RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
I just read an article in the Denver Post about HOAs using mediation to resolve disputes. There is a link to this article posted on the HOME link above. It is timely because just last evening I attended an HOA Board meeting with one of the associations we manage. In this meeting HB 13-1276, which passed and became effective 1/1/2014 was discussed. This bill updated the Collection Policy in HB 05-100 which passed and became effective 1/1/2014. HB13-1276 prohibits an assocition from referring a collection matter to an attorney or collection agency prior to the adoption of this bill (the association and/or their managing agent may still act tocollect delinquent accounts).
Our company has followed all of the policies in both bills long before the policies became manditory by Colorado statute (CCIOA). We have experienced that collection and Covenant problems can be resolved without mediation; however, if not then mediation should be tried prior to turning over a case to an attorney.
What I find rather disturbing is the experience we had a couple of months ago with a law firm which would not handle collection on a delinquent account until a new collection policy was adopted by the Board of another HOA we manage.
To summarize changes made by this second HOA's attorney:
1) a one page document was turned into a five page document;
2) first paid was changed from "oldest outstanding" to "attorney fees and legal costs and expenses"; and
3) the replaced policy stated "the association shall make a good faith effort to resolve disputes with the owner. If resolution is not reached the association is willing to go to arbitration prior to considering Court action". The new policy leaves this out entirely! It is replaced with 3.5 pages concerning refering to an attorney and the attorney's detailed instructions on handling the matter.
What do you think was the decision made by the HOA Board at the meeting last night? One page written by the Board or pay an attorney to write a new updated policy?
Our company has followed all of the policies in both bills long before the policies became manditory by Colorado statute (CCIOA). We have experienced that collection and Covenant problems can be resolved without mediation; however, if not then mediation should be tried prior to turning over a case to an attorney.
What I find rather disturbing is the experience we had a couple of months ago with a law firm which would not handle collection on a delinquent account until a new collection policy was adopted by the Board of another HOA we manage.
To summarize changes made by this second HOA's attorney:
1) a one page document was turned into a five page document;
2) first paid was changed from "oldest outstanding" to "attorney fees and legal costs and expenses"; and
3) the replaced policy stated "the association shall make a good faith effort to resolve disputes with the owner. If resolution is not reached the association is willing to go to arbitration prior to considering Court action". The new policy leaves this out entirely! It is replaced with 3.5 pages concerning refering to an attorney and the attorney's detailed instructions on handling the matter.
What do you think was the decision made by the HOA Board at the meeting last night? One page written by the Board or pay an attorney to write a new updated policy?