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RonM19 (Texas)
Posts: 41
Posted:
A few years ago, the Texas legislature passed a bill requiring that HOAs include, in their governing documents, information about fines. They are required to include a list of all offenses which could incur fines, the amounts of the fines, and the procedures for contesting or appealing them.

Our lethargic, do-nothing HOA board has never implemented this legislation, despite the repeated requests of several of the more responsible residents. At this moment, our governing documents still contain NO mention of fines, fine-able violations, or anything of the sort, although it does contain typical restrictions on things like fence heights, yard maintenance, building materials, prohibited activities, etc.

That being the case, can the board legally fine someone for an offense, such as not keeping a yard up, parking a boat in the street, painting a house green with pink polka dots, or any other violation? To think about it, does the board have any authority at ALL?

Thanks
JohnC46 (South Carolina)
Posts: 14,265
Posted:
I say there must be the ability to fine in your docs. Assuming there is, then there must be a published fining schedule.
RonM19 (Texas)
Posts: 41
Posted:
Quote:
Posted By JohnC46 on 07/01/2024 1:05 PM
I say there must be the ability to fine in your docs. Assuming there is, then there must be a published fining schedule.

There isn't, except for the usual boilerplate language about collecting overdue annual assessments. So, for example, if chain link fences were disallowed, and a resident built one anyway, could the board issue a fine, or would they have to just eat it?
TerriS6 (California)
Posts: 3,284
Posted:
Usually they can’t fine without a matching adopted rule and a published fine schedule.
MarkM19 (Texas)
Posts: 1,459
Posted:
Ron,
We are left to take your word on your CC&Rs and By Laws. In most documents they have a very generic section on violations that just state the first offense is a warning letter and then another and after the third offense the fine is issued. Are you saying you see none of that mentioned?

How many Homes or Condos in your association?

Are you still under developer control?

How many members are on your board?
RonM19 (Texas)
Posts: 41
Posted:
Quote:
Posted By MarkM19 on 07/01/2024 2:27 PM
Ron,
We are left to take your word on your CC&Rs and By Laws. In most documents they have a very generic section on violations that just state the first offense is a warning letter and then another and after the third offense the fine is issued. Are you saying you see none of that mentioned?

How many Homes or Condos in your association?

Are you still under developer control?

How many members are on your board?

I've gone through our CCRs and ByLaws with a fine toothed comb. There is no such language. There are 33 lots in our HOA. About 15 homes; several people have 2 lots, some have 3. We're not under developer control. The developer was a California scam artist who sold the lots to people in CA as an investment in 2006, then ran off with their money in a Ponzi scheme. In the middle of his bankruptcy trial in 2012, he committed suicide. Our CCRs are an artifact of that period. The first house was built out here in 2019.

There are 2 members on the board. There were 3 (I was one of them), but I resigned a few months ago, tired of beating my head against the wall, leaving just 2. I didn't have the patience or motivation to run around with my tongue hanging out trying to be a "one-man HOA." We haven't had a quarterly board meeting in over a year now.

We have a few new residents, however, and some of them are anxious about following the rules, having read the horror stories about HOAs elsewhere in the country. They have no idea what's going on here.

Anyway, I'm trying to get a comprehensive picture of just how much authority our so-called "board" really has.
MarkM19 (Texas)
Posts: 1,459
Posted:
Ron,
Hate to say it but a for sale sign might be the best suggestion I could give you. It sounds to me like violations and fines are the least of the HOAs troubles. Do you have owners who are breaking that many rules, and this is why you bring this issue up?

Most HOA documents are mostly cut and pasted from developers last community with name changes. Have you looked into an HOA attorney that can create or get his hands on one of those documents?

Lots of work to make it right. I am not even close to being a lawyer, but it may be worth asking the question would it be easier to dissolve the HOA than try to rebuild it. We have a contributor named EllN who make be able to make some sense of your issues.
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By RonM19 on 07/01/2024 1:01 PM
A few years ago, the Texas legislature passed a bill requiring that HOAs include, in their governing documents, information about fines. They are required to include a list of all offenses which could incur fines, the amounts of the fines, and the procedures for contesting or appealing them.

Our lethargic, do-nothing HOA board has never implemented this legislation, despite the repeated requests of several of the more responsible residents. At this moment, our governing documents still contain NO mention of fines, fine-able violations

Quote:
Posted By RonM19 on 07/01/2024 1:10 PM
Posted By JohnC46 on 07/01/2024 1:05 PM
I say there must be the ability to fine in your docs. Assuming there is, then there must be a published fining schedule.


There isn't
You are mistaken about what the law requires. Texas statute TPC 209 says that information about fines must appear in the governing documents only if the association's "dedicatory instrument" authorizes fines.

