BB5 (Missouri)
Posts: 145
Posts: 145
Posted:
If a homeowner owes past due association dues (a late fee was added on) and the homeowner paid the fees but not the late charges can the association charge a "late fee"on the unpaid "late fee" ?
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late fee
Started by BB5 • 20 replies • 3189 views
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SusanW1 (Michigan)
Posts: 5,202
Posts: 5,202
Posted:
Some do on the unpaid balance, whatever that is - but in this economy, be glad you got the original amount.
MelissaP1 (Alabama)
Posts: 13,836
Posts: 13,836
Posted:
No late fee on the late fee. However, the association does keep that amount of the late fee on their records of amount OWED the HOA. This way in the future, IF a lien is to be applied this amount can be added. Be glad you got what you got and hope it continues.
Former HOA President
WillR (Michigan)
Posts: 68
Posts: 68
Posted:
Are you talking big dollars or just a small amount? If its just a few dollars 10-15 then just let it go. Give the person a break, you might be losing a little but the next time dues are up the person might remember the kindness and pay on time. Plus other might here that the board has a heart and pay up. However if your talking some serious cash, then try working out a payment plan, it beats having to go to small claims court and shows that your willing to work with them. Kindness goes along way.
HeatherB3 (Florida)
Posts: 32
Posts: 32
Posted:
The way our association works is…
Of course I am using round numbers.
January assessments= $100.00
If not paid by the 10th = $25.00 late fee
Account total= $125.00
February assessments = $100.00
If February 1st you pay $100.00 towards February assessments
$25.00 goes towards late fee from January
$75.00 goes towards January assessments
So, you still owe $25.00 towards January assessments
February assessments are still late because they have not been paid
So, to answer your question…
Any money you put on your account goes to pay any late fees then any assessments owed. I didn’t understand it either, but the way my PM put it to me was if your account is not zeroed out every month, you will owe a late fee. I hope that helps.
Of course I am using round numbers.
January assessments= $100.00
If not paid by the 10th = $25.00 late fee
Account total= $125.00
February assessments = $100.00
If February 1st you pay $100.00 towards February assessments
$25.00 goes towards late fee from January
$75.00 goes towards January assessments
So, you still owe $25.00 towards January assessments
February assessments are still late because they have not been paid
So, to answer your question…
Any money you put on your account goes to pay any late fees then any assessments owed. I didn’t understand it either, but the way my PM put it to me was if your account is not zeroed out every month, you will owe a late fee. I hope that helps.
RichardP13 (California)
Posts: 1,767
Posts: 1,767
Posted:
Another thing to consider is that your management company will have collected a late fee from the HOA the day after the assessments are due. You need the late fee paid by the H/O to breakeven.
MelissaP1 (Alabama)
Posts: 13,836
Posts: 13,836
Posted:
Never heard of the HOA paying the late fee to a MC if an owner is late. That's weird. Our HOA worked just like the above example. If the owner didn't pay their late fee, then it stayed on their record as an amount owed. They wouldn't have a zero balance. However, we couldn't lien a person based on those late fees. Like if they were late every month for 10 months but paid the REGULAR dues each time. The Late fees were $20. 10 months later their account would say they owed the HOA $200 but are up to date on their dues. We couldn't lien for that $200 because it's based on penalties/fines. However, IF they didn't pay their dues and late fees for 10 months, we could then lien for: Backdues, late fees, interest, and legal fees for filing the lien.
It's always best to have the HOA reflect the late fees on the amount owed even if they are up to date on dues payments. It's because the one day the owner isn't paid up on BOTH, it can be collected. Otherwise, the HOA can potentially lose out on this money in the long run.
It's always best to have the HOA reflect the late fees on the amount owed even if they are up to date on dues payments. It's because the one day the owner isn't paid up on BOTH, it can be collected. Otherwise, the HOA can potentially lose out on this money in the long run.
Former HOA President
BB5 (Missouri)
Posts: 145
Posts: 145
Posted:
These replys really didn't answer my question so asking again. Can an HOA legally or for that matter anyone else charge a "late fee "on an unpaid "late fee " the rest of the amount owed was paid in full.
JohnO6 (Georgia)
Posts: 424
Posts: 424
Posted:
BB5 -
Start by reading your governing documents. Look for the definition a
Of "assessments".
Often, all charges posted against an owners acct are defined as assessments including late fees. Then payments are posted against the earliest assessments first, working forward.
If this is the case, you can in effect, end up charging late fess against what were previously also late fees.
Another scenario is when the documents define how payments are applied - usually against late fees first, then against previous dues. The upshot is that the outstanding balance is compris of previous dues, which can then be subject to additional late fees.
The answer remains the same - Read your documents!
Start by reading your governing documents. Look for the definition a
Of "assessments".
Often, all charges posted against an owners acct are defined as assessments including late fees. Then payments are posted against the earliest assessments first, working forward.
If this is the case, you can in effect, end up charging late fess against what were previously also late fees.
Another scenario is when the documents define how payments are applied - usually against late fees first, then against previous dues. The upshot is that the outstanding balance is compris of previous dues, which can then be subject to additional late fees.
