How do you know to pay your dues?

Started by MelissaP1 • 10 replies • 1458 views

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MelissaP1 (Alabama)
Posts: 13,836

Posted:

I recently had to go to court over an issue. One of the questions asked was how does the homeowner's know their dues rate frequency of payment? That made me curious about how other HOA's handle this. Do you send out notices? Is it posted? Is it revealed at closing?
Our HOA, we had a payment box at the front entrance with the dues and late fees policy posted. The sellers generally informed the buyers of the dues at closing. We would try to have the realtor post it on their Website advertising the homes. I do know the mortgage company when financing my loan has that information as well. They figured it into my loan criteria.
I am just curious of other ways HOA's convey their dues and rates. Think this should be an interesting topic to discuss!

Former HOA President

BradD2 (Florida)
Posts: 418

Posted:

In what State is the HOA located?

We are set to quarterly payments. A letter from the board is sent out at the beginning of the year with a summary of what has happened and in it we mention the current dues. The dues are paid by an invoice from Colonial Bank and so about 2 weeks before the first of the quarter the homeowner recieves what amounts to a bill.

For new homeowners there are estopel letters and disclosure forms that the title company is supposed to give to them.

BradP (Kansas)
Posts: 2,640

Posted:

We currently send quarterly dues notices, however, we just voted to switch to once per year and will make that known to the membership through email, newsletter and will send out a bill next year for the amount.

DwightT (Idaho)
Posts: 664

Posted:

We recently opened a can of worms when we went to yearly payments. Previously the developer had allowed people to set up whatever payment schedule they wanted. Some would pay annually, some quarterly, some monthly. It was an accounting nightmare for the management company: is this person not paying or are they on a different schedule?

The single annual payment was announced at the annual meeting, it was published in the newsletter, and it was stated on the invoice that went out. People still tried to pay on whatever payment schedule they had set up before. When we started sending invoices with late fees, all hell broke loose. We are generally waiving any late fee if the person requests and comes current on the dues payment, but there is at least one who refuses to make any further payment until after the late fee is dropped. This is for a $7.50 fee on a $400 annual dues payment.

Send them an invoice for the dues, but be prepared for people to mis-read it.

RonaldW (South Carolina)
Posts: 901

Posted:

Our dues are annual and due by January 31 of each year (they are due January 1, the 31st is the last day before they are considered late). Our association documents specify this and specify that we must send each member a dues notice at least thirty days in advance of the due date. They also specify the interest rate for late payment.

Ron
SC

BradP (Kansas)
Posts: 2,640

Posted:

Dwight:

We are prepared to be a little lenient the first year, but $120 is not that much money so we are ready.

JM2 (Oregon)
Posts: 439

Posted:

Hi Melissa:

Generally the Board or Mangement company, as the agent, sends out either a billing or a coupon book, that should explain when assessments are due and when they are late. I'm more in favor of sending out a billing, since that keeps the homeowner up to date on what they owe.

J. Patrick Moore, CMCA

TracyT (Maryland)
Posts: 228

Posted:

We are sent a coupon book and makes quartely payments.

StephanieF1 (Maryland)
Posts: 8

Posted:

What is the actual verbage in the CC&R regarding collection of dues. Our Declarations do not state specific dues will be collected.

Stephanie

TracyT (Maryland)
Posts: 228

Posted:

I'll check it out. Off the top of my head I don't remember that our does either. It just says what to do if they aren't paid.

TracyT (Maryland)
Posts: 228

Posted:

Ok while obsessing on a completely un-related issue, I found the following statement in our By-Law (not CC&R) under the Powers and Duties of the Board or Directors:

"send written notice of each assessment to every Owner suject thereto at least thirty (30) days in advance of annual assessment period"

T

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