Written by: Julie Ladle

You receive a notice from your HOA. According to the letter, you’ve been fined $100 because your trash can was visible from the street.  Your first thought might be: “Can they really do that?”

The answer is generally yes—but only if the HOA follows Utah law and their own governing documents. An HOA’s authority to impose fines is not unlimited, and HOAs that fail to follow the required procedures may find their fines difficult—or impossible—to enforce.

Can an  HOA Fine Owners Simply Because It Wants To?

No.  Before an HOA can assess a fine, the HOA must follow statutory requirements and any additional requirements contained in the HOA’s governing documents.  Statutory requirements stem from the Utah Community Association Act and the Utah Condominium Ownership Act (collectively the “Acts”), as applicable.  The Acts require that a written warning (“Notice of Violation”) be first provided to the offending owner.  The Notice of Violation shall:

1. 1. 1. Describe the violation;
      2. State the provision of the governing documents that the conduct violates;
      3. State the HOA may assess fines against the owner if a violation of the same provision occurs within one (1) year of the Notice of Violation;
      4. In the case of a continuing violation, contain a statement that if the violation is not remedied by a specified compliance deadline (of at least 48 hours), fines may be assessed.

After sending the Notice of Violation, the HOA may impose fines if the violation is repeated any time within a one (1) year period of time after the Notice of Violation is sent or if the violation is not cured or ceased within the time specified in the Notice of Violation. For continuing violations remaining uncured, fines may continue to be assessed every ten (10) days. In the condominium context, the aggregate amount of fines assessed against an owner for violations of the same provision of the governing documents may not exceed $500 in any one calendar month.  All fines must be based on a written schedule of fines that has been adopted by the HOA.

Can Owners Appeal a Fine?

Yes.  Under the Acts, an owner has the right to request an informal hearing with the HOA within thirty (30) days from the date a notice is provided to the owner stating that a fine has been assessed by the HOA. If an Owner timely requests a hearing, no interest or late fees on the fine(s) may accrue until after the hearing and final decision.  At the hearing, the HOA shall provide the owner a reasonable opportunity to present owner’s position to the Board and shall allow all persons involved in the hearing to participate by means of electronic communication.  An owner may appeal an assessed fine by initiating a civil action within 180 days after: (1) if the owner timely requests a hearing, the day on which the owner receives a final decision from the HOA; or (2) if the owner does not timely request a hearing, the day on which the time to request an informal hearing expires.

Are Fines Enforceable? 

Likely yes, provided the HOA follows the Acts and any separate requirements in the HOA’s governing documents.  Fines are enforcement tools to keep the community running smoothly and efficiently.   The HOA Board has the responsibility to consistently enforce the governing documents against all owners in the community.   If not, the community suffers, and the governing documents become meaningless and harder and harder to enforce.   

What If My HOA Has Questions?

The attorneys at Miller Harrison will be happy to discuss any questions and concerns that arise regarding fines and ensure that HOAs are assessing fines correctly.   Feel free to reach out to our office for further information.