In 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.
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