If an association’s governing documents are silent about fine authority, what enforcement options are available to the association?

Even if an association’s governing documents do not expressly provide for fining authority, the association has authority to impose fines for covenant and rule violations under the Colorado Common Interest Ownership Act (“CCIOA”). Therefore, an association may use imposition of fines as a means for covenant or rule enforcement. However, no fine may be imposed until after the association provides the alleged violating owner with notice of the violation and the opportunity to have a hearing to dispute the violation.

Other enforcement options include warning letters, loss of right to use recreational amenities (if governing documents allow for this), and filing a legal action against the violating owner. Whichever enforcement route an association chooses to follow, it should ensure that the same enforcement process is used for all owners. Otherwise, the association may run into claims of selective enforcement and discrimination.

The best way to ensure uniform enforcement is by adopting an enforcement policy that sets out procedures to be used for addressing violations, how complaints are to be submitted and investigated, the hearing process and a fine schedule. If the association does, in fact, adopt such policy, it should be drafted or reviewed by the association’s legal counsel to ensure compliance with due process and other relevant laws.

Community Essentials - October 2004