Partial payment of late HOA dues

I think the "if applicable" clause may have confused them. It could have been interpreted as no additional amount was due. You should have sent a notice for the exact amount due so there would have been no confusion. My opinion is that it would be unfair to attempt to collect the additional amount since you failed to bill correctly in the first place. Do it right the next time.

I think Georgia Laws pretty much mirror Florida laws

Here Florida Statures state Any payment received by an association and accepted shall be applied first to any interest accrued, then to any administrative late fee, then to any costs and reasonable attorney's fees incurred in collection, and then to the delinquent assessment. This paragraph applies notwithstanding any restrictive endorsement, designation, or instruction placed on or accompanying a payment. A late fee is not subject to the provisions of chapter 687 and is not a fine.

read below

Florida Statute 720.3085
http://www.ccfjedu.net/HOAFS720.3085-2007.htm

(3) Assessments and installments on assessments that are not paid when due bear interest from the due date until paid at the rate provided in the declaration of covenants or the bylaws of the association, which rate may not exceed the rate allowed by law. If no rate is provided in the declaration or bylaws, interest accrues at the rate of 18 percent per year.

(a) If the declaration or bylaws so provide, the association may also charge an administrative late fee in an amount not to exceed the greater of $25 or 5 percent of the amount of each installment that is paid past the due date.

(b) Any payment received by an association and accepted shall be applied first to any interest accrued, then to any administrative late fee, then to any costs and reasonable attorney's fees incurred in collection, and then to the delinquent assessment. This paragraph applies notwithstanding any restrictive endorsement, designation, or instruction placed on or accompanying a payment. A late fee is not subject to the provisions of chapter 687 and is not a fine.

If I was a Justice of the Peace and you brought one of these liens before me I'd lock you and your attorney up for gross stupidity. First, you inform the delinquent members that they owe one amount when there is a different, slightly higher amount due. Then you argue that the member should know when you said "plus late fees, accuring interest, cost of collection and attorneys fees, if applicable" that really means it is "incumbent upon the homeowner to contact the HOA treasurer for the amount owed and follow up the quote with a check." Is there some body of law you could refer us to justify that conclusion?

In the one instance where the member did call the treasurer and get the correct amount due, you only collected the amount you originally asked for. Just what was it that the treasurer said that resulted in the underpayment? Your whole case now rests upon he said, she said. What proof do you have that the treasurer made a coherent statement as to the correct amount due?

You also argue that you cannot state a sum certain because the "interest on the unpaid principal changes each day." Just how much per day is the interest on $120? At 10% APR it's three cents per day by my calculation. So all this handwringing gets down to a matter of pennies, less than a dollar a month.

Your question is really, "Should the HOA accept the money we actually asked for or should we refuse to accept it and keep on fighting with members because they owe us three cents more today than they did yesterday?" The correct answer is that this should no longer be your problem as you have no business being on a board of directors with so little business skill.

I agree that "If applicable" shouldn't have been included in the statement sent out. That would be confusing. However, the money collected of $100 should be deposited and the left over $20 amount debited to their account. Which means they are "Not in good standing" with the HOA. This is same thing we did with unpaid late fees. We'd accept the HOA dues payment but the late fee stayed on their record as owed. A member could accumulate late fees but be up to date with their dues. We couldn't lien/foreclose on them for those late fees but we could keep them recorded on record just in case they paid them. Otherwise, they could negotiate with us.

Did you actually place a lien? Sounds like you just threatened one. A difference if you hadn't followed through. Unclear if that is what happened or not.

Daniel,

Since you billed incorrectly by including the confusing term, "if applicable,", I feel the HOA should eat the extra. I believe it is unfair to penalize someone else for your mistake. I believe you should pay for your own mistakes, otherwise, there is no incentive for you to not make the same mistake in the future.

Daniel,

Is it stated somewhere in writing what the late fees are and when they are applied? Is it stated somewhere that interest is to be charged and at what rate? It's possible the association could be guilty of disclosure violations if this is not stated somewhere.

Our monthly fees are collected by our mc and are due on the first of the month. Payments that are more than 30 days late are charged a late fee. If a payment is not received by the 15th, the pm sends a notice to the homeowner reminding them that payment has not been received and that if payment is not received before the end of the month a late fee of $xx will be due in addition to the delinquent payment. References to the relevant portions of the association's documents authorizing the late fee and the amount are also quoted in the letter.

Daniel,

Good. Now, getting back to the OP, you stated that liens were filed in July. Was there any attempt to collect the delinquent assessments between January 10 and July when the liens were filed? My opinion is that immediately after the 10th of January, letters should have been sent to the delinquent homeowners reminding them that their dues were delinquent and adding on the late fee of $10 to the amount owed. Also, the letter should have quoted the section from the covenenants that you quoted above.

With regard to the interest, there is nothing stating that the interest is to be compounded. It is simply stated as 10% per year. This is stated as simple interest which is calculated by multiplying .1 times the amount owed times the number of days until payment is received divided by 365. Compound interest has a different formula and results in an effective APR that would be greater than 10%. You can't expect the homeowner to do the math for you, and even if he does, the amount changes by 3 cents per day and will change from the date he calculates an amount owed and sends a check until the association receives the check. You need to state the total amount owed, including interest, if payment is received (or postmarked, whatever) by a specific date. You then need to decide what to do if there is an overpayment or underpayment on the date the association receives the check. Either write it off, since the difference is likely to be less than the cost of postage, or credit any overpayment to next year's dues, or any underpayment as a debit (without penalty) applied to next years dues. Gets complicated, doesn't it?

Anyway, it appears to me that this was not properly handled by the association. I honestly believe homeowners may have been confused by the letter sent by the attorney and thought they only owed $100 if they paid immediately and sent a check for only that amount.

Here's something to consider:

For those that have paid only the $100, write off the difference and send a letter that the actual amount due was more, and how that difference was determined, but you understand there may have been some confusion and the association is willing to forgive the remaining amount due THIS TIME.

For those that have not yet paid, send another letter specifying the total amount due if paid by a certain date, how the amount is determined and the authorization for same, and a statement that the amount due will continue to increase until the debt is paid.

Next year, take action against delinquencies promptly, state total amounts due by a specific date, show how those amounts are arrived at, state the authority for collecting late fees and interest, and keep following up until the dues have been paid.

Daniel:

to answer your original question as long as the check does not have written "paid in full" on it anywhere you can deposit it, apply towards the debt and attempt to collect the rest.