HOAs and Assessments

By
Real Estate Agent with Community Association Manager

dollar signsIn today's economy almost everyone is feeling the money pinch and this includes most Homeowner Associations.  Now more than ever it is important to have a written collections procedure in place.   It's a good idea to have these procedures in place whether you are self-managed or have a management company. 

Here's some of the items your Board may want to establish as a written procedure:

1.  Due Date (s) - Be consistent with your Delcaration and/or By-Laws

2.  Provide a "grace period" and explain the late fees or interest that will be charged after the grace period.

3.  Specify the order of applying monies received as payment.

4.  Specify how past due notices will be sent.

5.  Specify the procedure for referring to the Association Attorney for collection.

As you know, any written procedures must be a part of your HOA Declarations of Covenants and/or By-laws to be enforcable.  So, before your association takes any action to address assessments and written procedure, be sure to contact legal counsel and/or your community association manager.  Being on the Board of Directors is a wonderful way to be involved with your community.  Thank you for your commitment.singature

 

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Rainmaker
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Teri Eckholm
Boardman Realty - White Bear Lake, MN
REALTOR Serving Mpls/St Paul North & East Metro

Cindy--How nice to see your blog pop up on my subscriptions today! This is a very important topic especially in light of foreclosures. Good information...And welcome back! :)

Dec 15, 2008 05:10 AM #1
Rainer
151,726
Cynthia Sloop
Community Association Manager - Indianapolis, IN

Thanks Teri, it's great to be back! 

Dec 15, 2008 06:06 AM #2
Rainer
118,729
Bob Sloop, Consultant, Indianapolis, IN
RS Mortgage Consulting - Indianapolis, IN

Cyndi, good advice, and I know you are on top of this on an everyday basis, I agree with Teri...good to see you writing again too...Nice post!!! 

Dec 15, 2008 11:14 AM #3
Rainmaker
337,735
Thesa Chambers
Fred Real Estate Group - Bend, OR
Principal Broker - Licensed in Oregon

Gosh my three favorite people right in a row, how cool to see you Cyndi and Bob and have Teri be the first comment - I miss you all - and hope everything is getting better -

Dec 15, 2008 12:45 PM #4
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Rainer
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Cynthia Sloop

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