Legal Opinions

Fining Procedures – Converting Fine to Assessment

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Many of our clients, both condominium and homeowners’ associations alike, often ask about the proper procedures for issuing and collecting a fine. In our previous blog post titled “Fining Procedures – Issuing a Fine” we discussed how both condominiums and homeowners’ associations properly issue a fine. This blog post will focus on converting a fine into an assessment.

As you’ll recall, a condominium association’s fine cannot exceed $1,000.00 and cannot become a lien against a Unit. Thus, a condominium association’s fine cannot be converted into an assessment and placed on the Owner’s account ledger.

Conversely, a homeowner association’s fine can become a lien against the Lot if the fine is at least $1,000.00 in the aggregate and depending on your governing documents the fine may be able to exceed $1,000.00. Because Florida Statutes provide that homeowners’ association fines may be converted to liens, the Association may move forward with such actions so long as the Association properly converts the fine to an assessment. Once the conversion is complete, the Association can add the assessment to the overall account ledger for the Owner. Therefore, if a fine is unpaid, the Board should hold a meeting to levy an assessment against the Owner for the amount of the fine.

It is important to emphasize that you may only convert a fine to an assessment if it equals or, if your governing documents permit, exceeds $1,000.00 per violation. Please note that you may not combine two (2) separate violations to reach the $1,000.00 minimum requirement to lien for the fine.

Pursuant to Section 720.303(2)(c)2, Florida Statutes, the Board of Directors must provide the fined homeowner at least fourteen (14) days advanced written notice of the Board Meeting at which the homeowner’s fine will be converted into an assessment. The written notice must also include a statement informing the homeowner that the Board will consider assessing the homeowner for the fine at the Board Meeting.

Always confer with your legal counsel to make sure your following all of the appropriate steps contained in your Governing Documents and Florida Statutes.  Our Firm recommends that both condominium and homeowners’ associations have a written fining policy in place, thoroughly outlining the fining process, including issuing a fine and subsequently converting the fine into an assessment.

Please stay tuned for more condominium and homeowners’ associations content.  As always, please do not hesitate to contact our Firm for any of your community association needs.

Construction Defects

Fining Procedures – Issuing a Fine

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Many of our clients, both condominium and homeowners’ associations alike, often ask about the proper procedures for issuing and collecting a fine.  Section 720.305, Florida Statutes, which governs homeowners’ associations, states as follows:

The association may levy reasonable fines. A fine may not exceed $100 per violation against any member or any member’s tenant, guest, or invitee for the failure of the owner of the parcel or its occupant, licensee, or invitee to comply with any provision of the declaration, the association bylaws, or reasonable rules of the association unless otherwise provided in the governing documents. A fine may be levied by the board for each day of a continuing violation, with a single notice and opportunity for hearing, except that the fine may not exceed $1,000 in the aggregate unless otherwise provided in the governing documents. A fine of less than $1,000 may not become a lien against a parcel. In any action to recover a fine, the prevailing party is entitled to reasonable attorney fees and costs from the nonprevailing party as determined by the court.

On the other hand, Section 718.303, Florida Statutes, which governs condominium associations, reads in relevant part:

The association may levy reasonable fines for the failure of the owner of the unit or its occupant, licensee, or invitee to comply with any provision of the declaration, the association bylaws, or reasonable rules of the association. A fine may not become a lien against a unit. A fine may be levied by the board on the basis of each day of a continuing violation, with a single notice and opportunity for hearing before a committee as provided in paragraph (b). However, the fine may not exceed $100 per violation, or $1,000 in the aggregate. Emphasis Added

Did you notice the differences? Most notably, a condominium association’s fine cannot exceed $1,000.00 and cannot become a lien against a Unit.  Conversely, a homeowner association’s fine can become a lien against the Lot if the fine is at least $1,000.00 in the aggregate and depending on your governing documents the fine may be able to exceed $1,000.00.

Moreover, please keep in mind that the Board must appoint a fining committee to accept or reject the fine. The fining committee must consist of at least three (3) members appointed by the Board who are not officers, directors, or employees of the association, or the spouse, parent, child, brother, or sister of an officer, director, or employee. The role of the fining committee is simply to accept or reject the fine, and the fining committee cannot accept the fine at a reduced amount.

Always confer with your legal counsel to make sure your following all of the appropriate steps contained in your Governing Documents and Florida Statutes. Our Firm recommends that both condominium and homeowners’ associations have a written fining policy in place, thoroughly outlining the fining process.

Please stay tuned for Fining Procedures (Part 2) – Converting a Fine to an Assessment.  As always, please do not hesitate to contact our Firm for any of your condominium or homeowners’ association needs.

Who Manages my Homeowners’ Association’s Day-to-Day Responsibilities?

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Your homeowners’ association may be managed by a management company, which handles many of the day-to-day responsibilities. If necessary, your management company may need to obtain the help/guidance of the homeowners’ association’s legal counsel to provide legal opinions, collect past due assessments, amend/revise the Association’s governing documents, etc.