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Enforcing HOA assessments and fees on deliquent condo owners

Posted on Wed, Apr 22, 2009 @ 08:23 AM

Homeowners' associations (HOAs) have the right to impose assessments and HOA fees on each member of the condo association to pay for the HOA's operations and maintenance expenses. Assessments can be regular or special, depending on the purpose for which they are made. Assessments are calculated, collected and enforced in the manner required by law and as provided by the HOA's governing documents.

Collection of Assessments

Assessments are made according to the schedule indicated in the HOA's bylaws or CC&Rs. The HOA must send or deliver notices of each homeowner's assessment amount to the homeowner. The homeowner then has a specified number of days in which to pay the assessment amount.

Enforcement of Assessments

Regular and special assessments are delinquent a specified number of days after they become due. If an assessment is delinquent, the association may recover all of the following:

  • Reasonable costs incurred in collecting the delinquent assessment, including reasonable attorneys' fees
  • A late charge
  • Interest on all sums due

If a homeowner fails to pay the assessment, the HOA has several options:

  • File a civil action in small claims court (if the amount due meets the court's requirements)
  • Record a lien on the homeowner's unit or separate interest and delay foreclosure until the amount due equals a pre-determined amount or the assessments are more than 12 months delinquent
  • Record a lien on the homeowner's separate interest and foreclose on the lien
  • Any other manner provided by law

If the HOA is going to file a lien on the homeowner's unit, at least 30 days before filing the lien, it should send the owner of record a notice including, among other things:

  • A general description of the HOA's collection and lien enforcement procedures
  • The method of calculation of the amount due
  • A statement that if the homeowner's separate interest is placed in foreclosure because the homeowner is behind in his or her assessments, it may be sold without court action
  • An itemized statement of the charges owed by the homeowner
  • The right to dispute the assessment debt by submitting a written request for dispute resolution to the HOA
  • The right to request alternative dispute resolution with a neutral third party before the HOA may initiate foreclosure

To establish the lien, the HOA must record a notice of delinquent assessment in the county where the owner's unit is located. The notice must comply with the requirements of state law. Thirty days after the lien is recorded, it may be enforced in any manner permitted by law, including sale by the court, sale by the trustee named in the notice of delinquent assessment, or sale by a properly substituted trustee.

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Hello again 
I would like to hear your opinion on this topic. 
The HOA placed a special assessment over a year ago. The assessment was required for major building repairs, such as siding replacement, painting of that siding and concrete repairs. Several owners did not pay the assessment. Is the Association obligated to make repairs to those units should they require the repairs cited above? Also, are you still considering printing the information on your site to sell to interested people?? Thank you. Diane

posted @ Sunday, April 05, 2009 4:18 PM by diane

How much money do they owe the association? Your HOA by-laws should be reviewed by a lawyer, as condo onwers are most likely legally obligated to pay for any assessements issued. A lawyer can also help you collect from the delinquent condo owners + cost.  
I don't think we will be offering a printed version any time in the near future.

posted @ Sunday, April 05, 2009 8:07 PM by roger

The delinquent fees total approx. $35,000. The attorney will be sending letters within the next couple of months. Collecting the funds however may take ages and in some cases assessment fees will never be recovered regardless of legal consequences. Concrete repairs have been completed and the remaining dollars will go to some exterior wood replacement and painting. Are we, HOA, legally obligated to repair the homes of those who have not paid as these repairs should commence asap? It will be a challenge to stretch the remaining assessment to address the rest of these repairs. This fiasco is not addressed in the by-laws. We were advised by the management company that repairs have to be made to all homes. We would appreciate your opinion. Thanks. 

posted @ Monday, April 06, 2009 11:35 AM by diane

I would recommend making repairs to all homes or condos.  
I am not a lawyer, nor should this be taken as legal advice, but there's more to loose than gain by putting the condo association or its board at risk of being neglegent or one-sided to certain owners over others; deliquent or paid in full.  
Hope this is helpful.

posted @ Monday, April 06, 2009 3:06 PM by roger

OK. The HOA leaned towards that same advice. Thank you very much for your input. 

posted @ Monday, April 06, 2009 5:12 PM by diane

To enforce delinquent assessments, the condo association chose to restrict elevator access (labeling it a common area) to a unit on the 30th floor of the building. My mother is over 60 years old and cannot feasibly climb those stairs without severe health problems. I find this method of enforcement to be extreme, outrageous and unreasonable. Has anyone ever encountered something like this before?

posted @ Wednesday, April 29, 2009 2:16 PM by renee

I think thats a very bad move by the condo association board. Its a lawsuit waiting to happen. What if there's a medical emergency? I'd contact a lawyer immediately.

posted @ Wednesday, April 29, 2009 2:51 PM by Jeffrey

When does it come to a point when enough is enough? I live in a small gated community. A total of 60 town homes several are leased others are buying. I am a first time home buyer. I was so excited in the beginning and now its hell. My HOA IS REQUESTING A SPECIAL ASSESSEMTS. THE AMOUNT 100,000.00 IN 12 MONTHS OR 200,000.00 WITHIN 36 MONTHS MY QUESTION WHAT RIGHTS DO I HAVE? MY HOA WILL BE HIGHER THAN MY MORTAGE! I’M OUTRAGE!!! 

posted @ Tuesday, October 19, 2010 3:05 PM by Felicia

What is the required %/number of developed lots required in NC BEFORE an the Developer can establish an HOA? 
I, when property/lots are purchased, clubhouse, swimming pool etc was promised, in writing on theeborchure,"wht right does the home/Lot owner have in relationship to these amenities not being provided and cancelled?

posted @ Wednesday, October 20, 2010 6:11 PM by MB Mazie

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