Fine Letter

Our HOA does monthly inspections of the subdivision and when violations are found, we send out a violation letter requesting that the violation be corrected. We say in the letter that if the violation is not corrected it could result in a fine. If the violation still exist at the next inspection we send out a letter that states basically we are fining you. It is my opinion that the fine letter is wrong. Here is what the CCRs state:

“In addition to the foregoing, the Association shall be entitled to impose a monetary penalty, not to exceed the sum of $25.00 per day, against an owner who has caused or permitted a violation of any of the restrictions, conditions or covenants contained herein, provided that the Owner is given 15 days advance written notice of the proposed monetary penalty and a timely opportunity to be heard on the matter.”

My read is that we have to tell the owner we are going to fine them $XX/Day starting in 15 days from a certain date.

Agree or disagree?

Thanks
Art

Arthur - what is "timely"?

DonnaS,

Thanks for the reply. This may help you:

“The opportunity to be heard may, at the election of such Owner, be oral or in writing. The notice shall be given personally to such owner or sent by first class or certified mail to the last known address of Such owner as shown in the records of the Association and shall state the place, date and time of the hearing.”

This was another area I was looking at pretty hard. This one was getting me a little confused. Can we start fining after 15 days but we must hold a hearing with the owner within those 15 days or is it up to the owners to request the hearing? I tend to think it is up to the owner to request the hearing.

By the way, the hearing is held by the BOD.

Art

After posting this topic I realized I should have copies of letters the PMC sent to homeowners. We just started running the show less than 6 months ago. You would think the PMC would do it right. Anyway, here is an excerpt from their letter:

“You will have 15 days from the date from this letter to remedy the violation. If the concern is not remedied a fine in the amount of $25.00 per day will be assessed against your property starting from the 16th day.”

No indication of a right to a hearing. Are they following the rules correctly? You would hope so as that is their job and they do have legal advice. Still wouldn't go to the bank with it.

Art

"We just started running the show less than 6 months ago. You would think the PMC would do it right." That is a common misconception. Is this the same PM used by the developer? It is never a good idea to retain the same PM as the developer used. Do a search here for past threads showing nothing but trouble by keeping the developer's PM after transition.
You need to interview and hire a PM that will do want YOU want them to do and know and follow your rules and state laws. From the quoted letter your PM sent, they are not even following the requirements of your CC&Rs, much less due process. This is a lawsuit waiting to happen. Harold

Arthur:

What the PM letter should have stated is that; if within the 15-days the problem is not corrected the possible imposition of fines could accrue.

Every state allows the Owner the opportunity to be heard before the executive board before fines can be assessed. If the Owner does not show at the hearing, it does not negate the fact that the board can still proceed with their decision of fining. The Hearing Notice should be specific in explaining this to them.

After the hearing a "Decision of Hearing" notice should be sent to the Owner (show or no show) explaining the board's decision. Document, document, document! Remember the fine should fit the crime.

Arthur:

You wouldn't like NC then. The NCPCA allow up to $100.00 per day per violation. That's why I said let the fine fit the crime.

Donna,

We are trying to find the ground between outrageous and too little.

Art