Late Fee....excessive?

I own a lot where HOA's are minimal (only $180 per year). I hadn't paid my 2007 dues at the time they were due and completely forgot about them. Come January of 2008, I was looking for my bill for HOA's and was shocked to find that my late fees from the previous year were $25 per MONTH. So my bill was $180 (dues) plus $300 (late fee). This is in South Carolina. I cannot seem to find a statute that governs HOA's. Any ideas as to what statute/law may govern excessive late fees charged by an HOA?

thanks in advance

By the same logic (and probably what is closer to this situation), I could argue that the late charge should be limited by some usury law such as my mortgage payment. For example, my mortgage late fee is limited to 4% per month. My late fee is 167% of my MONTHLY fee. That is ridiculous.

25 per billing isn't that out of line. MFHOA was 15 late fee for a 20 payment... I would advise you look at your rules, and see if your dues are payable once per year, or per month. A late fee on an annual missed payment is 25 bucks, once. a late fee on 12 monthly payments is 25 bucks, 12 times.

You might also ask the board for a reduction in the amount, with a sincere apology. Sometimes that works.

AnthonyM2

Check the CC&Rs for your subdivision or land development. The CC&Rs may state what interest and late fees may be charged. If so stated, then the stated interest and late fee is the maximum amount that can be charged.

If the CC&Rs are silent on interest and late fees, then my guess is that no interest or late fee can be charged since covenants are construed against the party seeking enforcement. A court would ask for a standard to apply. No standard is defined if the CC&Rs are silent.

It may be possible that your state has a statute that overrides the CC&Rs. But I doubt that it has. Likely any statute would only define the maximum that could be charged.

I suggest that you write a letter to the board of directors requesting information and the authority for the assessment of the late fee.

In the meantime, I suggest paying the entire amount due. When you get the matter settled, then ask for a refund.

If you get the run around, take the matter to small claims court which would force the association to produce the authority.

Don't look for guidence from the state about this (SC). I believe your board has a right to charge this type fee and it should be in your documents (authorization or power) SC wants the Associations to work this out in house. Which means the board must establish a clause in their documents outlining the program. If they don't and if you can't get them to establish the requirement it writing, you could go to court, and take a chance the judge will see things your way. However, I would approach the Board with a written request explaining your situation and offering a compromise, if they deny that, again you can go to court and be in better shape. Or you can hire a lawyer to send your board a request for the Boards enpowerment to charge this fee and offer to compromise. I really think you can force a compromise easier than complete forgiveness, especially if the board has done this in the past to other neighbors. I'm not preaching but this is a common mistake homeowners make. That being to put association business in some "I'll get around to it file." Volunteer to get involved with your associayion and make chances is the most productive thing you can do.