Do homeowners associations have the power to levy fines?
The role of a homeowners' association is to govern the community and ensure appreciation of property values through rules and regulations. Communities can come in different shapes and sizes, ranging from planned housing developments to condominiums, and even — in the case of San Francisco — apartment ownership in a tower.
It’s often mandatory to join the HOA as a condition of home ownership, which comes with monthly or annual dues. To create new rules or enforce current rules, the HOA’s board must meet and come to a consensus with the assistance of its membership, which elects the directors.
For Millennium Towers, the HOA retains the right to increase fines for window violations to $10,000 per event, if the board were to vote for it per their bylaws. A property attorney who deals with condo association laws told NBC Bay Area that the safety concerns could justify the high fines.
“It is incumbent upon the board to make sure that the residents and the structure itself are properly protected,” lawyer Sandra Gottlieb said.
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Read MoreIs there any recourse from homeowners' associations?
Although there are no federal laws regulating homeowners associations, some states do have statutes defining what a HOA can and can’t do. These rules vary. In New Jersey and North Carolina, a dispute between an association and their homeowners is considered a private and civil matter with no public recourse. In Arizona and Maryland, there are state laws on the books that homeowners can turn to for help.
If you want to dispute a rule or decision against your property handed down by an HOA, the first step is to review the legal documents that govern your community. Every HOA is required to have bylaws, a Declaration of Covenants, Conditions and Restrictions, rules and regulations or potentially all three. These spell out what your responsibilities are as a homeowner, and what the HOA can do if you’re not fulfilling your requirements.
Next, request a meeting with the HOA leadership to review the violations and determine if there is an agreeable way forward. The Community Associations Institute advocates for alternative dispute resolution programs to help homeowners and associations come to “a satisfactory and timely resolution” and avoid lawsuits.
If a situation cannot be resolved, the final step is either to take action through a state body governing HOAs (if your state has one) or take legal action. The challenge of going down one of these routes is that they can take an extended amount of time to resolve, costing homeowners additional money in attorney fees, daily penalties for noncompliance, or both.
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