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JoshuaD1 (Oklahoma)
Posts: 1
Posted:
Hi,

I took over the presidency of our POA, in Oklahoma, in 2016, and it's been a mess. We now have a new board, same bylaws, and CCRs. My dilemma is that, after going over who owe dues and those who don't, has caused some major turmoil. We have about 400 plots of land, and 10 miles of roadways, and our yearly dues are $132.00 a year

We have residents who have not paid in close to 12 years. We do have some residents who do pay, as it's just enough to maintain the lights, and grade and gravel a couple of times a year (if we are lucky.)

The previous president said that they would just wait until the house sells, and see what happens... <- I know, right?

Now, I have a major mess.

We are trying to get these delinquent dues caught up, somewhere around $200,000. We gave everyone the option last year to be fully paid, with interest and fees waived. And at our meeting in January of this year, we voted to turn this over to collections ( with the liens being the last resort.) This too, has been a mess, as our previous treasurer left us.

We are trying to get our roads back into perfect shape, replacing signs, and other things that previous boards have neglected.

Now here is my question...

If, based on our bylaws, we consider this to be failure to pay dues, and since we have sent dues statements out every year, is this considered a "single ongoing breach of bylaws" and if so, do the Statutes of Limitations apply? What are our options, as we don't really have the financial structure to handle a lawyer right now?
JonathanR1 (Georgia)
Posts: 54
Posted:
I honestly feel like if you're owed $200k, you need to find the means to hire a lawyer. My HOA is undergoing a similar situation, and our statues of limitations in GA, according to our lawyers, mean that we can only collect on debt that is under 7 years old (or whatever the time limit is), and any debt beyond that is out of our hands.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Joshua,

Liens should be a priority.
Foreclosing on the lien should be a last resort.

Some states do have statute of limitations on liens.
You will need to check with an attorney to be sure.

Make sure you do the same actions to everyone who is delinquent and vs. one or two.
Remember that new owners only pay from the point in time they purchased the home forward (although that is not the case in FL, it is in other States).

DouglasK1 (Florida)
Posts: 2,046
Posted:
I agree with the previous responses and will add that you might be able to find a collections attorney that just adds their fee to the balance due from homeowners and works on contingency.

Escaped former treasurer and director of a self managed association.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By DouglasK1 on 09/29/2017 6:57 PM
I agree with the previous responses and will add that you might be able to find a collections attorney that just adds their fee to the balance due from homeowners and works on contingency.

Our HOA lawyer has a small staff at his law firm that do just that. They charge their fees to the delinquent dues payer. When collected, our HOA gets what is owed (plus some interest) and the law firm gets whatever they have charged. It cost one delinquent owner over $1,400 and he owed dues of $600. If memory serves me correctly our HOA got about $650 so the law firm got about $750.
KerryL1 (California)
Posts: 14,550
Posted:
JohnC & Douglas have good insights, Joshua. You need to get as much of those $$$$s as you can for the good of your HOA.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By JoshuaD1 on 09/29/2017 1:19 PM
Hi,

I took over the presidency of our POA, in Oklahoma, in 2016, and it's been a mess. We now have a new board, same bylaws, and CCRs. My dilemma is that, after going over who owe dues and those who don't, has caused some major turmoil. We have about 400 plots of land, and 10 miles of roadways, and our yearly dues are $132.00 a year

We have residents who have not paid in close to 12 years. We do have some residents who do pay, as it's just enough to maintain the lights, and grade and gravel a couple of times a year (if we are lucky.)

The previous president said that they would just wait until the house sells, and see what happens... <- I know, right? YEP ... and if the HOA files a lien against the property for unpaid assessments it will need to be paid when the home sells. So, at least the HOA will get their money potentially IF a lien is in place if required by your State Statutes. Also, that previous Presidednt should be reminded that during his term he violated his Fudiciary Duty with regards to properly managing the HOA. In a lawsuit he could potentially end up personally liable for some costs ... LOL.

Now, I have a major mess.

We are trying to get these delinquent dues caught up, somewhere around $200,000. We gave everyone the option last year to be fully paid, with interest and fees waived. And at our meeting in January of this year, we voted to turn this over to collections ( with the liens being the last resort.) This too, has been a mess, as our previous treasurer left us. It was fair start and even though a mess you need to pursue and finish so everyone is equal. It is not fair for a few to pay for others who have not paid their fair share. Also, $132.00 per year is cheap for what you have.

We are trying to get our roads back into perfect shape, replacing signs, and other things that previous boards have neglected.

Now here is my question...

If, based on our bylaws, we consider this to be failure to pay dues, and since we have sent dues statements out every year, is this considered a "single ongoing breach of bylaws" and if so, do the Statutes of Limitations apply? In all States the CCR's if they note common property and assessments to be paid and include language regarding the right to lien for non payment of assessments ... failure to pay is a breach of the CCR's (Covenants, Conditions, and Restrictions) as that is the document attached to property titles. Bylaws in many states are not attached to property titles ... so make sure what your CCR's state on this issue. What are our options, as we don't really have the financial structure to handle a lawyer right now? Well ... you might need to consider a Special Assessment to obtain money to pay for upkeep of your association and pay for an attorney to pursue the past due fees. Potentially if an attorney sent a letter stating if past due amounts are not current within X amount of time that this is what the HOA must consider, maybe the past due owners will finally see the light.


