Definition of "Reasonable"

The BOD of my Association (in Georgia) is thinking about imposing new fines on homeowners the ensure compliance with the ACC rules. In short, they would like to impose a $25 per day fine for any violation starting on the 10th day after the homeowner is notified of the violation (this would be the second violation). The fine would not stop accruing until the homeowner not only corrected the issue, which could be simply mowing the lawn, but notified the management company which then notified the board. A third violation would cause the fines to start accruing on day 1.

I worry that this may be seen as "unreasonable" which our current CC&R states is acceptable and permissible.

I'd like to got some other opinions before we move forward with this.

Thanks.

J.

Donna,

Thanks for your reply. This provision would have no limit...I'm not sure of the applicable Georgia law as we have not consulted the HOA lawyer yet.

As for ignoring them...I'm not really sure any homeowner can afford to ignore any fine because of the threat of foreclosure or a lawsuit (again, not sure if we have that right...it isn't in our original CC&R so I'm guessing not)

How "hard" would you hit them? Just asking...if there were no limits? My feeling is that an HOA is there to ensure the value of the property for all the members. As long as the homeowner is in good standing (has paid all dues and previous fines, if any) and complies when a violation is pointed out I don't see a need for a fine at all over something like cutting the grass. Sure, it is a pain for us to remind the homeowner of their duty but it probably won't raise their ire or lead to possible legal action whereas a fine would. Especially when it comes to a continual maintenance issue like a growing lawn. For something like rotting wood, cracking driveway, chipping paint I can see someone ignoring the "reminder" and then having to fine them and I would agree there that the fine should be relatively stiff.

Maybe I'm just being naive here.

J.

I don't find the amount of money to be unreasonable. But I do find the provision that the fine continues while management notifies the Board to be unreasonable. I also think that could cost you a lot in a court case. Especially if a resident notifies management on Friday and you fine through Monday (or later because of some failed communication).

I think you would be much better served if the clock pauses at time of notification (always giving reasonable doubt to the owner). Management can then go verify the situation has been corrected. If not, then it is as if the clock never stopped.

Well, no..._I_ wouldn't. The other board members, the head of the ACC mostly, is pushing for this. Personally, I don't like it and was wondering what other people thought just to see if I am in the minority or majority.

I agree...a lawn issue is kind of minor in comparison but I've been told that we have to enforce the same fine for all ACC violations no matter the size. We can't, I'm not sure why, have a sliding scale or different fines for different offenses. If someone violates the ACC, be it an unmowed lawn or the building of a new facade on the front of their house painted purple with pink dots, the fine has to be the same.

I don't agree with that either but I'm in the minority or so I'm told.

J.

Wow, a late fee that is 50% of the assessment fee is standard! That's a new one on me. AZ state law limits ". . .charges for the late payment of assessments. . .to the greater of $15 or 10% of the amount of the unpaid assessment." My assn fees are $115/qtr and the late fee is $5.

Jonathan,

The only limits would be if specified in your docs or state law. Of course, if the assn charged exhorbitant fees and were challenged in court they may lose. However, unless limited by law they can pretty much charge what they please. Now if they charge interest, I believe there may be statutory limits on that -- check your state laws.