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Subject: Late Fees - Percent vs Flat Fee
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Author Messages
JanetB2
(Colorado)

Posts:3061


04/07/2017 11:38 PM  
I was curious what everyone charges for HOA Late Fees with regards to percent charged vs flat fee charged?

I have a friend who does accounting for HOA's and she mentioned that Flat Fee is better in Colorado with less headaches vs percentage. So was wondering how other HOA's approach this issue?
RichardP13
(California)

Posts:2004


04/08/2017 4:11 AM  
Late Fees are written into the CCRs of each Association. It can be listed as a percentage or flat, whichever is greater. If silent, state statues can dictate.
MelissaP1
(Alabama)

Posts:6561


04/08/2017 4:19 AM  
We have a flat rate of $20 dollars late fees. Which is pretty steep considering dues were set at $50 a month.

Former HOA President
RichardP13
(California)

Posts:2004


04/08/2017 4:33 AM  
Posted By MelissaP1 on 04/08/2017 4:19 AM
We have a flat rate of $20 dollars late fees. Which is pretty steep considering dues were set at $50 a month.



That would violate our state statue.
MelissaP1
(Alabama)

Posts:6561


04/08/2017 2:24 PM  
Well that is less that what it cost for writing a bad check. If I am going to charge "late fees/penalties", I look at the banking/credit card industries. They are usually "in the know" for what the laws are when it comes to such things.

Former HOA President
GeorgeR8
(Arizona)

Posts:99


04/08/2017 7:18 PM  
Flat rate. Just raised ours last year. Still about the lowest in the area. $12.
JanetB2
(Colorado)

Posts:3061


04/08/2017 10:49 PM  
Thank you!!! My friend stated flat fee was best in our State to avoid other law issues (she is on vacation and I have more questions for when she gets back ... we were running out of time when question came up previously). She also recommended a higher amount for first month violation and then less for future months. She has had some HOA's which are $50 for first month violation and then something like $20 for each month after that the owner is late. This was so it essentially shocks them into paying quickly when receive their late bill. However, stated many times will remove late fee if paid before next bill is sent ... but tends to get quick action.
JohnC46
(South Carolina)

Posts:6693


04/09/2017 7:07 AM  
Some states limit these type charges to % per year but most also say plus expenses. Thus if I have to make a trip to mail any notice that will be an additional $50. My time is valuable.
JanetB2
(Colorado)

Posts:3061


04/11/2017 9:19 PM  
LOL ... Had not thought about it that way ... my time is valuable too . I will have to look more at my State Law regarding allowed charges.

My new HOA has the Annual Meeting coming up with one BOD and one ACC position open. I am just not sure if the last 6 months is a long enough break after all the garbage I dealt with in last HOA. After spending six years very closely watching over corrupt developer and the many battles including a court battle (against old and new developer), right now I am tired of HOA garbage. Potentially because I am tired ... I also have a lower garbage tolerance level.

The new HOA has a minor issue which I submitted my opinion to the BOD with State Laws as backup, potentially it will depend on how they proceed to help determine my decision. LOL ... my dining table is covered with Plats and HOA documents.
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