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Subject: Sample HOA dues letter?
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GregoryG1
(Indiana)

Posts:3


05/18/2008 11:38 AM  
Hello, all. I am the secretary of our newly neighborhood controlled HOA. We have been left in a pretty big lurch by the development company, to the tune of over $11,000 in debt. Because of that, we release our property management company to save what money we could, and are running things ourselves.

The question I have is, does anyone have a word doc or a pdf sample dues letter? I can't find my past ones from our former management company, so I really don't know what exactly to say. Any help would be greatly appreciated.

Thanks for the help!
JosephW
(Michigan)

Posts:882


05/18/2008 12:37 PM  
First you need a collections policy. There is a good sample at:

http://www.hindmansanchez.com/docs/sample_collection_policy__05238547_.pdf

You'll have to edit out the Colorado references and input any relative Indiana statutes, as well as the pertinent sections of your documents. But this provides the timetable and procedures that the board should adopt and follow.

You'll need a number of letters which I think some of the people on this board can provide (you may want to do a search regarding collections or late notices).

The first letter should be a reminder, not a threat.

Second and subsequent letters can be more specific as to liens, foreclosures, etc.

Joe

Joseph West
Official HOATalk.com Sponsor
Community Associations Network, LLC
www.CommunityAssociations.net

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GregoryG1
(Indiana)

Posts:3


05/18/2008 12:42 PM  
We are using the collection policy set out in our covenants, with dues being due January and July first. The letter I was hoping to come up with is just a reminder letter, nothing more.
MiloK
(California)

Posts:12


05/20/2008 7:41 AM  
Hi, If you are new at this. I suggest you collect HOA dues monthly rather than quarterly or semi-annually.

The reasons are:

1. It's difficult to pay the lump sum for many people. Even for a small amount of $150 per month, six months would mean $900. When one is tight, making a payment of $900 could be difficult.

2. Making the payment amount smaller is easier for the unit owners to pay/spare

3. Easier to track to track who is behind in payments.

4. If dues are collected quarterly or semi-annually, you are almost guarantee to run into a situation where the HOA will have no income for the first few months of the year (say if dues are collected semi-annually due on April 1st and October 1st of the year).

Best Regards
M
GregoryG1
(Indiana)

Posts:3


05/20/2008 7:48 AM  
While I don't disagree with you, our covenants spell out when dues are to be collected. It takes a 75% vote to change anything in the covenants, and that probably won't happen right now.
CharlesW1
(Georgia)

Posts:826


05/20/2008 8:42 AM  
Posted By MiloK on 05/20/2008 7:41 AM
Hi, If you are new at this. I suggest you collect HOA dues monthly rather than quarterly or semi-annually.

The reasons are:

1. It's difficult to pay the lump sum for many people. Even for a small amount of $150 per month, six months would mean $900. When one is tight, making a payment of $900 could be difficult.

2. Making the payment amount smaller is easier for the unit owners to pay/spare

3. Easier to track to track who is behind in payments.

4. If dues are collected quarterly or semi-annually, you are almost guarantee to run into a situation where the HOA will have no income for the first few months of the year (say if dues are collected semi-annually due on April 1st and October 1st of the year).

Best Regards
M




MiloK,

Even though what you suggest is certainly ideal. However, the majority of association CAN’T sustain on such a decreased in income. I had suggested that very same thing years ago and although a good idea it wasn’t very practical for our association. I wish we could. I feel it would reduce the amount of delinquent accounts. Therefore, potentially increasing the amount collected. Those who general don’t pay their assessments (too much or just don’t feel they need too) can afford a smaller payment. IMHO

We can continue to dream, can't we?

Chuck W.


Charles E. Wafer Jr.
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