Subscribe for Daily Updates!
Fines - Is there a legal limit to the amount boards can impose for a violation of a house rule or newly implemented clause of the proprietary lease
Join the Conversation Comments (1)A coop must have authorization to impose fines in the proprietary lease. The amount imposed cannot be so large it could be deemed “confiscatory” - which means the fine must be reasonable in the amount - in proportion to the cost or other loss that might be incurred due to the cause of the fine.
Introduce yourself to other members of Board Talk! Log in below or register here.
Board Talk members who registered prior to March 9th, 2016 will need to reset their password.
Most House Rules, ByLaws or wherever the specific permisability for the initial fine is written (You may wish to ensure this even exists first), will state the amounts, the amounts the Board can raise them by and/or frequency...
Most simply state "reasonable amount", as to leave it to interpretation and permit the Board to adjust it case by case if need be.. but in any case, it should not be excessive, the purpose of a fine is to stop or change an intended infraction, not to make money as some Boards think.
Best
~Anthony Reinglas
Thank you for rating!
You have already rated this page, you can only rate it once!
Your rating has been changed, thanks for rating!
Board Talk members who registered prior to March 9th, 2016 will need to reset their password.