New Mexico sets no dollar cap on HOA fines, but NMSA 47-16-18 lets an association levy only 'reasonable fines' and only after written notice and an opportunity to dispute. Before a fine or suspension, the board must offer a hearing on 14 days' notice and approve the penalty by majority vote.
NMSA 47-16-18 provides that, unless the community documents say otherwise, the association may, 'after providing written notice and an opportunity to dispute an alleged violation other than failure to pay assessments,' levy 'reasonable fines' and suspend common-area use rights. Before imposing a fine or suspension the board must give the owner a chance to submit a written statement or have a hearing, with written notice 'fourteen days prior to the hearing.' If the board or its committee 'by a majority vote, does not approve a proposed fine or suspension, neither the fine nor the suspension may be imposed.' No statute caps the fine amount, and notice and a hearing are not required for violations posing an imminent threat to public health or safety.
There is no statutory fine cap; fines must be 'reasonable' and tied to a violation of the community documents. A fine imposed without the required written notice and hearing opportunity, or without majority board approval, is invalid under NMSA 47-16-18.
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