Can an HOA lien a property for unpaid fines in CA

Our Board sends out fine letters incorporating language that if a homeowner does not pay the fine, the HOA will file a lien on the homeowner's property. It was my understanding the only time an HOA can lien a homeowner's property in the state of California is for unpaid dues. Am I correct? What governing code would cover lien rights by HOAs. Also, do HOAs have the right of offset, i.e. if your receive a fine and you don't pay the fine, can they offset your dues you paid to pay the fine?

Thanks

CR

Cherie the section you are looking for is: Civil Code §1367.1. Notice of Lien; Priority of Payments; Payment Under Protest; Monetary Penalties. The way I read the statute they cannot lien against the fine but can for late charges and interest. I suggest you go to http://www.davis-stirling.com it is a website run by a law firm with excellent searchable entries. Do you have a copy of the HOA's collection policy and does it say how they apply payments? If not request it ASAP they are required to provide it.

CherieR1 - From an accounting perspective, I'm not sure why you would offset dues? Dues are receivables to cover payables (expenses). I'm also not sure how you resolve NOT showing a balance due on the dues if you use a portion of what was paid to offset a fine. We all here encourage owners to pay their dues regardless. IMHO, use the dues to cover the dues, and keep on letting the fines accrue until paid.

Gerald it's wise to know just how the money will be applied, there have been too many instances where someone has paid their assessment but for whatever reason not paid a fine or interest and had the money applied first to the fine. Ohio even spelled out the order that monies would be applied in a COA. As you can see dues are the last thing the money is applied to:
5311.18
(2) Unless otherwise provided by the declaration, the bylaws, or the rules of the unit owners association, the association shall credit payments made by a unit owner for the expenses described in divisions (A)(1)(a) and (b) of this section in the following order of priority:

(a) First, to interest owed to the association;

(b) Second, to administrative late fees owed to the association;

(c) Third, to collection costs, attorney’s fees, and paralegal fees incurred by the association;

(d) Fourth, to the principal amounts the unit owner owes to the association for the common expenses or penalty assessments chargeable against the unit.

Gerald hence my suggestion that she visit www.davis-stirling.com and asked the question: Do you have a copy of the HOA's collection policy and does it say how they apply payments?

Do you even read the posts before you reply?

You posted: I'm also not sure how you resolve NOT showing a balance due on the dues if you use a portion of what was paid to offset a fine. We all here encourage owners to pay their dues regardless. IMHO, use the dues to cover the dues, and keep on letting the fines accrue until paid.

And I gave an example as to why it was important to know exactly how any monies that were received were applied. I told the OP exactly where to find the information she was seeking for California; however we have people lurking here from all over the country and what applies to her might not to someone from say New Jersey or Idaho or Nebraska or pick a state so it was a generic warning to everyone to know their HOA's collection policy.

GlenL - Yes I read the posts including mine. Sorry to have posted to this subject of which you seem to have taken a territorial response to. I'm well aware of what applies to me in NJ might not apply to Cheri in California. My post that you've copied and pasted is basically a question, and an opinion (IMHO). It was you that posted your procedure in your association. You posted, "As you can see dues are the last thing the money is applied to". When you post things like, "As you can see" it means you are trying to prove some kind of point. Of which there may be none. All fine and good to see how things are done in Ohio, but may be irrelevant to California.

I understand the importance of paying dues and fines on time. In my 10 plus years of living in associations, I've never been fined, nor ever been late with a dues payment.

It's in no one's best interests to place a lien on a home. Especially in today's market. Regardless of ability to do so, there is something inherently wrong with the practice of adopting an accounting procedure that creates an opportunity to lien. In other words, for an owner's account where there are collection costs, fines, etc. the maintenance payment is applied towards everything but the dues first.

Exactly, Kirk. I'm not sure what "today's market" has to do with it. If anything, I think it's very wise to take whatever steps, "in today's market," that may be necessary to protect the HOAs interests.

We can place a lien, and still try to work out payment plans, etc., with the resident if we need to. We simply release the lien when the payment plan is over and all the outstanding balance is received. But, if something goes wonky, we will still at least have a lien to fall back on if need be.

hmm.

How can they start the foreclosure process if they don't lien first?

Or is that what you are saying?

Liens don't always end in foreclosure.

We've never foreclosed. I can't imagine we'd ever foreclose.

I am the President of our HOA of a custom home community in California. I have been very active in the re-drafting of our documents. On this subject I have have discovered that you can lien a home with outstanding fines, but you can not foreclose on a home if the fines are not paid. You can only foreclose on assessments, which include dues, I believe that are overdue by 180 days or $1800. I would have to review the time and amount to be certain but they are in the ball park.

"All you can do to collect those is obtain a judgment so collection can be made when the home sells." You missed a step Mary: They must lien the judgment in order to collect on it when the home sells.

CA law does not allow foreclosure for fines. Lein and collect the fine at sale.
Jane

Mary How could they place a lien before a judgment? That would be a false lien and subject to $5,000 fine. I said you must lien the judgment before they can collect at sale. The title company would then pick up the lien and withhold the funds. Your comment was to get a judgment and then collect at sale - with no mention of having to file a lien on that judgment.