Are you unable to do a keyword search of TPC 209 for the word "fine"?
ElleN (Idaho)
Posts: 4,420
Posted:
Can a hoa in texas fine members?

AI answer:
Yes, a homeowners' association (HOA) in Texas can fine a parcel owner who violates its regulations if the association's governing documents grant the board the authority to do so. Some governing documents explicitly state this authority, while others may only imply it. If the governing documents don't include provisions for fines, they can be amended.

Once the authority to fine is granted, the HOA must develop an enforcement policy and make it available to property owners. This policy should outline the fines that can be levied for each category of violation, and include a fine timetable. The HOA must make the policy available online or provide copies to property owners by mail, email, or hand delivery.

When deciding how much to fine someone, it's important to avoid setting the amount too low or too high. A good range is between $25 and $50 per violation.


This AI answer is pure applesauce (cr-p). Why?
TerriS6 (California)
Posts: 3,284
Posted:
Quote:
Posted By ElleN on 07/01/2024 5:46 PM
Can a hoa in texas fine members?

AI answer:
Yes, a homeowners' association (HOA) in Texas can fine a parcel owner who violates its regulations if the association's governing documents grant the board the authority to do so. Some governing documents explicitly state this authority, while others may only imply it. If the governing documents don't include provisions for fines, they can be amended.

Once the authority to fine is granted, the HOA must develop an enforcement policy and make it available to property owners. This policy should outline the fines that can be levied for each category of violation, and include a fine timetable. The HOA must make the policy available online or provide copies to property owners by mail, email, or hand delivery.

When deciding how much to fine someone, it's important to avoid setting the amount too low or too high. A good range is between $25 and $50 per violation.


This AI answer is pure applesauce (cr-p). Why?

This forum does not permit non-human contributions pretending to be human.
CathyA3 (Ohio)
Posts: 6,299
Posted:
Quote:
Posted By TerriS6 on 07/01/2024 7:35 PM
Posted By ElleN on 07/01/2024 5:46 PM
Can a hoa in texas fine members?

AI answer:
Yes, a homeowners' association (HOA) in Texas can fine a parcel owner who violates its regulations if the association's governing documents grant the board the authority to do so. Some governing documents explicitly state this authority, while others may only imply it. If the governing documents don't include provisions for fines, they can be amended.

Once the authority to fine is granted, the HOA must develop an enforcement policy and make it available to property owners. This policy should outline the fines that can be levied for each category of violation, and include a fine timetable. The HOA must make the policy available online or provide copies to property owners by mail, email, or hand delivery.

When deciding how much to fine someone, it's important to avoid setting the amount too low or too high. A good range is between $25 and $50 per violation.


This AI answer is pure applesauce (cr-p). Why?


This forum does not permit non-human contributions pretending to be human.

Where does it say this in the posting rules?

ElleN's answer was clearly labeled as produced by AI, so the alert reader can judge whether or not to put any faith in the accuracy of the information. Unfortunately so much of what we see on the internet is AI-generated. I vaguely remember reading that Google's search results are now generated in part or in total by AI - which means that our consensus of "reality" is now in the hands of a private, for-profit entity that nobody has appointed to this position. We're doomed.

Back to the original question...

I've never seen CC&Rs that spell out fining offenses specifically and in detail. Instead CC&Rs will usually have sections that address two different things: covenants (you must do this) and restrictions (you must not do this). They also often give the board the right to impose fines for failures to abide by the terms of the CC&Rs, and then it's left up to the board to develop and adopt a fining schedule that fleshes things out.

Putting this level of detail in CC&Rs would be inadvisable. The amendment process would be onerous, and the level of detail would make approval less likely. Increasing complexity also increases the odds of ending up with inconsistent and mutually exclusive requirements. Communities also could find themselves handcuffed by CC&Rs that regulate everything they do.

Heaven save us from lawmakers with good intentions....

TerriS6 (California)
Posts: 3,284
Posted:
Non human posters are supposed to be prevented from entering this site.
MarshallT (New York)
Posts: 414
Posted:
If it's not in writing, it cannot be legally enforced. The board should know that, too. So it could issues fines, but legally, the recipient would not have to pay the fine.
RonM19 (Texas)
Posts: 41
Posted:
You are mistaken about what the law requires. Texas statute TPC 209 says that information about fines must appear in the governing documents only if the association's "dedicatory instrument" authorizes fines.


Interesting, you're correct. There is absolutely nothing in our documents that "authorizes fines." The only thing I can find is in a "policies" document. It contains a table (attached) that states after 30-60 days, if a homeowner hasn't corrected a violation, it's referred to the attorney for resolution in the courts. Again, no mention of fines. So... as TPC 209 is written, then, it seems that the requirement doesn't apply. That pretty well answers my question.

