The Michigan Condominium Act lets associations levy fines, but only after due process. Under MCL 559.206 a condo association may impose late charges and, after notice and a hearing, levy fines as authorized by the bylaws. There is no statutory dollar cap. Non-condo HOAs draw fine power from their declaration.
MCL 559.206 authorizes "the levying of fines against co-owners after notice and hearing thereon and the imposition of late charges for nonpayment of assessments as provided in the condominium bylaws or rules and regulations of the condominium." The statute sets no fixed dollar limit — the amount is governed by what the bylaws authorize — but it conditions any fine on advance notice and a hearing. Available remedies also include an action for damages, injunctive relief, and foreclosure of the lien, and a prevailing party may recover costs and reasonable attorney fees if the documents so provide. Non-condominium HOAs have no general Michigan fining statute, so a planned-community HOA's fine power comes from its recorded declaration and MCL 450.2101 et seq.
Condo fines require advance notice and a hearing under MCL 559.206; there is no statutory dollar cap, only what the bylaws set. Unpaid fines roll into the foreclosable assessment lien under MCL 559.208. Non-condo HOA fine power flows from the declaration.
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