HOA Blog : Membership Conduct

Cutting Off Delinquent Members
June 1, 2009 • By Kelly G. Richardson

Dear Mr. Richardson:
I enjoy your articles. At the end it provided your email address and said direct questions to you.  I hope you don't mind this one:

We are a gated community of over 600 owners.  Our reserves are extremely low and our collections are growing worse by the day.  In order to try and turn this around, are the following actions legal?

Can we deny access to the automatic gate by delinquent owners and require that they wait for entrance at the guarded gate?  Can we deny entrance for guest and guest parking, or the use of pool, tennis, clubhouse, laundry room, etc?

If the Board has not taken these or other serious actions, could the Board be sued?

To date, we just lien properties that go back to the bank and we rarely get paid or go after an owner.

Thank You
J.S., Santa Ana
 
Dear J.S.:
The association, and by extension the Board governing it, have a legal and moral responsibility to collect assessments from all members.  Boards often are concerned about the harshness of pursuing neighbors for money.  However, if they do not pursue, a greater unfairness will occur, as the paying members cover the expenses not paid by the delinquent members.

The law requires the association have a written collection policy distributed annually to members.  If such a policy exists, follow it.  If not, adopt one.

Under Civil Code Section 1361.5 an association may not bar a member or member's tenant from the residence.  It can cut off access to services and amenities, or even voting rights, if it pursues the proper disciplinary hearing process, but it cannot cut off utilities.

While these actions will help get a member's attention, the most important action is to consistently pursue and enforce assessment obligations.  Follow up on those liens - it's not fair not to.  Yes, you can be exposed to a lawsuit if you ignore this basic responsibility.
Kelly G.  Richardson
 
 

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