Can Condo Board create policy for restricting pool and tennis courts for unpaid dues?

Started by KarenC4 • 8 replies • 1696 views

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KarenC4 (Connecticut)
Posts: 3

Posted:

Hi,

As secretary of our Condo Association I am quite concerned over the financial situation. We are a fairly new board, (former board members voted off for failure to follow through with policies, letting CDs sit in low interest rates, failure to obtain money from owners who have not paid).

We have several owners who have not paid in years, as a new board we have put into policy 30-60-90 actions for unpaid dues. Several owners have brought their accounts up to date, but others are now in foreclosure. Can we as a board, create a policy for restricting the use our pool and tennis courts from people who have not paid in over 90 days?

Thanks,
K

DonnaS (Tennessee)
Posts: 5,671

Posted:

Karen,
It sounds like you have several issues going on in your association. Lots of work for you and your new Board.
You will need to go to your own Documents and check, probably under the Bylaws, for members in good standing or members responsibilities to pay assessments and the consequences for not doing so. Most documents will restrict an owner from using their rights to vote and use of the amenities for failure to keep up to date on their dues or assessments. Also, look at your State Statutes or laws on HOA's and how you can enforce.
The forclosure problem right now, has not been resolved as to how much an association can do to recoup their losses due to a foreclosure. We are all in the same boat to some extent and it looks like it might be a couple of years to get back to some resolutions on this.

GeraldT4
Posts: 1,022

Posted:

KarenC4 - Are you sure you don't have an existing policy outlined in your governing documents that permits the Board to restrict use of the common elements/amenities for failure to be current in dues?3

GlenL (Ohio)
Posts: 5,491

Posted:

Karen, Ohio law allowed us to change our documents, now a person 30 days in arrears losses their right to vote and use of recreational facilities.

Studies show that 5 out of 4 people have problems with fractions

GlenL (Ohio)
Posts: 5,491

Posted:

Sorry, "right to vote" on Association matters.

Studies show that 5 out of 4 people have problems with fractions

BrianB (California)
Posts: 2,820

Posted:

check your by laws an rules. most associations have wording that allow for the removal of common area privileges when assessments are unpaid. I would be surprised if yours didn't have that.

RobertR1 (South Carolina)
Posts: 5,164

Posted:

To all,
Our documents are more forceful about not paying fees, dues, etc.
At the end of thirty days (I believe it is), a notice will be sent out with the late notice that all privledges are suspended until the dues are paid. It would appear the Board might be liable individually for not withdrawing the privledges. The common facilities are only for the use of members in good standing.

NL (Virginia)
Posts: 43

Posted:

Our documents are very specific in not allowing the use of any common areas or facilities, and that includes parking, none of our parking area are privately owned or assigned (first come first served), but owned by the HOA, we can not deny the owner/tenant use of the street to gain access to their property but we can have them towed if they are in arrears.

GloriaM (North Carolina)
Posts: 829

Posted:

Karen:

More than likely your governing douments already state how the board can or not; restrict priveleges to the amenities. Usually the HO is afforded a hearing first before the board can revoke voting rights, pool/tennis courts etc., and or issue fines.

But like Robert said the courts will uphold the nonpayment of dues quicker than violation fines. There are many collection avenues at the board's disposal.

Make sure you follow your CCR's, state laws as well as your collection laws. Because foreclosures are a nationwide crisis; the goverment has placed on lenders a 30-day delay in foreclosing forcing the lenders to issue the HO the right to contact the lender and enter into a settlement agreement before the lender can foreclose.

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