California HOAs may fine members for rule violations, but only under a published schedule of fines and after strict due-process steps. Civil Code section 5855 requires written notice and a hearing before any monetary penalty, and section 5725 bars fines from becoming a foreclosable lien on the home.
Before imposing a fine or other discipline, an HOA board must give the member written notice at least 10 days before the hearing, stating the date, time, and place of the meeting and the nature of the alleged violation, and the member may attend and be heard (Civil Code section 5855). The board must notify the member of its decision within 15 days, and discipline is unenforceable if these steps are skipped. Critically, Civil Code section 5725(b) provides that a fine "may not be characterized nor treated in the governing documents as an assessment that may become a lien" enforceable by sale of the home. Fines must also follow a schedule distributed to members annually.
A fine imposed without the required 10-day notice and hearing is invalid and unenforceable. Fines are collectible as a debt but, unlike assessments, cannot ripen into a lien and cannot be used to foreclose on the member's home (Civ. Code 5725).
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