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SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Reading a court case, I came across this paragraph. Its a great idea to inform everyone in your association how much extra they are paying to make up for the people not paying. Personally I'd rather have the extra $37.84 in my pocket than paying for my neighbor's bills every month. If your reminded each month how much more your paying eventually members will put pressure on the HOA to go after delinquencies.

"When Liberty first became the property manager of the Little Suwanee Point
community, the Association was experiencing severe financial difficulties because
many homeowners were not paying the required assessments. As a result of the
delinquencies, the Association had been required to raise the monthly assessmentsfor
four consecutive years. Of the $183 monthly assessment paid by each homeowner
in 2008, $37.84 was attributable to covering shortfalls caused by those who had failed
to pay their assessments."

http://www.condolawnj.com/wp-content/uploads/2013/01/Liberty-Case-Managers-not-Debt-Collectors-02798503.pdf
MelissaP1 (Alabama)
Posts: 13,836
Posted:
I did the math in my HOA. We paid about an extra 3 - $5 per person to cover debts of unpaid assessments. Considering we had 107 homeowners that is a good amount when things were broken down out of the $50 dues. Considering our bills were 5k a month to meet. You can do the math and see the impact the non-payers really had on our overall budget. Considering one can only raise dues less than 5% a year in most HOA's without a majority of membership vote, you can see how tight things can be. Anything above 5% took majority voter and was considered like a "Special assessment". No one wants to hear or do that.

Former HOA President
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Just did a quick calculation. We have about a 4% deliquency rate on dues of $600.00 per year.
KellyM3 (North Carolina)
Posts: 2,239
Posted:
Yep, our master associations monthly delinquency rate is about 4%....or $1.62 per month if you don't consider that late payers pay the following month.

Look at the amount of true "lost collections" from foreclosure where the HOA takes a purposeful write-down. In that case, our HOA dues payers have absorbed 18-cents in losses from us taking a vote to "write off" uncollectible debt, so far, in 20-13.

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