Automatic Penalty for Late Assessments?

Check your CC&Rs. Our Declaration has a section on assessments, which gives the association the right to impose a late fee as well as other penalties such as loss of use of amenities.

We assess the penalty automatically after 7 days of non-payment, and a notice is sent to the owner. Our late payers generally fall into two categories: temporary difficulties of some sort but the person wants to correct the situation, or chronic scofflaws. The notice will get a response from the first group, and we nearly always end up removing the late fee.

Section B(12) says, "(12) Impose interest and late charges for the late payment of assessments,
impose returned check charges, and pursuant to division (C) of this section, impose reasonable
enforcement assessments for violations of this Declaration, the By-Laws, and the Rules of the
Association, and reasonable charges for damage to the Common Elements or other property."

Section C(1) says, "(C) (1) Prior to imposing a charge for damages or an enforcement assessment
pursuant to division (B)(12) of this section, the Board of Directors shall give the Unit Owner a
written notice that includes all of the following:..."

I read B(12) as treating the interest and late charges that may be imposed for late payment of assessments as something other than an enforcement assessment, so there's no requirement to provide a written notice and start the hearing process. Ergo, we can automatically apply the late fee to the account, and we don't even have to tell the unit owner we did so - it's their obligation to assume it's been done and to pay it.

Now, because we're nice people and want to get along with our fellow owners, I imagine we'll adopt a process that informs the owner that the charge has been added to their account, and I'm willing to provide a means for the owner to appeal, as most of us hit a rough patch or just forget once-in-a-great while. I just wanted to check that my understanding was correct so that we don't have to drag the board thru a hearing every time someone's late. Because, of course, we have a couple of chronic scofflaws, too.

Thanks.

ThomasP13 partly quoted not his Declaration but the Ohio Condominium Act, Section 5311.081 | Powers and duties of board of directors. See https://codes.ohio.gov/ohio-revised-code/section-5311.081 . Here's a fuller excerpt:

ORC 5311.081 excerpt
(B) Unless otherwise provided in the declaration, the unit owners association, through the board of directors, may exercise all powers of the association, including the power to do the following:
...
(12) Impose interest and late charges for the late payment of assessments; impose returned check charges; and, pursuant to division (C) of this section, impose reasonable enforcement assessments for violations of the declaration, the bylaws, and the rules of the unit owners association, and reasonable charges for damage to the common elements or other property;

(13) Adopt and amend rules that regulate the collection of delinquent assessments and the application of payments of delinquent assessments;
...

(C)

(1) Prior to imposing a charge for damages or an enforcement assessment pursuant to division (B)(12) of this section, the board of directors shall give the unit owner a written notice that includes all of the following:

(a) A description of the property damage or violation;

(b) The amount of the proposed charge or assessment;

(c) A statement that the owner has a right to a hearing before the board of directors to contest the proposed charge or assessment;

(d) A statement setting forth the procedures to request a hearing pursuant to division (C)(2) of this section;

(e) A reasonable date by which the unit owner must cure the violation to avoid the proposed charge or assessment.

(2)
(a) To request a hearing, the owner shall deliver a written notice to the board of directors not later than the tenth day after receiving the notice required by division (C)(1) of this section. If the owner fails to make a timely request for a hearing, the right to that hearing is waived, and the board may immediately impose a charge for damages or an enforcement assessment pursuant to division (C) of this section.

(b) If a unit owner requests a hearing, at least seven days prior to the hearing the board of directors shall provide the unit owner with a written notice that includes the date, time, and location of the hearing.

(3) The board of directors shall not levy a charge or assessment before holding any hearing requested pursuant to division (C)(2) of this section.

(4) The unit owners, through the board of directors, may allow a reasonable time to cure a violation described in division (B)(12) of this section before imposing a charge or assessment.

(5) Within thirty days following a hearing at which the board of directors imposes a charge or assessment, the unit owners association shall deliver a written notice of the charge or assessment to the unit owner.

(6) Any written notice that division (C) of this section requires shall be delivered to the unit owner or any occupant of the unit by personal delivery, by certified mail, return receipt requested, or by regular mail.

I meant "well laid out".

I believe an association has to follow their state's Usury Laws but can add "charges" such as office expenses, trips to the post office and my time is costly, legal costs, etc.

"ThomasP13 partly quoted not his Declaration but the Ohio Condominium Act, Section 5311.081 | Powers and duties of board of directors. See https://codes.ohio.gov/ohio-revised-code/section-5311.081 . Here's a fuller excerpt:"

Actually, I quoted our By-Laws. It would appear the language in them is directly taken from the ORC. So much the better. Thanks for confirming my reading of it/them. I agree we need to be clear about the process, so I'm going to propose our Rule about this be amended to do that, as well as consider some of the suggestions in this thread.

Thanks.

You cant exceed state law. You will have to look that up first. To get around that we send it to the lawyer if its 60 days late. because it is legal to get legal fees, whatever they might be, from the homeowner. typically its $200. and we always get it because a lien is placed and file with the state. which means you cant sell or remortgage without paying.