Restricting Usage For Being Past Due

Started by SamE2 • 8 replies • 659 views

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SamE2
Posts: 309

Posted:

Do any of you have restrictions for owners that are past due on dues or assessments? I'm thinking about proposing to change our docs to prohibit use of pool, boat docks and serving on the Board if an owner is more than 60 days past due. Currently we do not have any restrictions.

MelissaP1
Posts: 13,734

Posted:

Remember this may need to extend to their tenants as well. If the owner isn't in "good standing", then their tenant can't reap the benefits as well. Which is another encouragement to get them to pay their dues. Which don't know why they wouldn't on rental property. It's a tax deduction when it's rental for dues. NOT when you live in it full time.

Former HOA President

KellyM3
Posts: 2,233

Posted:

Quote:

Posted By SamE2 on 03/28/2020 5:08 AM
Do any of you have restrictions for owners that are past due on dues or assessments? I'm thinking about proposing to change our docs to prohibit use of pool, boat docks and serving on the Board if an owner is more than 60 days past due. Currently we do not have any restrictions.

Yes - your HOA should restrict access to community amenities for property owners who are delinquent and I'd recommend cutting amenities, if possible, at 15 days past-due. It's easier to manage if your facilities feature keycard/fob access. This absolutely includes cutting of rental tenants as the HOA has no official business w/ renters. There's no need to wait until an account is fully "Delinquent" to cut access to popular amenities. It will spur your collections rate and is completely legitimate.

KerryL1
Posts: 14,519

Posted:

I agree with Kelly. Our CC&Rs do have such a clause and we have, indeed, withheld amenities form Owners when past due on assessments OR for repeat violations of our rules (mainly noise nuisances). Agree too, that you not give them so much time.

I also agree this should be done ASAP, but know it takes time to amend your documents.

JanetB2
Posts: 4,213

Posted:

You need to check your State Laws. Potentially prohibiting use of pool or boat docks in many states is not an issue as those items need to be maintained and those not currently contributing can be denied use until current. However, more and more states are putting a stop to HOA’s taking away voting rights or ability to serve on boards due to potentially violating other property right laws outside of the HOA statues.

SamE2
Posts: 309

Posted:

Thanks for the replies. I'll start working on the change. Hopefully we can get it in place before the summer.

KerryL1
Posts: 14,519

Posted:

You're right about voting rights, Janet. We can't take them away in CA for being past due. But I haven't read anywhere that any state can keep HOAs from suspending use of amenities like pools, gyms, etc.

BenA2
Posts: 1,272

Posted:

I agree with Janet, check your state law, preferably through an attorney, before making any restrictions.

KerryL1
Posts: 14,519

Posted:

Check your CC&Rs first. If they and/or your Bylaws don't permit suspending recreational amenities, there's no point checking with state laws.

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