Question for HOA Officers and others

[Sundance Kid]

What do you do, with one owner, that is continually late on payment of their monthly dues? Sometimes, going three or four months before getting caught up. Always, has
an excuse. Always promises, that this is the last time they'll be late.

I've had numerous confrontations with them and have gotten downright rude, more than once. Doesn't seem to make much of an impression. Of course, they seem to feel entitled to all the benefits of the HOA.

Our dues, are only $85.00 per month. So, I'm not talking about big bucks.

Don't tell me to go to the HOA! I am, the HOA. I'm sick of it!! But, I can't get away from it. Get me outta this mess

 

[Craig]

Find out the law in your state, and charge them the maximum rate of interest.  Also make sure you can put a lien on their place for amounts unpaid, including interest. Change the association rules to permit the HOA to take such appropriate action.

A potential resource: http://www.hindmansanchez.com/lawyer-attorney-1082827.html

All businesses have to deal with slow payers, and you're in business now. 

You might also raise the dues slightly next year, and give a discount to those who allow the HOA to direct debit their bank accounts.  Your bank can help you set it up, and it will reduce the brain damage.

Then, you can always egg their car ...

 

[peggy]

As Charles said, check the law in your state. HOA powers vary widely.

Also, read the CC&Rs and the bylaws for the HOA. There may be other remedies listed before you put a lien on the property or even foreclose (some states, I believe, allow foreclosure for non-payment).

 

[Cut-Throat]

I am the President of our HOA. We employ a management company for around $6K per year to handle matters like this for us. They have an attorney on staff and start foreclosure procedures after about 60 days. They levy fines as well as charge for attorney's fees.

We like late payments here! - We get to collect the fines!

We've had people refuse to pay special assesments and threaten to sue. By the time they get their foreclosure papers, they change their mind or their attorney helps them change their mind!

 

[Sam]

I don't know anything about HOA, I only pay when I'm told to.

Question for HOA Officers:  In your view, are HOAs efficient?  I always feel that I pay more (much more) than I get back.   Do HOA officers get paid?  If so, how much?

 

[Cut-Throat]

I don't know anything about HOA, I only pay when I'm told to.

Question for HOA Officers: In your view, are HOAs efficient? I always feel that I pay more (much more) than I get back. Do HOA officers get paid? If so, how much?

I don't get paid anything. But, I do get to watch the pot of money that I have a vested interest in.

I think you end up paying more to live in an HOA. - And if they are run right, you get some control over the potential 'neighbor from hell'.

 

[REWahoo]

Question for HOA Officers: In your view, are HOAs efficient? I always feel that I pay more (much more) than I get back.

HOA's are as varied as any other organization or business. Some are very good, some are very bad, most are somewhere inbetween.

Do HOA officers get paid? If so, how much?

Not in our HOA. We're all unpaid volunteers, but we're small (110 lots). Many (most?) larger HOA's hire a management firm to do the day-to-day stuff, but even in those situations I believe the association board members are volunteers.

 

[Sam]

Thanks Cut-Throat and REWahoo.  So officers and/or board members don't get paid.  How about privileges, perks?

 

[REWahoo]

Thanks Cut-Throat and REWahoo. So officers and/or board members don't get paid. How about privileges, perks?

I get the 'privilege' of having people complain to me about other residents not following the rules, about it not being "fair" that they have to follow the rules they agreed to in writing when they bought their property, about how the HOA is spending the vast sum of $120 a year each lot owner has to pay in association dues and what we should really be doing with "all that money"....

I could go on, but that should give you an idea of the 'perks'.

 

[Andre1969]

When I was on our condo association board, I got to see all the fun financial stuff, like who was late. For some reason, they'd often let some people run up balances of $2000 or more! I never did get a straight answer out of the other members as to why they'd let it go that high in the first place. Usually they'd just blame it on the management company who would then blame it on the lawyer.

Some of these people, though, would get in so deep, declare bankruptcy, and the debt would get charged off as a loss for the rest of us to have to absorb. Finally we did get a lawyer that had a bit more bite to back up her bark.

All things considered though, I could actually see some benefit gained from those condo fees. For one thing, the fee covered water & sewer which, at my house now tends to run about $80 per quarter. So figure that's about a $320 benefit right there. The fee also covered trash removal which is in my property taxes where I live now. I think the trash portion is about $400 per year. Then the master policy on the place. My homeowner's insurance now is about $800 per year, but in the condo my insurance was only about $150 per year. So far I'm seeing about $1370 in benefit right there. My condo fee was $239 per month before I moved, though, which comes out to about $2870 per year.

But then when you figure in snow removal, lawncare, maintenance of the parking lot, sidewalks, exterior of the buildings, structural stuff, etc, I guess that's not so bad and that additional $1500 per year was money fairly well spent. My place was a condo though, which is different from an HOA, so with an HOA you might not always see where the money goes.

Oh yeah, I do remember, towards the end of my time at the condo, we did start charging a $15.00 late fee for people who were more than 30 days late. It's amazing though how many times residents would come up with some sob story and we'd waive it. Even the former president of the association, once he was replaced, started being chronically late and we'd keep on waiving it.

 

[Brat]

I am in a itty-bitty HOA and agree that they vary a lot.

The amount of the HOA/Condo fees can be a sleeper factor in buying/selling the property because lenders don't include that amount when 'qualifying' but do when writing the mortgage - causing failed offers. Nail down the lender's assumptions in a qualifying letter.

I learned about that issue from a Realtor's blog.

 

[Sam]

I get the 'privilege' of having people complain to me about other residents not following the rules, about it not being "fair" that they have to follow the rules they agreed to in writing when they bought their property, about how the HOA is spending the vast sum of $120 a year each lot owner has to pay in association dues and what we should really be doing with "all that money"....

Ok, ok.  You can stop bragging now

 

[grumpy]

Sundance,

A good place to start is this web site:

http://www.hoatalk.com/

Also check out the Community Association Institute (CAI) site:

http://www.caionline.org/

Grumpy