Upon receiving a violation notice, most homeowners’ first instinct is to fight HOA fines. Homeowners associations charge fines to deter violations and help keep the community orderly. Not all homeowners feel that they deserve to be slapped with a fine. Homeowners who believe they have done nothing wrong often think of ways to dispute the fine.
What are HOA Fines?
Homeowners associations charge a fine when a resident breaks the community’s rules. Whether or not an HOA can do so depends on state laws and the association’s governing documents. Section 47F-3-102(12) of the Planned Community Act gives associations this authority in North Carolina. Most associations’ governing documents also outline the board’s ability to impose fines.
The dollar amount for fines can vary from one association to another. They also tend to be more sizable for more serious violations, such as those that endanger the health and safety of others. The average HOA fine ranges from $25 to $100 and beyond.
Here are the most common violations in HOAs:
- Violating the architectural guidelines of the HOA
- Parking vehicles in unauthorized spaces
- Violating pet restrictions
- Failing to maintain landscaping by the HOA’s rules
- Violating rental restrictions
Can You Fight HOA Fines?
When your HOA slaps you with a fine, your first response might be to contest it, especially if you believe you’ve done nothing wrong. However, is fighting HOA fines even possible?
The short answer is yes. Homeowners can generally dispute the fine with their HOA. However, it isn’t usually as simple as refusing to pay the fine. If you let the fine go unpaid without following due process, you might rack up a sizable late fee. While you can fight HOA fines, doing so is essential.
What Happens When You Don’t Pay HOA Fines?
When a homeowner fails to pay fines, the courses of action available to an HOA depend on state laws and the governing documents. Generally, an HOA can charge a late fee on top of the fine if you exceed the deadline. In some cases, an HOA might even be able to place a lien on your home and, subsequently, initiate foreclosure.
Remember that not all associations can pursue liens and foreclosures based on unpaid fines alone. In North Carolina, Section 47F‑3‑116 forbids an HOA from foreclosing on a home if the lien consists solely of penalties under Article 2A of Chapter 45 of the General Statutes. An HOA can, however, foreclose through judicial means.
How to Fight HOA Fines
If you want to fight HOA fines, here are the proper steps.
1. Check Your Governing Documents
First, make sure to read through your HOA’s governing documents. These include the CC&Rs and bylaws. The HOA’s governing documents consist of all the information you will need when it comes to fines. You can learn about the HOA’s many rules and the process of disputing fines. These documents will also outline the scope of the association’s power.
2. Document Evidence
Fighting HOA fines requires evidence. Documenting everything is the only way to get sufficient evidence to support your case. Take photos of the alleged violation, screenshot emails, and photocopy letters or notices. These may also come in handy in the event of a lawsuit.
3. Understand Your Rights
Homeowners have rights, and it’s imperative that you understand them. Make sure that the violation your HOA accuses you of is true. You can find this out by checking the violation and reviewing the CC&Rs. Misunderstandings can happen, so it’s possible that your HOA incorrectly served you with a violation notice.
Next, check if your governing documents allow you to appeal the violation. In some states, the law provides you with this right. A good example is North Carolina, where Section 47F‑3‑102(12) of the Planned Community Act requires HOAs to allow owners to be heard.
Furthermore, fines must be reasonable. There is a lot of gray area regarding the reasonableness of a fine. However, there are times when the fine amount doesn’t match the violation. For example, charging thousands of dollars in fines seems unreasonable just because you forgot to mow your lawn once.
4. Talk to Your HOA Board
Once you’ve understood your rights, it’s time to bring your case to the HOA board. The violation notice will usually come with a statement allowing you to attend a hearing. This will allow you to present your case and dispute the violation. You might need to inform your board within a specific timeframe, so make sure to do so accordingly.
5. Prepare Your Appeal
The evidence you’ve gathered will be crucial in preparing your appeal. Photos and screenshots will come in handy. If you have remedied the alleged violation, you should also point this out and any other extenuating circumstances.
It’s also a good idea to mention that the alleged violation has existed for a long time. If the board is only now addressing it, it will be more difficult for them to retain the violation.
If you’ve also seen identical violations in other parts of the neighborhood, it’s best to point this out and take photos, too. This will question the board’s consistency in enforcement. Why aren’t others if you’re being fined for the same violation?
Finally, if a previous board permitted you to go against the rules, bring this up. Of course, you will need supporting documentation, such as copies of the previous board’s correspondence giving you permission.
6. Attend the Hearing
The next step is to attend the hearing with your prepared appeal. Showing up on time with a calm demeanor and a sound mind is essential. Don’t let your emotions get the better of you, as that will only aggravate the situation. It would help if you showed that you’re willing to find a compromise.
You’re not only presenting your case at this hearing, though. It’s also a chance to gain insight into the board’s actions and decision-making. If the case goes to court, the facts and cases presented at this hearing will be critical. The hearing might give you an idea of whether or not the board acted arbitrarily or if the dispute has any merit.
7. Wait for the Decision
The HOA board will likely need time to decide on your appeal. As such, don’t expect to have an answer immediately after the hearing. Wait for the notice or letter of their decision. You can consider taking legal action if the board rejects your appeal and continues with the fine. This will require the help of a lawyer.
Other Ways to Fight HOA Fines
Apart from the process above, other ways exist to fight HOA fines.
1. Hire an Attorney
Hiring an attorney is a vital step in the fine dispute process. You can do this at the beginning of your appeal, especially if you need help understanding the governing documents and gathering evidence. However, hiring an attorney is good if you wish to pursue legal action after the HOA denies your appeal.
2. Attempt Alternative Dispute Resolution
If you don’t want to pay the fine and your appeal fails, you should consider entering mediation or arbitration. These alternative dispute resolution methods allow you and the HOA to resolve your issues without going to court.
Lawsuits can be time-consuming and lengthy, so ADR is a great option to find common ground. Some states even require you to go through ADR before filing a lawsuit.
3. File a Lawsuit
Filing a lawsuit should be your last resort. You should only consider this action if none of the other options give you your desired result. Lawsuits take a long time to resolve and can be very expensive. As such, unless it’s a case of discrimination or violating your rights as a homeowner, it’s usually not worth the trouble. Plus, there’s no guarantee you’ll win your case.
4. Pay Your Fines
Sometimes, the smart decision is to simply pay your fines, especially if they are not substantial. It’s easier to settle the fine and move on, making sure not to commit the violation again.
Can You Challenge HOA Fines Increase?
If increasing HOA fines requires amending the CC&Rs, homeowners likely have control over the change. Amendments typically need a majority or two-thirds vote of approval from homeowners. Thus, the amendment will fail to proceed if the board doesn’t secure enough votes.
However, if increasing HOA fines requires a board resolution, only the board will need to vote. This doesn’t mean that you don’t have a voice. If you want to fight the increase, attend the board meeting and express your concerns. It also pays to band together with your fellow homeowners and show a united front against the decision.
You should understand, though, that the board’s decision to increase HOA fines may benefit the community. Perhaps architectural violations are becoming more common, and the board wants to raise fines to help curb them. After all, architectural guidelines exist to maintain appeal and preserve property values.
The Final Word
As you can see, it’s possible to fight HOA fines. However, you should follow the steps outlined above and within your HOA’s governing documents. This way, the HOA board can’t claim that you didn’t follow due process and dismiss the appeal.
Clark Simson Miller offers expert HOA management services, including assistance with covenant enforcement. Call us today at 865.315.7505 or contact us online to learn more!
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