NMSA 47-16-18 governs how a New Mexico HOA enforces its 'community documents' (declaration, bylaws, articles and rules). The association must give written notice and an opportunity to dispute before fining or suspending an owner, and both sides may use mediation, arbitration or other ADR instead of going straight to court.
Under the Homeowner Association Act, 'community documents' means the documents governing use of the lots and the operation of the association, including the declaration, bylaws, articles of incorporation and rules (NMSA 47-16-2). NMSA 47-16-18 lets the association enforce covenants by levying reasonable fines or suspending common-area rights 'after providing written notice and an opportunity to dispute an alleged violation.' Before a penalty, the owner may submit a written statement or request a hearing on 14 days' notice, and a majority board vote is required to impose it. The statute also authorizes ADR: a lot owner or the association 'may use a process other than litigation ... including mediation, facilitation, regulatory negotiation, settlement conferences, binding and nonbinding arbitration, fact-finding, conciliation, early neutral evaluation and policy dialogues.'
An enforcement action — fine, suspension or other penalty — is unenforceable if the association bypassed the required written notice, opportunity to dispute, hearing, or majority board vote. Disputes over covenant interpretation or enforcement may be routed to mediation or arbitration under NMSA 47-16-18.
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