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GordonW2 (South Carolina)
Posts: 2
Posted:
what can you do if the board of directors refuse to enforce covenants
LetA (Nevada)
Posts: 2,679
Posted:
Enforce them aginst the offending member yourself.
CathyA3 (Ohio)
Posts: 6,299
Posted:
First, a warning: if you're not on the board and enforcement actions must be treated confidentially in your state, you have no way of knowing what sorts of actions were taken or not taken. To anyone not involved, a violation that is being ignored by the board can look exactly like one that the homeowner refuses to correct.

What can you do?

First off, many states allow individual owners to enforce the covenants themselves by filing lawsuits against the offending person. Obviously this can get expensive, so it's a good idea to pick your battles.

Which brings me to the board. Enforcing covenants is tough, and frankly the board has few weapons against a stubborn owner. There are fines, assuming your governing documents allow them. But what happens if the owner also refuses to pay the fine? In many states, an HOA can't foreclose based on fines, which means that the board is left with filing a lien and hoping the offender sells the home, or they take legal action. As noted above, this can get expensive. And I can guarantee that there will be homeowners who would be outraged over assessment increases to pay for something as trivial (in their minds) as a neighbor not obeying the rules.

The real solution is to find like-minded neighbors and get yourselves elected to the board. Then the ball will be in your court and you'll be able to decide how to deal with issues like this.

CathyA3 (Ohio)
Posts: 6,299
Posted:
A side note: when I was on the board, enforcement was my least favorite task. Our association attorney told us that the board's actions had to be "reasonable" (where "reasonable" is whatever a court says it is). We always tried to hit a sweet spot: neither too lax nor too hard-nosed. The problem is that different board members will have different ideas about what's reasonable and where that sweet spot is. It's not black and white and it requires good judgement.
DavidG45 (Delaware)
Posts: 994
Posted:
Quote:
Posted By CathyA3 on 01/03/2024 11:00 AM
There are fines, assuming your governing documents allow them. But what happens if the owner also refuses to pay the fine? In many states, an HOA can't foreclose based on fines, which means that the board is left with filing a lien and hoping the offender sells the home, or they take legal action.

The real solution is to find like-minded neighbors and get yourselves elected to the board. Then the ball will be in your court and you'll be able to decide how to deal with issues like this.



One thing boards can consider is making sure that all payments received are applied first to outstanding fines and then to assessments. So somebody who tries to ignore a $50 fine will discover they are $50 behind on their assessment. Then the board can foreclose.

However, I agree it is preferable to simply convince the board to enforce rules or get on the board yourself.
CathyA3 (Ohio)
Posts: 6,299
Posted:
Quote:
Posted By DavidG45 on 01/03/2024 11:37 AM
... snip ...

One thing boards can consider is making sure that all payments received are applied first to outstanding fines and then to assessments. So somebody who tries to ignore a $50 fine will discover they are $50 behind on their assessment. Then the board can foreclose.

However, I agree it is preferable to simply convince the board to enforce rules or get on the board yourself.

I believe that language spelling out the order in which payments are applied must be in the CC&Rs. If the CC&Rs are silent on this, then an amendment may be needed. (Hopefully if someone has a counter-example, they'll speak up.)

JeffT2 (Iowa)
Posts: 880
Posted:
Quote:
Posted By CathyA3 on 01/03/2024 11:55 AM
Posted By DavidG45 on 01/03/2024 11:37 AM
... snip ...

One thing boards can consider is making sure that all payments received are applied first to outstanding fines and then to assessments. So somebody who tries to ignore a $50 fine will discover they are $50 behind on their assessment. Then the board can foreclose.

However, I agree it is preferable to simply convince the board to enforce rules or get on the board yourself.


