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StephenP4 (Colorado)
Posts: 3
Posted:
We have a rental in a condo community of only 45 units. According to the BOD report at our November meeting, 14 units are delinquent to the tune of over $25,000. Since the HOA is in serious financial difficulties, this money would make a big difference. We have already had 2 special assessments in the last two years just to make ends meet. I feel like I'm paying for my share and somebody elses also. Do I have any recourse as an owner, or do I have to keep paying everybody elses dues?

SusanW1 (Michigan)
Posts: 5,202
Posted:
Your Board should have a procedure for collection of delinquent accounts receivable. Contact the treasurer and see what that is.

Look in the bylaws to see what they say on dues and assessments, and definition of member.

CharlesW1 (Georgia)
Posts: 826
Posted:
StephenP4

Unfortunately for you and all the other residents of your HOA community, ultimately, those who pay their assessments are essentially “paying” for those who don’t. “It’s sad but true”

I agree with SusanW1 post that would be the first place to start when looking for help, perhaps the board could resolved the majority of these delinquencies issues by eliminating their access to the amenities (would be a start). Suspend members voting rights and privileges (if allowed, associations documents)Read your governing documents for further details and procedures upon collecting these delinquent assessments.

Remember it takes money to make money! Notify the board to at least file a lien (a little pressure) on the property to protect the association. (which is added to the unit owner/lot owners account) to be paid to the association “IF” money is ever collected.

I became a board member, for the second year in a row, because of that very reason. I was sick and tired of supporting the “dead beats” and wanted to know what was being done with MY money!

I wish you luck.
Chuck W.

Charles E. Wafer Jr.
hoatalk (California)
Posts: 599
Posted:
I'd say it's time for a new management company. Since you are in Colorado, I'd recommend you contact one of our sponsors, DARCO HOA Property Management in Lone Tree at 303-925-0150.

Roger from DARCO is a regular here and has posted thousands of helpful answers for our members. If you look in our service directory pages and click DARCO you will see their quotes on collections.

NOTE: HOATalk and DARCO have no business relationship other then the fact that DARCO is a sponsor here. We do not get paid extra to recommend them to you. I just know Roger is an expert and you are in his state.

Best Regards,
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JudithC (Virginia)
Posts: 253
Posted:
If you have a management company, I agree that perhaps you should get one that is more attuned to keeping the accounts current. If not, volunteer to do the homeowner accounts yourself.

I did the homeowner accounts for many years in my community and what I found is that if YOU are prompt in your notifications (and depositing of checks) that the community quickly starts paying on time. I always said it definitely was like a rolling stone, people soon learned the delinquency letters were consistent as was the punishment.

Although when times get tougher people usually say they see a difference in the assessment collection -- it really didn't happen that much in our association. We have fairly low assessments, though, being an HOA. I think that nowadays with zero down mortgages some people move into associations/condos planning on not paying until they are kicked out. Think of it -- it really is free rental.

RobertR1 (South Carolina)
Posts: 5,164
Posted:
All the above suggestions are good. The one that will do the most good over the long run is getting involved and putting a stop to this. You have to be careful about collecting bad debts, but a group of people sitting around the table should be able to come up with some effective ways to get the money. Your document should spell out what you can do, be careful about what you can not do. 25K is a tidy sum especially in your association. They will not respond to billing or asking or sending personal letters. It is threatening to a lot of boards because they might make a mistake in trying to collect, but keep in mind it is not the Boards money you are talking about. All owners have an active share in seeing that their money is managed properly. Go beyond what your documents say, they are not all inclusive, in other words if you can find a way to pressure them that is legal and the documents don't mention it, do it anyway. If it works incorporate it into your documents.
BradP (Kansas)
Posts: 2,640
Posted:
Stephen:

Your recourse is to get involved and work to create a new environment. As someone said if you have a management company look into getting a new one. Review your collection procedures to see if you are following them, if you don't have procedures work to create some. Bottom line is $25K is a lot of money, your HOA needs to find the formula that works for you with liens, collection agencies and/or foreclosures to collect this money.
RonaldW (South Carolina)
Posts: 901
Posted:
Quote:
Posted By StephenP4 on 11/26/2007 6:29 AM
We have a rental in a condo community of only 45 units. According to the BOD report at our November meeting, 14 units are delinquent to the tune of over $25,000. Since the HOA is in serious financial difficulties, this money would make a big difference. We have already had 2 special assessments in the last two years just to make ends meet. I feel like I'm paying for my share and somebody elses also. Do I have any recourse as an owner, or do I have to keep paying everybody elses dues?


