Homeowners Association Options For Enforcement Of Rules

A homeowner’s association, through its board of directors, has a duty to enforce its governing documents and an association’s failure to enforce its restrictions can result in a legal action against the association by members for its failure to enforce the rules.

For rules violations, associations can levy monetary penalties and/or suspend privileges provided “due process” is followed and the suspension of privileges is part of the association’s policy for rules enforcement. “Due process” means that the association has applied its decision-making process in a manner that is fair, both procedurally and substantively (i.e. the person has been informed of the charges and the proposed disciplinary action, and has been given an opportunity to in some manner present countervailing evidence).

When the imposition of monetary penalties or the suspension of privileges does not solve the issue, or immediate relief from a court is necessary to address an issue, associations can file a legal action seeking injunctive relief.

Monetary Penalties.

Monetary penalties are intended to deter unwanted behavior. To impose penalties for rules violations, associations need to adopt a policy providing for same along with a schedule of the fines that can be imposed and give notice to the association members of the policy and the schedule of fines. The procedure for adopting the fines is the same procedure that is followed for the adoption of rules.

Suspension of Privileges.

Associations may suspend a member’s rights and privileges provided the right to suspend is in the association’s collection policy and due process is followed. If there are multiple owners of a unit/lot, the suspension of rights/privileges for one owner suspends the rights/privileges of all residents of that unit/lot and the rights of the tenants and guests. Typical suspensions include such things as:

• The suspension of voting rights, if not otherwise prohibited by state statutes or the governing documents.
• The suspension of the use of recreational facilities such as the pool, gym, and tennis courts.
• Removal from committees.