Collection of Housing Dues in Homeowner Associations
The collection of housing dues is an integral part of the operation of a homeowner association (HOA). These dues, also known as assessments, are levied on all homeowners within the community to cover the costs of community maintenance, amenities, services, and improvements. The amount is usually set by the HOA board and is based on the budgetary needs of the community.
Housing dues can be regular or special assessments. Regular assessments are typically collected monthly, quarterly, or annually and cover anticipated expenses such as landscape maintenance, snow removal, and utilities for common areas. Special assessments are levied for unexpected expenses or major projects not covered by the regular assessments or the HOA’s reserves.
The process of collecting these dues is governed by the HOA’s governing documents and local and state laws. They often include predefined procedures and timelines for billing, payment, late fees, and collection of delinquent accounts. It’s crucial that HOAs enforce these policies consistently to maintain financial stability and fairness among homeowners.
If a homeowner fails to pay the due assessments, the HOA may take action to collect the unpaid dues. This can include charging late fees, sending a demand letter, filing a lien against the homeowner’s property, or even initiating a foreclosure proceeding in extreme cases. HOAs are encouraged to work with homeowners facing financial difficulties to establish payment plans or other solutions.
