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Can Your HOA Fine Owners for Slacking?
February 19, 2010

This week's tip addresses two common problems: lazy owners and

the need for additional revenue.

Can you kill two birds with one stone by financially penalizing

owners who don't attend meetings, vote, or volunteer by imposing

a "nonparticipation" fee on them?

Sadly, our experts in several states say that you probably

can't, but the issue ultimately depends on your own state's law

and your governing documents.

"I'd have a hard time recommending to a board to impose fines for

lack of voluntary participation unless there's something in the

governing documents that requires a mandatory stay on the board

or a committee every few years," says Daniel Zimberoff, a

shareholder-attorney at Barker Martin PS in Seattle, says of

Oregon and Washington law, where his firm exclusively represents

community associations.

"I believe that would be outside the authority of the board to

impose fines," Daniel told us. "You can't mandate voluntarism."

It's also impermissible under Florida law, says Lisa A. Magill,

a shareholder and association attorney at Becker & Poliakoff PA

in Fort Lauderdale, Fla. And it's a bad idea, to boot.

"Regardless of whether the authority is there, I think it's a

horrible idea," she says. "Your rights as an association member

are similar to your rights as a citizen of a city, state, or the

federal government. There's no mandate for you to vote. It's one

of your rights and privileges, but nothing requires you to do so.

Can you imagine the government fining taxpayers for not voting

in mayoral elections?"

If a fine on owners who fail to pull their weight isn't an

option in your state or under your governing documents, all

hope is not lost. For more detail on other state's laws, more

discussion of the pros and cons, and positive ways to get more

owners to volunteer at your association, see our new article, Can Your HOA Impose "Nonparticipation" Fees on Complacent Homeowners?

Best regards,

Matt Humphrey

President



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