2792.26. Reasonable Arrangements – Disciplining of Members by the Association.
(a) The Association cannot be empowered to cause a forfeiture or abridgement of an owner’s right to the full use and
enjoyment of his individually-owned subdivision interest on account of the failure by the owner to comply with
provisions of the governing instruments or of duly enacted rules of operation for common areas and facilities except by
judgment of a court or a decision arising out of arbitration or on account of a foreclosure or sale under a power of sale
for failure of the owner to pay assessments duly levied by the Association.
(b) The governing instruments shall include provisions which authorize the governing body to impose monetary
penalties, temporary suspensions of an owner’s rights as a member of the Association or other appropriate discipline
for failure to comply with the governing instruments provided that the procedures for notice and hearing, satisfying the
minimum requirements of subdivision (h) of Section 1363 of the Civil Code, are followed with respect to the accused
member before a decision to impose discipline is reached.
(c) A monetary penalty imposed by the Association as a disciplinary measure for failure of a member to comply with
the governing instruments or as a means of reimbursing the Association for costs incurred by the Association in the
repair of damage to common areas and facilities for which the member was allegedly responsible or in bringing the
member and his subdivision interest into compliance with the governing instruments may not be characterized nor
treated in the governing instruments as an assessment which may become a lien against the member’s subdivision
interest enforceable by a sale of the interest in accordance with the provisions of Sections 2924, 2924(b) and 2924(c) of
the Civil Code.
(d) The provisions of subdivision (c) do not apply to charges imposed against an owner consisting of reasonable late
payment penalties for delinquent assessments and/or charges to reimburse the Association for the loss of interest and
for costs reasonably incurred (including attorneys’ fees) in its efforts to collect delinquent assessments.