ChristineS7 (Minnesota)
Posts: 58
Posts: 58
Posted:
Is it legal (in Minnesota) to post a list of homowners that do not pay their HOA dues or their special assessment?
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Started by ChristineS7 • 12 replies • 241 views
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MichaelS56 (Minnesota)
Posts: 859
Posts: 859
Posted:
Why? What is the purpose since it is the job of the Board to deal with these people, by following Minnesota State Law and your governing documents.
ElleN (Idaho)
Posts: 4,420
Posts: 4,420
Posted:
This is for a Minnesota condominium with the OP on the board, at least as of December.For legal reasons, I would not do this. Observations:
-- It is true that the Mn Condo statute and Mn Nonprofit corp statute do not prohibit this. Nationwide, statutes being silent on publishing the names of delinquent owners is pretty typical.
-- The law your board needs to consider is consumer protection laws, maybe especially pertaining to debt collection. This is a mix of federal and state law. You can ask this forum to look into this, to help prepare the board for a meeting with an attorney, but that's a big "ask."
-- The law on defamation also must be considered. Suppose someone messes up and publishes the name of an owner who actually does not owe anything. Or suppose the special assessment was not lawfully passed (says an owner), so he/she refuses to pay. Publishing this owner's name risks destroying his/her reputation and invites a lawsuit.
Quote:
Posted By ChristineS7 on 01/09/2024 8:03 AM
Is it legal (in Minnesota) to post a list of homowners that do not pay their HOA dues or their special assessment?
Is it legal (in Minnesota) to post a list of homowners that do not pay their HOA dues or their special assessment?
-- It is true that the Mn Condo statute and Mn Nonprofit corp statute do not prohibit this. Nationwide, statutes being silent on publishing the names of delinquent owners is pretty typical.
-- The law your board needs to consider is consumer protection laws, maybe especially pertaining to debt collection. This is a mix of federal and state law. You can ask this forum to look into this, to help prepare the board for a meeting with an attorney, but that's a big "ask."
-- The law on defamation also must be considered. Suppose someone messes up and publishes the name of an owner who actually does not owe anything. Or suppose the special assessment was not lawfully passed (says an owner), so he/she refuses to pay. Publishing this owner's name risks destroying his/her reputation and invites a lawsuit.
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
Personally I am all for public shaming. Lawyers say it could open you for libel if a mistake is made so best not do it.
SheliaH (Indiana)
Posts: 6,964
Posts: 6,964
Posted:
You'd have to check state law (there should be a state legislative website that would have a database of statutes). That said, I doubt it and besides, I've yet to see any example anywhere where posting this information led to payment. You have to worry about violating privacy laws concerning debt collection laws, like the Fair Debt Collection Act (look it up on the FTC website), and what 8f you're wrong or list the wrong amount owed? That could lead to a libel or defamation lawsuit.
If people aren't paying assessments, use your collection policy to compel payment, but be sure to consider payment plans if some are going through major financial hardship like job loss or major medical illness.
If people aren't paying assessments, use your collection policy to compel payment, but be sure to consider payment plans if some are going through major financial hardship like job loss or major medical illness.
If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
MelissaP1 (Alabama)
Posts: 13,836
Posts: 13,836
Posted:
My opinion is a HOa should have a known policy in place for late, lien, foreclosure. We lien at 6 months and consider foreclosure at 1 year. Foreclosure is stop the bleeding and there are factors involved.
Once have a policy no need in public shaming. We referred to the accounts by lot numbers not names. We then followed through with taking action and letting members know what those actions were.
I do not see need to shame as much as making sure policy is followed by board.
Once have a policy no need in public shaming. We referred to the accounts by lot numbers not names. We then followed through with taking action and letting members know what those actions were.
I do not see need to shame as much as making sure policy is followed by board.
Former HOA President
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
Quote:
Posted By ChristineS7 on 01/09/2024 8:03 AM
Is it legal (in Minnesota) to post a list of homowners that do not pay their HOA dues or their special assessment?
Is it legal (in Minnesota) to post a list of homowners that do not pay their HOA dues or their special assessment?
From those who have looked at the applicable statutes, it appears that it's not illegal.
There is a difference of opinion on if a board should do this or not.
MarkM19 (Texas)
Posts: 1,459
Posts: 1,459
Posted:
Christine,
I brought this up to my board back when the 2008 housing crisis was in full swing. It did not get board approval of which I was in the minority at the time.
I still think the idea has merit. I would suggest a 90-day warning period giving the people a way to get off the list. If they choose not to come forward and pay, they had ample opportunity to speak to the board about individual cases. At the end of the 60 days you should know how many have come forward and are now in Good Standing. At this point you could choose to not display the names and say that the board has been notified that it is not in our best interest. Yes, I would call it a scare tactic, but your job is to collect dues from every owner.
