Mandatory vs. Voluntary

we have a problem in our association where people do not believe we have a mandatory homeowners association. On their contracts the dues are 0.00 on the line next to " mandatory association" ( this is a brand new subdivision). The board came up with the budget, presented it to the homeowners and it was passed. But there are still homeowners who never believed it was mandatory. Our covenants state at the bottom "this establishes a mandatory homeowners association", our contract says it with a 0 next to it for the dues and our plats state the covenants run with the land. Is there something else or is this something a judge will have to state in order for folks to believe it?

I'm sorry Roger, I wasnt clear in my comments above. Our subdivision is 3 years old (2003). ON our contracts at the very beginning before the builder and developer turned it over to us, the dues said 0.00 amount on the line that said mandatory homeowner association. Yes the covenants are a full set of covenants that state the board is to come up with the budget and what is due in order to run the association. It does state how you can enforce payment ( collections, fines,liens, judgements, etc.). At the beginning theboard went over at a members meeting every line item before the first budget was voted on.
Even though all of this happened, we still have folks who havent paid because they dont believe we are a mandatory association. I was trying to figure out how you can convey that to folks? Its hard ot explain in email-so much better when you talk it out

Setena, if your HOA properly approved the assessment by either the Board or at the members meeting where every line item was discussed and the budget was approved, then I suggest your Board first approve Rules and Regulations on delinquent assessments. Then send these along with a letter explaining what the $0.00 means; and the authority to establish the annual assessment, that the annual assessment was properly approved in the amount of $______ due by ________, and that all owners must pay. Following is an example R&R for an HOA in Colorado:

Rules and Regulations on Delinquent Assessments

Assessments are delinquent when payment has not received by the due date. A 10 day grace period is provided for receipt of payment after which the property is assessed a late charge of $10.00 per month.

Assessments may include, but are not limited to, the annual (regular) assessment, special assessments, late charges, interest, fees, fines, attorney fees, collection costs and court costs. All costs related to a delinquent account shall be assessed to the property and paid by the owner. The Declaration (Covenants) establishes that an assessment is a continuing lien upon the property and a personal obligation of the owner.

The annual assessment is determined by the Board of Directors as part of the annual budget. The annual budget is ratified, or vetoed, by homeowners at the annual meeting. If the members veto the budget, then the prior budget, including the annual assessment, remains in effect until a new budget is approved. The annual assessment may be paid on a quarterly basis with payments due on the tenth day of each quarter which shall beginning January 1st. April 1st, July 1st, and October 1st. Assessment payments shall be applied to the oldest assessment first and progress toward the most recent assessment.

Statements may be provided by mail, e-mail, or coupons as a reminder to homeowners of the amount and due date of a quarterly assessment. Nevertheless, it is the responsibility of the homeowner to remember to pay by the due date even if a statement is not received. An owner may request consideration by the Board of Directors to defer payment due to extenuating circumstances.

An account delinquent over 10 days will be charged $10.00 each month it maintains a balance over $10.00. If a check is returned the account becomes delinquent plus there is a charge of $35.00 for the returned check.

An account delinquent over 70 days shall be provided a warning that a lien will be recorded on the property if payment is not received within 30 days.

An account delinquent over 100 days will have a lien filed with the Douglas County Clerk. The lien amount will include a filing charge of $100.

An account delinquent over 130 days shall be provided a warning that the account will be referred to an attorney for collection if not paid within 30 days.

The Association shall make a good faith effort to resolve disputes first with the Owner. If resolution is not reached the Association stands ready to go to binding Arbitration under the Uniform Arbitration Act. The parties are herein forewarned that if court proceedings are necessary to resolve a dispute, the court shall award to the prevailing party reasonable collection costs, attorney fees, and other costs [Colorado Statute 38-33.3-123 (1) (c)].