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BarbaraD6 (Florida)
Posts: 347
Posted:
Does anyone charge the resident who commits a violation, the cost of the violation letter?
Barbara
MicheleD (Kentucky)
Posts: 4,491
Posted:
My favorite answer of all time: "It depends."

By that I mean, the first notice is a "gentle reminder" of the deed restrictions and a request to correct the violation.

The next letter includes a "fine," per a specific fine schedule, for the violation.

In that regard, the resident is "charged" for the violation letter in that the fines should more than cover the cost of the time and materials used to produce the letter.

MaryA1 (Arizona)
Posts: 7,043
Posted:
Barbara,

Many prop mgmt co's charge the assn for any letter prepared for the assn. So, if it's a violation letter, that cost may be passed on to the member in violation.
LynetteB (Texas)
Posts: 141
Posted:
BarbaraD6,

We have established a Violation Policy and Procedure. We do pass on the cost of a certified letter to the member, and it states that fact in the Policy, and in all correspondence sent to the member.

For our POA, charging members for any type of fee has to be written or someone always makes a case of it. Our CC&R's say the board MAY charge reasonable fees as determined by the board, but most people don't take the time to look through the whole document to find that simple statement, so we have incorporated specific language in each of the Policies that have been created. This is not only for the members, but for the board members to be consistent with each violation.

Lynette
SusanS5 (Florida)
Posts: 16
Posted:
I have seen this handled two ways by PM companies if the docs do not speak to the association assessing the fee. (IE-Association is entitled to the fee VS a fee outlined in the management agreement)

Company A charges ($5-$25) per letter and it is billed to the association, with an entry made to the member's ledger.

Company B charges ($5-$25) per letter and it is billed to the member.

In the first scenario, the PM is paid, but it is difficult for the association to collect. In the second, it is difficult to collect and the PM is out the money.

What are other ways that this is handled?
MaryA1 (Arizona)
Posts: 7,043
Posted:
IMO, in order for the PM to bill any type fees, it would have to be written in the PM's contract that there are charges for certain services. Some of these fees will be charged to the member directly others are paid by the HOA. If the member doesn't pay the fee, then the HOA is obligated to pay it. Either way, the PM is going to be paid because it's a contract fee that the BOD agreed to when they signed the contract. The same applies for attorney's fees that are billed the HOA. But, regarding attorney fees, if the HOA turns over an account to the attorney for collection, the preferred method is for the attorney to bill the member directly for his fees. The HOA does not get involved and is not obligated to pay the fees if the member doesn't. Any unpaid fees are just tacked on to the delinquency amount.
SheliaH (Indiana)
Posts: 6,964
Posted:
If they don't fix the problem, we charge an administration fee for the cost of the paper, typing, printing and postage. It's usually charged after a second letter is sent (which advised the resident that the charge will be added to his/her account)

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
BarbaraD6 (Florida)
Posts: 347
Posted:
We have so many 1st letter violations that cure the violation then at another time commit the same violation. This ads up to a lot of money. Our 2nd letter cost gets paid in the fine.
Thanks for your views
Barbara

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