Policy on Publishing Names of Delinquent Homeowners

Glen,

This may be state law where you are but not in Floirda.

In fact if you want to publish the names of delinquent homeowners and can find the authorization to in your documents and law, I say go for it but have a policy first so that everyone is on the same page.

i.e. Any homeowner more than sixty (60) days in arrears with their assessment will have their name published in the newsletter and on the website until such time as they pay up. Furthermore all of the members of the household sixty (60) days or more in arrears must wear an HOA issued jumpsuit while in the common areas with the words I DON'T PAY MY ASSESSMENT stenciled on the back.

We don't have a written policy, per se, on publishing or not publishing the names (or addresses) of delinquent lots.

However, we do have a policy that every member receives a status report of all assessments as of a specific date in January. Every lot payment status is provided to all residents of all assessments received and posted as of January XX, 20XX.

Rick that is what we do, any H/O that attends the monthly Board Meeting receives a balance sheet which includes the reserve funds, a monthly and YTD income and expense statement and a redacted delinquency list that only shows the amounts delinquent not the name or unit #.

If an HOA is "Incorporated", don't the members of the corporation, in this case ALL-homeowners, have the "legal" right to know who is in default of their assesement fees within their own corporation?.
I have been trying to have our Association publish, both the names, and amount owed by deadbeats for years.
After being given a copy of a similiar publication from another Associations dealing with this issue, I contacted their management company, and asked if it was legal to publish the homeowners names, addresses, and amount owed.
I was advised they had taken the issue before a judge, (In Maryland, Baltimore County), and was told since they were incorporated, it is definitely legal. (She said, you must however be incorporated)
I went back to our board (I am a member) presented the document from the other Association, and suggested we seek our attorney's advice to have the names published in the newsletter, and on the community website.
We have been advised by the attorney not to take this route, because they are dealing with the issue.
I am "NOT" satisfied with this answer, and have compassion for anyone during these hard times, but when about a dozen or so, owe anywhere from $2000.00 to almost $5000.00 a piece, it gets to the point of having everyone else having to pay for the services these deadbeats are stealing.
I am of the opinion the attorney's are getting their money, the management company is getting their money, but the Association is getting nothing.
I know we should get rid of both, but it is not likely to happen, because some of the other board members are a little disfunctional, and only want to volunteer to serve on the board (we have nine members), only to serve themselves. (Power thing)

Thanks for the read:

Jim

IF we were a public institution and were "publishing" the status list to a public location, I might agree with Glen.

We are not and we don't publish anything for public viewing.

Once a year we send a status list that includes the lot address of each member to all members.

All members know we do this. This isn't a surprise. The developer did this from day one. We simply continue the practice.

Does it "encourage" payment compliance? I really don't know. We still have deadbeats. My guess is that the common deadbeat really doesn't care. I know that I would not want my status to be shown to all the other members as "unpaid," but then, I also keep my lawn cut and my cars off the street, etc etc etc.

Anyone who thinks it's a compliance tool better think again. You would be surprised how many people don't care. It does, however, make their constant complaints against the association seem a little self-serving.

I have no expectation of "privacy" of my actions within an organization to other members of that organization.

If I am a member, my status and activities as a member are open to all other members of the organization.

Mary - I generally agree with you, but I would suggest providing a level of detail that at least is equivalent to an Aged Accounts Receivable Report. This would give some perspective of the state of HOA delinquencies without the necessity of revealing the actual names.

Just joined and searching for answers...

First off, to some, I would be the deadbeat...However, I state that I don't deny my assessments are due and have a plan to bring them to date. Like many I am having an unplanned hardship due to an untimely brutal death of my younger brother. Well save the details for another day...I made decisions on what bills to catch up first...Let's just say, the assessments weren't at the top of the list.

So our HOA has decided to publish such said list with name, parcel ID, and amount. I'm was less than six months past due. Actually, there were 295 entries published in the News Letter, The Public Web-Site, and the Local News Paper.

Everyone is correct, there is no law stating anything about publishing a delinquent list....Here we go...

I'm not a Lawyer, but try to use the reasnoable person approach....

Many laws come into existance because of law suits. HOA laws are now adopted for Indiana. From my research, HOAs that are Incorporated are held to account for Corporation Statutes. The reason for the new HOA statutes in Indiana was sited as directly related to the number of law suit filed in Civil/District Court.

Here is my belief...

Although an HOA is not regulated by the FDCPA, this act stipulates in section 806 (Harrassment and Abuse) that publishing a Delinquency List is harrassment and abuse for a business that's sole purpose is debt collection. It doesn't list this in the section for unfair practice. Thus stating a legal precedence by federal law makers.

Harrassment and abuse is a criminal act if the intent is to embarrass and/or cause physical harm, emotional harm, or harm reputation by embarrassment or shame.

Corporate statutes state that an Extort Contract is not enforcable in Civil Court Judicial Process. Extort contract being that even if both parties agree that a delinquency list will be published for failure to pay and said such list is considered harrasment which is a crime the non paid assessments cannot be enforced by court action due to an Extort Contract.

It is for the two reasons stated that we don't see large corporations with billions of $$$ publishing such said lists.

It is also my opinion that if said such BOD conspired to embarrass by publishing such a list, this would be a bad faith act; therefore, the indemnification of such said BOD would not be afforded and they would stand alone should a prosecutor bring forth charges of harrasment and conspiracy to harrass.

Just because there is no law prohibiting it specifically, there are laws than can be directly shown that a bad faith act was taken.

I have requested to discuss this with the BOD and Attorney to reach an out of court settlement. They closed the door. I don't believe I'm wrong and will do one of three things if not settled prior to:

1) Small Claims
2) District Court Pro Se'
3) Distrcit Court w/ Representation

I would like to settle the dispute with the least cost to the association. If it goes to court, I can only imagine the cost will be much higher than my assessments are and then times 295 that made the list.

Very interested in replies and thoughts...

LarryD6

As far as I can tell, publishing delinquent accounts is not illegal. It might not be the right thing to do, but it appears to be legal. As president of a HOA I would cringe at the aspect of dong this.

That being said, have you approached the board with a repayment plan? Most HOA's are more intersted in collecting assessments/dues to keep the association running financially than they are interested in publicly humiliating someone.