Help wanted: Brand new to HOA business ????

I volunteered to help the new board elected since the old board (3) members, were not making any headway. I have come across the problem of getting dues paid. We are hurting bad and I really do not know where to start making people understand that the few who are paying their dues are paying the bills for them and putting liens on the property seams to be idle threats they pay no attention to. Is there any way to get dues paid now since there is no money to acquire a lawyers help. Any suggestions would be so helpful.

Being in the Property Management field I have found that the wording of a letter to the homeowner who has not paid their dues gets their attention enough for them to realize they need to pay the dues. I am new to HOA Talk so I don't know how they feel about giving samples of letters that have worked for me or if they will allow members to email each other but if so I have numerous letters that seem to work.

Please show me some of those letters you have. Thank you.

i would like to see a few sample letters as well. our HOA was recently turned over to the homeowners and we are in the process of sending Q1 invoices for the HOA dues this month.

MindyD, I recomment your board establish rules on delinquent assessments. Send these to all owners with a letter which gives at least 30 days notice prior to acting. Following is what I have used in Colorado; laws may be different in Florida. Click the HOA Professionals tab to see DARCO's record on collections.

Rules and Regulations on Delinquent Assessments

Assessments are delinquent when payment has not been received by the due date. A 10 day grace period is provided for receipt of payment after which the property is assessed a late charge of $10.00 per month.

Assessments may include, but are not limited to, the annual (regular) assessment, special assessments, late charges, interest, fees, fines, attorney fees, collection costs and court costs. All costs related to a delinquent account shall be assessed to the property and paid by the owner. The Declaration (Covenants) establishes that an assessment is a continuing lien upon the property and a personal obligation of the owner.

The annual assessment is determined by the Board of Directors as part of the annual budget. The annual budget is ratified, or vetoed, by homeowners at the annual meeting. If the members veto the budget, then the prior budget, including the annual assessment, remains in effect until a new budget is approved. The annual assessment may be paid on a quarterly basis with payments due on the first day of each quarter beginning January 1st, April 1st, July 1st, and October 1st. Assessment payments shall be applied to the oldest assessment first and progress toward the most recent assessment.

Statements may be provided by mail, e-mail, or coupons as a reminder to homeowners of the amount and due date of a quarterly assessment. Nevertheless, it is the responsibility of the homeowner to remember to pay by the due date even if a statement is not received. An owner may request consideration by the Board of Directors to defer payment due to extenuating circumstances.

An account delinquent over 10 days will be charged $10.00 each month it maintains a balance over $10.00. A delinquency notice will be sent to any delinquent owner every month while an account remains delinquent. If a check is returned the account becomes delinquent plus there is a charge of $35.00 for the returned check.

An account delinquent over 70 days shall be provided a warning that a lien will be recorded on the property if payment is not received within 30 days.

An account delinquent over 100 days will have a lien filed with the Douglas County Clerk. The lien amount will include a filing charge of $100.

An account delinquent over 130 days shall be provided a warning that the account will be referred to an attorney for collection if not paid within 30 days.

The Association shall make a good faith effort to resolve disputes first with the Owner. If resolution is not reached the Association stands ready to go to binding Arbitration under the Uniform Arbitration Act. The parties are herein forewarned that if court proceedings are necessary to resolve a dispute, the court shall award to the prevailing party reasonable collection costs, attorney fees, and other costs.

The following are some sample letters. We send out three notices regarding balances due and we also make phone calls to try to get the homeowners to make payment plans to get their balances paid in full.

1ST NOTICE:

September 16, 2004

Jane Smith
6000 Lea Lane
Charlotte, NC 28212

OOPS! Did you forget or are our records in error?

Our records indicate that you have a total balance due of $ 620.00. This balance includes the following charges: $20.00 January 2005, $150.00 February 2005, $150.00 March 2005, $150.00 April 2005 and $150.00 May 2005.

Please remit $620.00.

If your check has been mailed, please take a moment to contact our office. Thank you for your prompt attention to this matter.

Sincerely,

Property Manager
______________ Association Management
For Sample Homeowners Association

Cc: HOA File
Board of Directors

2ND NOTICE:

2nd NOTICE

September 27, 2004

Jane Smith
6000 Lea Lane
Charlotte, NC 28212

HAVE YOU FORGOTTEN? Our records still indicate that we have not received your homeowners dues and late fees. It is important that ________________ Association Management receives the amount due or a lien may be placed on the above property.

Please remit $240.00 upon receipt of this notice.

This balance includes the following charges: $220.00 July Dues and $20.00 Late Fee.

It is important that you contact our office and inform us of your intent to pay.

Sincerely,

Property Manager
____________________ Association Management
For Sample Homeowners Association

Cc: HOA File
Board of Directors

3RD NOTICE:

LIEN NOTICE
(FINAL NOTICE)

October 8, 2004

Jane Smith
6000 Lea Lane
Charlotte, NC 28212

Dear Ms. Smith,

Please be advised that ____________ Association Management has been directed to proceed with preparing a Claim of Lien action on the above referenced property.

Prior notices have been ignored; therefore, ______________ Association Management is affording you a final opportunity to satisfy your account without incurring substantial additional collection costs. You should be aware that fees and costs will be no less than $105.00 if a Claim of Lien is placed against your property.

In order to avoid the above-mentioned additional cost, you should forward payment (bank check or money order) in the sum of $ ____________ within 10 days of the date of this letter. If such payment is not received, _______________ Association Management will commence placing a lien on your property. The cost of satisfying your account will increase to reflect said additional costs, current dues and late fees. Your cooperation and assistance in helping to satisfy your account at this time will minimize additional time and expense for everyone.

THIS LETTER IS AN ATTEMPT TO COLLECT A DEBT, AND ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE.

Sincerely,

Property Manager
________________ Association Management
For Sample Homeowners Association

Cc: HOA File
Board of Directors

The following letter is one we use after the lien has been filed and we include a copy of the lien that was filed with the Cler of Courts:

RECORDED
CLAIM OF LIEN

October 19, 2004

Jane Smith
6000 Lea Lane
Charlotte, NC 28212

Re: Sample Homeowners Association
Balance of Account: $______________

Dear Ms. Smith,

At the request and direction of the Board of Directors for Sample Homeowner Association, a Claim of Lien has been prepared and filed against your property for default in payment of the above stated balance of account. A copy of said Claim of Lien as filed with the Clerk of Superior Court for Mecklenburg County is herewith enclosed.

Please be advised, we have been directed to proceed with preparing a foreclosure action on the Claim of Lien filed against your property if full payment is not received within 10 days of the date of this letter.

It is imperative that you contact our office immediately to discuss this serious matter.

Sincerely,

Property Manager
_________________ Association Management
For Sample Homeowners Association

Cc: HOA File
Board of Directors

We do not file liens unless we are directed to do so by the Board of Directors for the Associations we manage.

Does anyone know if the Association has the option to collect money from the tenant if unable to get payment from the owner? We have 115 units on our property, and in Feb, I'm estimating we did not collect from about 8 residents. In March it jumped to 38! Even after the 3 letters over 90 days and subsequent lien filing - still no payment! If an owner is still collecting rent money, do we have any secondary options?