Treating Fines as Assessments

A question has come up in our South Carolina POA about whether we can treat fines for rule violations the same as assessments and special assessments. Our governing documents state that fines are considered assessments and are subject to the same collection procedures (e.g. liens on property). One Board member is questioning this provision of our Bylaws and stating that this is illegal. We are trying to research this and haven't found any definitive answer. Would appreciate advice from anyone knowledgeable on South Carolina law.

REB

Rob gives sound advise especially when you imply only one person on the BOD "thinks" that way. Let them show/prove otherwise.

Also you said your CC&R's state that fines will be treated as assessments so does this not mean all agreed to such when they signed them, even the BOD Member that now does not agree?

Each state can be different. A majority of the states do not allow fines to be the basis of foreclosures/liens. You have to put fines in perspective of what they are. Plus the HOA must have a set fining schedule in place and understood by the owners before fines can even begin to be enforced.

A fine is like a "speeding ticket". You get one when you are doing something wrong and need correction/punishment. It's NOT a required payment and one that can be avoided. Dues/Special Assessments are required payments and not given out to individuals. This is why fines are different than the dues/special assessments.

Make sure your HOA has a fine schedule. Consult a lawyer and ask what your state allows to be the basis for a lien.