Reminder Letters for the Slightly Delinquent

HOA Blog : Membership Conduct

September 14, 2009 • By Kelly G. Richardson

Hi Kelly, here is my HOA question:

We raised our monthly assessment as of January 1, 2008. However, several residents failed to notice the various publications that contained the increase. These included the Monthly Budget mailed out as required, plus it was repeated in the Newsletter and it is clearly stated on their bill.

A number of residents don't read anything. Is it acceptable to send the residents that have not increased their payments a personalized letter reminding them to bring their account up to date and to modify their payment accordingly?

Our standard policy, per our Management Company, is to wait until they are delinquent by the amount of 1 full payment which would take many months.

Thanks,

E.S., San Juan Capistrano

Dear E.S.:

Unfortunately, association members do not always heed the advance warnings given them by well-run associations. The association need not wait until members are seriously delinquent before sending a reminder letter, particularly where as in your situation assessments were recently raised. I assume your association sent out notice of the increase at least thirty days (but not more than sixty) before the increased assessment was due, in compliance with Civil Code Section 1366(d).

Hopefully, your association already has in place a written assessments collections policy, required by Civil Code Section 1365(e) to be sent annually to all members. This policy should be in place to help members know when the association takes collection action such as late charges or liens.

If members are falling delinquent by small amounts, simply through inadvertence, there is nothing to be gained by waiting until they are behind by the equivalent of one full month's assessments. Send them a reminder, just as you would want someone to remind you.

Thanks for your question. Good luck getting your neighbors up to date.

Sincerely,

Kelly G. Richardson, Esq.

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