Section § 6850

Explanation

This law section states that if a homeowners' association (HOA) sets a policy to penalize members financially for breaking the rules, they must clearly list these penalties in a document given to all members. Any new or updated penalties also need to be communicated to members individually. Importantly, no fine should be higher than what's listed in the current penalty schedule. Members can request the most up-to-date list of these penalties at any time.

(a)CA Civil Law Code § 6850(a) If an association adopts or has adopted a policy imposing any monetary penalty, including any fee, on any association member for a violation of the governing documents, including any monetary penalty relating to the activities of a guest or tenant of the member, the board shall adopt and distribute to each member, by individual notice, a schedule of the monetary penalties that may be assessed for those violations, which shall be in accordance with authorization for member discipline contained in the governing documents.
(b)CA Civil Law Code § 6850(b) Any new or revised monetary penalty that is adopted after complying with subdivision (a) may be included in a supplement that is delivered to the members individually, pursuant to Section 6553.
(c)CA Civil Law Code § 6850(c) A monetary penalty for a violation of the governing documents shall not exceed the monetary penalty stated in the schedule of monetary penalties or supplement that is in effect at the time of the violation.
(d)CA Civil Law Code § 6850(d) An association shall provide a copy of the most recently distributed schedule of monetary penalties, along with any applicable supplements to that schedule, to any member on request.

Section § 6854

Explanation

This section clarifies that the rules about imposing fines or penalties in one part of the law don't change the board's existing authority to fine a member for breaking the community's rules. It neither adds to nor takes away from that authority.

Nothing in Section 6850 shall be construed to create, expand, or reduce the authority of the board to impose monetary penalties on a member for a violation of the governing documents.