INCREASING LATE FEE

Started by ReneeD • 2 replies • 1245 views

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ReneeD (Illinois)
Posts: 201

Posted:

Currently, homeowners are assessed a $10 late fee if dues not received by the 10th of every month. At the April meeting, BOD voted and directed the PM to assess a $35 late fee if that current month's payment is not received prior to the 1st of the following month and, if not received prior to the 10th day of the following month an additional $55 would be levied against the unit owner's account. IMO, this is rather steep. Their objective is to avoid having to ultimately pay lawyer's fees; however, PM stated they have begun to turn over files to the lawyer after 30 days. Is this legal? Can the BOD arbitrarily modify/change/increase late fees without homeowner input and/or amending our CCR's? -Renee

MicheleD (Kentucky)
Posts: 4,491

Posted:

Quote:

Posted By ReneeD on 04/16/2009 12:33 PM
Is this legal? Can the BOD arbitrarily modify/change/increase late fees without homeowner input and/or amending our CCR's? -Renee

Again, it depends

Most CC&Rs give the board the ability to establish fees and penalties. So, in that case, it's not an amending or modification of the CC&Rs, so no homeowner input or approval is required.

There may be some states where homeowner input is required, or at least homeowner notification.

And there may be some states that limit the amount that the fees can be.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Renee,

In AZ the amount of late fees is limited by state law. If there is no limit stated in your gov docs you should also check out state HOA law. Otherwise, the BOD can set the late fee as high or low as they wish.

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