Association Management, Inc.

Association Management, Association Management, Inc.Inc.

Association Association Management, Inc.Management, Inc.

AMI College ofAMI College ofCommunity Association Community Association

ManagementManagement

Course 103Course 103Rules EnforcementRules Enforcement

SOURCE OF AUTHORITY SOURCE OF AUTHORITY TO ENACT RULESTO ENACT RULES(Condominium)(Condominium)

Texas Uniform Condominium ActTexas Uniform Condominium Act§82.102 (a) Unless otherwise provided by the §82.102 (a) Unless otherwise provided by the declaration, the association, acting through declaration, the association, acting through its board, may:its board, may:

(6) regulate the use, maintenance, repair, (6) regulate the use, maintenance, repair, replacement, modification, and appearance of replacement, modification, and appearance of the condominium;the condominium;(7) adopt and amend rules regulating the use, (7) adopt and amend rules regulating the use, occupancy, leasing or sale, maintenance, occupancy, leasing or sale, maintenance, repair, modification, and appearance of units repair, modification, and appearance of units and common elements, to the extent the and common elements, to the extent the regulated actions affect common elements or regulated actions affect common elements or other units;other units;

(c) To be enforceable, a bylaw or rule of the (c) To be enforceable, a bylaw or rule of the association must not be arbitrary or association must not be arbitrary or capricious.capricious.

SOURCE OF AUTHORITY SOURCE OF AUTHORITY TO ENFORCE RULESTO ENFORCE RULES

(Condominium)(Condominium)

Texas Uniform Condominium ActTexas Uniform Condominium Act§82.102 (a) Unless otherwise provided by §82.102 (a) Unless otherwise provided by the declaration, the association, acting the declaration, the association, acting through its board, may:through its board, may:(12) impose interest and late charges for (12) impose interest and late charges for late payment of assessments, return check late payment of assessments, return check charges, and, if notice and an opportunity charges, and, if notice and an opportunity to be heard are given, reasonable fines for to be heard are given, reasonable fines for violations of the declaration, bylaws and violations of the declaration, bylaws and rules of the association;rules of the association;(14) adopt and amend rules regulating the (14) adopt and amend rules regulating the termination of utility services to a unit, the termination of utility services to a unit, the owner of which is delinquent in the owner of which is delinquent in the payment of an assessment that is used, in payment of an assessment that is used, in whole or in part, to pay the cost of that whole or in part, to pay the cost of that utility;utility;

PREREQUISITE PREREQUISITE PROCEDURE PROCEDURE


Texas Uniform Condominium ActTexas Uniform Condominium Act§82.102 (d) Before an association may §82.102 (d) Before an association may charge the unit owner for property damage charge the unit owner for property damage for which the unit owner is liable or levy a for which the unit owner is liable or levy a fine for violation of the declaration, fine for violation of the declaration, bylaws, or rules, the association shall give bylaws, or rules, the association shall give the unit owner a written notice that:the unit owner a written notice that:(1) describes the violation or property (1) describes the violation or property damage and states the amount of the damage and states the amount of the proposed fine or damage charge;proposed fine or damage charge;(2) states that not later than the 30(2) states that not later than the 30thth day day after the date of the notice, the owner may after the date of the notice, the owner may request a hearing before the board to request a hearing before the board to contest the fine or damage charge; andcontest the fine or damage charge; and

SOURCE OF AUTHORITY SOURCE OF AUTHORITY TO ENACT RULESTO ENACT RULES

(Planned Unit Development (Planned Unit Development “PUD”)“PUD”)

Texas Property CodeTexas Property Code§204.010 Unless otherwise provided §204.010 Unless otherwise provided by the restrictions or the association’s by the restrictions or the association’s articles of incorporation or bylaws, articles of incorporation or bylaws, the property owners’ association, the property owners’ association, acting through its board of directors acting through its board of directors or trustees, may:or trustees, may:(6) regulate the use, maintenance, (6) regulate the use, maintenance, repair, replacement, modification, and repair, replacement, modification, and appearance of the subdivision;appearance of the subdivision;

PREREQUISITE PREREQUISITE PROCEDURE PROCEDURE


Texas Uniform Condominium ActTexas Uniform Condominium Act§82.102 (d)(3) allows the unit owner a §82.102 (d)(3) allows the unit owner a reasonable time, by a specified date, to reasonable time, by a specified date, to cure the violation and avoid the fine cure the violation and avoid the fine unless the unit owner was given notice unless the unit owner was given notice and a reasonable opportunity to cure a and a reasonable opportunity to cure a similar violation within the preceding 12 similar violation within the preceding 12 months.months.(e) The association may give a copy of the (e) The association may give a copy of the notice required by Subsection (d) to an notice required by Subsection (d) to an occupant of the unit. The association occupant of the unit. The association must give notice of a levied fine or must give notice of a levied fine or damage charge to the unit owner not damage charge to the unit owner not later than the 30later than the 30thth day after the date of day after the date of the levy.the levy.



