Non-Paying HOA Dues Members

Started by AlexL1 • 6 replies • 2072 views

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AlexL1 (Florida)
Posts: 305

Posted:

If members(certain ones) are delinquent in payment of their dues, is it legal to post their names in a bulletin board for all to see?.. this goes for assessments that were approved but certain members have not yet paid... Can their names be put in a newsletter, and/or put in/on a bulletin board for all to see?

RandalR (Tennessee)
Posts: 98

Posted:

Of course it is! You don't really think a BOD would do something illegal do you? Hmmmm.... don't answer that.

We've got the same problem with our BOD, they just do what they want without any thought of the consequences. As a best management practice though I wouldn't advise it. Our Board did that last year and one of the residents, after consulting his attorney, advised them that they could be sued for liable and would be the next time it happened. (There's a big controversy in our HOA about whether revising our covenants to require mandatory dues was done legally.)

The only reason BODs do something like this is for harassment purposes anyway. They could just as easily post all the names of those who did pay but then that would require someone to actually care enough to go back and figure out who hadn't.

If anyone out there does know of an HOA getting sued over it, I'd sure like to know how it turned out.

Randal

GlenL (Ohio)
Posts: 5,491

Posted:

Alex this question has been debated multiple times here (try search) but the general consensus is that it can be done but it is a poor idea to do so. However it is my opinion that most CC&R's prohibit the practice. Failure to pay an assessment - regular or special is a violation of the covenants. The BOD is tasked with enforcing the covenants. Most documents I've seen state something to the effect that enforcement action between the BOD and H/O is private (in CA it's the law) and not subject to the general knowledge of the members.

Once it gets to the lien - foreclosure stage and the attorney gets involved this complicates matters even more. While the attorney/client privilege is between the BOD and attorney, it is my opinion that the BOD should say nothing without the permission of the attorney. We tell the H/O's the amount in arrears but not who owes it. In this day and age anyone with a basic understanding of computers and the internet can find the information once liens are filed if they feel some desperate need to know.

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

JamesC (Maryland)
Posts: 282

Posted:

I was told by another HOA (not our own)they started this practice, and they have realized a large decrease in deliquencies.
In our own HOA we are owed almost $20,000 by nine members owing for over four or more years, and others owing three or four months.
The HOA who started this method went to court in Baltimore County, Md, where the judge ruled, if the HOA is incorporated, every member of the corporation has the right to be informed of its investments. (you must however be incorporated)
It becomes a matter of public record when liens are placed against the properties anyway, so for the HOA to let its members know in advance of the deliquencies is indeed legal.
I took the information to our board, and we had the management company seek the advice of our attorney.
They came back saying it would not be a good idea, because if the amount owed was incorrect, the Association could be sued by the homeowner. I thought it to be a strange answer, because if liens are filed anyway, one would think the amount filed before the courts would be correct.
I conclude its good for the attorney, and the management company, because they gets their monies, but the Association gets nothing.

How fair is it that we pay for the deliquent homeowners entire share of the water & sewage charges, street lighting, landscaping, snow removal & the parking lot on which they park their vehicles while they pay nothing?

MaryA1 (Arizona)
Posts: 7,043

Posted:

James,

Whether or not to publish the names of these delinquent members is the least of your worries. If I were a member I would be asking why the board hasn't done something about the delinquencies that are 4+ years old! This is totally uncalled for. These delinquencies should have been in foreclosure long ago.

No, it isn't fair for the paying members to be footing the bill of the delinquent members. But, that's just the way it is in an HOA. However, it is the board's resp. to do all in their power to collect the delinquencies. From where I sit, they are falling short on their obligations. Maybe it's time for a new board; one who isn't afraid to carry out their resp.

JamesC (Maryland)
Posts: 282

Posted:

MaryA1

Myself as a bod member, and past board members have addressed the foreclosure issue on many occasions.
We were told by the attorneys that we would probably not recoop our monies, because the banks, and others would get theirs first, and we would get nothing.
Then the issue of cost, anywhere from $5,000 to $10,000 for foreclosure comes up. I say take the one who owes the most, spend the money, and send a message to the other deadbeats, that we mean business.
In my opinion if they were that far behind in their mortgage payments the banks would have foreclosed on their own. We are the only ones they are not paying. We have garnished some of their pays, but still have to continue filing liens over, and over.
I would still prefer listing their names, addresses, and amount owed on our web-site, and in the community newsletter. Or at the least tell them it is our intentions to do so, if they do not start making arrangements to start paying.
The economic times as they are may be a problem for some, and possibly a payment plan could be worked, but you still have some who will not pay..

Jim

KirkW1 (Texas)
Posts: 1,665

Posted:

In our area, HOA foreclosures don't typically go through. The owner will come up with the money before the deal is done, or at least enough to get the Board to relent.

The only way the cost should get as high as you were told is if judicial foreclosure is used. Now that may be a requirement where you are. Generally in Texas HOAs use non-judicial foreclosure. But you will most likely here from the person after they receive notice that their house will be sold in 30 days.

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