Understanding Homeowner Associations (HOAs) Fines and Violations
Homeownership often comes with rules and regulations set forth by the Homeowner Association (HOA). When disputes arise, one of the central questions is whether the HOA can fine members for violations without explicit written rules. This article aims to clarify this issue, discussing the role of Covenants, Conditions and Restrictions (CCOs) and Bylaws in governing HOA policies.
The Role of CCAOs and Their Precedence
The authority of an HOA to fine members for violations is derived from CCAOs, which are legally binding documents. CCAOs are created by the developer before the development is completed and are recorded, making them binding on all members. However, the reality is that many homeowners do not read these documents thoroughly. As a result, HOA boards often need to create Rules and Regulations to explain the CCAOs to current and future owners.
Why Reading CCOs is Crucial
To avoid any misunderstandings, homeowners should carefully read their CCOs. These documents often contain the details of rules that may not be explicitly stated in the HOA's Rules and Regulations. Failing to do so can leave homeowners vulnerable to fines based on outdated or misinterpreted rules. Therefore, it is essential to consult the CCOs regularly for a comprehensive understanding of HOA regulations.
Legal Framework Governing HOAs
HODs are subject to stringent state regulations, which mandate that they adhere strictly to their bylaws. Bylaws outline the rules, regulations, and procedures that govern the HOA's operations. The association is required to follow these bylaws exactly, and any action outside of these bylaws is unlawful. For instance, imposing fines for violations that are not explicitly mentioned in the bylaws is a violation of this legal framework.
Common Violation Situations
HOA boards frequently implement new rules, especially when the original CCOs or bylaws do not cover specific situations. These new rules should be documented and published, and violators should first receive a warning before being fined. One example is the implementation of designated pet areas for pet owners to use. If the bylaws did not mention such areas, the HOA could create and enforce these guidelines by first warning pet owners and then fining them if the rules are not followed.
Handling Unlawful Fines
Arbitrary and outright fines for violations that are not explicitly outlined in the CCOs or bylaws can lead to legal issues. If you encounter such a situation, you can consult a real estate lawyer to send a cease and desist letter to the HOA. Additionally, you may want to consider the legal implications of buying property under an HOA with such practices.
Proper Implementation of New Rules
To avoid legal issues, HOA boards should follow a structured process when implementing new rules. This includes documenting and publishing the new rules, providing adequate warnings to violators, and establishing fines. For example, if an HOA wants to establish guest parking spaces, they should first warn frequent users of their intentions and then tow vehicles that do not comply after a warning. In another instance, if designated pet areas are established, pet owners who allow their pets to defecate outside these areas can be warned and then fined if they persist.
Conclusion
Homeownership within an HOA comes with certain responsibilities, including adherence to CCOs and bylaws. Understanding and complying with these documents can prevent misunderstandings and fines. If you encounter arbitrary or unlawful fines, consulting a legal expert can offer guidance. By following the legal framework and implementing new rules systematically, HOAs can maintain order and fairness among their members.