Adding Late fees to By-laws

Started by WardellD • 2 replies • 2291 views

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WardellD (Washington)
Posts: 64

Posted:

I am interested in changing our by-laws to charging homeowners a one time late fee in the amount of $50.00 and a 1% interest on the balance each additional month till paid in full.

If someone has that already written in their by-laws my I have a copy of that excerpt to modify our by-laws to allow us to do the same without reinventing the wheel.

And do you think this would be reasonable?

Thanks

ToriaM (North Carolina)
Posts: 10

Posted:

Wardell,

Adding a late fee to the by-laws is reasonable. However, you should first check with your local government to determine if there is a limit to the amount the fee and/or fine should be. Here in NC, a law was passed in Dec05 that HOA's could charge up to $20 or 10%, whichever is greater as a late fee and a max of $100 on fines.

BeckyV (Michigan)
Posts: 43

Posted:

Be sure you amend the bylaws in the way required by your governing documents. You can't just change the bylaws because you want to. You most likely need at least a majority of owners to agree to a bylaw change. It is probably possible, again if your documents allow it, to add the fee as an administrative fee or as a cost of doing business without a bylaw change.

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