HOA Case Law Journal
with Julie McGhee Howard
Salter v. St. Charles Homeowners Association, Inc.
2023 WL 4226985 (Ga. Ct. App. June 28, 2023)
Don’t Skip Out on Approval
A homeowner in St. Charles Homeowners Association, which was submitted to the Property Owners Association Act (POAA), began building an above- ground pool on their property. However, the HOA’s declaration prohibited above ground pools and required any in-ground pools to be made of a specific material. The homeowner did not seek approval from the board to build the pool and ignored violation letters warning of the imposition of fines.
The Facts:
- The HOA’s declaration, in accordance with the POAA, allowed the board to form an Architectural Review Board (ARB) to review homeowner requests to alter or add structures on member property and either approve or deny them.
- The Declaration also gave the ARB the authority to fine for violations of the architectural rules established in the governing documents.
- When the Board became aware the homeowner had started to construct the pool, it sent him a letter informing him he was in violation of the HOA architectural standards and would be fined.
- The Board did not have an established ARB at that time, but the homeowner also never inquired whether there was one.
- The Board began fining the homeowner in accordance with the letter it sent the homeowner.
The Issue of the Suit:
The homeowner claimed that because there was no standing ARB, he did not have to seek any approval and the Board had therefore waived its right to enforce HOA architectural standards. Further, the homeowner contended that the Board did not have the authority to fine him under the declaration and said such fines were unfair and a breach of fiduciary duty.
Court Decision
The Court held that the HOA’s Board did have the authority to fine for architectural violations through its general enforcement powers, which were explicit in the declaration. Additionally, even though there was no current ARB, the Board could have timely assembled one to review plans submitted for approval. Therefore, the Court determined the Board had the unfettered authority to enforce the architectural standards in an ARB’s absence. The Board acted in good faith and fairly when imposing the fines by complying with the association’s fining and enforcement procedure.
The Cautionary Tale
Clear language in a declaration is necessary to ensure the Board has the authority to enforce standards usually overseen by committees if there is no committee established. Boards need to follow the procedure outlined in the association’s Bylaws and declaration when exercising its enforcement powers.
HOA Law Advice to Help Guide Your Board of Directors
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