HOAleader.com - Tip of the Week - November 23, 2012
Published: Sun, 11/25/12
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Are Your HOA's Fines Too Low? Too High? Just Right?
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In this week's tip, we answer a reader's question
about which violations warrant penalties and how
to set the proper amounts.
Any question you have about potential fines must
start with your two guiding sources: your state law
and your governing documents.
Texas law prohibits associations from charging
unreasonable fines, says Jenny Key, the Austin,
Texas-based vice president of RealManage, a San Rafael,
Calif., association management firm that oversees
properties in Arizona, California, Colorado, Florida,
Louisiana, Nevada, and Texas.
Ohio has a similar provision. "There's no law in
Ohio on amounts," says David W. Kaman, a
Columbus-based partner at Kaman & Cusimano LLC,
which represents associations throughout Ohio.
"The only rule our statute sets up is that associations
are allowed to levy reasonable enforcement assessments.
Some people would call them fines, but our state calls
them reasonable enforcement assessments."
Your governing documents may also cover the topic.
"We first look at the rules and regulations of the
community," says Robert White, managing director of
KW Property Management & Consulting in Miami, which
oversees about 125 associations totaling 30,000-35,000
units. "That's normally where the fines are derived."
If fines aren't discussed in your governing documents,
White recommends setting up a fining committee. "It's a
committee of board members who'll review the offense and
place the fine," he explains. "You have to determine
where you really want to place your emphasis. Boards
sometimes want to be lenient with some rules and firm
with others. But they have to be consistent. We make
recommendations to boards about what rules and regulations
need to be addressed, like barbecue grills on porches,
and they make the decisions. Then we'll develop protocol
for the fining committee-including when they'll meet,
what there will be fines for, and the fine amounts-and we
let the attorney give his or her blessing. The attorney
also usually writes the template letter that goes out
with a fine."
Find out some basic fine amounts and alternatives to set
fees for set violations in our new article,
What's a Reasonable HOA Fee or Penalty?
http://www.hoaleader.com/members/783.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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What Are HOA Board Members Thankful For?
In the spirit of Thanksgiving, we asked board members to tell us
the things they're most thankful for this year. Here's what has
made current and former board members grateful.
Click here to read full article:
http://www.hoaleader.com/members/What-Are-HOA-Board-Members-Thankful-For.cfm
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Is An HOA Website Too Risky?
An HOAleader.com reader writes, "I feel that a website is key for our Texas
community. We have approximately 200 residents. When I suggested a
website, I was told that the attorney for our association has said
absolutely not, that it opens us to lawsuits. Is that true, and if so, could it
be username/password protected to eliminate any problems? Our community
is very fragmented and lacks community spirit because the communication to
the members isn't adequate." Here, our experts discuss the legal risks of
having a website and whether password protections are sufficient to
eliminate risks.
Click here to read full article:
http://www.hoaleader.com/members/Is-An-HOA-Website-Too-Risky.cfm
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True or False: Having an HOA Website Is Fraught with Peril
In this week's tip, we answer a Texas reader's question about whether his
HOA's attorney is right: websites are just too dangerous for HOAs to have.
Our experts respectfully disagree with that Texas lawyer.
Click here to read full article:
http://www.hoaleader.com/public/True-or-False-Having-an-HOA-Website-Is-Fraught-with-Peril.cfm
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When Owners Won't Pay Fines: Nailing Down Costs, and Litigation
Alternatives
As we mentioned last week, on September 21, 2012, home owners in a Florida HOA
were awarded $85,000 in damages in a lawsuit they brought against their HOA,
according to the Tampa Bay Times. The fight was over a $2,212 bill for sod
installed by the HOA that the owners disputed. The judge found that the
Pebble Creek Homeowners Association failed to comply with its governing
documents in imposing the charge. The owners spent more than $222,000 to get
to this point--and the association probably spent nearly as much--and the
next step is for the judge to determine whether to force the association to
reimburse the owners for their attorneys' fees.
Click here to read full article:
http://www.hoaleader.com/public/When-Owners-Wont-Pay-Fines-Nailing-Down-Costs-and-Litigation-Alternatives.
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Pursuing Fines, Part II: Could This Board Have Won Without Litigation?
This is the second in a two-part series on how far to pursue violations and
fines against home owners. In this article, we discuss how to work with your
lawyer to evaluate the risks of litigation against owners and alternatives
to consider.
Click here to read full article:
http://www.hoaleader.com/members/Pursuing-Fines-Part-II-Could-This-Board-Have-Won-Without-Litigation.cfm
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Pursuing Fines, Part I: Did This Board Breach Its Fiduciary Duty?
This is the first in a two-part series on how far to pursue violations and
fines against home owners. In this article, we discuss board duties when it
comes to pursuing fines and how to decide whether to sue home owners.
Click here to read full article:
http://www.hoaleader.com/members/Pursuing-Fines-Part-I-Did-This-Board-Breach-Its-Fiduciary-Duty.cfm
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