Page 10 - New England Condominium September 2019

10 NEW ENGLAND CONDOMINIUM -SEPTEMBER 2019 NEWENGLANDCONDO.COM BOARD OPERATIONS Fines and Penalties Using Them Fairly and Effectively BY A J SIDRANSKY Community living comes with lots of – or they try to have them removed if a desist whatever the problematic behavior rules and regulations – many of which new management company takes over the is – but not charging the person any sort of are codified in largely static, hard-to- amend governing documents like pro- prietary leases and condominium decla- rations. Others are laid out in the more of Gumley Haft, a large co-op and con- flexible context of house rules, which can do management firm based in New York ues, so do the charges. After a while the (and should!) continue to evolve as times City: “I can’t think of more than two co-op balance can become hefty – upwards of change and community values and demo- graphics shift. House rules can cover ev- erything from when your monthly charges minium buildings because there tend to be The board will review the problem and the are due, to what types of pets (if any) you’re a lot of renters in condos. On the whole, rules with the owner in person, and hope- allowed to keep, to the times and days you with more renters \[in a building\], there’s fully the problem will resolve. “But the can move into or out of your unit – and a less of a proprietary interest on the part of bottom line,” Cummings says, “is that if whole lot in between. Living by the rules the residents.” may be easy for some, difficult for others. What can a board do to enforce their own ecutive with The Duo Condominium at costs involved are just too high for the as- community’s standards and no-no’s? Fines AKAM On-Site in Dania Beach, Florida, sociation to enforce collection.” and fees are one option. How Widely Used Are Fines and Fees? Roger Cummings is a manager with ciations use fines as a form of discipline Vice President of Property Management Sterling Services, a property management with owner/members, with the fines usu- firm located in Holliston, Massachusetts. ally outlined in the governing documents. “Most buildings we manage have some He manages 11 condominium properties These documents can be amended when fines. It could be as simple as a late fee on in Rhode Island and Massachusetts, and necessary to refine, add or eliminate fines monthly common charges, or something says the use of fines in condominium as- sociations is widespread in his area. “Ef- fectiveness, though, hovers around 30% is to send a letter to the unit owner after found in the association’s or corporation’s with 70% of owners ignoring the fines,” he the first infraction, explaining the problem house rules – not in the governing docu- says. “They don’t pay them until they sell and requesting that he or she cease and ments. The dollar amount of the fine is at property, attempting to convince the new fine. In most cases, that first letter works; management that the fines were a mistake.” According to Daniel Wollman, CEO the negative behavior and Cummings will buildings that we manage that levy fines. $500 or more. At that point, the owner will The number is slightly higher in condo- Humberto Roque, a management ex- says that in his market: “Fines are very prevalent. Most condominium asso- and fees.” The procedure employed by Cummings lations. These fines and fees are generally however, some owners will continue with then levy the fine. If the behavior contin- be asked to attend the next board meeting. they say, ‘go to hell,’ you can’t do anything about collecting until they sell. The legal “Fines are a tool in the toolbox to com- pel a change in behavior,” says Brian Butler, with FirstService Residential in Chicago. hefty on lease restrictions like Airbnb vio- the board’s discretion. They can amend house rules when necessary, and can have ranges and categories for different fines.” What Counts as ‘Finable’? Fines can be levied for all types of in- fractions. Typical infractions include pet violations (ranging from the pet reliev- ing itself in the lobby or elevator to the size or breed of pet permitted); smoking in non-smoking areas; parking in non-re- served areas; noisy or disruptive behavior; and in some cases failing to observe pool etiquette. The list is long, and can differ sharply from one community to another. Roque points out that in Florida, pool behavior is a major issue. In mixed-age communities, approved activities and be- havior for kids in pool areas is one place where fines often come into play in order to maintain a safe facility – and to avoid some liabilities. For example, children must be accompanied to the pool and supervised by their parents for as long as they’re using the space; failing to do so will result in the parent (or whichever associa- tion member is hosting the child) being fined. Another major issue that can result in a fine is bringing glass containers into a pool area; owners must consider the dam- age a broken glass can do. Pool infractions might carry some non-monetary punish- ment as well, like a temporary ban from the pool facility – but the pros we spoke with agreed that a stiff fine for letting your six-year-old run around the pool deck with an empty glass bottle could be an excellent way to see to it that you keep a closer eye on your kid in the future. Cummings lists numerous categories of infractions. They often have to do with parking – either parking in or blocking someone else’s spot, or parking in areas designated for visitors. Other types of finable infractions include bikes left on porches; possession of prohibited propane tanks; gas or charcoal grills; and trash left on porches. Wollman makes a very interesting point about the effectiveness of fines. “First of all,” he says, “there aren’t that many offenses to fine for. You’re not going to fine a share- holder or a unit owner for leaving their shoes in front of their door because there is a rule that prohibits leaving things in the hallway. The question is, is the infraction continued on page 16