Under the new Davis-Stirling Act, effective January 1st, 2014, any association that has a policy regarding monetary penalties is required to adopt and distribute to each member a schedule of these penalties in accordance with governing documents. A monetary penalty policy may include, but is not limited to, fees on any association member for a violation of the governing documents or penalties relating to the activities of a guest or tenant of the member.
Requirements:
- The association may include any new or revised monetary penalty in a supplement that is delivered to the members individually, pursuant to ยง4040.
- A monetary penalty for a violation of the governing documents shall not exceed the amount stated in the penalty schedule or supplement effective at the time of the violation.
- An association shall provide a copy of the most recently distributed schedule of monetary penalties, along with any applicable supplements to that schedule, to any member upon request.
Learn about Annual Policy Statement requirements.