California Homeowners Association

Penalty Policy for Violation of Governing Documents

CALIFORNIA CIVIL CODE SECTION 5850 - 5865

5850.  (a) If an association adopts or has adopted a policy imposing
any monetary penalty, including any fee, on any association member
for a violation of the governing documents, including any monetary
penalty relating to the activities of a guest or tenant of the
member, the board shall adopt and distribute to each member, in the
annual policy statement prepared pursuant to Section 5310, a schedule
of the monetary penalties that may be assessed for those violations,
which shall be in accordance with authorization for member
discipline contained in the governing documents.
   (b) Any new or revised monetary penalty that is adopted after
complying with subdivision (a) may be included in a supplement that
is delivered to the members individually, pursuant to Section 4040.
   (c) A monetary penalty for a violation of the governing documents
shall not exceed the monetary penalty stated in the schedule of
monetary penalties or supplement that is in effect at the time of the
violation.
   (d) 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.

5855.  (a) When the board is to meet to consider or impose
discipline upon a member, or to impose a monetary charge as a means
of reimbursing the association for costs incurred by the association
in the repair of damage to common area and facilities caused by a
member or the member's guest or tenant, the board shall notify the
member in writing, by either personal delivery or individual delivery
pursuant to Section 4040, at least 10 days prior to the meeting.
   (b) The notification shall contain, at a minimum, the date, time,
and place of the meeting, the nature of the alleged violation for
which a member may be disciplined or the nature of the damage to the
common area and facilities for which a monetary charge may be
imposed, and a statement that the member has a right to attend and
may address the board at the meeting. The board shall meet in
executive session if requested by the member.
   (c) If the board imposes discipline on a member or imposes a
monetary charge on the member for damage to the common area and
facilities, the board shall provide the member a written notification
of the decision, by either personal delivery or individual delivery
pursuant to Section 4040, within 15 days following the action.
   (d) A disciplinary action or the imposition of a monetary charge
for damage to the common area shall not be effective against a member
unless the board fulfills the requirements of this section.

5865.  Nothing in Section 5850 or 5855 shall be construed to create,
expand, or reduce the authority of the board to impose monetary
penalties on a member for a violation of the governing documents.