2024 Idaho Late Fees/Percentage carried on Balances

It's never a good idea to amend CCRs and/or Bylaws without some guidance from a HOA attorney. It can be pricey, but any updates need to be written so that they'll stand up in court (because people WILL question them.) You say you have a remote management that keeps track of accounts receivable and payables - why not talk to them to get some ideas on what you might be able to do. If you can't find a HOA attorney in your area, go to someone who specializes in collections who can help you draft a policy.

Here's what a Google search on late fees Idaho uncovered:

Idaho has different late fee laws for different types of payments, including consumer credit, invoices, taxes, rent, and bills:

Consumer credit: Delinquency charges can be collected on precomputed regulated consumer credit transactions if installments aren't paid in full within 10 days of the due date. The charge can't be more than 5% of the unpaid amount, or $12.50, whichever is greater.

Invoices: The maximum late fee for overdue invoices is 5%.

Taxes: Penalties apply for late tax returns, including:
5% per month, up to a maximum of 25%, if a return isn't filed on time
0.5% per month, up to a maximum of 25%, if a return is filed on or after the due date but taxes aren't paid until after filing
2% per month from the original due date until payment if there's no valid extension and taxes aren't paid by the due date

Rent: Idaho state laws don't limit the amount landlords can charge for late rent, but the fees must be reasonable. Landlords can charge late fees as soon as rent is past due, and late fees for bounced checks are usually limited to three times the check's value or $100. Late fees must also be written into the rental agreement, unless the agreement is oral or the owner provides the tenant with written notice of a fee change at least 30 days in advance.

Now do you understand why it doesn't hurt to run this past an attorney?

For what it's worth, I suggest keeping it simple. Your policy should list:

* the due date
* date when when assessments are considered late (regardless of how it's paid - check, walk-in, electronic, etc.)
*late fees will be set by the board (that 5% maximum for invoices might be a start)
* homeowners will receive a copy of the policy every year with the upcoming year's HOA budget (that's what we do)
* returned check fees may also be assessed (base that on whatever the bank sets it)
* accounts not bought current within X days will be turned over to the association attorney for collection and accelerated (all remaining assessments for the year will immediately become due and payable). In my community, we assess a collection fee, which covers the printing and postage incurred in sending notices, as well as the management company's time in monitoring the debt
* homeowner rights to vote in board elections, run for the board, and access to community amenities (e.g. renting the clubhouse) will be suspended until the account is bought current
* suspension of access to community amenities will also apply to tenants who are renting the home
* delinquent homeowners must reimburse the association for all collection costs incurred in pursuing the debt
* legal action by the association may include foreclosure (there's likely another set of state laws you'll need to be aware of)

And so on.