JohnB83 (South Carolina)
Posts: 124
Posted:
A POA resident may not be required to pay assessments UNLESS they also an OWNER/MEMBER.

Dues implies voluntary.

Resident implies tenant (which they may actually be).

Assessments are MANDATORY

Owners are mandatory assessment payers.

Y'all are a business, use the proper terminology.
NigelB (Texas)
Posts: 254
Posted:
Quote:
Posted By JoshuaD1 on 09/29/2017 1:19 PM
Hi,

I took over the presidency of our POA, in Oklahoma, in 2016, and it's been a mess. We now have a new board, same bylaws, and CCRs. My dilemma is that, after going over who owe dues and those who don't, has caused some major turmoil. We have about 400 plots of land, and 10 miles of roadways, and our yearly dues are $132.00 a year

We have residents who have not paid in close to 12 years. We do have some residents who do pay, as it's just enough to maintain the lights, and grade and gravel a couple of times a year (if we are lucky.)

The previous president said that they would just wait until the house sells, and see what happens... <- I know, right?

Now, I have a major mess.

We are trying to get these delinquent dues caught up, somewhere around $200,000. We gave everyone the option last year to be fully paid, with interest and fees waived. And at our meeting in January of this year, we voted to turn this over to collections ( with the liens being the last resort.) This too, has been a mess, as our previous treasurer left us.

We are trying to get our roads back into perfect shape, replacing signs, and other things that previous boards have neglected.

Now here is my question...

If, based on our bylaws, we consider this to be failure to pay dues, and since we have sent dues statements out every year, is this considered a "single ongoing breach of bylaws" and if so, do the Statutes of Limitations apply? What are our options, as we don't really have the financial structure to handle a lawyer right now?

If the HOA has made no previous attempts to collect the unpaid assessments, then you are going to be limited as to how much you can collect. Your state has a 5 year Statute of Limitations on written contracts.

WalterC4 (Florida)
Posts: 1
Posted:
I am in the same predicament, I took over the Presidency a little over 4 months ago, and I am dealing with a Home Owner that does not keep their yard clean, trash all over the place and have not paid a fine for over a year, and have not paid dues since living in this Home Owners Association, I am an ex Command Sergeants Major US Army Artillery and I am not used to this failure to follow orders, I asked the CAM Manager why is this happening, she stated that we can send them letters and fine them, but our hands are tied, I need to know what do I or if there is anything I can do. Florida
DouglasM6 (Arizona)
Posts: 724
Posted:
Walter, you should start your own thread.

I was in a similar position. I took over as resident maybe five years ago. There was one resident that hadn't paid in five years. I sent several certified letters asking for them to call me to discuss it and explaining that the last I wanted to do was sue a neighbor. There was already documented proof of nastiness and abusive behavior from this neighbor when he was approached by previous board members, so I skipped that part. Next, they got served by a process server. They knew they were in arrears so they didn't even bother showing up for court (County superior court). They are paying now. And I have open dialogue with them.
DouglasK1 (Florida)
Posts: 2,046
Posted:
You can do a variety of things, possibly up to and including foreclosure. As mentioned upthread, talk to an attorney versed in HOA collections to find out your options.

I'm honestly a bit surprised that your CAM doesn't know more about the options to collect.

Escaped former treasurer and director of a self managed association.
GenoS (Florida)
Posts: 4,276
Posted:
Please start a new thread, Walter. I have some things to add to the discussion but new thread required first!
LizC3 (Florida)
Posts: 1
Posted:
We have the same problem in our POA in Florida. But the residents are refusing to pay because the POA hasn't done maintenance in the subdivision in 3 yrs. We have tried to contact an attorney nobody wants to touch it. We get very limited maintenance from the county on our main blvd. Some residence have even bought the material to repair their roads because of wash outs. I have contact WMD, EPA, County Commissioner and our Senator about the problems. We pay taxes for waterfront property and its a weed bed. Now because the members won't pay the board has turned all pass due accounts over to a collection agency. I'm sorry, but we live in a private subdivision, our community rules don't match the county or any other outside agency, because we have called for help but nobody can do anything. And a POA is a not for profit, but you get charged almost double for past dues, but we can't even get the front entrance mowed and it looks like we live in the slums? Realtors are complaining about the conditions of the subdivision, but the sitting board, who chose to put themselves on the board again last year, because we asked for the POA to dissolve and they say its not that any. We ask for an audit and they tell us by law they can't do one. But in our by laws it says that once a year they have to give us a financial review by a 3rd party and they say they don't. Our covenants and by laws were based on the 617, which have never been changed, so the board picks and choose what laws it wants to follow. For 2 years they have supposedly been rewriting the by laws, they show us nothing and now we don't even have a members meeting because they say that we don't have a quorum of all the property owners. There is a guard rail under the berm of dirt in the second picture. Our front entrance has a dump on it and a huge mound of clay with falling down fencing that the horse stables have been trashed by previous boards. I live in the ghetto of Hamilton County Florida and its sad.
GenoS (Florida)
Posts: 4,276
Posted:
LizC3, did you see the suggestion above for someone else to start a new thread????? DITTO
JohnC46 (South Carolina)
Posts: 14,265
Posted:
BOD's and MC's can send all the letters they want but until a lawyer gets involved and threatens legal action, the letters are not worth a pee hole in a snow bank. This comes from experience.

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