Texas Property CodeTexas Property Code§204.010 Unless otherwise provided by §204.010 Unless otherwise provided by the restrictions or the association’s the restrictions or the association’s articles of incorporation or bylaws, the articles of incorporation or bylaws, the property owners’ association, acting property owners’ association, acting through its board of directors or trustees, through its board of directors or trustees, may:may:(10) If notice and an opportunity to be (10) If notice and an opportunity to be heard are given, collect reimbursement of heard are given, collect reimbursement of actual attorney’s fees and other costs actual attorney’s fees and other costs incurred by the property owners’ incurred by the property owners’ association relating to violations of the association relating to violations of the subdivision’s restrictions or the property subdivision’s restrictions or the property owners’ association’s bylaws and rules;owners’ association’s bylaws and rules;



Texas Property CodeTexas Property Code§204.010 Unless otherwise provided §204.010 Unless otherwise provided by the restrictions or the association’s by the restrictions or the association’s articles of incorporation or bylaws, articles of incorporation or bylaws, the property owners’ association, the property owners’ association, acting through its board of directors acting through its board of directors or trustees, may:or trustees, may:(10) If notice and an opportunity to (10) If notice and an opportunity to be heard are given, collect be heard are given, collect reimbursement of actual attorney’s reimbursement of actual attorney’s fees and other costs incurred by the fees and other costs incurred by the property owners’ association relating property owners’ association relating to violations of the subdivision’s to violations of the subdivision’s restrictions or the property owners’ restrictions or the property owners’ association’s bylaws and rules;association’s bylaws and rules;

SOURCE OF AUTHORITY TO SOURCE OF AUTHORITY TO ENFORCE RULESENFORCE RULES


Texas Property CodeTexas Property Code§ 209.006. NOTICE REQUIRED BEFORE § 209.006. NOTICE REQUIRED BEFORE

ENFORCEMENT ACTION. ENFORCEMENT ACTION. (a)(a) Before a property owners' association Before a property owners' association

may suspend an owner's right to use a may suspend an owner's right to use a common area, file a suit against an owner common area, file a suit against an owner other than a suit to collect a regular or other than a suit to collect a regular or special assessment or foreclose under an special assessment or foreclose under an association's lien, charge an owner for association's lien, charge an owner for property damage, or levy a fine for a property damage, or levy a fine for a violation of the restrictions or bylaws or violation of the restrictions or bylaws or rules of the association, the association or rules of the association, the association or its agent must give written notice to the its agent must give written notice to the owner by certified mail, return receipt owner by certified mail, return receipt requested. requested.

SOURCE OF AUTHORITY TO SOURCE OF AUTHORITY TO ENFORCE RULESENFORCE RULES


Texas Property CodeTexas Property Code§ 209.006.§ 209.006. NOTICE REQUIRED BEFORE ENFORCEMENT NOTICE REQUIRED BEFORE ENFORCEMENT

ACTION. ACTION. (b) The notice must: (1) describe the violation or (b) The notice must: (1) describe the violation or

property damage that is the basis for the property damage that is the basis for the suspension action, charge, or fine and state any suspension action, charge, or fine and state any amount due the association from the owner; and amount due the association from the owner; and (2) inform the owner that the owner: (A) is entitled (2) inform the owner that the owner: (A) is entitled to a reasonable period to cure the violation and to a reasonable period to cure the violation and avoid the fine or suspension unless the owner was avoid the fine or suspension unless the owner was given notice and a reasonable opportunity to cure given notice and a reasonable opportunity to cure a similar violation within the preceding six a similar violation within the preceding six months; and (B) may request a hearing under months; and (B) may request a hearing under Section 209.007 on or before the 30th day after Section 209.007 on or before the 30th day after the date the owner receives the notice. the date the owner receives the notice.



