(a) a owners` association, consisting of more than 14 lots, adopts appropriate guidelines to establish an alternative payment schedule allowing an owner to make partial payments to the owners` association for periodic or special investments or other amounts against the association, without any additional penalties being imposed on the association. For the purposes of this section, fines do not involve reasonable fees related to the management of the payment plan or interest. However, the HOA is not required to follow the priority rule when homeowners are late in accordance with a payment plan. 2) Ask for a plan. “The wisest thing is to ask your lawyer before approving the plan,” says Nancy Polomis, a partner at Hellmuth and Johnson PLLC in Eden Prairie, minn., who advises the associations. “If I have debtors, call me and say, “I have received your credentials. I am willing to pay, but I have to do it in time, “I will ask them to submit a plan in writing. If they have to write it down, there is no dispute about what they have agreed to, and I will make a good assumption that they are proposing to pay what they can pay. This rule is important insofar as the HOAs cannot exclude fines or legal fees incurred for the assessment or recovery of these fines. Prior to the amendment, HOAs could first apply the payment of an owner to fines (including disputed fines) or legal fees related to these fines, so that the legal charges and fees that could be used as a basis for enforcement are not paid. 5) Get a confession of the sentence.
“A confession sets out the payment plan and says, “If I don`t pay according to the plan, the association can file this document immediately in court and get a judgment against me without further announcement,” says Polomis. The association is not obliged to go through the process. There is an affidavit statement that the owner has quashed, and then there is a verdict. Sometimes it`s worth being nice, and it can be especially true if they have delinquent landlords. Not all people who are lagging behind in their assessments are lazy people who are moving away from the financial chaos they have created. Some of them are responsible homeowners who suddenly find themselves in financial difficulty and desperately want to solve their financial problems. (See our corresponding article on such a case.) Often, setting up a repayment plan is the best solution for you and the indebted homeowners. When an HOA board of directors makes payment plans available, it must propose them to owners in a consistent and non-discriminatory manner, always taking into account the fiduciary duty of the board of directors to the association and its members. In some countries, but not in all countries, HOAs are entitled to collect fees to cover administrative costs caused by late payments, such as the management fees of a payment plan.B. Administrative costs are generally not subject to a specified ceiling, but must be “reasonable” given the actual burden and the additional costs incurred by the association. Traditionally, partial payments, when made, apply first to unpaid fees and fees, then to interest due, and then to principal. Some states have passed laws requiring HOAs to use a different priority order for the settlement of partial payments. In Texas, on the other hand, everyone has to provide payment plans with the exception of the smaller HOAs.
tex. Prop. Code 209.0062. A plan can range from three to eighteen months. Id. California`s Davis-Sterling Act for HOAs urgently advocates payment plans and requires hoA`s boards of directors to discuss payment options at the request of an owner. callus. Code 5665.
In California, an AOA must first apply payments for outstanding assessments, and only after all evaluations have been paid can the HOA apply payments to collection fees, late fees and interest. callus. Civ. Code 5655 (a). In Texas, partial payments must apply to delinquent judgments and then to