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Are condo and HOA fees always due on the first of every month?

Posted on Wed, Dec 28, 2011 @ 07:59 AM
  
  
  

In North Carolina, our dues are due the first day of the month, late on the 1st day of the next month. Our Board is telling the homeowners there is a North Carolina law that states we can not collect late fees until the first day of the next month. Is that true? I recently purchased another condo in a different HOA and they start assessing late fees after the 15 of the month. Please advise, thank you.

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COMMENTS

In New Jersey, Georgia and North Carolina the BODs are allowed to take away services that the association provides, i.e. cable, water, electricity, water, etc.

posted @ Wednesday, December 28, 2011 8:19 AM by Stan Mehr


Stan Mehr... not really sure I understand your comment 
 
<<In New Jersey, Georgia and North Carolina the BODs are allowed to take away services that the association provides, i.e. cable, water, electricity, water, etc.>> 
 
and the connection with the original question?  
 
<<Are condo and HOA fees always due on the first of every month?>> 
 

posted @ Wednesday, December 28, 2011 8:40 AM by Clarke


What world do you live in where you calculate everything based on when it is considered late? Here's a thought...pay on the day due. You still will make just 12 payments a year. At the end of that year you will have saved whatever late fees you now calculate in your living expenses., Get ahead of the ball one time, and you can stay ahead every month of the year. Good luck.

posted @ Wednesday, December 28, 2011 9:12 AM by Jerry


If NC law does govern the effective late date, you may be able to get a copy of the statute on your state's website. 
 
 
 
Unless otherwise indicated in your governing documents, the board is usually permitted to establish WHEN a late fee kicks in, as most states do not get involved with collection policies per se.  
 
 
 
 
 
Usually the board will establish or clarify the association's operating proceedures which is done by a POLICY RESOLUTION(and which can be modified from time to time without amending the bylaws).  
 
 
 
If your governing documents are silent, and/or there is no state statute, you may wish to see the ratified resolution. Your manager should be able to help with this.

posted @ Wednesday, December 28, 2011 9:20 AM by Richard Blenden


I don't think it would be a state law, but then I live in Texas so what would I know. This is "republican territory" of less government is better making condo statutes way behind the times. It is usually written into your By-laws or CCRs as to when late fees can be collected. It can be problematic if you are trying to write checks once a month or are existing on retirement pay issued once a month and have different due dates or you need the cash flow from renters who are always late, but at any rate, they are both due at the first of the month. The late fees are only meant to get you to pay when due, but sometimes we all have to play the "cash-flow" game.

posted @ Wednesday, December 28, 2011 9:33 AM by Nancy


You didn't state what you governing docs, i.e. By-laws states about assessments due dates and late fees. I would think it stange that one of the most important matters in By-laws would not give you guidance.

posted @ Wednesday, December 28, 2011 9:47 AM by Lesley


After posting I did a little research out of curiosity. It seems that an HOA, MAY impose late fees after the 15th. However, I don't beleive that they don't have to. Thus the other assocoation may just have had a more liberal policy.  
 
 
 
The following was posted on an NC attorney's website: 
 
 
 
 
 
 
 
 
 
On January 1, 2006, several news laws will take effect that impact North Carolina homeowner and condominium associations. Highlights of these changes follow.  
 
 
 
 
 
 
 
Late Fees: 
 
Late fees are limited to $20 per month or 10% of any assessment installment unpaid, whichever is greater. The owner has fifteen days to pay the debt without owing attorney’s fees, and must be notified of this grace period by first class mail. This notice must provide contact information for a representative of the Association (e.g., the attorney) so that a payment schedule can be discussed.  
 
 
 

posted @ Wednesday, December 28, 2011 9:51 AM by Richard Blenden


This is what the NC Condo Act says: 
 
 
 
47C-3-102, Powers of unit owners' association: 
 
"(11) Impose charges for late payment of assessments, not to exceed the greater of twenty dollars ($20.00) per month or ten percent (10%) of any assessment installment unpaid and, after notice and an opportunity to be heard, suspend privileges or services provided by the association (except rights of access to lots) during any period that assessments or other amounts due and owing to the association remain unpaid for a period of 30 days or longer,..." 
 
 
 
The statute says you cannot levy the lat fee until the assessment is 30 days past due; however, itdoesn't say when the assessment is due and when it is late. You must look to your gov docs to determine this. For ex, if it says the assessment is due on the 1st and late on the 15th you cannot impose a late fee until the 15th of the following month. At least that is my interpretation of the statute. 
 
 
 

posted @ Wednesday, December 28, 2011 12:51 PM by mary


After reviewing my remarks I want to change my interpretation of the NC Condo statute. 
 
 
 
If your gov docs say assessments are due on the 1st, IMO your board is correct in saying a late fee cannot be imposed until the 1st of the next month. The key phrase in the statute is: "...remain unpaid for a period of 30 days or longer. ..". If it said "remain unpaid 30 days or longer after being late, then it would be the 15th of the following month.

posted @ Wednesday, December 28, 2011 1:02 PM by mary


Most Bi Laws have late fees listed in their docs. Remember HOA's have bills to pay ON TIME to their vendors. It could be landscaping vendors, painters, water bills or whatever is included in your HOA fees. We have one person that is late every time. I am getting our Attorney to take them to small claims court again. They end up owing what it would cost to pay a full years fees by not communicating or paying their fees. They are 4 months behind now.We have low $70.00 a month fees. Mostly, for grass cutting, tree cutting and pond maintenance. Oh did I say they both are attorneys and try to hold the HOA hostage. .

posted @ Wednesday, December 28, 2011 7:31 PM by JAK


We bought a condo in Honolulu a few years ago. The bills were under $600/mo.for maintenance /assoc. Fees etc. Now they are almost $1000/mo and there is no mortgage. 1 bedroom condo on a low floor in an older building. Who knows how to pin these crooks???.

posted @ Tuesday, January 24, 2012 9:01 PM by Exasperated


Exasperated, 
 
 
 
So why do you call the BOD crooks? Have you taken a few minutes to go over the financial statements to see where the money is going? Have you attended a board meeting and asked questions. Maybe expenses have risen drastically in the past several years, I know they have here stateside. We all know Hawaii is not a cheap place to live. Before you resort to name calling you should get the facts.

posted @ Wednesday, January 25, 2012 1:08 PM by mary


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