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JeffT (Maryland)
Posts: 83
Posted:
Question:
Does anybody think that the our HOA has the right to place a fine on a per month basis IE. $50 per month until violation is remediated, or should the fine just be $50 then accumulate late charges and interest?

The board has the power to implement fines:
" Adopt and publish rules and regulations governing the use of the common areas, I
recreational facilities and the Lots and the personal conduct of the members and their family members and guests thereon, and to establish reasonable penalties for the infraction of said rules and regulations, the Declaration and these By-Laws, including the imposition of monetary lines which, once imposed. shall become a continuing lien upon the Lot and shall be collectible in the same manner as an assessment."

Here is what is says about collection and late fees:

"As more fully provided in the Declaration, each member is obligated to pay to the Association annual and special assessments which are secured by a continuing lien upon the property against which the assessment is made. Any assessments which are not paid when due shall be delinquent. If the assessment is not paid within thirty (30) days after the due date, the assessment shall bear interest irom the date of delinquency at the highest rate allowed by law. lf no maximum rate is established by law, said interest shall be computed at eighteen percent ‘• (18%) per annum. The Association may bring an action at law against the record owner personally obligated to pay assessments or may foreclose the lien against the property, and all interest, costs and reasonable attorney’s fees incurred in any such suit or foreclosure action shall be added to the amount of such assessment. Any delinquency which has continued for at least fifteen (15) days shall also be charged a late fee of titteen dollars ($15,00) or one tenth (1/10) of the total amount of any delinquent assessment or installment, whichever is greater, or such greater amounts as may be provided for by the Maryland Homeowners Association Act (the "Act"). A late fee shall only be imposed once for the same delinquent payment. Upon default in the payment of one or more assessment installments, the entire balance ofthe annual assessment may be accelerated and declared due and payable in full by the mailing of notice to such effect to the defaulting Lot owner by the Board or the Managing Agent in accordance with the Act. No record owner may waive or otherwise escape liability for the assessments provided for herein by non•use of the common areas or abandonment of his Lot."
JohnO6 (Georgia)
Posts: 424
Posted:
Your HOA should have that right. Don't get all caught up in the verbage about interest, penalties, yada, yada yada.

Check your governing documents to ensure that fines fall within the definition of "assessments" - usually they do.

Assuming this to be the case for your HOA, then the recurring fine is a recurring assessment.
KirkW1 (Texas)
Posts: 1,665
Posted:
I see no reason for the fines not to be assessed on a monthly basis if there is continuing non-compliance. If you fail to register your car you can be given a ticket. And in fact, you could receive a second ticket on the very same trip by another officer. Both tickets will be valid.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Jeff,

Your CCRs are quite explicit in stating a $15 penalty can be imposed only one time on a delinquent assessment. However, I see no reason why a penaly/fine cannot be imposed each month for a CCR violation. The article you posted which gives the BOD the power to make rules regarding fines and penalties has no restrictions on this.
KirkW1 (Texas)
Posts: 1,665
Posted:
I don't see anything indicating that a fine may only be imposed once.

Many times fines are imposed on a daily basis until the violation is rectified. For what it is worth, I think the time between fines should vary according to the ability to correct the problem. For instance, if the problem was too many weeds, then I would be inclined to impose the fine for each month weeds were not addressed. Being reasonable (whatever that means to me) I would not expect all weeds to be gone in the month, but rather look for improvement.

But if the problem is something more readily corrected (say a trash can in the front drive), then a daily fine seems in order. After all, the offender simply needs to wheel the thing out of the driveway.
JeffT (Maryland)
Posts: 83
Posted:
Since I have been tasked with writing or enhancing the rules, regs, arch. guidelines, I have put into my document a two tier fine.
1) A month per month fine for things that need that may take a little time to do or are costly- repair steps, repair or replace rotten fence.

2) A daily fine for what I call conduct violations - taking the trash out on the wrong day, playing loud music or excessive noise.

Note that all fines carry a probation period. Basically if the member clears up the violation within a min of 10 days as allowed in the by-laws then there is no fine but the probationary period means the violation is still in effect and if they commit the same violation the the violation process is picked up at he time it was left off at.
DonnaS (Tennessee)
Posts: 5,671
Posted:

Jeff,
In Florida, HOA's have the right to fine daily up to a maximum of $1000.00 per violation so dragging fines out to monthlys, you will never get corrections or non compliances handled in a timely matter. Just my opinion.
JeffT (Maryland)
Posts: 83
Posted:
I agree that it hard to get collection if it monthly. My opinion is that everyone should keep up their property and be forced to if they do not. Replacing a fence or a concrete porch and such takes time and can be expensive. So we allow them a little time. If the violation isn't completed in the allotted time the fines will accumulate until in compliance. If the fines get to $500 then it goes to a lawyer for collection. The lawyer has a good collection record for us. We get our fine money and he collects his fees from the violator. We have just started working with this lawyer recently, before I became a board member. So maybe a year track record.

Our problem is that the board has let things go for years and now we have to start getting the community in line without being the Nazi board.

Besides, when faced with a violation, most will comply. Most people want our community to look good. It's just some need a nudge to quit putting things off.

Conduct behavior I have no sympathy for. Hit them each day.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Jeff,

When a past board has been lax with enforcement of CCR violations and now the new board wants to step up the enforcement agenda, I think it's a good idea to inform the members. Let them know that CCR violations will no longer go unchecked; notices will be mailed and fines will be levied if the violations are not cured w/i the time period specified. The board may also want to review their fine schedule and perhaps make some changes. Send this fine schedule (whether amended or not) along with the letter. Nothing wrong with giving the members a "heads up" and it may also serve to promote good will w/i the community.

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