and the owner keeps appealing. I say slap a Lien on the owner. Let him know the BOD is serious.

Bingo.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

We never fined. In order to fine we had to have a fining schedule. Our HOA rules said we had the right to fine but lacked definition or amounts. That is why need an agreed upon fining schedule that defines the violation and the amount of fine agreed upon the owners.

If there was a violation, we would step in and corrected it. That is what we were allowed to do. Not all HOA's have the same set up or ability to do that.

Fines usually can't be turned into liens or foreclosures in most states. They can if you do "fancy accounting" applying dues to fines. It will look like not paying the dues. That will still just get you a lien not a foreclosure. Again this is different for every state and HOA.

Former HOA President

TimB4 (Tennessee)
Posts: 21,062

Posted:

We would threaten to fine.

At the hearing (when fines may be imposed) we would specify that the board chose to fine $xx.00 per day until the issue is resolved.
However, if the issue is resolved by mm/dd/yyyy the board would waive all fines.

If monetary penalties don't work, the next step would be legal action through the courts.
The Board needs to make it's own determination if they want to take the issue through the courts.
The issue may make the Association look petty or a bully if a news station picks up the story.
The issue may make the judge upset at the board for wasting the courts time.

It all depends on the issue.

Keep in mind that our governing docs specify that payments go first toward legal costs, then fines and late charges, then assessments.
This gives us leverage if we have to make a point by using the foreclosure process.

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