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.

Courtney Schwartzel

Recent Posts

Top 5 Easy-to-Achieve New Year Resolutions for the HOA

2023 is nearly upon us and at PDS, we know that HOA Board members and…

2 years ago

Changing HOA Governing Documents

Every homeowners association has governing documents including the HOA bylaws and documents outlining rules and…

2 years ago

Top Ten HOA Homeowner Rights

Top Ten HOA Homeowner Rights Homeowners Associations are legal entities. Consequently, an HOA, its Board…

2 years ago

Stay Safe this Halloween!

Halloween is an anticipated and fun holiday for those who choose to celebrate it, but,…

2 years ago

Community Awareness = Safety for You and Your Neighbors

Community Awareness Can Mean Safety for You and Your Neighbors! None of us wants to…

2 years ago

Neighbors and Neighborhoods…They Matter!

Neighbors and neighborhoods help to provide us with a sense of community and offer us…

2 years ago