Delinquencies & Fining

Question: I need information on HOA policies and procedures with regards to fining. Can you help me?

Answer: Generally, the board has the authority to enact reasonable rules and enforcement procedures. They should include: 

  1. Clearly definition of the issue (parking, pets, failure to pay HOA fees)
  2. Consequences for failing to obey like fines or curtailing use of amenities
  3.  Appeal process. 

Fines need to be reasonable. Any rule or resolution that is contemplated by the board should be reviewed by an attorney that specializes in HOA law in your state for compliance with your governing documents, state and federal law. There a number of sample rules at www.Regenesis.net in the Policies section.

Question: Our board has taken to publishing names of delinquent members in the HOA newsletter and board meeting minutes. Is this advisable?

Answer: There are many reasons why members don’t pay their fees and the solution varies: Millie is on disability, Joe’s Social Security is inadequate, Mary just lost her job, Bill declared bankruptcy, Gertrude has been trying to sell her condo for two years and Arnold is withholding payment until repairs get done on his unit.

What happens if the collection information the board posts is not correct? This kind of misinformation libels someone who may sue for defamation of character.

Your board is ill advised to pursue this collection tactic. It’s totally unnecessary and mean spirited. With a properly designed and enforced Collection Policy, there are effective ways for the HOA to get the job done without humiliation. There is a sample Collection Policy at www.Regenesis.net in the Policy Samples section.

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