HOA Fine Limits in Rhode Island: Statutory Caps for Condominiums

Unlike many states, Rhode Island caps condominium HOA fines by statute. Under §34-36.1-3.20, a residential condominium daily fine cannot exceed $100 per day and a non-daily fine cannot exceed $500 — and any declaration, bylaw, or rule that purports to set its own maximum fine is void. (For non-condominium HOAs, which have no governing statute, fines are set by the CC&Rs and limited only by a reasonableness standard.)

The Condominium Fine Caps (§34-36.1-3.20)

• Residential daily fine: no more than $100 per day
• Commercial daily fine: no more than $500 per day
• Residential non-daily fine: no more than $500
• CC&R-set caps are void: the statutory limit controls even if your documents say something higher
• Notice and a hearing must precede any fine

How Fines Work for Non-Condominium HOAs

• Declaration (CC&Rs) — Sets fine amounts and procedures (no statutory cap applies)
• Reasonableness — Rhode Island courts can review fines for reasonableness
• Good faith — The board must impose fines in good faith, not as retaliation
• Governing-document limits — A fine above what the documents authorize is invalid

Typical Fine Ranges

• First violation: Warning or $25-$50 fine
• Second violation: $50-$100 fine
• Continuing violations: Up to $100 per day (condos, capped by statute)
• Serious violations: Up to $500 (condos, the statutory maximum for a non-daily fine)

For condominiums, §34-36.1-3.20 sets both the procedure and the dollar limits for fines. Failure to follow the procedure — or a fine above the statutory cap — can invalidate the fine entirely.

Step 1: Written Violation Notice

The HOA must provide written notice that includes:

• Specific violation description — What conduct or condition violates the rules
• Governing document citation — The specific rule, CC&R, or bylaw provision
• Proposed fine amount — Which must not exceed the statutory cap
• Cure instructions — What you need to do to fix the violation
• Hearing rights — Notice of your right to a hearing and how to request one

Step 2: Notice and Opportunity for a Hearing

Under §34-36.1-3.20(a), notice and the opportunity for a hearing must be provided before a fine is imposed:

• The statute does not set a fixed number of days — check your governing documents for the timeframe
• You have the right to present your case to the board or hearing committee
• You can submit evidence, documents, and witness statements
• The hearing should be before impartial decision-makers

Step 3: The Fine Must Be Within the Cap

• Residential daily fine: no more than $100 per day
• Residential non-daily fine: no more than $500
• A CC&R/bylaw provision setting a different maximum is void
• A fine above the cap is invalid regardless of what the documents say

Common Procedural Defects

• No written notice — Fine imposed without prior written notification
• No hearing offered — Homeowner not given the opportunity to be heard
• Fine exceeds the statutory cap — Over $500, or $100/day (residential condos)
• Vague violation — Notice doesn't specify what rule was violated
• Rule not properly adopted — The rule itself was never validly adopted

For condominiums, Rhode Island law gives associations a lien to collect unpaid assessments and fines, enforceable by judicial foreclosure. Understanding these provisions helps you protect your property.

The Association Lien (§34-36.1-3.16)

Under the Condominium Act, the association has a lien on each unit for:

• Unpaid assessments — Regular and special assessments
• Fines — Fines imposed after proper notice and a hearing (within the statutory cap)
• Late charges and interest — As authorized by governing documents
• Collection costs — Reasonable costs including attorney's fees for collection

Lien Priority

• Six-month super-priority — For up to six months of regular common-expense assessments, the lien is prior to a first mortgage (this super-priority covers assessments, not fines)
• Tax liens — Real estate tax liens have priority over the HOA lien
• First mortgages — Otherwise, a first mortgage recorded before the delinquency has priority
• Recording — The lien is perfected without recording, but recording provides notice to third parties

Foreclosure Process

Rhode Island uses judicial foreclosure for HOA liens:

• Court action required — The association must file suit to foreclose the lien
• Notice to owner — You must receive proper notice of the foreclosure action
• Right to defend — You can raise all available defenses in court
• Right to cure — You can pay the full amount owed to stop foreclosure
• Court supervision — The court oversees the process, providing protection against abuse

Defenses to Lien and Foreclosure

• Fine was imposed without proper notice and a hearing (§34-36.1-3.20)
• Fine exceeds the statutory cap ($500, or $100/day)
• Selective enforcement — same violation not fined for other owners
• The underlying rule was not properly adopted
• Lien includes unauthorized charges or excessive fees

Comparing Rhode Island's approach to neighboring states highlights how unusual its statutory condominium fine cap is.

Rhode Island vs. Massachusetts

• Fine caps: Rhode Island caps condominium fines by statute ($500, or $100/day, §34-36.1-3.20); Massachusetts does not cap fines, relying on governing documents
• Governing law: Massachusetts uses Chapter 183A (condominiums); Rhode Island uses §34-36.1
• Hearing rights: Both require an opportunity to be heard before condominium fines
• Foreclosure: Both require judicial foreclosure for HOA liens

Rhode Island vs. Connecticut

• Fine caps: Rhode Island caps condominium fines; Connecticut has no statutory cap, relying on governing documents and reasonableness
• Governing law: Connecticut uses the Common Interest Ownership Act (CIOA), which covers planned communities; Rhode Island's §34-36.1 is condo-only
• Regulatory oversight: Connecticut provides some oversight through the Department of Consumer Protection; Rhode Island has less

Key Takeaways for Rhode Island Homeowners

• Condominiums are capped — $500, or $100/day, and CC&R-set caps are void (§34-36.1-3.20)
• Non-condo HOAs rely on documents — No statute caps their fines; the CC&Rs and reasonableness control
• Judicial foreclosure — Rhode Island requires court action to foreclose, providing significant protection
• No ombudsman — Unlike Nevada, Rhode Island has no dedicated HOA ombudsman, so disputes typically require legal counsel or court action
• Strong fair housing protections — Rhode Island's Fair Housing Practices Act (§34-37) supplements federal law