The hope is the people who are doing it because they are stubborn or do not like the board have to decide if they want to be called out publicly. The idea is to get people to do the right thing. Back in 2009 and 2010 many California owners were declaring BK and walking away from properties because they were under water. I always said why screw your neighbors. If you are going to not pay somebody, make it the large banking or credit card companies.
I brought this up to my board back when the 2008 housing crisis was in full swing. It did not get board approval of which I was in the minority at the time.
I still think the idea has merit. I would suggest a 90-day warning period giving the people a way to get off the list. If they choose not to come forward and pay, they had ample opportunity to speak to the board about individual cases. At the end of the 60 days you should know how many have come forward and are now in Good Standing. At this point you could choose to not display the names and say that the board has been notified that it is not in our best interest. Yes, I would call it a scare tactic, but your job is to collect dues from every owner.
The hope is the people who are doing it because they are stubborn or do not like the board have to decide if they want to be called out publicly. The idea is to get people to do the right thing. Back in 2009 and 2010 many California owners were declaring BK and walking away from properties because they were under water. I always said why screw your neighbors. If you are going to not pay somebody, make it the large banking or credit card companies.
ElleN (Idaho)
Posts: 4,420
Posts: 4,420
Posted:
Quote:
Posted By TimB4 on 01/10/2024 8:18 AM
Posted By ChristineS7 on 01/09/2024 8:03 AM
Is it legal (in Minnesota) to post a list of homowners that do not pay their HOA dues or their special assessment?
Is it legal (in Minnesota) to post a list of homowners that do not pay their HOA dues or their special assessment?
From those who have looked at the applicable statutes, it appears that it's not illegal.
CathyA3 (Ohio)
Posts: 6,299
Posts: 6,299
Posted:
Here's how I look at it.
Do you believe that publishing this info will achieve something good: ie, prompt the delinquent owner to pay up, enhance the neighborly and friendly vibe of your community, other?
Or do you believe that the delinquent owner needs to be punished or shamed, regardless of the possible impacts of this step: the delinquent owner digs in, increased anger among the membership, possible complications for future collection actions, other?
If you believe the outcomes will be good, have at it (assuming this doesn't violate your state's statutes). Just be aware that others' opinions on this differ for good reason, although there's probably anecdotal evidence to support both opinions.
If you're doing it for punitive reasons, I recommend thinking twice about it. I get it - when I was on the board, we had a couple of delinquent owners who annoyed the cookies out of me. But I believed that acting on my feelings was likely to make the situation worse rather than better, and that it would make me a less effective board member in the long run. And our association attorney said "don't." The last item was persuasive even if none of the other things were.
Do you believe that publishing this info will achieve something good: ie, prompt the delinquent owner to pay up, enhance the neighborly and friendly vibe of your community, other?
Or do you believe that the delinquent owner needs to be punished or shamed, regardless of the possible impacts of this step: the delinquent owner digs in, increased anger among the membership, possible complications for future collection actions, other?
If you believe the outcomes will be good, have at it (assuming this doesn't violate your state's statutes). Just be aware that others' opinions on this differ for good reason, although there's probably anecdotal evidence to support both opinions.
If you're doing it for punitive reasons, I recommend thinking twice about it. I get it - when I was on the board, we had a couple of delinquent owners who annoyed the cookies out of me. But I believed that acting on my feelings was likely to make the situation worse rather than better, and that it would make me a less effective board member in the long run. And our association attorney said "don't." The last item was persuasive even if none of the other things were.
MelissaP1 (Alabama)
Posts: 13,836
Posts: 13,836
Posted:
Consumer protection laws do not apply to a HOA. You are paying dues and not consuming products.
Former HOA President
ElleN (Idaho)
Posts: 4,420
Posts: 4,420
Posted:
Quote:
Posted By MelissaP1 on 01/10/2024 10:44 AM
Consumer protection laws do not apply to a HOA. You are paying dues and not consuming products.
Consumer protection laws do not apply to a HOA. You are paying dues and not consuming products.
CathyA3 (Ohio)
Posts: 6,299
Posts: 6,299
Posted:
Our attorney acts as the association's collection agent. Their written notice to a delinquent owner starts with the statement "The undersigned is a Debt Collector as defined by the Fair Debt Collections Act."
Among other things, the FDCPA prohibits debt collection companies from using abusive, unfair, or deceptive practices to collect debts from you - which is why some of us recommend not publishing a list of delinquent owners. One of the most common violations of FDCPA is contacting third parties, and essentially notifying the entire community could be viewed in that light. It's hard enough to get delinquent owners to pay up. Why lessen the association's chances even further?
Among other things, the FDCPA prohibits debt collection companies from using abusive, unfair, or deceptive practices to collect debts from you - which is why some of us recommend not publishing a list of delinquent owners. One of the most common violations of FDCPA is contacting third parties, and essentially notifying the entire community could be viewed in that light. It's hard enough to get delinquent owners to pay up. Why lessen the association's chances even further?
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