But that being said, we're sort of back where we started; the only way the HOA can enforce any violation of the CCRs is by going through the attorney ($$$$$), the courts, etc. I can't see that happening because somebody parked a boat in their driveway, or has 4 dogs instead of the 3-dog limit.
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By RonM19 on 07/02/2024 7:43 AM

But that being said, we're sort of back where we started; the only way the HOA can enforce any violation of the CCRs is by going through the attorney ($$$$$), the courts, etc. I can't see that happening because somebody parked a boat in their driveway, or has 4 dogs instead of the 3-dog limit.
I agree.

I realize you have one foot out the door (understandably). But if you are going to stick around, consider amending the Declaration or maybe, Bylaws. Amending the Declaration is far better.

This particular Texas topic ("when can a HOA fine?") has some finer points. But in the interests of brevity, I am going to leave these alone until someone else starts probing more and maybe ends up at the wrong place.
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By ElleN on 07/02/2024 8:27 AM
But if you are going to stick around, consider amending the Declaration
I meant to say: "consider lobbying owners to amend the Declaration, with the board's support... "
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By CathyA3 on 07/02/2024 4:30 AM

ElleN's answer was clearly labeled as produced by AI, so the alert reader can judge whether or not to put any faith in the accuracy of the information. Unfortunately so much of what we see on the internet is AI-generated. I vaguely remember reading that Google's search results are now generated in part or in total by AI - which means that our consensus of "reality" is now in the hands of a private, for-profit entity that nobody has appointed to this position. We're doomed.
-- I agree. We are doomed.

-- If enough people or even bots put up enough misinformation on topic XYZ on the internet, then the subsequent AI responses will include the misinformation.

-- I wish the HOATalk.com site rules would say "Posting of AI answers is not allowed, except to point out not to rely on AI." But this is not really all that enforceable. Who will stop someone from posting a well-written AI response, with blatant substantive errors even, where the poster does not indicate AI generated the response?

-- I do continue to feel that AI can help people improve their writing (though not fact finding).
TimB4 (Tennessee)
Posts: 21,059
Posted:
A legal case was tried over this issue in VA (Farran vs. Belhaven) in 2010.

Per the court, the Association exceeded their authority by issuing monetary penalties because the CC&Rs specifically stated enforcement was through a court of law or equity.

I've posted about this in the past. If the file isn't too big, I've attached a copy of the opinion.

The resulting ruling forced the Association into bankruptcy, receivership and selling of some of their common area.
πŸ“Ž Attachments (1):

⏸ Downloads temporarily unavailable

πŸ“„172432825871.pdf(303 KB)
KerryL1 (California)
Posts: 14,550
Posted:
Are you sure, Ron, tt your have all of your governing document?? These would include -- in order of their authority -- your CC&Rs, aka Covenants, Conditions and Restrictions, or "Declaration," or "Deed Restrictions." Next, your Articles of Incorporation or Certificate of Formation. I don't. know TX.lingo.

Next your Bylaws, which I believe you must have if you are a corporation.
GregoryT1
Posts: 315
Posted:
Tim thanks for posting the legal doc. I did not know it was more about a rogue board and fining without rules to support it. Also circumnavigating process for the ARC.

Here is a Post article on it. It comes across of being more of the "sign" issue.

https://www.washingtonpost.com/local/2013/02/09/d46f9bec-6652-11e2-93e1-475791032daf_story.html
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By GregoryT1 on 07/08/2024 7:55 AM
Tim thanks for posting the legal doc. I did not know it was more about a rogue board and fining without rules to support it. Also circumnavigating process for the ARC.

Here is a Post article on it. It comes across of being more of the "sign" issue.

https://www.washingtonpost.com/local/2013/02/09/d46f9bec-6652-11e2-93e1-475791032daf_story.html

Yep, the sign was the proverbial stray.
However, it actually went back to making exterior changes without approval.

Unfortunately, as you saw in the article, it cost that Association dearly because a board thought they were right and their attorney (apparently) not telling them otherwise.
TimB4 (Tennessee)
Posts: 21,059
Posted:
correction -

proverbial straw
JohnC46 (South Carolina)
Posts: 14,265
Posted:
As Cathy wisely said:

Putting this level of detail in CC&Rs would be inadvisable. The amendment process would be onerous, and the level of detail would make approval less likely. Increasing complexity also increases the odds of ending up with inconsistent and mutually exclusive requirements. Communities also could find themselves handcuffed by CC&Rs that regulate everything they do.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By JohnC46 on 07/08/2024 1:56 PM
As Cathy wisely said:

Putting this level of detail in CC&Rs would be inadvisable. The amendment process would be onerous, and the level of detail would make approval less likely. Increasing complexity also increases the odds of ending up with inconsistent and mutually exclusive requirements. Communities also could find themselves handcuffed by CC&Rs that regulate everything they do.

