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BillD16 (Texas)
Posts: 971
Posted:
Yesterday’s Financial Report shows about 12% of my neighborhood’s residents are delinquent on a balance of $300 or more; at least half of the balance has been outstanding for more than 90 days. In short, they’re 2 months behind in paying their dues.

I can’t believe I’m saying this, but I’m wondering about restricting pool access until dues are paid.

It appears that Texas requires that each deadbeat gets a hearing before access is revoked.

I’m wondering: what if we sent out email / mail advising people to settle accounts by [date] or their pool access will be revoked. And then wait to see how many people settle up. Note that we don’t actually hold hearings and revoke access. We just tell them our plans.

I realize this is probably just a bit too ‘clever’ for its own good.

Bill

HOA Board ex-President
Austin, Texas USA

“You can’t put too much water in a nuclear reactor”
SheliaH (Indiana)
Posts: 6,964
Posted:
First, I'd double check state law- if your documents allow it ( ours did), the law only applies yo HOAs established after a certain date, you may be OK. Then again, y'all Texans are a different breed of cat, aren't you?

Anyway, send the letter and give them a deadline of, say, 30 days from the letter date. If not paid in full, privileges are revoked for the rest of the summer (that will really get their attention). No promises to pay- come up with a check, credit card, etc., or go swim somewhere else. They can always come up with verifiable proof of payment.

I also suggest that the board enact a rule, effective immediately, that people whose privileges have been revoked, cannot access the pool on someone else's pass.

This applies to all members of the delinquent member's household or tenants (short or long term to cover the Airbnb crowd). This sounds gangster, but if the deadbeats can access the pool on a neighbor's pass, you haven't accomplished much.

If you take my second suggestion, debate this in an open meeting before taking a vote. I'm sure people won't be happy, but they need to be reminded it costs money to maintain the pool for the enjoyment of all, so it's unfair for some to pay, while others don't, yet they still get benefits.


If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
CathyA3 (Ohio)
Posts: 6,299
Posted:
Just a general comment about rules: I think it isn't smart to make a rule unless there are consequences for violating it. People will figure out soon enough if a rule has no teeth, which will make the board look ineffectual and will encourage people to violate other rules as well. You'd actually make life harder for yourselves.

And the delinquency issue is serious enough that there should be consequences beyond things like liens or possible foreclosures that aren't felt until some time in the future.
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By BillD16 on 06/02/2023 8:31 AM

It appears that Texas requires that each deadbeat gets a hearing before access is revoked.
Per TPC 209, I agree that this and other requirements must be met before suspending an owner's right to use common area.

Quote:
Posted By BillD16 on 06/02/2023 8:31 AM
I’m wondering: what if we sent out email / mail advising people to settle accounts by [date] or their pool access will be revoked. And then wait to see how many people settle up. Note that we don’t actually hold hearings and revoke access. We just tell them our plans.
I say try it.

Let's see how many know how to read TPC 209.
MarkM19 (Texas)
Posts: 1,459
Posted:
Bill,
We did it in our HOA a few years ago and are still doing it today. We had a few that immediately wrote checks, but it seems that many who are behind did not go to the pool. Our numbers are much lower for delinquent accounts and are in the 3.5% with balances over $500.00. Our Fob system is owned and operated by the HOA not the PMC. I am the person who sets up the access and denies when needed. This keeps it from being a burden to the PMC to maintain.

Because it was only about 15 owners our PM sent email and letters to the effected owners, and nothing went out to the HOA as a whole.

I implemented this in my HOA in California many years ago and was amazed at the funds we collected. We had 1 owner pay us 8K in back dues to keep access for his children at the Pool. Our dues in Ca. were much higher and were paid monthly so the totals added up very quickly.

In both States we also do not allow owners to rent the Amenity Center if they are in the rears in dues.
KerryL1 (California)
Posts: 14,550
Posted:
First, I assume, Bill, that your declaration or bylaws permit the board to withhold access to amenities? Both of our docs permit that.

Next, with MarkM, if your assoc. may withhold amenities, and speculating that some of your delinquents also don't use your pool, consider withholding access to any other amenities that are permitted if you have any others that are worth withholding. (I think I recall, your assoc. has no others?) Our urban HOA, for instance, has underground Visitor Parking for residents' guests. Street parking is scarce, and where plentiful, pricy. Withholding that amenity has been very successful.

If some of your delinquents are landlords, their tenants may howl if they can't use the pool, so tenants may, in fact, discipline some delinquents.

In CA, and it sounds like in TX, too, the Assoc. cannot take this action without providing the alleged violators of any kind without due process, i.e, a hearing etc. So, I think consider doing both. Send out the notice, and include that if $$ is accepted by xx xx xxxx, the owner will be immediately called to a hearing where access to xx, xcx, etc. may be removed.

You might check to see how long you legally can withhold these privileges. There may be a time limit, say 30 days.
MarkM19 (Texas)
Posts: 1,459
Posted:
Kerry,
You mentioned this at the bottom of your post.

You might check to see how long you legally can withhold these privileges. There may be a time limit, say 30 days.

In our case it is not until they become current. Our DADs and CC&Rs state a member must be in "Good Standing" In my mind this means current on HOA dues. Our board does allow them access if they owe less than $250.00 currently.
KerryL1 (California)
Posts: 14,550
Posted:
Good point, Mark! We've mainly withheld for other violations, e.g., noise nuisances, parking violations
MelissaP1 (Alabama)
Posts: 13,836
Posted:
We withheld the ability to rent out the clubhouse if you were not "in good standing". That meant you were not allowed to rent the place for parties/meetings until you caught up on dues. The clubhouse was attached to the pool area. Although we never gave exclusive pool parties if you rented the clubhouse.

Keep in mind if the owner is restricted this extends to their renter if they have one. They were not allowed to let their renter use the amenities. Which if we found out we would remove them and tell them to get with the owner.

Former HOA President
KellyM3 (North Carolina)
Posts: 2,239
Posted:
Bill,

It's absolutely appropriate to cut the pool access on non-paying accounts. Our HOA bylaws allow for a cutting of access with a hearing required AFTER access is cut. Read your rules and state law carefully. Many of your delinquent accounts will be made whole if the pool is off-limits. After all, pool operations are a key expense for which HOA dues are collected.

Regarding a warning letter.....I don't see any harm in sending a letter or email but have the guts to back it up.

Many of these people are choosing not to pay, especially if they've not reached out for hardship reasons.

DouglasK1 (Florida)
Posts: 2,046
Posted:
When I first saw the thread title the first thing that came to mind is stocks, or possibly flogging.

Escaped former treasurer and director of a self managed association.
BillD16 (Texas)
Posts: 971
Posted:
Quote:
Posted By DouglasK1 on 06/05/2023 6:02 PM
When I first saw the thread title the first thing that came to mind is stocks, or possibly flogging.

I hear ya. When I first saw the term I thought “this might be interesting, especially if the member is a very bad person who is also very attractive”. But nope.

Bill

HOA Board ex-President
Austin, Texas USA

“You can’t put too much water in a nuclear reactor”

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