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Wednesday, October 20, 2021











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Subject: Non compliance fee
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Author Messages
DennisG7
(Georgia)

Posts:121


09/04/2021 6:00 AM  
In my ongoing tug of war with our management company I have possibly spotted a new problem.
In our monthly report dealing witn income and expenses I spotted a fee buried in the Utilities section of the monthly expense. Normally the Utilities payments consist of: Electricty, Gas, Phone/Internet and water/sewer.
This past month a $432.50 fee called a "levied non complainace fee" was added to the list of expenses. In over 20 years this type of fee has never appeared on our income /expense report. It was the first time such a fee was reported. The fee of $432.50 far exceeded the combined total of all the other utility fees combined.
The obvious thing is to ask the management company for an explanation (the BOD Directors/Officers will not repsond to any question). So I have sent 2 emails to the management comapnty asking them what the fee is for and who did we pay it too. Affter two weeks I have heard nothing. They did acknowledge receipt of my email but so far crickets.
Any idea what this fee could be for??
Dennisg7
MelissaP1
(Alabama)

Posts:10523


09/04/2021 6:46 AM  
Sounds like you got fined or something went wrong with payments. Was there any kind of repairs that were done recently? Non compliance sounds like a fine of some sort.

Former HOA President
SheliaH
(Indiana)

Posts:4221


09/04/2021 7:01 AM  
The property manager works at the board's direction, so ultimately your needs may have to b addressed by them. If they're not responding to you, it may be they're researching the issue themselves - ever think about that?

You also say this is the first time you've seen this fee, so this doesn't necessarily mean there's get another conspiracy or something. Perhaps you might contact one of the utility companies and see if it levied any charges for non compliance? If so how does that come about?
JohnT38
(South Carolina)

Posts:764


09/04/2021 7:27 AM  
Posted By SheliaH on 09/04/2021 7:01 AM
The property manager works at the board's direction, so ultimately your needs may have to b addressed by them. If they're not responding to you, it may be they're researching the issue themselves - ever think about that?

You also say this is the first time you've seen this fee, so this doesn't necessarily mean there's get another conspiracy or something. Perhaps you might contact one of the utility companies and see if it levied any charges for non compliance? If so how does that come about?





I agree Shelia but how hard is it for the PM to simply reply back and say we're researching this and will get back to your when we have an answer? After two weeks time I find it hard to believe that they don't know what this fee was for.
AugustinD


Posts:1675


09/04/2021 7:50 AM  
Posted By DennisG7 on 09/04/2021 6:00 AM
Normally the Utilities payments consist of: Electricty, Gas, Phone/Internet and water/sewer.
This past month a $432.50 fee called a "levied non complainace fee" was added to the list of expenses. In over 20 years this type of fee has never appeared on our income /expense report. It was the first time such a fee was reported. The fee of $432.50 far exceeded the combined total of all the other utility fees combined.
Does your HOA use credit cards or maybe ACH payments for certain owners? I wonder if the HOA has failed to abide by some aspect of security required by the credit card industry or ACH. See the discussion of non-compliance fees at:

https://paymentcloudinc.com/blog/pci-non-compliance-fee-what-to-know/
AugustinD


Posts:1675


09/04/2021 7:55 AM  
More generally a "non-compliance fee" appears to be levied when a party to a contract does not abide by the terms of the contract. I imagine provision for the levying of such fees is in the contract. It's a carrot that incentivizes businesses (like a HOA) to comply with the terms of a contract, before the other party has to ramp up demands that the business/HOA comply?
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