Deny services if dues are not paid?

In California, is it possible to deny a resident access to services if they are not paying their dues? We have a resident that is several months behind in dues. Can we disable their key access to the gym?

The CC&RS are silent on this topic.

It is in your documentation if you can do this or not. We could only deny rental of the clubhouse. We were responsible for lawncare and they would continue to receive that. Only because it would effect the entire neighborhood by denying it.

May I express the need to put in a policy of collection. We liened at 6 months and CONSIDERED a foreclosure at a year. The problem you have is not taking the proper steps or instituting a strict policy on collections. If one doesn't make payment arrangements then the next step should be a lien.

Wow so you assume that for ALL HOA's? Who made that a law of the $400 - $500 limit? Not all HOA's are created equal. Each HOA has a different collection rate and time period of collection. What about those who only collect $100 a year? You want to wait 4 - 5 years to place a lien?

You take the situation on a case to case basis. Plus you do it at the breaking point that it's worth it. Considering that it may cost $400 to place a lien would you do that at $100 owed? Each state is different on if they charge for liens or require a lawyer to do so. Plus there is a time the lien has to stay in place that will add the pressure on naturally. No one immediately pays a lien when they get one placed. They tend to let them drag out. Hence, why one puts a time line on foreclosure procedures to consider.

Seems some here have the attitude of hiring a lawyer and consult them for everything. Really NOT the appropriate approach for every situation. It will deserve to raise dues and drive your HOA broke. If you really know what your doing, a lawyer is ONLY needed to be used as a "tool" to do the legal things an individual can't do. That is like filing a lien, foreclosure, or sometimes stop orders. The HOA itself has already built in guidance on how to handle situations without needing to hire a lawyer for every little clarification.

If your worried about being sued, get over it. Your going to be. FACT. Don't keep "protecting" yourself from a lawsuit. Look beyond the "I am going to sue" and to what happens IF that lawsuit came to fruition. Is the person correct? Then you work out a deal. If they are not correct, you counter-sue for costs and let them. Lawsuits do NOT always win. They are filed and it's best by the other party to do so. Countersuing doesn't cost the same and can also be for anything as well. Don't fear the lawsuit, fear the fact you don't know what your doing if you depend so much on legal advice to operate. (Ps. 3 years in office threatened to be sued on a monthly basis, not 1 suit filed ever. Consultations with lawyers? 0 except for liens/foreclosures. I read and understood my documents.)

You need to be tougher on your collection policies and follow through. If someone really isn't going to pay, gym use isn't going to push them to pay although disabling things like that could be part of the process. If its digital, just disable it immediately. It will give them an immediate notice they are late.

I find that late fees, lawyer fees, collection fees, etc and a fast foreclosure policy is a good motivator for people to pay on time. You need to make it so painful and fast that people will pay the HOA first, then their phone bill. Not the other way around.

Missy,

The cost of a lien is a piece of paper and the cost to record with the County Recorder. There need not be a lawyer involved. Case by case you have to be kidding. Set a firm policy. The cost of a lien is paid by the homeowner and its's there to protect the association.

The owner pays for the lien AFTER the HOA pays for it. The HOA is reimbursed its money. That can include legal fees, interest, and filing costs. Each state is differrent. It does mean costing money in many states to file and some requiring an attorney to do so.

We are ALL from different states here. What is good for Cali is NOT for Virginia. So do NOT ASSUME that what applies in your state applies to all. Many do not even required to follow Roberts laws of order. Something that Cali has incorporated.

A lien costs the HOA money upfront. A court can ONLY make one WHOLE. Which means the HOA can ONLY get paid back the money it has lost (damages). So to say the homeowner pays is not necessarily accurate. The HOA has to have the money in their budget to pursue such endeavors. Hence, why most have to wait till the best breaking point to file.

Melissa we use an attorney that specializes in collections and he adds all his fees and charges to the lien, so it costs the HOA $0 to file a lien.

There is no foolproof collections standard but lien filing is the best legal chance an HOA has.....yes, foreclosure is "snake eyes"

Well Melissa if it gets to the foreclosure state, whether by the HOA or other entity, that's when it gets interesting at least for condo's in OH. That's when we ask the court to appoint a receiver and use them to collect "reasonable rent" from the owner. Which first gets applied to past due assessments, then to other fees.

5311.18 Lien for common expenses.
(B)(2) In a foreclosure action a unit owners association commences pursuant to division (B)(1) of this section or a foreclosure action the holder of a first mortgage or other lien on a unit commences, the owner of the unit, as the defendant in the action, shall be required to pay a reasonable rental for the unit during the pendency of the action. The unit owners association or the holder of the lien is entitled to the appointment of a receiver to collect the rental. Each rental payment a receiver collects during the pendency of the foreclosure action shall be applied first to the payment of the portion of the common expenses chargeable to the unit during the foreclosure action.

My question too about how you report to the 3 credit companies... Considering the HOA has no right to your social security number. Which is used to track your credit and creditors. I would never ever ever ever give my HOA my social security number.

The HOA NOT having access to social security numbers also effect how lawsuit judgments are handled too. One can't garnish wages if they don't possess the social security number of that person. You don't need it to file the lawsuit, lien, or foreclosure. You do need it if you decide to pursue certain collection methods such as garnishment of wages or reporting to the credit bureaus...

Do I think the HOA should have access to this information? Most likely. However, it is a violation of privacy and most people would never go along with that type of release of information to their HOA. Especially since it's run by their neighbors and strangers they don't know.

You dont need a social security number for wage garnishment.

Typically you give the sheriff or other local official (called the "levying officer") information about where the judgment debtor works. The levying officer serves the garnishment order on the employer and the employer is required to withhold the proper amount of money (which is limited, see below) which then goes to you.