How to Enforce HOA Agreements

One of the biggest challenges a homeowner association faces is enforcing agreements, including the rules homeowners are expected to follow and agreements the association makes with contractors. Progressive enforcement should be followed by starting out with letters, then fines fines and finally legal action or contract termination. Enforcement procedures should be a deterrent and should focus on changing behaviors not just punishing violators.

Instructions

Homeowners

1. Send a letter to the homeowner. The letter should include the date and description of the violation and ways to mitigate the problem. Include a copy of the relevant rule and note the possibility of a fine for future violations.

2. Fine the homeowner in accordance with association rules. The fine should include reimbursements for any monetary damages or attorney fees the association incurs as a result of the violation.

3. Place a lien on the property. If the homeowner continues to violate association agreements, contact the association's attorney to have a lien placed on the property. A lien can be a powerful incentive to fix a problem to the association's satisfaction.

4. Seek a court order. Bring the homeowner to civil court to get an injunction to resolve the dispute.

5. Foreclose on the property. Contact the association's attorney to initiate foreclosure proceedings against the homeowner.

Contractors

1. Review the contract to find specific standards expected. Any contract for services should have a performance standard that can be used to objectively determine the contractor's compliance.

2. Contact the first-level supervisor. Tell them that the work being performed is not adequate and identify the specific problems.

3. Contact the company's manager if the supervisor is unable to resolve the matter.

4. Apply fines if applicable. Some contracts, particularly those involving monthly services and invoices such as landscaping, have provisions that allow for deductions of the monthly payment as a result of the contractor not living up to the contract.

5. Withhold payments. Contact the company's owner and let them know that final payment will not be made until there is a resolution that the association is willing to accept.

Tips & Warnings

• Always have standards listed in any contract to use as a tool to gauge a company's performance.

• State laws regarding the authority and rights of homeowners and associations vary. Be aware of your state's laws regarding hearings and fines.

• Retain an attorney on behalf of the association for any action beyond imposing fines.

References

• Neighborhood Link: Association Foreclosure: No Small Chore
• Neighborhood Link: Selecting and Contracting Service Providers