What Can Happen When a Homeowner Doesn’t Pay HOA Fees

As a homeowner, there are some amenities that you can enjoy depending on the neighborhood one is in. These privileges include fitness rooms, swimming pools, parks, and clubhouses. In addition, these amenities are paid for and maintained through HOA fees or assessments. Our Glendale HOA management company helps HOAs with these amenities and assessment collections, but what happens if a homeowner refuses to pay for them? It is good to understand why HOAs have to collect these dues in the first place.

Why an HOA Must Collect Dues

The main objective of an HOA is to replace, maintain and repair a property and community. These obligations are set by the governing documents that include the bylaws, declaration of covenants, conditions, and restrictions otherwise known as CC&Rs. Almost every planned community is run by a homeowner’s association (HOA), which is made up of all the owners in the development.

The HOA computes the assessment amount it should collect according to their budget per year. They then estimate the operations costs. These costs include maintenance, vendor services, and more. Most likely, the budget also has a reserve fund for the anticipated repair and maintenance cost which is like a savings account for the HOA. All dues are divided equally among the homeowners and dependent on the community’s governing documents, the assessment may be proportionate based on the size of the home. The HOA should collect enough dues to smoothly run the community.

What Happens if a Homeowner Does Not Pay Assessments

All assessments should be paid. If a homeowner fails to pay their dues, they will start to accrue late fees which can become very costly. If the homeowner continues to not pay their assessments, they can even have a lien placed on their property by the HOA. If a homeowner has faced hardship and would like to bring their delinquent account current, they can request a payment plan from the HOA board of directors. One should always familiarize themselves with the HOA rights and what it can do to get a neglectful homeowner to pay the dues.

What if Neighbors Do Not Pay Their Dues

As an individual homeowner, your options are extremely limited when it comes to a delinquent neighbor and paying their dues. Even when you determine the defiant neighbor, any action you take personally is considered as harassment and illegal. So, leave it to the homeowner association authorities since they have the knowledge on what to do with such a neighbor.

Foreclosure

This is the final solution to a homeowner not paying their assessments. After already sending late fees, notices, sending the account to collections, and placing a lien on the home, the finally step is foreclosure. HOAs do not want to do this as it is costly for the association and can reflect poorly for the community’s resale values but sometimes, they are left with no other option.

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