Serving on the board for a homeowners association (HOA) comes with many responsibilities. Board members have to be present for meetings, which can demand hours of their time every month. They may also need to make difficult decisions regarding their neighbors and properties within their community.
For example, HOA board members may recognize that there is a reason that a homeowner hasn’t maintained their yard or property the way that bylaws require. A cancer diagnosis, the loss of a family member or a divorce could all explain why a previously fastidious owner suddenly fails to meet community standards.
Unfortunately, HOA board members generally cannot grant leniency to owners without risking the loss of the authority necessary to enforce bylaws in the future. Not only do HOAs need to consistently enforce rules, but they may also need to foreclose on properties in certain circumstances.
What scenarios give an HOA the right to place liens against and foreclose on local homes?
Unpaid fees and fines can cause foreclosure
Illinois has relatively thorough statutes regulating HOAs and their relationships with homeowners. There are rules requiring open meetings and appropriate communication with homeowners. There are also rules reinforcing the right of the HOA to collect monthly fees or dues and to impose financial penalties for the violation of bylaws by property owners or tenants.
Homeowners generally have a responsibility to pay their monthly association fees and to take responsibility for any fines assessed due to non-compliance with HOA bylaws. The failure to pay either obligation could give an HOA grounds to pursue a lien against a property.
State statutes do not mandate a minimum amount of fees or fines that must accrue before HOAs request liens. Instead, the law requires appropriate documentation and prompt communication with the property owner. If they fail to remedy the situation and pay what is due to remove the liens, then the HOA could potentially foreclose on the lien. They can then sell the property as a means of recouping the amount owed to the HOA.
Assessing appropriate fees and taking legal action as necessary can help HOAs preserve the characteristics of a community and the authority to enforce community bylaws. HOA board members may need help navigating the complex legal process of pursuing or enforcing liens on HOA properties, and that’s okay.