When homeowners violate their community rules, they can face HOA fines. These fines, when left unpaid, can lead to a host of other potential consequences. Both homeowners and board members should understand how fines work to avoid incurring them and breaching legal limits, respectively.
What are HOA Fines?
In a common interest community, such as an HOA or condominium, residents must comply with association rules. These rules exist to maintain a high quality of life, curb appeal, and property values in the community. When a resident violates a rule, they may face several possible penalties, including fines from the homeowners association.
Some common examples of fines include:
- HOA parking violation fines
- Holiday decoration fines
- Guest occupancy limit fines
- Fencing violation fines
- HOA noise complaint fines
- Trash and recycling violation fines
Are HOA Fines Enforceable?
Whether HOA fines are enforceable depends on two key factors: state laws and the association’s governing documents. In some states, the law gives associations the authority to levy fines for violations. Absent such regulations, associations should refer to their CC&Rs.
Can an HOA fine you in Texas? The law in Texas does not automatically grant associations the inherent power to fine residents for violating their rules. To have this power, an association’s governing documents must explicitly allow it.
If the CC&Rs permit an association to impose fines, there are certain conditions that it must meet. According to Texas Property Code Section 209.0061, such an HOA must create an enforcement policy, which includes an HOA fine schedule.
Additionally, the association must communicate this policy to all homeowners by posting it on the community website or sending a copy of the policy to them annually. Delivery must be done by hand, via first-class mail, or email.
Can an HOA Fine You Without Proof?
A common point of contention regarding HOA fines is the issue of proof. The association board can’t levy fines if the homeowner did not commit any violation. That said, homeowners often argue that the board has no evidence to support the claim that the violation occurred.
It ultimately depends on the association’s governing documents. In most communities, there is no requirement for the association to prove the violation before issuing a fine. Many states allow owners to appeal the decision in a hearing, which is often required.
Laws on HOA Fines in Texas
In Texas, an association’s authority to impose fines comes from its governing documents. If an HOA has this authority, it must follow certain requirements and procedures before issuing HOA violation fines.
According to Section 209.006 of the Texas Property Code, an association must provide written notice of the violation fine via mail. This will enable the owner to rectify the violation and contest the fine. It is worth noting that repeated violations may not require notice.
This written notice must include the following information:
- A description of the violation;
- The amount of the potential fine;
- A statement that the owner can request a board hearing within 30 days;
- A notice of any special rights or relief that the law grants the owner (such as the Servicemembers Civil Relief Act); and,
- If the violation does not threaten public health or safety and is “curable,” then the association must give the owner reasonable time to remedy the problem and avoid paying the fine. The notice must indicate this deadline.
Curable violations are those that can still be fixed. Common examples include parking violations, maintenance violations, and ongoing noise complaints.
On the other hand, incurable violations are those that have already passed or cannot be remedied. These include shooting fireworks, hosting prohibited events, and a noise complaint that is no longer in progress. Threats to public health and safety are also considered incurable.
Where do HOA Fines Go?
When collected, fines typically go into the association’s operating or general fund. Fines can help pay for the association’s expenses, with a separate line item in financial reports.
That said, associations should not treat fines as a regular source of revenue. While fines help deter rule violations, they should in no way be used as a profit-making scheme.
Associations should not raise fine amounts in an arbitrary effort to earn more money. Neither should board members fine owners without cause or due process to pad the association’s budget. Ideally, the association would have no fines to collect because that would mean no rule violations.
Do You Have to Pay HOA Fines?
Homeowners must pay HOA fines if they commit rule violations. This is part of their obligations to the association, which they agreed to fulfill upon becoming members.
When someone buys a home in an HOA community or condo, they automatically obtain membership. This is why it is important for buyers to review the association’s governing documents, including the rules, before purchase. If a buyer dislikes the association’s rules or refuses to pay fees and fines, they have the opportunity to back out of the sale.
What Happens if You Ignore HOA Fines?
Some homeowners might feel tempted to ignore the fines once they incur them. Doing this will not resolve the problem. It will only exacerbate things.
What happens if you don’t pay HOA fines? An association can charge late fees or interest and take legal action. In some cases, an association can even place a lien on the home and initiate foreclosure proceedings.
Late Fees
A standard method of collecting fines is to add to the amount owed simply. Most associations impose late fees or interest charges for unpaid fines, thereby inflating the owner’s debt.
Legal Action
Associations can file a lawsuit against owners with unpaid fines. If the lawsuit is successful, a court may order wage garnishment to settle the owner’s debt to the association. Additionally, the owner may also be responsible for the association’s legal fees.
Liens and Foreclosure
In some states, an association may file a lien for unpaid fines. This does not apply to associations in Texas. According to Texas law, an association is prohibited from filing a lien that consists solely of HOA fines for rule violations. The same goes for foreclosure proceedings.
How to Fight HOA Fines
Homeowners can generally dispute fines with their association. They also have the opportunity to appear before the board at a disciplinary hearing before the board imposes the fine.
That said, if the fine is valid and the association followed due process, the homeowner can’t fight the fine. If the homeowner is guilty of committing the violation, it is best to settle the fine simply.
A Helping Hand
Navigating the intricacies of HOA fines can be a challenge for both board members and homeowners. Fortunately, professional management companies can step in to fill the gaps.
Preferred Association Management Company offers exceptional HOA management services to communities in Central Texas. Call us today at 512-918-8100 or contact us online to learn more!
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