Condo Association Management Blog

Although I do not know the Condo laws for all states, I do believe this would violate the Fair Debt Collection Practices Act and I have ethical problems with doing this also. I know those who don't pay are a burden on those of us who do pay, but I must say if the shoe was on the other foot and "I" was struggling, I wouldn't want the additional "kick in the head" that more less would follow losing my job. Just a little personal as well as legal I have stated here. The short answer, follow collection practices and the law, this will keep your Association out of trouble.

The board should consult legal counsel.  
 
As a manager, I recommend to boards not to state names, addresses or amounts in the minutes. The minutes should reflect the business, not the minutia. Stating addresses is no different from stating names. It is easy to find out who owns the unit. It would be best to only state that delinquent accounts were reviewed and the normal process was being followed. The Association should have a clear process for collection. 
 
Delinquent accounts that are in court may be another matter. Court filings are often considered a matter of public record. Again, it is best to consult an attorney. Associations have lost lawsuits in which delinquent accounts were posted or made "public" in minutes. 
 
What is the goal? If the goal is to collect, have a process. There is a belief that the posting will result in "embarrassment" and the association will collect. It may result in some collections, but the other affects not thought of may be more detrimental that it is worth. The board should think of how this will look, how it will be interpreted (public relations) what impression it leaves on the members as well as the potential liability. 
 
To many, it is a matter of fairness. It is unfair that they are not paying. That is true, but there are many other considerations beyond fairness.

I'm a manager in Cleveland Ohio. If anyone is looking for a manager for their Association I would be more than happy to talk with your Board Membres. I'm an independent manager which means you will get the personal attention that you deserve. My email address is lciarlillo@gmail.com 
 
 
 
Thank you

Why would you want to know? Your not on the board and you can't do anything about it unless you want to help the person pay his/her monthly fee.  

Included in our monthly board packet is a statement showing all delinquencies; unpaid fines, admin fees and attorney fees. This info does not have to be included in the minutes but the statement can be made a part of the record. If you include this info in the minutes then it's subject to being seen by any members of the assn who requests a copy of the minutes. IMO, it's not a good idea to post this info -- it's a matter between the assn and the individual member.

I do medical writing and it is the statistics that are important, not so much the individual case. There is a human element involved and attempting to shame a person will not make him pay. Offering to work out the problem will often work to the best of all involved. 
 
 
 
Now, I do believe it is important the association and all members know how many people are late and by how many months and/or amounts. But as mentioned above, the credit laws apply. The solution is to have a strong written policy to follow and to identify each unit by what we call in medicine "deidentified" parties. People know it is them when they are guilty.

This is a simple one - DO NOT DO IT. 
Only the Board need be aware of delinquencies so that they can take quiet and corrective measures to insure collection. It's nobody business other than the Board, Management Company and/or Lawyer.

You should check with your attorney because of state specific rules and laws.  
 
Many boards do it and do it very publicly. Some even post information on a bulletin board. You may agree or disagree with it on personal level, but it is a very effective collection tool.  
 
One thing to keep in mind that it has to apply universally to every one.

By no means can you do this even as much as you want it put out there, they can sue you if they find out it was you that leaked it out,especially if you are a board member

Can you reference a statue or a court case to support your claim?  
 
In an absence of such saying that someone can sue you is meaningless. Anyone can sue you for anything but that doesn't mean they can win.

As mentioned above, the most important thing is to have a process in place for delinquent owners. Any good management company should have a set schedule for late fees, warning letters, payment plans, collection warnings, and then finally turning a unit over to collections. There should be universal fees and procedures. Obviously some cases are going to resolve quicker than others, but the goal is for all owners to be made aware of the issue before it gets out of control.  
 
As a manager, I would not bring up individual units at a condominium meeting. When someone asks about the accounts receivable, I simply assure that we are on top of the issue and that the funds will be collected one way or another.  
 
One thing to note, the condominium super lien in MGL 183A (Massachusettes Condo Law) makes this process even more important. Under this law, condominium associations can enforce a lien against condo owners who fail to pay their condo fees. The lien for these unpaid condo fees, as well as attorney’s fees and the cost of collection, have priority over the first mortgage. In order to achieve priority; however, the statute requires that the owner and first mortgagee (i.e. the bank/lender) be provided with a notice once the fees are 60 days delinquent.  
 
If you wait more than 60 days, you can lose the chance of collecting all funds, so it's important to stay on top of this! 
 
We are going to be posting a blog about this soon, check out our website if you are interested. 
 
Premier Property Solutions LLC 
<link>www.premierpropertyma.com</link>

In our HOA, these cases are referenced only by parcel number. But we are a planned unit development (PUD) so each owner has an individual parcel number that only they would recognize. In a condo association that may not be true. Our property manager has told us, however, that we cannot legally reveal any other information publicly.