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RobertM25 (Florida)
Posts: 12
Posted:
This a three part
part one what is the allowed interest rate on past dues in Florida?
part two are past due names published?
part three what would be the justification for doing that?
ErikaC (Virginia)
Posts: 12
Posted:
Quote:
Posted By RobertM25 on 02/16/2014 10:50 AM
This a three part
part one what is the allowed interest rate on past dues in Florida?
part two are past due names published?
part three what would be the justification for doing that?

Part one: Interest rates and late fees are typically spelled out in your hoa's CC&RS. You can find this under delinquencies. Our Hoa's documents are VERY particular, 18% interest, $25 late fee and the authority to accelerate Hoa assessments.

Part two: typically publication of names/homeowners are not published, unless the Hoa has obtained a lien, court judgement etc then those court filings are in the public domain...unless a protective order or seal has been grated by a Judge. However I would read your Hoa docs and FL statues very closely. I know our board has contemplated publishing names of delinquent homeowners, but that could really have a negative blowback on the Hoa Board or Managment Office.

Part Three: I think the justification would be subjective. As a general rule our Hoa doesn't "publish" homeowners names/account details unless we've been granted a court judgement. Or our Hoa has had to file a lien on the property.

In general I believe Flordia is unique, because the judicial systems allows a judge to determine "reasonable fees", again this is assuming your Hoa documents, don't spell out an interest rate or delinquency charges.
TimB4 (Tennessee)
Posts: 21,059
Posted:
part one what is the allowed interest rate on past dues in Florida?

per FL 720.3085 [emphasis added]:

(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 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 your Association is covered under a different statute, you can check that statute out at:

http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Index&Title_Request=XL#TitleXL

part two are past due names published?

That is a decision each Association has to make on it's own.

Typically, there is no rule against publishing the names and discussions on this site have given mixed opinions on the benefits of publishing the names.

part three what would be the justification for doing that?

Peer pressure.

Additionally, if the member would be embarrassed if they knew that names would be published, they may make more of an effort to make sure the assessment is paid.

If you want to read some of the discussions we have had, do a search for "publish names" by clicking on the search icon on the right side of the page above the forums.
CarolR11 (Colorado)
Posts: 2,563
Posted:
Yes, Robert, do a search on "publish names" as the topic's been discussed many, many times and opinions vary quite a lot.
GeoM (Missouri)
Posts: 28
Posted:
The allowable interest rate in our Declaration (8%) is not germane to the question, but since the question of whether to publish non or late payees names, I know of one HOA in this city that publishes the names of those who HAVE paid. Somewhat a reversal, but nonetheless, if you're looking for your neighbor's name and don't see it, it remains an element of peer pressure.
ValerieS2 (Michigan)
Posts: 244
Posted:
Municipalities (at least here in Michigan) publish tax delinquencies. What is the difference?
JohnC46 (South Carolina)
Posts: 14,265
Posted:
I for one do advocate listing (often called public shaming) those behind in their dues.

Not all advocate it.
AnnH6 (Florida)
Posts: 27
Posted:
I would never advocate for publishing names of delinquent owners. Some cases are unique (pre-foreclosure, bankruptcy). I also do not believe that "public shaming" is an effective tactic to get someone to pay their bills. The prudent thing for the HOA to do is to file a lien and then take legal action to collect on the debt. I also believe in the power of education- let all homeowners know that once their delinquent account
is sent to the Association's attorney, they are also then on the hook for late fees, interest, AND the attorney's fees.

The other thing I have learned is that it is rare in my community for someone to not pay their dues but to pay their mortgage- it is the opposite. These owners have figured out that the HOA can foreclose on them way faster than the bank so they are paying their HOA dues but not their mortgage. And then we have a few who pay for neither mortgage nor dues- they are on their way out and they know it so they won't pay the dues.

I also think the most important thing any Association can do is to create a uniform collection policy and then follow the policy. Our Association didn't have one and there was no rhyme or reason as to how debt was collected. Some owners owed $4-6K and had not had their HOA lien foreclosed on and some owners owed a few hundred and were being foreclosed on by the Association. Our former Prez owed nearly 2 years of dues, paid it off at the last minute before the Association could foreclose on the lien, and then got on the Board so he could pass judgment. Apparently he wanted to "forgive" his buddies of their HOA debt and managed to do so on several occasions.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
If left up to me here would be a sign at the entrance listing those behind in their dues, but that is just me.

TimB4 (Tennessee)
Posts: 21,059
Posted:
As I said, the issue has been discussed many, many, many times in the past.

If you want to read some of the discussions we have had, do a search for "publish names" by clicking on the search icon on the right side of the page above the forums.

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