New York sets no statutory cap on HOA or condominium fines. A condo board's rule-making and enforcement power comes from the bylaws required by Real Property Law § 339-v. Non-condo HOAs draw any fine power solely from their recorded declaration and bylaws under the Not-For-Profit Corporation Law.
No New York statute imposes a dollar cap on HOA or condo fines, and there is no general HOA fining statute. For condominiums, RPL § 339-v requires the bylaws to set the board's powers and the procedure for "adopting and of amending administrative rules and regulations governing the details of the operation and use of the common elements" — the source of any fine authority. For non-condo HOAs, fine power exists only if the recorded declaration or bylaws expressly grant it; the association acts under the Not-For-Profit Corporation Law. New York courts review board enforcement under the Levandusky business-judgment rule, upholding a fine only if it is authorized by the governing documents and not arbitrary, capricious, or in bad faith.
No specific statutory penalty cap. Fines come from the bylaws or recorded declaration; unpaid fines may be pursued as a debt or, for condos, folded into the common-charge lien, subject to the Levandusky business-judgment standard.
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Gates, NY
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