Louisiana HOA fine rules

The Act authorizes fines but attaches no notice-before-fine condition. Among the powers an association may exercise is to "Impose reasonable fines, including interest and attorney fees, against lot owners and occupants for violations of the community documents in accordance with Part III of this Chapter" (La. R.S. 9:1141.20(A)(2)(l)). Part III of the Chapter is La. R.S. 9:1145 to 9:1148, which governs the association's privilege on the lot and how that privilege is preserved and enforced; it contains no notice or hearing step before a fine is imposed. What Part III does require comes after the money is owed: "When an owner has failed to pay the charges, expenses, or dues imposed upon his lot or unit, the association shall make written demand for past due charges, expenses, or dues owed by any of the following methods," listing United States mail postage paid or commercial courier to the owner's designated mailing address, electronic mail to the owner's designated address, hand delivery to the physical location of the lot or unit if no mailing or electronic address has been designated, United States mail or commercial courier to the mailing address of each lot or unit, and "Any other method reasonably calculated to provide notice to the owner" (La. R.S. 9:1146(A)). "The owner shall have thirty days after the written demand to deliver payment for the amount owed to the association," and "After expiration of the thirty-day period, the association may file a sworn detailed statement of privilege in accordance with this Part" (§ 9:1146(B)(1), (3)). Separately, La. R.S. 9:1141.38 sets the methods by which an association delivers "any notice required pursuant to this Part," but the Act does not make a notice of violation one of those required notices.

The Planned Community Act sets no cure period before a fine. The fine power is granted without any pre-fine condition — an association may "Impose reasonable fines, including interest and attorney fees, against lot owners and occupants for violations of the community documents in accordance with Part III of this Chapter" (La. R.S. 9:1141.20(A)(2)(l)) — and Part III of the Chapter, La. R.S. 9:1145 to 9:1148, attaches no step before a fine is imposed, so nothing in the Act gives a lot owner a period in which correcting a violation prevents the fine. The thirty-day period the Act does contain is a different mechanism and runs only after money is already owed: it is the owner's time to pay a written demand before the association may record a privilege against the lot. "The owner shall have thirty days after the written demand to deliver payment for the amount owed to the association" and "After expiration of the thirty-day period, the association may file a sworn detailed statement of privilege in accordance with this Part" (La. R.S. 9:1146(B)(1), (3)). Any cure period before a fine comes from the community documents rather than from the Act.

Louisiana sets no dollar cap on association fines. The statutory limit is one of reasonableness attached to the power itself: an association may "Impose reasonable fines, including interest and attorney fees, against lot owners and occupants for violations of the community documents in accordance with Part III of this Chapter" (La. R.S. 9:1141.20(A)(2)(l)). The Act also constrains how enforcement decisions are made rather than how large a fine may be: "The association may determine whether to take enforcement action by imposing sanctions or commencing an action for a violation of the provisions of the community documents," "The association has discretion in pursuing or declining enforcement depending on each set of circumstances," and "The association shall not be arbitrary or capricious in its decision to pursue or decline enforcement in accordance with Subsections D and E of this Section" (§ 9:1141.20(D), (E), (F)). An association may also suspend a right or privilege of an owner or occupant who fails to pay an assessment or violates the community documents, but it may not "Deny a lot owner access to the lot owner's lot" and may not "Withhold services provided by the association to a lot, a lot owner, or an occupant if the effect of withholding the service would endanger the health, safety, or property of any person" (§ 9:1141.20(A)(2)(q)).

"Upon receipt of a request for specific records, the association shall make the records available for examination and copying by a lot owner, the lot owner's agent, or persons with a valid contract of sale. An inspection shall occur during reasonable business hours or at a mutually convenient time and location" (La. R.S. 9:1141.36(B)). Section 9:1141.36(A) lists the records an association must retain, including accounting records, minutes of meetings other than executive sessions, the owner list, organizational documents and current rules, financial statements and tax returns for the past three years, current contracts, and "Records of board of directors or committee actions to approve or deny any requests for design or architectural changes from lot owners." Records may be withheld to the extent they concern personnel and medical records, contracts under negotiation, existing or potential litigation or mediation, arbitration or administrative proceedings, attorney-client or work-product communications, information whose disclosure would violate law, executive session records, and "Individual lot files other than those of the requesting lot owner" (§ 9:1141.36(C)). The association "may charge a reasonable fee for providing copies of any records in accordance with this Section and for supervising the lot owner's inspection" and "is not obligated to compile or synthesize information" (§ 9:1141.36(D), (F)). Separately, "Within ten business days after receipt of a request made in a record, the association shall furnish to the owner a statement of the amount of any unpaid assessments against the owner's lot or unit. The statement shall be binding on the association" (La. R.S. 9:1145(D)).