Rules are policy resolutions  adopted by the board. The NYS Condominium Act and bylaws give  boards the power to “make reasonable rules and regulations and to amend the same from time to time, and such rules and regulations and amendments shall be binding upon the homeowners when the board has approved them in writing.”That said, the fundamental purpose of community rules are and should be, to provide a basis for protecting owners’ equity and to provide the framework within which people can live in harmony.When it comes to fines: A  board should operate with integrity and abide by an established code of ethics. Fines should be levied only as a last resort after at least two (2) warnings, one verbal and one in writing,  have been delivered to the rule breaker. A board should establish and adhere to an appeal process. Doing so allows residents an opportunity to correct violations before imposing fines or other sanctions. The board or a board appointed committee should adhere to standard procedures for resolving disputes. 

Rules and the threat of being fined, should never be used to intimidate or instill fear in residents. This could be considered an abuse of power, leading to mistrust between the board and the residents they are elected to serve.