I believe that language spelling out the order in which payments are applied must be in the CC&Rs. If the CC&Rs are silent on this, then an amendment may be needed. (Hopefully if someone has a counter-example, they'll speak up.)


it is illegal in Delaware

§§ 81-316 (m)
(2) The association shall apply any sums paid by unit owners who are delinquent in paying assessments as follows: (i) first, to unpaid assessments; (ii) then to late charges; (iii) then to attorney’s fees and other reasonable collection charges and costs; and (iv) finally, to all other unpaid fees, charges, penalties, interest and late charges.
BillH10 (Texas)
Posts: 1,217
Posted:
And in Texas. Under the Texas Property Code, payments received shall be applied in a stipulated order, beginning with current and past due assessments, then moving on to other debts owed the Association. Fines are several positions down the list.

I personally believe applying payments first to fines is gaming the system leaving the homeowner constantly playing catch up and, without their knowledge, generating even more late payment charges and past due interest.
AidylP1 (California)
Posts: 108
Posted:
Quote:
Posted By BillH10 on 01/03/2024 12:46 PM
And in Texas. Under the Texas Property Code, payments received shall be applied in a stipulated order, beginning with current and past due assessments, then moving on to other debts owed the Association. Fines are several positions down the list.

I personally believe applying payments first to fines is gaming the system leaving the homeowner constantly playing catch up and, without their knowledge, generating even more late payment charges and past due interest.

California has the same procedure as Texas.
KerryL1 (California)
Posts: 14,550
Posted:
Replies are assuming that, Gordon, you're writing about an individual owner violating the covenants an the Board not following through on disciplining the alleged violators, e.g., with fines or whatever your documents permit the Board to do within state statutes.

But are you talking about something on a large scale? Many residents are in violation, say, about when you must have trash containers put away, or parking forbidden vehicles in driveway, or having too many dogs, or??? doing backyard sheds without ARC approval? So, please provide a couple of examples of the covenants your Board isn't enforcing. .

Oh, and do you mean covenants (AKA: C&Rs, the declaration, deed restrictions)? Or do you mean Rules & Regulations???

MelissaP1 (Alabama)
Posts: 13,836
Posted:
May I ask how you think a HOA can enforce the rules? Just curious. The HOA is kind of limited. They can fine but should have a "fining schedule" that defines the rate of fine and what is finable. Otherwise, what other legal measures do you think or can they do?

Former HOA President
TimB4 (Tennessee)
Posts: 21,061
Posted:
see:

What HOAs Should Know About Covenant Enforcement from a MC

Subdivisions With No HOA Can Still Have Covenants, But Who’s to Enforce Them? from a real estate company also applies if the HOA won't enforce

What Happens When HOA Rules Are Not Enforced? what they fail to mention is that the member can also enforce against the violation.

NOTES: Associations may not be required to enforce (varies by State and Association).
However, when they enforce, they must take action against all violators - not just the one.

Members, similar to Associations, also have the authority to enforce but do not have to if they choose not to.
Members may enforce against one without having to enforce against all.
DeanJ
Posts: 1,786
Posted:
When a board enacts rules, the rules have to be reasonable. When the declaration provides a prohibition, the declaration has to be enforced.

A declaration section stating no motorhomes may be parked on the property means no motorhomes, , not you can park it there for 2 days.
JoeN6 (Virginia)
Posts: 94
Posted:
Gordon , if you initiate action to compel the offender to comply be prepared for “ the HOA is not enforcing “and or ,” the existing HOA can’t guarantee compliance regarding the other lots to protect my property why should I comply”
MelissaP1 (Alabama)
Posts: 13,836
Posted:
You can't ASSUME a violation isn't being addressed. Just like Joe says... The response could be a big fat middle finger. Which then can require more legal action and expenses.

A HOA power of enforcement and what they can do is in their documents. Some HOA's have the power to fine but lack the definition of what for or how much. That is why a "Fining schedule" should be in place with EVERY member knows. Example: Leaving trash can out over the weekend. $25 fine up to $100. If you HOA does not have the power to fine, then has to find other methods.

