Condo Association Management Blog

What does your condo master deed/condo documents say is the maximum amount that can be gharged for a late fee? Is this a new condo development since it has not been turned over to the unit owners yet? Our docs stated a percentage could be charged and with legal assistance we changed it to a dollar amount. A late fee should not be arbitrary but should be defined and subject to all. 
 
We are located in MA, you did not say where you live. Just curious.

Unless your state has a gov agency that oversees HOAs, it's likely there isn't anyone you can contact. This is the problem in most states! 
 
Since your HOA is still controlled by the developer, you will have to deal directly with him. Research your gov docs to see if there is an article addressing late fees. If he is violating the gov docs let him know and ask that he make the necessary changes. How much is being charged and what are the assessments? 
 
BTW, the developer does not "own" the HOA, he and his board of directors are only the managing agents. The HOA is "owned" by the members (the property owners). When the developer leaves, the HOA will be managed by a board of directors made up of property owners.

Our association charges $5.00 a month for late fees on dues and 10% on unpaid assessments. The 10% is legislative unless the CC&R's state differently.

My association charges $25.00 for late fee's. Its called don't be late! 
 
Vic

Leslie, 
 
 
 
I'm confused -- you have dues and assessments? Some people refer to the assessments as dues, but you are saying you have both??? Please explain. What state are you in? AZ law limits late fees to the greater of $15 or 10% of the amount of the unpaid assessment. My assn charges a $15 late fee and an admin fee (re-billing fee) of $10 on the first late notice (30 days delinquent). The second late notice (45 days delinquent) carries a $15 demand letter fee and the last late notice (60 days delinquent) carries a $25 fee for preparing account to be turned over to our attorney.

Leslie states differ on the law. I'm in NJ and dues are the amount you pay each month while assessments are when the association runs out of money for whatever reasons and needs to charge the members extra money.  
 
I don't like it either but in NJ its the law!

I have to correct some things. We do consider the dues an assessment but they are treated differently if they are paid within 60 days of the due date and the late fee is $25, not $5 as I previously stated. If they are not paid in 60 days they are subject to the per annum amount of 18% per our declarations. The law in Utah allows 10% per annum on unpaid assessments if there is nothing stated in the declarations.