Navigating The Homefront: A Guide To Handling Violations In Community Associations – Landlord & Tenant – Leases

Every member of a community association agrees to abide by the
community’s governing documents by virtue of taking ownership
of their lot or unit. Community associations sometimes get a bad
rap for how violations of the governing documents are handled when
members fail to hold up their end of the bargain. 

When a member fails to follow their community’s governing
documents, this constitutes a “violation.” Common
violations include failure to pay assessments, unauthorized
exterior modifications to a home, and neglecting to maintain
landscaping. If not addressed promptly, effectively and
efficiently, violations can escalate into complex issues and create
a climate of dissatisfaction among those members who follow the
community’s governing documents.

This article provides an overview of a recent presentation for
the North Carolina Chapter of Community Associations Institute,
where Carmen Clayton of CAMS and I explored the process of how
community association Boards of Directors should handle violations
within their community, shedding light on essential procedures and
potential pitfalls.

To effectively address violations, it’s important to
understand the sources of authority. This includes state laws such
as the North Carolina Planned Community Act and Condominium Act,
alongside the community’s specific governing documents from
which violations may arise. The governing documents include the
Declaration, Articles of Incorporation, Bylaws, Rules and
Regulations, and Design Guidelines. Remember, the members of the
Association agree to follow the governing documents when purchasing
a home in a planned community or condominium. However, many members
may not be aware that such documents exist, whereas others may
violate the governing documents intentionally. Regardless of the
reason for the violation, the ultimate goal is to garner compliance
from members consistent with the governing documents. 

Having a step-by-step process helps guide community associations
through addressing violations from the initial receipt of a
violation to resolution. This process requires thorough
documentation and clear communication with members. Below is a
5-step process explaining each stage in the violation
process. 

Step 1: Receive Violation

• Receipt of the violation typically occurs through observation,
  inspections, and account review. Any member of the community
  association can report a violation to the Board or community
  manager. However, members who report violations
  are not entitled to information on how the
  specific situation was (or is being) handled following their
  report. The Board or community manager should document the
  violation upon receipt for the Association’s records and for
  preparation of the written notice to the member.

Step 2: Send Notice of Violation and Hearing to the Member

The notice of violation letter must include:

• Statement of the provision of the governing document(s)
  allegedly violated,




• A short explanation of the matter asserted by the
  Association,




• The date, time, and place of the hearing, and




• Description of the action needed to cure the alleged
  violation.

Step 3: Hold Hearing and Make Decision

• Hold a hearing to present evidence regarding the alleged
  violation and hear from the member. If the member does not attend,
  document the lack of attendance.




• Following the hearing, the Board (or adjudicatory panel)
  deliberates and decides if the violation occurred and votes whether
  to impose a fine and/or suspension of privileges.

Step 4: Send Notice of Decision

• Promptly following the hearing, send a notice of decision
  letter to the member stating the Board’s decision (e.g., no
  violation, or if a fine will be imposed or privileges
  suspended).




• Where a fine will be imposed, the Board may impose a fine not
  to exceed $100 for each violation.




• For continuing violations, the notice of decision letter must
  also state that if the violation is not remedied within 5 days of
  the decision letter, daily fines (not to exceed $100 per day) will
  be imposed until the violation is corrected. Note that only those
  continuous violations, (i.e. no break in the violation) can be
  fined per day following the 5-day grace period without further
  hearing. This means that the community association may fine $100
  for the initial violation, and then give the member 5-days to
  correct the violation before additional fines can be applied.

Step 5: Resolution

• After sending the notice of decision letter, the community
  association may then charge fines to the member’s account or
  suspend privileges.




• The Board should follow-up with the member to ensure
  compliance.




• It is crucial to keep a complete record of each step, (notice
  letter, hearing, notice of decision letter, etc.) for each
  violation.

Handling violations in a community association demands a
proactive and systematic approach. By maintaining consistency to
garner compliance, community associations can uphold the standards
set forth in their governing documents and enhance harmony within
their communities for the benefit of all members.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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