what is the procedure for fines

Started by GloriaL • 8 replies • 1641 views

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GloriaL (Georgia)
Posts: 195

Posted:

We just had a BOD Mtg, and the subject of fines for CCR/R&R violations was discussed. Our HOA just opted into the GAPOA and now have the authority to fine but we don't know where to begin. At present when we have a violation, the BOD sends a "Covenant Violation Reminder" which gives the HO 7 days to remedy or we will begin a formal process. If not remedied, we send a "Covenant Violation Notice" which gives the HO 14 days to remedy per CCR, or have a hearing to refute, or present in writing a course of action with timeline to remedy. If not remedied, then our attorney will send a demand letter and the HO will be responsible for legal fees. So far, we have not had to get further than the second notice. We don't even know what happens if the attorney demand letter does not bring compliance.
My questions are:
How do you fit fines into the process?
Does anyone have a formal fine notice?
Have you found that fining is more beneficial than the demand letter from the attorney?
We are a small association of only 27 single family homes, with limited dollars for attorney fees to develop a letter, so I'd appreciate any/all your input.
Thanks,
Gloria

GlenL (Ohio)
Posts: 5,491

Posted:

Gloria I firmly believe that unless it is a major violation of the CC&R's like someone suddenly building a pool in their front yard; that the first letter should be a friendly reminder notice as if the infraction is accidental and ask them to be a good neighbor and correct the violation. Remember the whole point of the exercise is to get them to comply not to collect money and IMO 7 days is too short of a time frame, we give 14 days, a second violation of the same type within a year jumps to the violation letter. If the violation is not resolved by then they get a second letter with the notice of intent to fine, the appeals process and what the fine will be. We don't get the attorney involved until after the first two steps. But before you do anything you need to draft and approve a collection policy stating how matters will be handled and give it to all of the homeowners. You will also need to keep meticulous records on how all violations are handled to prevent an abuse of the process.

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GlenL (Ohio)
Posts: 5,491

Posted:

This is a violation notice I found on line if it helps:

From: XXXXXXXXX Board of Directors
COVENANT VIOLATION NOTICE

Dear ………………………..,

It is the obligation of the Board of Directors to ensure that each Homeowner in our Community is adhering to the Declaration of Covenants, Conditions and Restrictions (CC&R's) set forth in our Documents. Our Community is striving to continue to be a beautiful place in which to reside harmoniously with our neighbors. We are all bound to conform to the Articles of our Covenants.

We believe that you are a good neighbor and would not knowingly violate our CC&R’s. Please be advised that the following Covenant Violation exists:
The Violation falls under Article _____________, Section ______________ and is specified as:

_________________________________________________________________________________
______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

1. According to our Declaration, the Violation must be remedied within fourteen (14) days from the date of this notification.

2. You can also notify the Board of Directors at the address above in writing, or at any of the following contact numbers, of the course of action you intend to remedy the Violation, with a specific completion date (within that 14 days).

3. You also have the option of having a hearing before the Board of Directors to discuss or refute the specified Violation (within those 14 days).

Unfortunately, any Violation which goes unresolved or has not been addressed with the Board of Directors within 14 days will begin to accumulate a fine of $25.00 per day until the violation is corrected. If the violation is not remedied within 30 days once the fines begin the matter will be turned over to the Association's Attorney for legal action. The cost of legal action and all accumulated fines will be the obligation of the Homeowner.

We look forward to working together to in the continuing effort to keep our Community beautiful and protect the property values of all our neighbors’ homes. If you have any questions or concerns about the above matter, please do not hesitate to contact any of the BOD Members as listed below. The Board of Directors is in place to serve our Community.

XXXXXXXXXX Board of Directors:

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GloriaL (Georgia)
Posts: 195

Posted:

Glen, thanks so much for your quick reply.
You have hit the nail on the head, so to speak, in addressing my apprehension with our process. We have not had any major violations. They are typically not edging the lawn or having enough mulch in flower beds...nonsense items of the transient nature...which is why I hesitate to go to the attorney letter. It feels like swatting a fly with a sledgehammer.
Our procedure has worked so far because the items are so very, very minor and easily corrected...just mow your lawn or store your trash cans in the garage or throw down a couple of bails of pine straw. But these BOD Members see it differently, and I am getting tired of the battle of wills.
Now they want to start fines since we just recently got the authority to do so under the GAPOA. This brings my apprehension level up even higher. I also agree with you that the point of the letter is for compliance, and since we have gotten that with the present process, we have achieved our goals.
I guess I am seeking guidance on what to bring back to the BOD for our next meeting since the issue was tabled as the discussion got heated and went absolutely nowhere.
Also, meticulous record keeping has been an ongoing struggle for me as Secretary. This year I have gotten the BOD to agree that all letters to the HO with violations must go out from the BOD, so I have a hard copy for each HO, instead of from our Community Enhancement Committee. Sounds like that should be a no-brainer, but it took several BOD Mtg's to get even that procedure established.
I also agree that the policy needs to be given to the HO's before we start enforcement of fines. They were made aware of our two letter violation procedure.
I'd like to hear what some other fine policies are.
Thanks,
Gloria

