Violations of the CC&Rs are brought before the board by two main channels: a monthly inspection wherein the property management company drives through the neighborhood and notes any clear violations and secondly, by homeowner reports (these can be anonymous).
1) First Notice
When it is brought to the Board of Directors’ attention that your property is not in compliance, you will be sent an initial notice indicating what needs to be fixed and by when it is expected to be brought back into compliance. It is expected that the situation be satisfactorily remedied and that you follow up with the violations department to let them know that you have resolved the issue.
2) Second Notice
If the first notice goes without response and the violation persists, a second notice will be sent out. This notice repeats again lets you know what needs to be fixed and by when it is expected to be resolved. It also tells you that the next step is to be called before the Board of Directors for a hearing to discuss why the violation is not being addressed.
You will be notified of the date/time/location of your hearing at which time you are expected to show up with any pertinent documentation that you have (if any) with regards to the violation. You will discuss with the board why you have continued to disregard the notices and come to an agreement on how to resolve the issue. Should no agreement be reached, the board will then vote to begin fining your account.
4) Result of Hearing & Fines
After the hearing you will receive a letter that describes the outcome of the hearing and will detail any fines that will be levied against your account. These fines are typically a monthly, or a per-occurrence/report (maximum per-day) fine and are based on the violation at the discretion of the board.
5) Payment of Fines
Should fines be placed on your account, all subsequent payments will be applied first to your fines and secondarily to your dues. If not paid in full, this can cause your dues to be considered past due and late fees assessed. If payments are not being made and no payment plan has been put in place, the account will be turned over to the attorney.
Should the account balance exceed $500, a lien may be placed on your property. This may make it difficult to sell your property as the lien will remain on the property and transfer to the new owner at the time of sale.
7) Forced remedy
At any time after the hearing and during this process, the Board of Directors may vote to have the necessary work done to your property. If this happens, all related costs will be added to your account and become payable immediately.
If an account remains in poor standing for an extended period of time and after all other options have been exhausted, the Board of Directors may vote to foreclose on the property. If the violation culminates in this action, you will end up losing your home and incur extensive legal costs. The property will be resold at fair market value.