Imposing Fines and Penalties for Homeowner Violations of Governing Documents

Homeowners associations that intend to impose fines or monetary penalties for violations of the association’s governing documents (including rules) by homeowners, their guests, or their tenants need to have a written policy explaining the association’s policy along with a schedule of fines that may be imposed, both of which must be distributed to the homeowners. Any fines or penalties that are imposed against homeowners must be based on a determination made in a disciplinary hearing that was conducted in accordance with the procedures contained in the written policy and schedule of fines.