The answer remains the same - Read your documents!
JohnO6 (Georgia)
Posts: 424
Posts: 424
Posted:
BB5 -
Start by reading your governing documents. Look for the definition a
Of "assessments".
Often, all charges posted against an owners acct are defined as assessments including late fees. Then payments are posted against the earliest assessments first, working forward.
If this is the case, you can in effect, end up charging late fess against what were previously also late fees.
Another scenario is when the documents define how payments are applied - usually against late fees first, then against previous dues. The upshot is that the outstanding balance is compris of previous dues, which can then be subject to additional late fees.
The answer remains the same - Read your documents!
Start by reading your governing documents. Look for the definition a
Of "assessments".
Often, all charges posted against an owners acct are defined as assessments including late fees. Then payments are posted against the earliest assessments first, working forward.
If this is the case, you can in effect, end up charging late fess against what were previously also late fees.
Another scenario is when the documents define how payments are applied - usually against late fees first, then against previous dues. The upshot is that the outstanding balance is compris of previous dues, which can then be subject to additional late fees.
The answer remains the same - Read your documents!
BB5 (Missouri)
Posts: 145
Posts: 145
Posted:
The Doc's do not make reference to how the money is applied only when dues are due.
JohnO6 (Georgia)
Posts: 424
Posts: 424
Posted:
OK, so for the best liklihood of helpful responses here, you may want to post the exact verbiage of the sections of your governing documents that refer to:
Assessments
Dues
Late Fees
Penalties
Effect of Non-Payment of Assessments
etc.
Also, check your CCRs for the ability of the Board to make and enforce subsequent rules & regulations. This may empower the creation of rules that have the same effect.
Assessments
Dues
Late Fees
Penalties
Effect of Non-Payment of Assessments
etc.
Also, check your CCRs for the ability of the Board to make and enforce subsequent rules & regulations. This may empower the creation of rules that have the same effect.
FredB4 (Ohio)
Posts: 375
Posts: 375
Posted:
We work ours the same as Heather stated. We based it on the latest revisions of Ohio State law governing condo's. Not sure if HOA's or other states are the same.
Unlike previously where fines, late fees etc. were kept seperate from COA payments, owners are left short on their COA fees each time they don't pay their fines or their COA fee. Plus they get fined for being short on their COA fee. Once owners see how this now works they usually are very quick to pay up and more careful about following the bylaws.
We also offer payment plans for those that find themselves in financial difficulty. Every time an owner doesn't pay their monthly fees it shifts the cost to other owners and every time an owner doesn't follow their bylaws it breaks their legal agreement with the association and causes added problems and expense for their co-owners.
Unlike previously where fines, late fees etc. were kept seperate from COA payments, owners are left short on their COA fees each time they don't pay their fines or their COA fee. Plus they get fined for being short on their COA fee. Once owners see how this now works they usually are very quick to pay up and more careful about following the bylaws.
We also offer payment plans for those that find themselves in financial difficulty. Every time an owner doesn't pay their monthly fees it shifts the cost to other owners and every time an owner doesn't follow their bylaws it breaks their legal agreement with the association and causes added problems and expense for their co-owners.
ShirleyM4 (Missouri)
Posts: 2
Posts: 2
Posted:
We were notify middle of June 2017 by letter, they are charging an assessment of $958.40, must be paid by July 31st. However, they are wanting to charge a $50.00 late fee every month until it is paid. I thought in the state of Missouri the most they could charge is 26%? $958.40 x 26% = $20.77 every month, Is that correct????? Also, they did not have a meeting explaining the assessment. Please help.
Also, our board does not have a CPA review our financials every year? According to Mo. Condo Laws, it says an audit. Our board and management company does neither?
Please help
Also, our board does not have a CPA review our financials every year? According to Mo. Condo Laws, it says an audit. Our board and management company does neither?
Please help
GenoS (Florida)
Posts: 4,276
Posts: 4,276
Posted:
Hi, Shirley. It's best to start a new thread with your question. This one is over 6 years old.
DouglasM6 (Arizona)
Posts: 724
Posts: 724
Posted:
$958.40 x 26% = $20.77 every month, Is that correct?????
The math is wrong, but I think I see what you're doing.
$958.40 x 26% = $249.18
249.18 / 12 = 20.77.
Your governing documents should tell you how much they can charge.
The math is wrong, but I think I see what you're doing.
$958.40 x 26% = $249.18
249.18 / 12 = 20.77.
Your governing documents should tell you how much they can charge.
ShirleyM4 (Missouri)
Posts: 2
Posts: 2
Posted:
HOW DO I START A NEW THREAD?
TimB4 (Tennessee)
Posts: 21,061
Posts: 21,061
Posted:
Click on the words "add new topic"
Those words are located directly above the discussions main page showing titles for the columns and below the yellow banner that says Welcome to HOATalk.
Those words are located directly above the discussions main page showing titles for the columns and below the yellow banner that says Welcome to HOATalk.
TimB4 (Tennessee)
Posts: 21,061
Posts: 21,061
Posted:
Additionally, if you mouse over the "help" tab, and click on "how to use this website" the first section describes how to start a new topic.
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