Refusing to pay late charges

Started by AnyaR • 7 replies • 235 views

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

⚡ Takes 30 seconds

Already a member? Log in

AnyaR (Georgia)
Posts: 65

Posted:

I have one homeowner that’s always late on paying HOA dues, for four months she has refused to pay late charges.

In our covenants, section 4.2 Creation of the Lein and Personal Obligation for Assessments.
“Each Owner of the Unit, by excepting of deed therefore, whether or not it shall be so expressed in such deed, covenant and agrees to pay to the Association: (a) general assessment; (b) special assessment; and (c) specific assessment. All such assessments, together with late charges.”

What can be done?

Can I send her a letter of her violating Covingtons and give her 10 days to pay the late charges?

KellyM3 (North Carolina)
Posts: 2,239

Posted:

Ultimately, this would end up on a local court if you pushed hard enough as foreclosing to collect late fees would require some legal help and focus.

However, if you have amenities (Pool), you could cut access due to delinquent fines, dues and fees. I believe that response is appropriate at the HOA level.

You should consult a local attorney versed in your state's collections laws and HOA operations.

AnyaR (Georgia)
Posts: 65

Posted:

This Siri does not understand my accent, I meant to say violating covenants 😫

I personally think, I just let it go and let the new HOA bored in March worry about it.

I want to replace roofs and not spend money on the attorneys.

AugustinD
Posts: 1,027

Posted:

Quote:

Posted By AnyaR on 10/27/2022 9:21 AM
I have one homeowner that’s always late on paying HOA dues, for four months she has refused to pay late charges.

In our covenants, section 4.2 Creation of the Lein and Personal Obligation for Assessments.
“Each Owner of the Unit, by excepting of deed therefore, whether or not it shall be so expressed in such deed, covenant and agrees to pay to the Association: (a) general assessment; (b) special assessment; and (c) specific assessment. All such assessments, together with late charges.”

What can be done?

Can I send her a letter of her violating Covingtons and give her 10 days to pay the late charges?

As I recall from an earlier thread, this is a HOA/COA that, as it happens, is not subject to any of the Georgia HOA/COA statutes. It is subject only to the Georgia NonProfit Corporation Act statute and any more generalized debt collection statute sections.

In my opinion the HOA is restricted to doing only what the covenants and Georgia debt collection rules say she can do.

AnyaR, feel free to quote exactly what your covenants say about the lien (as described in section 4.2) and collecting what is owed. Then the advice here may be more helpful.

BillH10 (Texas)
Posts: 1,217

Posted:

Does your association have a Past Due Assessments and Collection Policy?

Such a policy defines when payments are late, what happens when payments are late, contains a list of the late payment charges, the steps in the collection process, the possible financial costs (attorney fees, etc.) and the potential ultimate outcomes.

Your documents may (should??) contain language which states all costs of collection are passed through to the delinquent account holder.

If your association has such a policy, invoke it. If not, I strongly recommend one be developed, communicated to the owners, and implemented in accordance with the accepted principles and procedures in Georgia.

I am not familiar with Georgia HOA processes. In Texas, an attempt to collect past due amounts such as assessments and late charges must follow a documented process to ensure the rights of the owner are respected and the i's are dotted and the t's are crossed. Otherwise, if it winds up in court, the Judge will tell the association attorney to begin the process all over.

ND (PA)
Posts: 792

Posted:

Questions:
1) Is the homeowner knowingly and intentionally paying late? Or might they be paying late and are perhaps totally unaware of late fees being applied?
2) What sort of correspondence has the Board had with this homeowner to (A) ensure they are aware of the late payments, (B) ensure they are aware of late fees and requirement to pay those in addition to assessments, (C) help come to a resolution on the issue(s)?

IMO, the ultimate goal is to collect assessments from everyone and pay the HOA's bills with the collected assessment money. If that can be done while being neighborly, agreeable, and friendly, then that's the best scenario. If this homeowner is intentionally being difficult and causing issues, then likely pursuing late charges and other more negative penalties might be necessary to force compliance. However, if this homeowner made a mistake or is unintentional in their ways, then I'm all for making sure they are aware of the proper process, giving them a break, wiping the slate clean (removing late fees), and allowing them to make things right. After all, they are paying the assessment which is what the ultimate goal should be.

AnyaR (Georgia)
Posts: 65

Posted:

She’s doing intentionally.

I have send her notified mail letting her know that she is late, I have spoken to her numerous times about it, this quarter when I send dues reminders and I included the last quarter late fee.

AnyaR (Georgia)
Posts: 65

Posted:

She thinks she has 10 days grace period but on an invoice I put down 1st of the month in specific date when the month is over which could vary from 28 days to 31 days.

🎯 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