I’ve read several posts in other threads about people getting fined from homeowners assc about things like, not mowing their lawns, having a pet, parking in the wrong spots, etc.
As someone who has never been directly involved with one, I’ve always wondered under what authority do these associations have the ability to “fine” people? What recourse do they have if someone doesn’t pay?
Generally, you sign a document when you move in that states you’ll go along with the homeowner’s association policy. And most neighborhoods with a HOA won’t let you move in unless you sign it.
Usually these apply when a single developer builds many houses in a single development. The developer will only sell the houses on condition of the buyers signing a contract agreeing to obide by the HOA’s rules.
Although there are probably variations in the laws governing associations in different states, the ones I have encountered have been based on deed restrictions. In other words, by purchasing that house, one agrees, according to the restrictions set forth in the deed, to abide by the rules and regulations imposed by the board of the association.
The enforcement powers are limited to moral suasion (making you feel bad that you didn’t play nice) and taking the matter to court. However, given that their authority was derived from the deed, courts have a tendency to rule in favor of the association.
Thanks
Recourse: The agreement usually says they can place a lien on your home if you don’t pay, which means you’ll be hurting when you finally get around to selling.
Dead on target (I live in Reston, Queen City of Deed Restrictions). On top of that, the HOA can take you to court to compel you to satisfy the lien.
Theoretically, the HOA could even cause a forced sale of the property, just as the county can if you don’t pay your property taxes. That virtually never happens, however, because HOA liens, unlike tax liens, are not superior to prior liens, like those of the mortgage holder. As a result, foreclosure becomes risky for the HOA (if the HOA causes foreclosure, it has to guarantee that superior lienholders get taken care of).
Last but not least, having liens on your property can cause you problems with your credit rating.
My association draws its authority from the District of Columbia Condominium act of 1976, which you can probably find online somewhere.
Just remember that the laws governing condominium associations are often very different from those governing homeowner associations.
In a homeowner association situation, you own your own house or townhouse outright, but the HOA has some say in what you do to the outside of your house, and can compel you to pay dues to pay for maintaining the commonly-held property (common lawn areas, playgrounds, parking lots).
In a condominium, on the other hand, the association actually owns (usually) the entire outside “shell” of your apartment or townhouse (roof, exterior walls, foundation, etc.), so its powers and responsibilities generally extend much further than those of an HOA.