Alaska HOA fine rules

The association may "impose a reasonable charge for late payment of assessments and, after notice and an opportunity to be heard, levy a reasonable fine for a violation of the declaration, bylaws, rules, and regulations of the association" (Alaska Stat. § 34.08.320(a)(11)). That power is granted subject to a qualifier in the opening words of the subsection: "Except as provided in (b) of this section and subject to the provisions of the declaration, the association may" exercise the listed powers (§ 34.08.320(a)). The chapter does not state what the pre-fine notice must contain and prescribes no delivery method specific to fines; it contains no general notice-delivery section. The only delivery rule in the chapter governs association meetings: "Not less than 10 nor more than 60 days in advance of a meeting, the secretary or other officer specified in the bylaws shall cause notice to be hand-delivered or sent prepaid by United States mail to the mailing address of each unit or to the mailing address designated in writing by the unit owner. The notice of a meeting must state the time and place of the meeting and the items on the agenda, including the general nature of a proposed amendment to the declaration or bylaws, budget changes, and a proposal to remove an officer or member of the executive board" (§ 34.08.390).

The chapter sets no cure period before a fine, and no cure period anywhere in § 34.08.320. Alaska enacted the 1982 form of the Uniform Common Interest Ownership Act, in which the powers section consists only of subsections (a) and (b); it contains none of the tenant-violation subsections that carry a ten-day cure period in later versions of the uniform act adopted in other states. Subsection (b), the only other subsection, reads: "The declaration may not impose limitations on the power of the association to deal with the declarant that are more restrictive than the limitations imposed on the power of the association to deal with other persons" (Alaska Stat. § 34.08.320(b)).

Alaska Stat. § 34.08.320(a)(11) — the association may, "after notice and an opportunity to be heard, levy a reasonable fine for a violation of the declaration, bylaws, rules, and regulations of the association." The chapter sets no number of days within which an owner must ask to be heard, no deadline by which the association must hold the hearing, no procedure for it and no rule on who presides. The right is stated to be non-waivable: "Except as expressly provided in this chapter the provisions of this chapter may not be varied by agreement and rights conferred by this chapter may not be waived. A declarant may not act under a power of attorney or use any other device to evade the limitations or prohibitions of this chapter or a declaration recorded under it" (§ 34.08.710) — although § 34.08.710 is not among the sections that § 34.08.040 applies to communities created before January 1, 1986, and the fine power itself is granted "subject to the provisions of the declaration" (§ 34.08.320(a)). Where the association does not comply, the chapter supplies a general remedy that is on the pre-1986 reach-back list: "If a declarant or any other person subject to this chapter fails to comply with a provision of this chapter or with a provision of the declaration or bylaws, a person or class of persons adversely affected by the failure to comply has a claim for appropriate relief. Punitive damages may be awarded for a wilful failure to comply with this chapter" (§ 34.08.670). The chapter contains no counterpart to the pre-suit hearing, board-discretion or rule-making sections found in later versions of the uniform act.

Alaska sets no dollar cap on an association fine. The only statutory limit on amount is that the fine be reasonable — the association may "levy a reasonable fine for a violation of the declaration, bylaws, rules, and regulations of the association" (Alaska Stat. § 34.08.320(a)(11)). Fines are secured: "The association has a lien on a unit for an assessment levied against the unit or fines imposed against its unit owner from the time the assessment or fine becomes due. Unless the declaration otherwise provides, fees, charges, late charges, fines, and interest charged under AS 34.08.320(a)(10) — (12) are enforceable as assessments under this section" (§ 34.08.470(a)). That lien is prior to most other liens and encumbrances, and "is also prior to all security interests described in (2) of this subsection if the common expense assessments based on the periodic budget adopted by the association under AS 34.08.460(a) would have become due in the absence of acceleration during the six months immediately preceding institution of an action to enforce the lien" (§ 34.08.470(b)); it "is not subject to the provisions of AS 09.38.010," the homestead exemption. "The recording of the declaration constitutes record notice and perfection of the lien. Further recording of a claim of lien for assessment under this section is not required" (§ 34.08.470(d)), and "A lien for an unpaid assessment is extinguished unless proceedings to enforce the lien are instituted within three years after the full amount of the assessment becomes due" (§ 34.08.470(e)). "[I]n a condominium or planned community, the lien of the association must be foreclosed as a lien is foreclosed under AS 34.35.005" (§ 34.08.470(j)(1)). The chapter contains no restriction on foreclosing a lien made up only of fines and no rule on the order in which payments are applied.

Alaska's records provision is short: "The association shall keep financial records sufficiently detailed to enable the association to comply with AS 34.08.590. Financial and other records must be made reasonably available for examination by a unit owner and an authorized agent of a unit owner" (Alaska Stat. § 34.08.490(a)). "A professional manager, managing agent, accountant, or other person with whom the association has contracted for services shall return all association records within five days of the termination of the contract. If the association records are not returned within five days, the association may sue for their return and for damages" (§ 34.08.490(b)). The chapter sets no notice period for a request, no list of records the association must retain beyond financial records, no categories that may be withheld, no fee rule, and no deadline for the association to respond. Section 34.08.490 is one of the sections that § 34.08.040(a) applies to communities created before January 1, 1986. A separate on-demand statement is available for money claimed: "The association upon written request shall furnish to a unit owner a statement setting out the amount of unpaid assessments against the unit. If the interest of the unit owner is real estate, the statement must be in recordable form. The statement must be furnished within 10 business days after receipt of the request and is binding on the association, the executive board, and each unit owner" (§ 34.08.470(h)).