HOA Rule Violations: What To Do When Everything Isn't "Fine"
9/12/2008
Is your association constantly assessing fines against members
for rules violations? Are you considering implementing even more fines because the
rules keep getting broken? Do you have trouble collecting the fines you assess? To get tips on best practices for setting HOA fines, we recently
spoke with Justin D. Park an attorney at Romero Park & Wiggins
in Bellevue, Wash., who advises homeowners associations. Justin told us the story of an HOA who wanted to assess a fee of
$500 for walking a pet without a leash. "In general, a fine
should be reasonable and have some bearing or rational basis
to the expense the association could incur," Justin said. "The
best example is a fee for the late payment of dues. Some states
say late fees aren't allowed to be penalties, but only the
passing on of expenses. So if an association has to delay paying
a bill because it doesn't have the funds, it could incur some
expense. There doesn't have to be a perfect relationship, but
generally courts want to see that the fee and the expense are in
the same ballpark." In the case of the $500 off-leash fee, Justin had to inform the
board that it probably wouldn't be enforceable. Is it time to rethink or recalibrate the fines your HOA assesses?
Read our article with the rest of Justin's advice and find out.
Go to article » Best regards,
Matt Humphrey
President
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