Late Fees

You can assess a late fee but that is considered a "punitive" charge. It is done to correct a bad behavior. That means usually can not base liens or foreclosure on late fees or fines. It is for unpaid dues. Which if you not paying dues then that can be lien/ foreclosure. Late fees and interest can be negotiated from that total owed if added.

We had a policy of 6 months behind lien. A year we CONSIDER foreclosure. Having a collection policy that is known prevents some people from being late.

There is a great deal in your docs that says nothing about ____. This does not mean the HOA can then lawfully do ____. I expect this owner is correct.


If your docs say that attorney fees for collecting owed assessments are allowed, dangle this in front of the owner and see if the owners pays up.

Answering your questions without having all the governing documents is extremely difficult. The best thing you can do is scour all your governing documents and quote here anything they say that seems relevant to this situation.

If they offer info, I'll certainly listen.

I do not approach any member and ask why. It could be they forgot or they are having financial issues. Most people do not like to discuss their personal financial issues and I would not want to put them or myself in the situation of asking.

Does your HOA have an attorney? If not, you need to get one.

Through your attorney, establish a collection policy. Some items you may include in the collection policy that doesn’t not violate your declaration:

1. A homeowner falling more than 3 months delinquent on assessments shall have the remainder of the years assessments accelerated by the board and required payment shall be made within 30 days.

2. A homeowner more than 4 months delinquent on assessments, shall be declared in default and the HOA attorney shall proceed with foreclosure.

3. All attorney fees incurred from a delinquent account are assessed to the owner.

4. All use of common areas, including parking, shall be suspended to homeowners more than 3 months delinquent.

What Dean said. Every year, we send a copy of our policy (which lists late fees, returned check fees, etc.) with the upcoming year's budget to homeowners.

The collection policy is a must.

In MA, where Kathleen appears to be located, the lien is automatic and includes fines, special assessments, and collection fees (183A section 6(c)). The only filing I know of related to it is the 6(d) certificate (183A section 6(d)) which must be issued on request and enumerates any balances. A "clean" 6(d) has zero balance and clears all association liens. A "dirty" 6(d) enumerates balances owed.

There is also a super lien that gets priority over other liens (except taxes?) and cannot be discharged in bankruptcy. I don't know much about them, but I know they are not automatic and have to be "perfected". I hear that lenders will often pay a super-lien. Associations can have multiple six-month super-liens on one property, the so-called "rolling super-lien".

We do have people who pay late occasionally, but the few people who have gone more than 60 days pay quickly once they receive a letter.

I agree. if not late, do do not worry. if late, you should pay de0arly.

As NA1 pointed out, Section 6: Common profits and expenses; lien of the condominium statute allows for the late charges:

Section 6 (a)(ii) - near the bottom of that section, states:

The organization of unit owners may also assess any fees, attorneys' fees, charges, late charges, fines, costs of collection and enforcement, court costs, and interest charged pursuant to this chapter against the unit owner and such assessment shall constitute a lien against the unit from the time the assessment is due, and shall be enforceable as common expense assessments under this chapter.

If the statute was silent and your documents didn't allow it, the individual would have a point that the Association may be exceeding their authority to impose a late charge.

My suggestion: Tell the individual the board is imposing late charges based on their understanding of MA General Laws, Part 2, Title 1, Chapter 183A, section 6 paragraph (a)(ii).