__________________________ Homeowners Association, Inc. 
Rules and Regulations on Delinquent Assessments 


Effective 2/1/2008 these Rules and Regulations on Delinquent Assessments replace the 
Collection Policy and Procedure which became effective 5/18/2006. The Association hereby 
adopts the following policies and procedures for collection of delinquent assessments. 

Assessments include the regular annual assessment which may be paid in monthly installments 
by owners in good standing, special assessments, late charges, interest, lien fees, fines, legal fees, 
collection costs, and court costs. Assessments are due and payable by the first day of each 
month. A 10 day grace period is provided for receipt of assessment payments, after which the 
account becomes delinquent whenever there is an outstanding balance. There is a late charge of 
$25.00 each month that a delinquent account has an outstanding balance greater than $50.00. All 
charges are assessed to the property and are payable by the owner. 

Assessment statements may be provided to the owner in writing via a coupon booklet, 1st class 
mail, email, or personal delivery. However, it is the responsibility of the owner to remember to 
pay by the due date even if no assessment statement is received. 

The schedule for collection of delinquent accounts is: 

An account delinquent over 10 days shall receive a delinquent assessment statement with a late 
charge of $25.00 when the balance due is greater than $50.00. If an owner feels they have an 
extenuating circumstance which justifies consideration they may petition the Board of Directors 
to defer payment and/or waive late charges. Each such owner granted deferred payment by the 
Board of Directors will be required to sign an agreement with a schedule of payments. Each 
month the balance remains over $50.00 there is a late charge of $25.00. Any partial payment on 
the outstanding balance shall apply first to the oldest remaining assessment. Also, if a check is 
returned the account becomes delinquent plus there is a charge of $35.00 for the returned check. 

An account delinquent over 40 days shall be provided a delinquent assessment statement with 
the outstanding balance due and a warning that a lien will be recorded on the property if payment 
is not received within 30 days. 

An account delinquent over 70 days shall be provided a delinquent assessment statement. The 
owner will no longer be in good standing. Owners not in good standing may not vote, do not 
qualify to pay the annual assessment in monthly installments, and will be charged interest at the 
rate of 1.00% per month on an outstanding balance over $500.00. The statement shall provide a 
second notice that a lien is being recorded on the property. The amount of the lien shall include a 
charge of $100 for filing the Notice of Lien, the balance of the annual assessment, and interest. 

An account delinquent over 100 days shall be provided a delinquent assessment statement and 
a copy of the lien. The statement shall advise the owner that the account will be referred to an 
attorney for collection if not paid within 10 days. 

The Association shall make a good faith effort to resolve disputes with the Owner. If resolution 
is not reached the Association stands ready to go to binding Arbitration under the Uniform 
Arbitration Act. If court proceedings are necessary to collect delinquent assessments, the court 
shall award to the prevailing party reasonable collection costs, attorney fees, and other costs. 

These Rules and Regulations on Delinquent Assessments were adopted by Resolution of the 
Board of Directors at a Board of Directors Meeting on 12/20/07. 

Signed: ___________________________________________ 	Date: ________________