As an owner and not a board member you can either put pressure on the board to collect the assessments or try to get yourself elected to the board and work from that position.

Your association documents spell out the association's options for collecting unpaid assessments.

We have two owners who have not paid this year's assessment (due last January). They each were sent a couple letters, then a certified letter. It is now in the hands of our attorney and their cost has more than doubled. If necessary, we will place a lien on their homes.

As you point out, it is unfair to expect some members to pay extra to make up for some members who fail to pay.


Ron
SC
RogerB (Colorado)
Posts: 5,067
Posted:
Stephen, you need to keep paying your assessments. Those who are not paying their assessments should be handled in accordance with your HOA's Rules and Regulations for Delinquent Accounts. This Rules & Reg is required by the Colorado Common Interest Ownership Act. It should include large late fees; followed by filing a lien; followed by garnishing wages and bank accounts; followed by foreclosure.
MikeS1
Posts: 668
Posted:
Most documents (I believe) have a clause that allows you to suspend privileges after a unit owner is in arrears for more than sixty days. Check it out and see if you can suspend parking privileges, voting privileges, pool privileges, etc. If this is applicable, spell out the details in your next demand letter. "if not paid within 10 days, these privileges will be revoked, and if any of your vehicles are found on the property, they will be immediately towed at your expense".
AlexL1 (Florida)
Posts: 305
Posted:
You said to try to get yourself elected to the Board.... Just exactly how is one or... can one TRY to get himself/herself elected to the Board? what are the procedures?
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Alex,
I can't tell you, I never got past the so called Nominating Committee. That brush fire is still going on. I may give it another try in a couple of years. I think I am just Committee labled, even that don't work out sometimes. I am more a active member of our association. I throw my vocal bucket of critism and compliments up against the Board wall and once in a while something sticks.

Real advice: If there are three people in a group two will form a group and exclude the other. So you need to spread yourselve around, get on committees. Make a in depth study of your association so you know what you are talking about. If you have special qualifications, such as computer, financial, construction, plumbing, knowledge.

We may all be better off if our Board was made up of people from the "services industry", such as electricians, plumbers, carpenters, A/C people, etc, etc. Then the president could put it all together and be boss.

Seriously Alex, it is the desire that makes the Good Board Member and the desire that makes a bad one. You have to be a little bit bad and a whole lot good. You have to schmooze a lot and you have to take people misreading your actions. But if you want change, thats the way to go. If you figure you can do a better job, get a few other peoploe that think the same way, and let them push you and pull you through the process. In short politic yourselve. It is not an easy job, but some can cuddle up to it and work wonders.
RonaldW (South Carolina)
Posts: 901
Posted:
Quote:
Posted By AlexL1 on 11/27/2007 7:10 AM
You said to try to get yourself elected to the Board.... Just exactly how is one or... can one TRY to get himself/herself elected to the Board? what are the procedures?

First, find your association documents and study them. Requirements for candidates, voting proceedures, etc. should be in the by-laws.

Many times there will be a "nominating committee". If so, talk to them. Usually, nominations may also be made from the floor at the meeting where the election is held. Have a friend or neighbor nominate you and someone else second the nomination.

Of course, if you really want to get elected, you may have to talk to your neighbors and try to convince them that you are a good candidate. Being nominated and being elected are two different things.

Ron
SC
MicheleD (Kentucky)
Posts: 4,491
Posted:
In our association, nominations can't be made from the floor since all votes on candidates have to be mailed in prior to the annual meeting.

Our docs specify that the board must mail out a "call for nominations" in the first week of January.

ALL nominations are to be added to the slate.

The entire association then receives the slate at end of January.

All votes must be signed and identified by address/lot number and mailed in to be received no later than the Monday prior to the annual meeting.

Votes are then opened at the annual meeting, verified as to "good standing," then tallied.

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