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BB2
(Missouri)
Posts:26
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| 05/15/2008 1:57 PM |
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| Our dues are due June 1st if not paid on that date are they delinquent? There is no mention of a grace period in the by-laws however in the past we have never considered them delinquent until July 1st.If I remember correctly the bookeeper who was doing the books at the time said she could not charge a late fee beginning on June 2nd and had to allow a certain number of days to elapse before it could be charged. (we no longer charge a late fee) some people were required to pay it some were not so it was suspended. |
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JosephW
(Michigan)
Posts:751
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| 05/15/2008 2:11 PM |
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Based on what your bookkeeper said, I would guess that somewhere is a delinquency policy, either in the docs, rules or possibly even the state laws. Technically they can be considered delinquent the day after they're due. Anything after that is a grace period which, as you are finding out, may or may be permitted or spelled out. You can also see the need to enforce policies uniformly. If you can't find anything then its the 1st. Ask around to see if anybody has anything in writing.
Joe |
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Joseph West
Official HOATalk.com Sponsor
Community Associations Network, LLC
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MaryA1
(Arizona)
Posts:2156
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| 05/15/2008 2:20 PM |
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BB,
I think it's an unwritten rule that you allow 15 days b/4 they are considered delinquent. My assn. allows 30 days but our assessments are paid quarterly. After this grace period you can impose a late fee. Since your board suspended the late fee what do they do when a member doesn't pay? I've found that the late fee is an incentive for most people to pay on time. Of course you always have a certain % who will be perpetually late. It's important for the board to adopt a collection policy through resolution, send it to all members and stick to it. The collection policy should state when the dues are considered delinquent, how much the late fee is and what happens if not paid by the due date. State exactly what actions will be taken 1 mo, 2 mos, 3 mos delinquent, etc. |
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BrianB
(California)
Posts:1731
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| 05/15/2008 3:04 PM |
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heck, with no late fee or penalty, i wouldn't pay for years, just put the amount in a savings account, and go as long as i could without paying. When i reached the end of the run, i would pay my "dues", and pocket the interest i earned, free and clear.
I am all paid up, didn't cost me a dime, and i even earned money while doing it. Not a bad deal. I wish i could find an HOA that didn't charge late fees/penalties. |
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BB2
(Missouri)
Posts:26
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| 05/15/2008 3:09 PM |
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| Our dues are paid once a year. Yes we have people who are perputally behind the late fee was suspended because of "selective enforcement" we didn't want to get into that mess. |
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SusanW1
(Michigan)
Posts:2116
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| 05/15/2008 3:55 PM |
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Your Board needs to adopt a Delinquency Policy ASAP. Put it in writing - every stage, right up to lein or foreclosure.
There have been several policies shared by HOA people just on this site - or - you can Google HOA Delinquent Policy.
"If it ain't in writing, it doesn't exist."
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MaryA1
(Arizona)
Posts:2156
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| 05/16/2008 4:07 AM |
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BB,
I'm not quite sure what you mean by your statement: ". . .the late fee was suspended because of "selective enforcement" we didn't want to get into that mess." Could you please explain? Thx! |
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CharlesW1
(Georgia)
Posts:818
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| 05/16/2008 4:58 AM |
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BB2,
I agree with the previously written posts. Your association MUST establish a policy to follow for delinquent accounts. Otherwise, those who do pay could do as BrianB, had posted. Even though very humorous to the majority it would only benefit them personally to do and have NO consequences, BONUS!
In our association, the assessments (annual) are due on or before January 1st and considered late if received on or after January 10th, according to our governing documents. A late fee of $25.00 is then added to the account and interests will be accruing daily for every day the accounts has a balance, there after.
Meanwhile, the delinquent Lot owner is receiving letters from the MC, notifying them that payment has NOT been received and explaining to them what will happen after 30 days from the date on that particular invoice, before the account is turned over to the collections attorney and a lien is file on their home. The homeowner can avoid all these expenses by paying the balance in full or setting up a payment arrangement. Otherwise, they are likely to inquire the attorney fees and possible foreclosure on their HOME. That is an attention grabber, for some, NOT all!
Our association doesn’t have the means or the money to foreclosure on anyone’s home. However, WE can and that terrifies members to pay their assessments, plus more.
Best of luck and certainly “nip” this in the butt before it gets even further out of hand.
Chuck W.
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Charles E. Wafer Jr. |
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DwightT
(Idaho)
Posts:443
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| 05/16/2008 10:41 AM |
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| Sounds like our policy is overly generous. Our annual assessment is due on Jan 1, and while statements are sent out monthly, we give people until the end of Feb. before we start charging interest. In April we send out a certified demand letter, and the MC adds on an administrative charge for that, on top of interest fees. We still have people who don't pay until they find out that they can't get into the pool when it opens (tomorrow). Then many of them try to just send in the assessment amount and ignore the interest and other fees. They still don't get access to the pool until their balance is at 0. |
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MaryA1
(Arizona)
Posts:2156
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| 05/16/2008 3:01 PM |
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Dwight,
If your assn has a yearly assessemnt, why do you send monthly statements? I pay my assessments quarterly and recieve one statement each quarter. The assn allows 30 days before the assessment is considered delinquent. In my former assn the assessment was due each month and delinquent if not paid by the 15th. Perhaps your assn allows a longer time to pay because the whole year's assessment is due at once. |
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DwightT
(Idaho)
Posts:443
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| 05/16/2008 3:21 PM |
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| Sorry, I wasn't complete. We send monthly statements to those homeowners who still have a balance due. If you paid in full after the first statement, you wouldn't receive another one until next year. |
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| You are not authorized to post a reply. |
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