Texas Property CodeTexas Property Code§ 209.007. HEARING BEFORE BOARD; § 209.007. HEARING BEFORE BOARD;

ALTERNATIVE DISPUTE RESOLUTION.ALTERNATIVE DISPUTE RESOLUTION. (a)(a) If the owner is entitled to an If the owner is entitled to an

opportunity to cure the violation, the opportunity to cure the violation, the owner has the right to submit a written owner has the right to submit a written request for a hearing to discuss and request for a hearing to discuss and verify facts and resolve the matter in verify facts and resolve the matter in issue before a committee appointed by issue before a committee appointed by the board of the property owners' the board of the property owners' association or before the board if the association or before the board if the board does not appoint a committee. board does not appoint a committee.

(b) (b) If a hearing is to be held before a If a hearing is to be held before a committee, the notice prescribed by committee, the notice prescribed by Section 209.006 must state that the Section 209.006 must state that the owner has the right to appeal the owner has the right to appeal the committee's decision to the board by committee's decision to the board by written notice to the board. written notice to the board.



Texas Property CodeTexas Property Code§ 209.007. HEARING BEFORE BOARD; § 209.007. HEARING BEFORE BOARD; ALTERNATIVE DISPUTE RESOLUTION.ALTERNATIVE DISPUTE RESOLUTION. (c) The association shall hold a hearing (c) The association shall hold a hearing under this section not later than the 30th under this section not later than the 30th day after the date the board receives the day after the date the board receives the owner's request for a hearing and shall owner's request for a hearing and shall notify the owner of the date, time, and notify the owner of the date, time, and place of the hearing not later than the 10th place of the hearing not later than the 10th day before the date of the hearing. The day before the date of the hearing. The board or the owner may request a board or the owner may request a postponement, and, if requested, a postponement, and, if requested, a postponement shall be granted for a period postponement shall be granted for a period of not more than 10 days. Additional of not more than 10 days. Additional postponements may be granted by postponements may be granted by agreement of the parties. The owner or the agreement of the parties. The owner or the association may make an audio recording association may make an audio recording of the meeting.of the meeting.



Texas Property CodeTexas Property Code§ 209.007. HEARING BEFORE BOARD; ALTERNATIVE DISPUTE § 209.007. HEARING BEFORE BOARD; ALTERNATIVE DISPUTE RESOLUTION.RESOLUTION. (d) The notice and hearing provisions of Section (d) The notice and hearing provisions of Section 209.006 and this section do not apply if the 209.006 and this section do not apply if the association files a suit seeking a temporary association files a suit seeking a temporary restraining order or temporary injunctive relief or restraining order or temporary injunctive relief or files a suit that includes foreclosure as a cause of files a suit that includes foreclosure as a cause of action. If a suit is filed relating to a matter to action. If a suit is filed relating to a matter to which those sections apply, a party to the suit may which those sections apply, a party to the suit may file a motion to compel mediation. The notice and file a motion to compel mediation. The notice and hearing provisions of Section 209.006 and this hearing provisions of Section 209.006 and this section do not apply to a temporary suspension of section do not apply to a temporary suspension of a person's right to use common areas if the a person's right to use common areas if the temporary suspension is the result of a violation temporary suspension is the result of a violation that occurred in a common area and involved a that occurred in a common area and involved a significant and immediate risk of harm to others significant and immediate risk of harm to others in the subdivision. The temporary suspension is in the subdivision. The temporary suspension is effective until the board makes a final effective until the board makes a final determination on the suspension action after determination on the suspension action after following the procedures prescribed by this following the procedures prescribed by this section. section.


(Planned Unit Development “PUD”)(Planned Unit Development “PUD”)§ 209.008. ATTORNEY'S FEES. § 209.008. ATTORNEY'S FEES.

(a) A property owners' association may collect reimbursement (a) A property owners' association may collect reimbursement of reasonable attorney's fees and other reasonable costs of reasonable attorney's fees and other reasonable costs incurred by the association relating to collecting amounts, incurred by the association relating to collecting amounts, including damages, due the association for enforcing including damages, due the association for enforcing restrictions or the bylaws or rules of the association only if restrictions or the bylaws or rules of the association only if the owner is provided a written notice that attorney's fees the owner is provided a written notice that attorney's fees and costs will be charged to the owner if the delinquency or and costs will be charged to the owner if the delinquency or violation continues after a date certain. violation continues after a date certain.

