Impact of $100 fine limitation on HOAs

The impact on the industry has been substantial: (1) The total number of violations has increased substantially, (2) The number of repeat violations has increased even more, (3) Attorney fees for HOAs have increased, (4) The amount of money collected by associations resulting from fines has declined, (5) Board members are required to spend more time on HOA business, and (6) Many management companies are increasing their fees to compensate for the additional time required. The new law has become a gold mine for attorneys who are rewriting Operating Rules and CC&Rs. They are also finding it necessary to get involved in those cases where associations are attempting to impose fines over $100.