💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

RobertN6 (Arizona)
Posts: 1
Posted:
Hi I live in Arizona and my HOA is charging a rebilling fee, but in the letter they sent they call it a late notice, this is on top of the late fee charged (15.00 maximum). The issue that I have is this fee was never disclosed and it's not listed in the CC&R's or any billing policy/procedure. I have asked our property manager for a disclosure of all fees and they keep going back to a part in the CC&R's where it says the homeowner is responsible for all fees under a part of the CC&R's that talks about collections, attorney fees, etc. I agree with that part under the assumption that all fees would be disclosed. What's to stop the HOA from creating some outrageous HOA Fee or violation? Doesn't all of this have to be disclosed?

The HOA is horribly managed. This is the first time that they have charged such a fee and under the previous 3 years, this fee was never charged. We recently received an update to the violation enforcement policy. Even under this policy, it lists the fine guidelines and the collection policy the fee is never mentioned. It lists the entire outline of when someone is late and what is done, but the fee is never mentioned.

I also requested a copy of the contract that the management company has with the HOA and financial disclosure. They have yet to respond back.

The HOA is still under builder control and will be for the next few years. I keep going in circles with the manager about how the fee isnt disclosed and she keeps saying that I'm responsible for all fees, but I feel that it's unreasonable to charge a fee that wasn't disclosed. I really feel like the HOA is hiding something and they wont be open and honest. To me this seems like a money grab.

MelissaP1 (Alabama)
Posts: 13,836
Posted:
HOA's have the right to issue fees most of the time. Not always is the amount disclosed in the CC&R's. It may be in the by-laws. However, the fee does sound like a late fee. We charge $20 dollars if you pay after the 15th of the month. It's understood and posted where you send your checks. Plus our accountant will inform members of that charge.

Basically that fee is like if you had written a bad check. To the HOA it is along the lines of getting a "bad check" when a check is late. It's a punitive charge/fee. It's important that the HOA gets their money as soon as possible at the beginning of the month. Typically a HOA collects as much as it spends out each month. A late payment/collection can effect a bill the HOA may pay. Which means they may have to pay a late fee or miss a bill. You may think what you contribute is so small but it contribute to the overall debt of the HOA.

In our HOA we have 107 homeowners. About 90% paid on time every month. (96). 5 Were usually late past the 15th. The rest were already lien/foreclosure process. Our bills were around $5K a month. Most bills being required to be paid by the 15th. So yes your little "just a late check" does have an impact on the HOA. One that they may pass along to you in a form of a fee they deemed reasonable, legal, and punitive.

So I believe your HOA is in it's right to charge your this fee as they do incur expenses when you or anyone else is late.

Former HOA President
JohnC46 (South Carolina)
Posts: 14,265
Posted:
We have a person that has not paid dues for 4 years. They owe $2,400 in dues and with late charges, interest charges, lawyer fees, etc. they now owe close to $6,500. That stuff adds up. I am all for penalties if one does not pay on time. After all, they did agree to pay on time so the problem is theirs.
JanetB2 (Colorado)
Posts: 4,219
Posted:
You have a Property Management Company ... keep in mind someone has to be paid to type up and send out late notices ... they do not do it for FREE. If you want to avoid fees ... please in future PAY your dues ON TIME!
GeorgeR8 (Arizona)
Posts: 182
Posted:
The amount of the fee will probably not be in any documents. Fees go up over time. Late fees will not be the same amount 10 years from now.
GenoS (Florida)
Posts: 4,276
Posted:
I'm aghast that some people seem to think miscellaneous fees can be invented on a whim and homeowners subjected to them. Have a solid collections policy. Make it available to homeowners. Specify when interest and late charges will begin to accrue. Specify that the owner will be on the hook for attorney collection letters and costs. DO NOT INVENT A "RE-BILL" FEE out of whole cloth and say, "Oh by the way.... you have to pay this too." Spell it out ahead of time or stick it where the sun don't shine.
AugustinD
Posts: 5,144
Posted:
Ditto what GenoS said. My favorite HOA attorney made clear that the Association had to have a clearly defined fee and penalty schedule. Else the courts would look unfavorably on the HOA in any legal challenge.

Robert, your HOA's business manager is either incompetent, or he or she has not told you that the Developer is not responding to the manager when the manager makes queries on the point.

Here's a thought: You could file a complaint with the Florida BBB about the developer. Of course, this might make you vulnerable to retaliation, so consider this carefully.
DouglasM6 (Arizona)
Posts: 724
Posted:
Quote:
Posted By RobertN6 on 07/01/2017 9:16 AM
. What's to stop the HOA from creating some outrageous HOA Fee or violation?


Paying on time and obeying the rules and regulations!

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

  • ✓ Ask follow-up questions
  • ✓ Share your experience
  • ✓ Get expert advice
  • ✓ Access 350,000 discussions
Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here