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Subject: Fine System New HOA
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08/28/2006 9:51 PM  
Hello. Our Bylaws do not have a fine system in them. We want to hire an attorney to write up all of the wording to change our bylaws but we are looking for general fines that other's use.

We have a homeowner who refuses to comply and is trying to get others in the community to join in. We want to stop this prior to it getting out of hand. Without a fine system you can bark all you want but never bite.

Thank you for your help.



08/29/2006 6:49 AM  
Oure procedure is as follows:

1. Notice letter sent of violation.
2. Second notice letter sent stating they have 10 days to correct the problem or a fine of $25/day will incurr.
3. Third notice sent stating fining has started at $25/day and will continue until the problem is corrected. Also, if the fine is not paid, a lien will be filed against the property (we are in GA and can place a lien on an upaid fine).

The $25/day is stated in our documents.


08/29/2006 6:49 AM  
Betsy, your Declaration should provide the authority to establish fines and your By-laws should give the Board the power to establish fines. If this is established in both or either of these documents then you do not have to amend the By-laws. Fines and Rules and Regulations on delinquent assessments can often be established by a Board. The amount of the fine should be reasonable compared to the amount of the assessment but should be sufficient to encourage prompt payment. Following is an example:

Rules and Regulations on Delinquent Assessments

Assessments are delinquent when payment has not been received by the due date. A 10 day grace period is provided for receipt of payment after which the property is assessed a late charge of $10.00 per month.

Assessments may include, but are not limited to, the annual (regular) assessment, special assessments, late charges, interest, fees, fines, attorney fees, collection costs and court costs. All costs related to a delinquent account shall be assessed to the property and paid by the owner. The Declaration (Covenants) establishes that an assessment is a continuing lien upon the property and a personal obligation of the owner.

The annual assessment is determined by the Board of Directors as part of the annual budget. The annual budget is ratified, or vetoed, by homeowners at the annual meeting. If the members veto the budget, then the prior budget, including the annual assessment, remains in effect until a new budget is approved. The annual assessment may be paid on a quarterly basis with payments due on the first day of each quarter beginning January 1st, April 1st, July 1st, and October 1st. Assessment payments shall be applied to the oldest assessment first and progress toward the most recent assessment.

Statements may be provided by mail, e-mail, or coupons as a reminder to homeowners of the amount and due date of a quarterly assessment. Nevertheless, it is the responsibility of the homeowner to remember to pay by the due date even if a statement is not received. An owner may request consideration by the Board of Directors to defer payment due to extenuating circumstances.

An account delinquent over 10 days will be charged $10.00 each month it maintains a balance over $10.00. If a check is returned the account becomes delinquent plus there is a charge of $35.00 for the returned check.

An account delinquent over 70 days shall be provided a warning that a lien will be recorded on the property if payment is not received within 30 days.

An account delinquent over 100 days will have a lien filed with the Douglas County Clerk. The lien amount will include a filing charge of $100.

An account delinquent over 130 days shall be provided a warning that the account will be referred to an attorney for collection if not paid within 30 days.

The Association shall make a good faith effort to resolve disputes first with the Owner. If resolution is not reached the Association stands ready to go to binding Arbitration under the Uniform Arbitration Act. The parties are herein forewarned that if court proceedings are necessary to resolve a dispute, the court shall award to the prevailing party reasonable collection costs, attorney fees, and other costs.
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Forums > Homeowner Association > HOA Discussions > Fine System New HOA

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