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Tuesday, December 02, 2008

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Subject: late fees for not paying assesment

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MikeC6
(Illinois)

Posts:14

06/24/2008 1:32 PM
Our association had 6 homes that had not paid their annual association dues for 07. We turned them over to collections after a few months. We are told there is a law that prohibits the fee for turning them over to collections is not billable to that homeowner. They will only have to pay the dues and then the costs for the colletion agency. All of the rest of the Homeowners have to pay the $75 per homeowner turned over to collections. Any help??

GlenL
(Ohio)

Posts:1376

06/24/2008 2:14 PM
Who told you this? While it's not impossible I know of no law to prevent an Association from recovering the costs associated with debt collection. Does your Association have a written debt collection policy in place? The only thing I can think of is if you are trying to collect fees and charges that were not divulged it may be possible to protest them.

DonN
(Michigan)

Posts:240

06/24/2008 3:05 PM
Read the law in your state and the CC&Rs for your development. My expectation is that the association can charge only what is permitted in the law and CC&Rs. Amend the CC&Rs to provide for assessment of a late fee. I recommend a fee only covering the costs to the association (administrative plus interest on money that has to be borrowed). Late fees should not be gouge fees, in spite of how members may feel about other members who do not timely pay their assessments.

Don Nordeen Governance of Property Owners Associations

BrianB
(California)

Posts:1742

06/24/2008 3:40 PM
Mike, you are close enough to Missouri to practice their famous motto: SHOW ME whoever told you that, ask them for the proof, in writing, of their statement. That way, if it's true, you have learned something and have it documented for the future. If not, then you learned something too.

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Forums > Homeowner Association > HOA Discussions > late fees for not paying assesment

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