We had the ability to fix the issue and send the owner/member the bill. If they did not pay that bill, then we could place a lien for that amount. However, liens/foreclosures are otherwise for unpaid assessments not fines.

Former HOA President
MatthewS6 (Michigan)
Posts: 12
Posted:
Association-wide enforcement is a widespread issue that impacts nearly all communities. Communities that have not historically enforced their rules struggle to get back on track. The path back from bad governance to good governance is to select the most wide-spread issues that are observable/documentable and adversely impact the community residents, then notify the community of the intent to enforce those specific issues and regularly evaluate the grounds so as to enforce the rules evenly. Targeting certain residents while ignoring others is both unfair and legally perilous for any Association. When the violations that the Association selected for enforcement are largely resolved, the Association then moves to another group of violations that require enforcement, but have not traditionally received the attention they warrant. Boards of Directors should have protocol in place for resident violation dispute hearings and legal escalation where is necessary. To directly answer your question, a Board of Directors that is supporting an environment of rule non-enforcement merits replacement. Consider running for a seat on your community's board and recruiting other like-minded people who can strike the desired balance between over and under-enforcement of the rules.

Thank you for raising this important issue. All the best going forward.
JimA19 (Georgia)
Posts: 54
Posted:
before you launch into a discussion on enforcement practices, take a serious look at the wording of the covenants, some (in our HOA) leave leave much to opinion (ie in one person mind it is a violation in another's it is not.) and pursuing enforcement action in those cases, where they might progress to court, will get you a repremand from the judge to tighten up your covenants.
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By JimA19 on 01/06/2024 10:20 AM
before you launch into a discussion on enforcement practices, take a serious look at the wording of the covenants, some (in our HOA) leave leave much to opinion (ie in one person mind it is a violation in another's it is not.) and pursuing enforcement action in those cases, where they might progress to court, will get you a repremand from the judge to tighten up your covenants.
Not a chance. Judges simply dismiss a lawsuit brought to enforce covenants where the covenants are too vague or ambiguous.
AiG
Posts: 6
Posted:
I am catching on a little in the area of covenant enforcement, Ellen in Idaho.

It reminds me that one never wants to be the “interesting patient” when it comes to a discussion with a physician. Boring is the way to go.
Our minutes indicate that approximately 5 years back the Board of that time noticed that there wasn’t much of anything amongst all the governing paperwork about enforcement. The AC (architecture committee) remained under the yea or nay of the Declarant, there was wording about warnings followed by liens for dues but nothing at all regarding anything else. So they started a 2 year process to create what was missing. It was a lot of work it appears. All the homeowners were included in approving or disapproving a number of rewrites, until the task was completed. Then the Declarant changed his mind about supporting that endeavor. It was understood, per the minutes, that enforcement, if any, remained the domain of the Declarant. From that point on there were references from the Board asking homeowners to voluntarily follow the rules and adhere to the CCRs. The current President told myself and my spouse soon after we moved in that the Board has no power to enforce anything. Weirdly enough, they try it every so often anyway.

That is interesting.

Now it’s 2024 and our State passed a law in 2023 which says that covenants which have not been enforced for 8 years or more are no longer enforceable.

Before running for the Board I tried to present a 2019 State law specific to HOAs which would directly impact an action the Board was taking. However, the Board chose to pay for the services of the Declarant’s attorney to get their project through and the Declarant’s attorney’s opinion was that his Client’s interests would have precedence over the new State law. Since the Declarant’s interest and majority of the Board preferred the same outcome for the project they deemed it was unnecessary to communicate the law to the general membership. That knowledge may or may not have changed the outcome of the project, I can’t say. In casually speaking to a number of homeowners since the project was completed, it’s interesting that a good number of them think the outcome is the opposite of what the other half think they understand.

My simple ways would prefer that members all receive the same true information. If a project arises which requires a vote to occur, then the process, such as it is under Declarant-control happens and people can vote as they see fit.

ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By AiG on 01/06/2024 9:55 PM
Before running for the Board I tried to present a 2019 State law specific to HOAs which would directly impact an action the Board was taking. However, the Board chose to pay for the services of the Declarant’s attorney to get their project through and the Declarant’s attorney’s opinion was that his Client’s interests would have precedence over the new State law. Since the Declarant’s interest and majority of the Board preferred the same outcome for the project they deemed it was unnecessary to communicate the law to the general membership. That knowledge may or may not have changed the outcome of the project, I can’t say. In casually speaking to a number of homeowners since the project was completed, it’s interesting that a good number of them think the outcome is the opposite of what the other half think they understand.

My simple ways would prefer that members all receive the same true information. If a project arises which requires a vote to occur, then the process, such as it is under Declarant-control happens and people can vote as they see fit.
Respectfully, I think you need to get away from all this philosophizing.

I do not know if the Declant's attorney pulled a fast one or what. I can say that law students have it drilled into them that "the law is what the courts say tomorrow, and if you intend to make a living from the law, you will not forget this."

Your real enemy is not the challenge of trying to absorb all the obligations the board has under the bylaws, declaration and state nonprofit corporation act. The challenge is trying to get mere volunteers (post-declarant) to at least want to try to be by the book. For the most part, they will not do it. It is hard to blame them.

If the stakes get high on a particular issue, then the time may have arrived to nail the board to the wall with statute, declaration and bylaw sections. Probably with an attorney in tow.
TerriS6 (California)
Posts: 3,284
Posted:
Quote:
Posted By CathyA3 on 01/03/2024 11:00 AM
First, a warning: if you're not on the board and enforcement actions must be treated confidentially in your state, you have no way of knowing what sorts of actions were taken or not taken. To anyone not involved, a violation that is being ignored by the board can look exactly like one that the homeowner refuses to correct.

What can you do?

First off, many states allow individual owners to enforce the covenants themselves by filing lawsuits against the offending person. Obviously this can get expensive, so it's a good idea to pick your battles.

Which brings me to the board. Enforcing covenants is tough, and frankly the board has few weapons against a stubborn owner. There are fines, assuming your governing documents allow them. But what happens if the owner also refuses to pay the fine? In many states, an HOA can't foreclose based on fines, which means that the board is left with filing a lien and hoping the offender sells the home, or they take legal action. As noted above, this can get expensive. And I can guarantee that there will be homeowners who would be outraged over assessment increases to pay for something as trivial (in their minds) as a neighbor not obeying the rules.

The real solution is to find like-minded neighbors and get yourselves elected to the board. Then the ball will be in your court and you'll be able to decide how to deal with issues like this.


In California, fines can't become a lien.
AiG1 (Montana)
Posts: 3
Posted:
Thank you for the advice on not philosophizing. Noted.

The reasons I know details include:

Board members communicated them to me directly;
I was instructed to speak to the attorney at HOA expense and did so
Attorney said he disclosed his conflict of interest in writing and it was signed; 2 Board members deny this; I do not have proof of who is telling the truth.

AiG1 (Montana)
Posts: 3
Posted:
Thank you and I agree with the confidentiality aspect.

A problem is that one or more of the Board does not abide by it. For example, a neighbor emailed in a complaint, I received an email stating that a complaint was made and asking me to comply with rules. I was surprised, asked what the process would be to investigate the claim and was told "we don't investigate", talk to your neighbor, name given. My understanding is that once a complaint has been acted upon, the Board decided I was to be given a warning, then it becomes an issue between the HOA and myself. I could have guessed who the neighbor was and been either wrong or right.

As to election to the Board, did that. Greater access yes. Changes would be a long haul as 3 stick together to uphold the status quo.
Add general member apathy. I then get to decide if my personal investment to improve how things are done is worth the costs.

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