HOA Dues

Started by GregD1 • 8 replies • 1374 views

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GregD1 (Louisiana)
Posts: 14

Posted:

It is common with other HOA's to have 25% of there members delinquent with their dues a month after the due date? We had this issue last year as well and had to move money around in our budget until this money was collected.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Its common if you have no incentive for them to pay on time.

We have a $50 late fee at our association. The month it went into affect, guess what? No one is late anymore.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Steve,

State law in AZ limits a late fee to the greater of $15 or 10% of the amount of the unpaid assessment.

BTW, our rate of delinquencies is approx. 2% of the amount due each quarter.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Then call it:

Convenience fee - a charge in addition to the original transaction amount for the convenience of being able to postpone payment

or

Service charge - To pay for the additional paperwork and time needed to service your account

You get the point.....

MaryA1 (Arizona)
Posts: 7,043

Posted:

Steve,

I don't believe most assn's have the license to just make up fees. There may be state laws to conform to. Also, if the specific fee you are wanting to charge isn't stated in the gov docs then it can't be charged. As I said before, you can only do what your gov docs and/or state law allow you to do. Unless of course, the BOD isn't concerned about being in compliance with either. :-(

RobE4 (North Carolina)
Posts: 12

Posted:

We follow a steady path to keep everyone in the boat ..

Late
1 month Ignore ... hope it is a simple mistake
2 Friendly Letter
3 Firm Letter
4 15 day demand letter
5 Turn over to lawyer ($75)
6 Lien ($150)
7 Foreclosure ($500)

GregD1 (Louisiana)
Posts: 14

Posted:

We start charging interest once we mail out late notices. People know this and still we have 25 to 30 percent of our residents late with their dues.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

MaryA1
Of course there is a process to get this fee added to your HOA. I never suggested to just start charging it tomorrow. Why your against doing this, in a completely legal way, makes no sense to me.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Steve,

As I said earlier, the late fee that you charge would be against the law in AZ. But, beside that, I personally think it's way too high. I see nothing wrong with charging a late fee but for us to charge $50 on a $125/qtr assessment would be akin to price gouging!

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