Issue link: https://hub.associaonline.com/i/911248
Are repeat collections offenders handled the same or differently from homeowners facing collections for the first time? Example Responses "If a homeowner has been on a payment plan in the last 24 months, a new payment plan will not be accepted." "If a homeowner's account has been with the attorney's office in the last 24 months, no payment plan will be accepted." This is another area where the board will have to rely on guidance from their community management team, as the answer to this question will likely not be addressed in any governing documents. An offer of a payment plan is to allow for homeowners with extenuating circumstances to get caught up without additional penalties. Unfortunately, sometimes there are individuals who want to take advantage of this benefit, so having your policy specify stricter timeframes for repeat payment plan requestors or not permitting repeated payment plans at all are two ways to deter individuals from entering payment plans carelessly. Will the Board consider waiving any late fees? Example Responses "If all payment plan payments are made on time, then no late fees will be assessed during the payment plan period." "Upon completion of a payment plan, the board will waive half of the accrued late fees from the first missed payment through the end of the payment plan period." While the Board is not under any obligation to waive late fees (unless the matter has gone to court and the judge has mandated otherwise), the removal of late fees can be seen as a good faith gesture from the board to the homeowner. This can also be used as leverage to encourage payment in full. The board cannot waive any assessments, and should not waive any legal charges or other fees the association has paid that have been charged to the homeowner's account, but because late fees are not considered an assessment or an association expense, they can be reversed. This may be one area where the board is divided on how to proceed and feels the decision on late fees should be made on a case-by-case basis. Again, the problem with considering these situations as they arise is that homeowners might not be treated equally. While each past due homeowner may have a different story, if they are all treated in the same manner regardless of the situation, the board can protect themselves from accusations of favoritism.