(b) An owner is not liable for attorney's fees incurred by the (b) An owner is not liable for attorney's fees incurred by the association relating to a matter described by the notice association relating to a matter described by the notice under Section 209.006 if the attorney's fees are incurred under Section 209.006 if the attorney's fees are incurred before the conclusion of the hearing under Section 209.007 before the conclusion of the hearing under Section 209.007 or, if the owner does not request a hearing under that or, if the owner does not request a hearing under that section, before the date by which the owner must request a section, before the date by which the owner must request a hearing. The owner's presence is not required to hold a hearing. The owner's presence is not required to hold a hearing under Section 209.007.hearing under Section 209.007.


(Planned Unit Development “PUD”)(Planned Unit Development “PUD”)

§ 209.008. ATTORNEY'S FEES.§ 209.008. ATTORNEY'S FEES. (c) All attorney's fees, costs, and other amounts (c) All attorney's fees, costs, and other amounts

collected from an owner shall be deposited into an collected from an owner shall be deposited into an account maintained at a financial institution in account maintained at a financial institution in the name of the association or its managing the name of the association or its managing agent. Only members of the association's board or agent. Only members of the association's board or its managing agent or employees of its managing its managing agent or employees of its managing agent may be signatories on the account. agent may be signatories on the account.

(d) On written request from the owner, the (d) On written request from the owner, the association shall provide copies of invoices for association shall provide copies of invoices for attorney's fees and other costs relating only to the attorney's fees and other costs relating only to the matter for which the association seeks matter for which the association seeks reimbursement of fees and costs. reimbursement of fees and costs.

RULE ENFORCEMENTRULE ENFORCEMENTWho EnforcesWho Enforces

THE BOARDTHE BOARD ULTIMATE RESPONSIBILITY FOR ULTIMATE RESPONSIBILITY FOR THE THE ENFORCEMENT OF THE ENFORCEMENT OF THE ASSOCIATION’S ASSOCIATION’S RULES LIES WITH RULES LIES WITH THE BOARD OF THE BOARD OF DIRECTORSDIRECTORS FAILURE TO ACT CAN HAVE LEGAL FAILURE TO ACT CAN HAVE LEGAL

CONSEQUENCESCONSEQUENCESAttractive NuisanceAttractive NuisanceForeseeable CrimeForeseeable Crime


HOMEOWNERSHOMEOWNERSMOST GOVERNING DOCUMENTS MOST GOVERNING DOCUMENTS SPECIFICALLY GIVE THE SPECIFICALLY GIVE THE HOMEOWNERS THE AUTHORITY TO HOMEOWNERS THE AUTHORITY TO ENFORCE THE RESTRICTIONS WHICH ENFORCE THE RESTRICTIONS WHICH INCLUDES THE RULES. INCLUDES THE RULES.

Public NuisancePublic Nuisancevs.vs.

Private NuisancePrivate Nuisance


LOCAL PUBLIC AUTHORITYLOCAL PUBLIC AUTHORITYVIOLATIONS OF THE ASSOCIATION’S VIOLATIONS OF THE ASSOCIATION’S RESTRICTIONS AND RULES THAT ARE ALSO RESTRICTIONS AND RULES THAT ARE ALSO VIOLATIONS OF LOCAL ORDINANCES VIOLATIONS OF LOCAL ORDINANCES SHOULD BE SHOULD BE ENFORCED BY THE LOCAL ENFORCED BY THE LOCAL PUBLIC AUTHORITY PUBLIC AUTHORITY

City Ordinances - Business Use of City Ordinances - Business Use of Unit (License)Unit (License)

Building Department - Unpermitted Building Department - Unpermitted ImprovementsImprovements

Police Department – Noise NuisancePolice Department – Noise NuisanceFire Department – Barbecue Grills Fire Department – Barbecue Grills

on Balconieson BalconiesHealth Department – Occupancy Health Department – Occupancy

RestrictionsRestrictionsAnimal Shelter – Animal AbuseAnimal Shelter – Animal Abuse


THE MANAGER’S ROLETHE MANAGER’S ROLE MANAGER’S AUTHORITY IS FOUND IN THE MANAGER’S AUTHORITY IS FOUND IN THE

MANAGEMENT AGREEMENT AND IN BOARD MANAGEMENT AGREEMENT AND IN BOARD DIRECTIVES.DIRECTIVES.

