Dealing with late assessment payments can be more than just a nuisance for condo board members. Not only do they have to take additional steps to track down payment from the delinquent owner, but it also puts the association’s finances in a bind.
When an owner agrees to join an HOA community in Illinois, they are agreeing to make all monthly and special assessment payments. Being delinquent – or worse, not paying at all – is essentially a breach of contract and can lead to serious consequences, including foreclosure and eviction.
Steps to Take to Collect Delinquent Payments
The condo board or the association’s management company is responsible for collecting all HOA assessments. If a unit owner is delinquent on a payment, the dues collection process kicks in and the owner is notified that they are late with payment. Here are some other general steps to follow:
- Review your governing documents: Review what your documents say about the delinquencies. Typically they outline essential procedures to follow.
- Send a notice: Your association management company will send a formal notice to the delinquent owner. The notice should clearly state the amount owed, any late fees or interest charges, and the due date for payment. It’s also important to include details about the consequences of continued non-payment.
- Impose late fees and interest: If allowed by the governing documents, impose late fees and interest on the delinquent account. Clearly outline these charges in communication with the owner.
At this point, some HOAs hold a hearing before more severe actions are taken to allow the owner to present their case. If the owner still does not pay their association dues after following all procedures in the governing documents, the association may be able to get a lien on the property for the delinquent assessment payment. This action could lead to an eviction for the unit owner.
If the situation becomes complex or if legal action is being considered, consult with an attorney experienced in HOA matters. And be sure to keep detailed records of all communications, notices, and actions taken in relation to the delinquent account. This documentation can be crucial if legal action becomes necessary.If you need help with the financial management aspect of running your Chicago condo association, our team at First Community Management can help. Contact us today to learn more about our full-service program and ask your questions about association management.