Taking a Poll - When Do Your Late Fees Kick-In

Started by DonaldN • 7 replies • 1606 views

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DonaldN (Connecticut)
Posts: 183

Posted:

our condo association is here in Connecticut - we are currently in the process of drafting a collection policy due to new state regs - the markup we got from our management company had late fees kick in once the outstanding balance was equal to at least 2 months back payments - I want to change that to at least 1 month's back payments.

would be interested in knowing what other hoas have in their collection policy documents ?????

MaryA1 (Arizona)
Posts: 7,043

Posted:

Donald,

Our assessments are paid quarterly -- due on the 1st day of the quarter and late if not paid by the 30th day of the quarter billed. A late fee in the amount of $15 is applied accordingly at that time and is the only late fee applied for a particular quarter. A re-billing fee of $10 is also assessed. When the account is 45 days delinquent a demand letter is sent which includes a fee of $15. Then when the account is 60 days delinquent it is prepped to be sent to our attorney for collection. The letter informing the member of this includesa a fee of $25. From that point forward the attorney bills the member directly for her attorney fees incurred in collecting the account.

In my former assn the assessments were paid monthly -- due on the 1st day of the month and late if not paid by the 15th. A late fee was billed only once for a particular month.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Don,

We offer monthly payments for our annual assessments. If an payment is not received by the 7th day of the following month (allows mailing time for end of month payments) a 10% late fee is charged for that missed month and continues until paid. After 3 consecutive months of missed payments we also charge a $20 admin fee to cover certified letters, etc. After 4 months we turn it over to the attorney

Example: Payment is $50 per month

Jan 01 $50 assessment
Feb 01 $50 assessment
Feb 07 $5 late fee for Jan
Mar 01 $50 assessment
Mar 07 $5 late fee for Jan
Mar 07 $5 late fee for Feb
Apr 01 $50 Assessment
Apr 07 $5 late fee for Jan
Apr 07 $5 late fee for Feb
Apr 07 $5 late fee for Mar
Apr 07 $20 Admin Fee
May 01 Turned over to Attorney

GlenL (Ohio)
Posts: 5,491

Posted:

Monthly assessments due on the first. Late fee attaches if not paid by the 16th. ($35.00)

Studies show that 5 out of 4 people have problems with fractions

JohnO6 (Georgia)
Posts: 424

Posted:

Monthly assessments due on the 1st.
Considered "late" on the 5th.
Late fee of 15% added after 10 days late (on the 15th).

JeffP6 (Florida)
Posts: 91

Posted:

Quarterly assessment - $25 late fee hits after 30 days being late - late fee is charged each time homeowner is late.

ex
Jan 1 200
Jan 30 $25 late fee
Apr 1 200
Apr 30 $25 late fee

max someone can get is $100 late fee per year

we also begin charging interest on the late amount after 30 days

JamesG (Connecticut)
Posts: 83

Posted:

Hi Donald, my association is also located in CT. As you state, CT has revised many of the condo laws. We are in the process of reviewing our collection policy to be sure that we are in compliance. I have attached our current policy language. You will note that we do not get into issues of liens or foreclosure as these actions are complex and best left to the attorney if things need to go that far.

Jim

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📄192524898271.pdf(75 KB)

DonaldN (Connecticut)
Posts: 183

Posted:

thanks all - good cross section with great examples !!!!!

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