HOA’s and Fee Policies

HOA late fees and collection policies.

the always difficult and controversial subject….. 

HOA’s must have strong fee policies in place that are clear, have an intended course of action, are uniformly enforced, and encourage prompt payment. If they don’t, things can get sticky.

That is why we suggest your HOA addresses fees and collections in a timely manner, and more importantly, communicate the policies regularly.

 

Let’s define some fees on your statement:

Admin fee –  a fee that is applied for monitoring delinquent accounts and sending out reminders that dues have not been paid.

Late fees -This fee is applied if the assessment payment has not been received by the due date. The fee should be set high enough to encourage on-time payments, but within what the laws allow.

Fines – are applied for violation issues that were not corrected in a timely manner or according to your HOA’s CC&R enforcement policy.

 

Can HOA fines be disputed?

Yes, disputes or appeals to these fees must be made in writing and submitted to the Community Manager. The Board of Directors of your community will review your appeal at their next Board Meeting. You can also submit an appeal directly on our website.

Flexibility for distressed homeowners…..

Remember that flexibility in a policy should also be considered. The board should have some leeway to accept temporary payment plans for distressed homeowners or unforeseen circumstances. Make sure your HOA has this policy documented also, so there are no discrepancies in consistency.