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PatL
(Texas)

Posts:1

05/11/2006 7:22 AM
Our Homeowners' directors are new at this job. We do not know how to collect yearly dues from those who refuse to pay? Do we need to serve them a lien? Pat

JulieS
(Georgia)

Posts:412

05/11/2006 7:30 AM
Check your documents on any procedures that need to be followed. Our assessment is due on 4/1, a late fee is applied on the 10th as a percentage stated in our covenants and a new statement sent to the homeowner. A lien is filed on the home within 90-days of the due date and sent to the attorney for collections. We have people who owe thousands of dollars over a few years. We have decided not to be so 'soft' on these people and will pursue lawsuits by the end of the year that the assessment is due. We just now filed lawsuits for the first time on those who owe anything from 2005 and older. One person has already started making payments so that we do not have to go through the expense of the lawsuit. Additionally, because we waited to file the lawsuit until after the first installment was due (2/1), we are able to accelerate the 2006 dues into the lawsuits. Once a lien is filed on a home, this may kick some people into gear to pay. Some, it takes the threat of a lawsuit to know the association is serious about collecting what's due. My advice is to not let it linger.

RogerB
(Colorado)

Posts:4686

05/11/2006 7:43 AM
Pat, besides reading your HOA controlling documents there is a wealth of information posted on this Board. Hit the search button at the upper right and type in such things as lien OR delinquent assessment. Remember each state may have different statutes and these control over your CC&Rs. You failed to advise in which state your HOA is located.

CharlesW1
(Georgia)

Posts:826

08/10/2006 9:30 AM
Posted By JulieS on 05/11/2006 7:30 AM Check your documents on any procedures that need to be followed. Our assessment is due on 4/1, a late fee is applied on the 10th as a percentage stated in our covenants and a new statement sent to the homeowner. A lien is filed on the home within 90-days of the due date and sent to the attorney for collections. We have people who owe thousands of dollars over a few years. We have decided not to be so 'soft' on these people and will pursue lawsuits by the end of the year that the assessment is due. We just now filed lawsuits for the first time on those who owe anything from 2005 and older. One person has already started making payments so that we do not have to go through the expense of the lawsuit. Additionally, because we waited to file the lawsuit until after the first installment was due (2/1), we are able to accelerate the 2006 dues into the lawsuits. Once a lien is filed on a home, this may kick some people into gear to pay. Some, it takes the threat of a lawsuit to know the association is serious about collecting what's due. My advice is to not let it linger. JulieS, Your response to a previously written post may have addressed some of my concerns I have had about delinquent dues. Your replies are always so informative. Thank you, Chuck W.

Charles E. Wafer Jr.

TerryL
(California)

Posts:23

08/10/2006 4:57 PM
I agree with Julie. It is not advisable to let past due situations linger. HOA's have built into their CC&R's procedures for handling delinquencies. This is one area where boards can be matter-of-fact about what they do. Boards have a fiduciary responsibility to protect the assets of the corporation, and to let delinquencies slide is irresponsible. It's best to get a lien on the property as soon as the CC&R's allow it. Most homeowners who are habitually delinquent on their HOA dues are usually delinquent on other bills also, and most likely their mortgage. It's best to get the lien on file in case they are foreclosed upon.

CharlesW1
(Georgia)

Posts:826

08/17/2006 6:36 AM
Pat, I’m learning more and more everyday. I know our HOA is in the process of changing to a POA. I believe, from what I have been told is that by being a POA, you then are put the association's name at the top of the debts owed list. “It's best to get the lien on file in case they are foreclosed upon.” TerryL said it best here! I’m not sure of the procedure to file a lien. But I would think this would be the next step in the process. It’s obvious that these delinquent homeowners are not going to pay the dues or any of the past owed dues! I say file the lien and wait for the foreclosure! Best of luck to you, been there done that. Chuck W

Charles E. Wafer Jr.

JulieS
(Georgia)

Posts:412

08/17/2006 7:43 AM
Charles, Here is a link to learn more on what the POA of Georgia is.... http://www.communityassociations.net/states/georgia/ga_poa_act.htm

DavidB1
(North Carolina)

Posts:1

08/21/2006 5:32 PM
We had the same problems in North Carolina. 10% of our condo owners were simply not paying and letting the HOA pay their water, major insurance, lawn, parking, trash, lighting, pool, outdoor electrical, etc., etc. for them. After pointing out that the HOA is neither a charity nor here to be liked, we went after the violators. Anyone owing $1000 or more was served with a lien by our attorney, if not answered within 30-days we began foreclosure proceedings. We recently took over one unit and are within days of evicting the residents. They called just today after the Sheriff sent the notice of evication and said "we didn't know anything was wrong." Yeah, right. Adopt a strict set of collection policies and adhere to them. One of the hardest things you'll try to do is get the management company to enforce those policies. By early 2007, our association will be in a position to turn an account over to the attorney at 45 days for a collection letter, lien at 75 days and beginning foreclosure at 90-days. Sounds harsh, I'm sure, but everyone else in the community is paying the violators' bill... their obligation. Paying a homeowners association assessment is required by law in NC, as well as by governing documents and by their mortgage and mortgage condo rider. Somewhere in our many page homeowners manual is a pretty detailed collection policy. If interested, you can see it at www.cedarhillcondos.com and click on homeowners manual. Cheers, Dave

JulieS
(Georgia)

Posts:412

08/22/2006 6:53 AM
David, I attended a seminar this spring sponsored by our attorney/firm...one of the break-out sessions was on collections. It was interesting to learn that one of the things a condo association can do for non-payment of dues is to have the water or other utilities shut off. Something you may want to check into as it may be cheaper and more effective than the foreclosure or lawsuit.

WilliamH5
(North Carolina)

Posts:6

09/09/2006 8:21 PM
Most HOA BOD members are amateurs at handling issues and that's where a reliable Property Manager can help out tremendously. Myself, like most BOD members are simply homeowners who want to be involved to improve their development, but do not have the experience and knowledge to handle certain issues. We are very fortunate that our Porperty Manager, who also is on the HOA BOD, can and does provide expert advice and guidance through these issues. Your HOA should have a good property attorney on retainer to answer legal issues; this is not expensive and certainly cheaper than doing something wrong or illegal in the process. Bottom line of this issue is not paying is not an option; some homeowners think that they can get away with this, but you have the legal clout to collect one way or another and the additional costs of collecting is the homeowner's responsibility in the end. Good luck.

TerriM5
(California)

Posts:1

11/29/2007 1:04 PM
David, We have a private homeowners association that provides, water, sewer and road maintenance. This is a subdivision of 352 parcels with 64% built out. In our Delinquency Policy we have a water shut off policy. However, most people I have spoken to say that we cannot turn off water as it is a health and safety issue. We are located in Caifornia and I do not know where to go to get the real info.
Attachment: 1112941153771.doc

SusanW1
(Michigan)

Posts:5202

11/29/2007 1:15 PM
Yes, turning off the water to a home can, in effect, put it into a health-related condeming situation. Our Board is also looking for better policies and procedures for getting water users to pay up, without shutting off the water.

HaroldS
(Arizona)

Posts:904

11/29/2007 1:38 PM
Municipalities shut off water all the time for non payment. Why is it different for HOAs? Harold

BradP
(Kansas)

Posts:2491

11/30/2007 6:31 AM
Harold is right, many municipalities shut off water for non-payment, the HOA shouldn't be any different. I would check your state and local area to make sure it is legal to do in that area. It just isn't very neighborly to shut off water, but then again neither is not paying your water bill!

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