HOA Assessments & Late Fees

ReneeD (Illinois)
Posts: 201

Posted:

Our assessments are due on or before the first of the month. Our governing documents (Decs) state that nay charge which is not paid to the Association when due shall be (1) deemed delinquent and (2) any charge which is delinquent for 30 days or more shall bear interest at the highest level contract rate of interest than permitted in state of Illinois but not to exceed 18% per annum from the due date to the date when paid and (3) the BOD may add a reasonable late fee to any installment of an assessment which is not paid within 30 days of its due date. Our Decs do not say 10th of the month anywhere. (Currently BOD/PM doesn’t charge interest just late fees)

So my question for today is Are homeowners bound to PM’s contract language referring to 10th of month for their AR/AP purposes or just our Decs? Thanks. -ReneeD

RogerB (Colorado)
Posts: 5,067

Posted:

The homeowners are controlled by the Decs. The association's contract with the PM should never state something which is in violation with the Decs. The contract controls the PM fees charged to the association and their authority and responsibilities. If the PM sends a statement which is violation with the Decs pay the actual amount due and attach a note advising the PM of what the Decs state. Ask the PM to send correct statements in the future.

ReneeD (Illinois)
Posts: 201

Posted:

Thanks, Roger, but I do have one other question. Would you or anyone else mind sharing your interpretation to the meaning of installments as used in [this example] of our Decs? -ReneeD

RogerB (Colorado)
Posts: 5,067

Posted:

Renee, this is poor wording but I think it may refer to making installment payments. For example, if someone owes for a lump sum which consists of several past due amounts and makes an agreement with the Board pay a portion of the total past due amount each month until paid in full, then the monthly payments could be referred to as installments.

ReneeD (Illinois)
Posts: 201

Posted:

I agree. It appears I am the only homeowner reading our Decs and questioning it. Each time I bring this (or anything else) to BOD's attention, I'm told they will look into it but nothing ever gets done. However, if our Decs specifically state that unpaid dues bear interest from date due to date paid, is this Management Company in clear violation of our Decs? If so, how do I/we(homeowners) change this?

On a separate but related note, IMO it appears this PM has more control of this BOD and association's affairs and not the other way around.
-ReneeD

ReneeD (Illinois)
Posts: 201

Posted:

I agree. It appears I am the only homeowner reading our Decs and questioning it. Each time I bring this (or anything else) to BOD's attention, I'm told they will look into it but nothing ever gets done. However, if our Decs specifically state that unpaid dues bear interest from date due to date paid, is this Management Company in clear violation of our Decs? If so, how do I/we(homeowners) change this?

On a separate but related note, IMO it appears this PM has more control of this BOD and association's affairs and not the other way around.
-ReneeD

ReneeD (Illinois)
Posts: 201

Posted:

I agree. It appears I am the only homeowner reading our Decs and questioning it. Each time I bring this (or anything else) to BOD's attention, I'm told they will look into it but nothing ever gets done. However, if our Decs specifically state that unpaid dues bear interest from date due to date paid, is this Management Company in clear violation of our Decs? If so, how do I/we(homeowners) change this?

On a separate but related note, IMO it appears this PM has more control of this BOD and association's affairs and not the other way around.
-ReneeD