GloriaL (Georgia)
Posts: 195

Posted:

Glen,
This looks pretty much like what we send out. The first notice says you have 7 days to remedy, or you will begin a formal process. The second letter gives them 14 days to remedy as under our CCR's, or contact the BOD with written course of action, or have a hearing to refute. If not remedied by the 14 days and second letter,then it goes to the attorney.
So where does fines fit in?
Would it be instead of an attorney letter the BOD starts fining on a per diem basis?
How is the $ amount settled? I believe it should be uniform for all violations.
Then meticulous recording is an absolute MUST.
It keeps getting more and more complicated...especially if we are addressing just edging around a couple of trees....

Quote:

Posted By GlenL on 08/19/2008 11:57 PM
This is a violation notice I found on line if it helps:

From: XXXXXXXXX Board of Directors
COVENANT VIOLATION NOTICE

Dear ………………………..,

It is the obligation of the Board of Directors to ensure that each Homeowner in our Community is adhering to the Declaration of Covenants, Conditions and Restrictions (CC&R's) set forth in our Documents. Our Community is striving to continue to be a beautiful place in which to reside harmoniously with our neighbors. We are all bound to conform to the Articles of our Covenants.

We believe that you are a good neighbor and would not knowingly violate our CC&R’s. Please be advised that the following Covenant Violation exists:
The Violation falls under Article _____________, Section ______________ and is specified as:

_________________________________________________________________________________
______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

1. According to our Declaration, the Violation must be remedied within fourteen (14) days from the date of this notification.

2. You can also notify the Board of Directors at the address above in writing, or at any of the following contact numbers, of the course of action you intend to remedy the Violation, with a specific completion date (within that 14 days).

3. You also have the option of having a hearing before the Board of Directors to discuss or refute the specified Violation (within those 14 days).

Unfortunately, any Violation which goes unresolved or has not been addressed with the Board of Directors within 14 days will begin to accumulate a fine of $25.00 per day until the violation is corrected. If the violation is not remedied within 30 days once the fines begin the matter will be turned over to the Association's Attorney for legal action. The cost of legal action and all accumulated fines will be the obligation of the Homeowner.

We look forward to working together to in the continuing effort to keep our Community beautiful and protect the property values of all our neighbors’ homes. If you have any questions or concerns about the above matter, please do not hesitate to contact any of the BOD Members as listed below. The Board of Directors is in place to serve our Community.

XXXXXXXXXX Board of Directors:

RW1 (Texas)
Posts: 149

Posted:

Seek legal council.

JeanneK3 (Maryland)
Posts: 562

Posted:

Gloria L: You didn't mention if your by-laws allowed fines. Do they? Because if they do not you need to change your by-laws to fine someone.

GloriaL (Georgia)
Posts: 195

Posted:

RW1 & Jeanne,
The BOD had decided at our Mtg, that we would seek legal counsel and we are putting together a list of questions to present...trying to watch the billing clock.
Our By-Laws and CCR's were just amended to opt our HOA into the GAPOA which gives the authority for fines.
I guess the scope of issuing fines, the meticulous daily records of remedied/unremedied violations, the development of the fine letter and $ amount seems enormous to me. We are only 27 homes with limited funds for legal and even more limited manpower for committees.
How has your Community dealt with fines and for what?

Thanks,
Gloria

MaryA1 (Arizona)
Posts: 7,043

Posted:

Gloria,

Both my former assn (49 homes) and my current assn (1701 homes) have a fine policy. The first letter gives a time to cure the violation and outlines what happens if not cured w/i that time frame (a fine of $$$ will be imposed) and also gives the member the opportunity to meet with the board to discuss the violation. The second letter is a notice of the fine being imposed. "If the violation is not cured by (state date) a fine of $$$$ per day will begin to accrue on (day after stated date). My current assn has a fine policy in addition to the collection policy, which is made available to all members.

AZ state law requires a member be given the opportunity to be heard b/4 a fine is imposed. State law also says if the member responds to the violation notice the assn must provide them with the following information:

1) the provision of the community docs that has allegedly been violated
2) the date of the violation or the date the violation was observed
3) the first and last name of the person or persons who observed the violation
4) the process the member must follow to contest the notice

Most assn's provide the info in 1), 2) and 4) in the initial letter.

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