I agree.

A simple - The board may impose monetary penalties for violations of the covenants, rules and regulations. is all that is needed in the covenants.
Failure to have this in the covenants can create a great risk if monetary penalties are imposed and challenged in the courts.

A policy resolution can satisfy the rest of the statute, identifying the amounts, etc. This can then also be easily changed as needed/desired.

I will note that my last association did not have this in their covenants. I always informed the board that I had zero issue with the threat of monetary penalties but I would not actually impose one. Our threats would be along the line - the board will impose a monetary penalty of $x until the issue is resolved. However, if the issue is resolved by mm/dd/yyyy the board would waive the penalty.

The threat worked every time it was used while I was on the board.
GregoryT1
Posts: 315
Posted:
Again thank Tim for posting a tactic for getting compliance to rules.

This really brings up a bigger question to this discussion board. Regardless of documented fines or no fines how do others get folks to comply to rules. Tim posted one tactic that he used. What other tactics have folks have done in the past for compliance other than fining. Ultimately that is what the fining is supposed to do is get compliance and prevention.

I do have fining rules but our condo is so tiny and pathetic is not a viable option. I would like to hear other success stories in how they went about getting this done. I think this will help others also and even the OP.

TimB4 (Tennessee)
Posts: 21,059
Posted:
If there is a rule being broken by many - perhaps that rule needs to be reviewed.

If there is a rule being broken by one - you only have a few choices:

1) If a renter, impose penalties on the owner in hopes that the issue will be resolved or the lease won't be renewed.
2) If an owner, impose penalties on the owner in hopes that the issue will be resolved.
3) See if the rule complies with a city/county requirement and have them enforce.
4) Consider legal action - (be careful, courts don't like cases that appear petty).

Typically, rules are imposed for safety reasons. I always explain the reason behind the rule in hopes of appealing to the individuals common sense and common courtesy.

Unfortunately, if none of these options work or are cost effective to utilize, you simply might have to live with the rule breaker until they leave.

Example: we have a member who is not cutting their lawn (over 2 feet in some areas). The County doesn't have a rule for this. We can not impose monetary penalties. We can not afford legal action and, even if we could, we don't want to be that HOA in front of the courts. Unfortunately, we simply have to live with it. We continually send out letters but that becomes less and less effective. Before anyone asks, we did offer to mow it for them and were refused.
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By GregoryT1 on 07/09/2024 6:44 AM
Again thank Tim for posting a tactic for getting compliance to rules.

This really brings up a bigger question to this discussion board. Regardless of documented fines or no fines how do others get folks to comply to rules. Tim posted one tactic that he used.
Given your recent other thread on "Legal Prudence," don't you think TimB4's former HOA's tactic throws one huge wrench into anyone believing "legal prudence" is black and white?

Is it legally prudent to lie to owners about imposing fines? One could argue it both ways.

In TimB4's real-life example, it is a chess move that I do not think can be trumped for the moment. But once owners figure out the board has never actually tried to collect a fine and does not intend to (because they are illegal where TimB4's former HOA is), problems may arise.
Quote:
Posted By GregoryT1 on 07/09/2024 6:44 AM
I do have fining rules but our condo is so tiny and pathetic is not a viable option. I would like to hear other success stories in how they went about getting this done.
AFAIC it's all about a board having backbone; believing the covenants are contractual terms; believing the board must act in the best interests of the HOA, pursuant to the covenants; and otherwise being emotion-less.

I grant it's not always black-and-white. Wisdom is needed. Only a good HOA attorney advising the HOA for many years can lay the fertile ground for this board wisdom. Sometimes it will not take root. It's a big ask to ask volunteer directors to become nearly as sharp as the best HOA attorneys. Yet that is what is asked of them.
KerryL1 (California)
Posts: 14,550
Posted:
An amendment to the C&Rs could work out OK IF a lot of owner would like a better-looking community. I think I'd just suggest one amendment to permit the board to have authority to fine.

Also. Gregory & others, many HOAs have a something in gov. documents, CC&Rs AND Bylaws in mine, that the Board can temporarily remove amenity privileges for violation of the rules. There, of course, have to be privileges worth removing. In my center city high rise, parking is scarce & expensive. We have secure Visitor Parking. The threat of that being removed form the owner is very effective.

You know, Gregory? IMO, your shift to "getting compliance", is far enough off of the OP that a new thread would be a fine idea.

GregoryT1
Posts: 315
Posted:
Kerry,

I agree. I will figure out a a heading and start a new thread.

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