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Why every Association needs a good Fine & Enforcement Policy

7/1/2012

 
By providing rules and regulations on everything from pets to holiday decorations to fitness center protocol, the governing documents of an Association represent the overall standard for what is expected from unit owners while living within an Association.  What happens when a unit owner violates the governing documents?  Does your Association have a clear and well-articulated policy outlining exactly what recourse the Association has against an offending unit owner?  Oftentimes I am asked why a Fine and Enforcement Policy is needed when the Association's governing documents state that the Association is entitled to issue "fines".  Ultimately, a good Fine and Enforcement Policy will help the Association ensure that the governing documents are uniformly and consistently enforced.  This in turn will help protect the Association from claims of discrimination or selective enforcement.

A Fine and Enforcement Policy is designed specifically to provide a procedure for the Association to follow in each instance where a violation of any portion of the governing documents occurs.  The Policy is intended to consolidate provisions that are often scattered throughout the governing documents into one concise location.  The policy will help ensure that your Association does not make the mistake of imposing a fine without first providing the unit owner with notice and an opportunity to be heard.  The policy provides specific notices, time frames and enforcement procedures while also potentially allowing the Association (where allowed under the governing documents) to restrict access to certain amenities or other privileges.  Furthermore, the policy may identify interest on past due balances and, if desired, provide for a specific fining schedule for individual occurrences as well as per diem fines for continuing violations.

It is important that each Association have a Fine and Enforcement Policy that is tailored to their specific governing documents since each Association is unique.  When effectively drafted, a Fine and Enforcement Policy becomes an important tool in Court when necessary to collect any outstanding fines or charges from unit owners.  Overall, instituting a well-drafted Fine and Enforcement Policy may significantly limit the amount of hurdles an Association will have to jump over in the future. 


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