MANAGER’S ROLE IS TO GUIDE AND ASSIST MANAGER’S ROLE IS TO GUIDE AND ASSIST THE BOARD WITH THE ENFORCEMENT OF THE BOARD WITH THE ENFORCEMENT OF THE ASSOCIATION’S RULESTHE ASSOCIATION’S RULES

MANAGER SHOULD REFUSE TO ACT IF MANAGER SHOULD REFUSE TO ACT IF DIRECTED TO ACT IN AN ILLEGAL, IMMORAL, DIRECTED TO ACT IN AN ILLEGAL, IMMORAL, OR UNETHICAL MANNER OR OUTSIDE THE OR UNETHICAL MANNER OR OUTSIDE THE SCOPE OF THE MANAGEMENT AGREEMENTSCOPE OF THE MANAGEMENT AGREEMENT

MANAGER TO KEEP SOUND BOOKS AND MANAGER TO KEEP SOUND BOOKS AND RECORDSRECORDS

NINE STEPS IN RULE NINE STEPS IN RULE DEVELOPMENTDEVELOPMENT

1.1. EVALUATE NEED FOR THE EVALUATE NEED FOR THE RULERULE

2.2. EVALUATE ALTERNATIVESEVALUATE ALTERNATIVES3.3. RESEARCH LEGAL BASERESEARCH LEGAL BASE4.4. RESEARCH PREVIOUS RULESRESEARCH PREVIOUS RULES5.5. SEEK ASSISTANCESEEK ASSISTANCE6.6. IF NEEDED, DRAFT RULEIF NEEDED, DRAFT RULE7.7. PUBLISH PROPOSED RULEPUBLISH PROPOSED RULE8.8. ACT (ADOPT OR REJECT)ACT (ADOPT OR REJECT)9.9. GIVE NOTICE OF RULEGIVE NOTICE OF RULE

EVALUATE THE EVALUATE THE ALTERNATIVESALTERNATIVES

Examples of Examples of DEED RESTRICTION DEED RESTRICTION

VIOLATIONS VIOLATIONS







EXAMPLES OF EXAMPLES OF REMEDIES FOR RULE REMEDIES FOR RULE

VIOLATIONSVIOLATIONS

1.1. PEER PRESSUREPEER PRESSURE2.2. REVOCATION OF VOTE OR USE REVOCATION OF VOTE OR USE

PRIVILEGESPRIVILEGES3.3. FINESFINES4.4. ASSISTANCE FROM PUBLIC ASSISTANCE FROM PUBLIC

AGENCIESAGENCIES5.5. SELF HELPSELF HELP6.6. LIMITED VARIANCELIMITED VARIANCE7.7. LEGAL ACTIONLEGAL ACTION

EXAMPLES OF EXAMPLES OF REMEDIES FOR RULE REMEDIES FOR RULE

VIOLATIONSVIOLATIONS

LEGAL ACTIONLEGAL ACTION

NOTICE OF NON-COMPLIANCENOTICE OF NON-COMPLIANCEDISPUTE RESOLUTIONDISPUTE RESOLUTIONMediation/ArbitrationMediation/Arbitration

LAWSUITLAWSUIT

WHEN TO ENFORCEWHEN TO ENFORCE

ESTOPPELESTOPPEL**

WAIVERWAIVER**

DISCRIMINATIONDISCRIMINATION**

EFFECT ON COMMUNITY OF EFFECT ON COMMUNITY OF FAILURE TO ENFORCEFAILURE TO ENFORCE

MAKING EXCEPTIONSMAKING EXCEPTIONS

DON’T MAKE EXCEPTIONS DON’T MAKE EXCEPTIONS THAT CHANGE CHARACTER THAT CHANGE CHARACTER

OF THE COMMUNITYOF THE COMMUNITY**

DON’T MAKE EXCEPTIONS DON’T MAKE EXCEPTIONS OUTSIDE OF BOARD’S OUTSIDE OF BOARD’S

AUTHORITYAUTHORITY**

ADOPT FORMAL RESOLUTION ADOPT FORMAL RESOLUTION WHEN MAKING EXCEPTIONS WHEN MAKING EXCEPTIONS

EXPLAINING RATIONALEXPLAINING RATIONAL

Association Management, Association Management, Inc.Inc.

Thank you for your attendance. We hope that Thank you for your attendance. We hope that you enjoyed the course and will derive some you enjoyed the course and will derive some

benefit from the information presented. benefit from the information presented.

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