Statement of Policy
It shall be the policy of this Homeowners Association that the Annual Assessment Amount shall be established by the Board of Directors in an amount which will cover anticipated expenditures for the year and may be paid on a calendar period conveneint to the individual member (annually, quarterly, monthly, or other).
If payment is not received within ten (10) days, the treasurer shall refer the delinquency to the president, who will request that the attorney for the Association send a “Warning Letter” indicating the amount of payment required and that payment must be made to the attorney within ten (10) days to avoid further action.
If there is no response to the “Warning Letter” , the attorney will refer the delinquency back to the Board of Directors. At this time the Board will investigate the circumstances, at a regular or special Board meeting called for that purpose, will instruct the attorney to file a lien to recover the delinquent dues or assessments plus 1) interest at the maximum legal rate retroactive to the initial date of the current delinquency, and 2) attorney fees and appropriate costs.
If any lien is not satisfied within six (6) months of filing, the Board shall instruct the attorney to file a foreclosure suit to enforce the lien. At this time, the sheriff will arrange a sale, and any interested party, including the delinquent member, may purchase the equity of the delinquent member for the value of the lien.
The Declaration of Covenants, Conditions and Restrictions (article VII, section 7.07) and prior acton of the Board of Directors regarding the charging of interest on delinquent assessments notwithstanding, any demand for interest on the delinquency will be delayed until a lien is filed. At that time the demand for interest will be retroactive to the initial date of the current delinquency.
The Board is authorized at any time to write off as uncollectable those amounts which in its judgement reflect the inability of a member to pay a delinquency or which may have been incurred before the sale of the property by a prior member and not collected from that member.
The board reaffirmed that homeowners more than thirty (30) days delinquent in their dues will be charged the legal interest rate in accordance with Article VII, Section 7.07, of the Declaration of Covenants, conditions, and Restrictions.
A motion was made and seconded for the treasurer to send a Delinquency notice when a member becomes four (4) months in arrears, a letter from our attorney when five (5) months in arrears, and at six (6) months, our attorney is to file a lien. Motion carried.
If a “For Sale” sign appears on a member’s property, a notice will be sent immediately informing them of their delinquent dues. If dues are not received within five (5) days, a follow-up letter will be written informing them that a lien is forthcoming. Motion carried.
A motion was made and seconded that our attorney will include in the notice of delinquent dues the following statement: “If dues are not paid within seven (7) days of date of notice, the member will be denied access to the clubhouse and pool.
When a member is two (2) months delinquent (owes current month plus two (2) immediately prior months), the treasurer shall send a “Reminder Letter” citing the amount in arrears and inquiring if payment has been overlooked.
When a member is three (3) months delinquent (owes current month plus three (3) immediately prior months), the treasurer shall send a “Demand Letter” citing the amount now due and containing the statement that payment must be made within ten (10) days to avoid lien action.
A motion was made, seconded and carried that would authorize the treasurer to forward a “Friendly Reminder” note to any member whose dues balance equals $30.00. This would be an indication that the member had not paid his or her previous month’s dues. This one month’s dues (delinquent) could be perpetuated for months and possibly years, as has been the cse. A computer printout of the member’s record (open invoice) would be attached to this notice.
The policy statement is amended as follows:
Paragraph 2: If payment is not received within ten (10) days, the treasurer will complete a form titled “Request for Lien” and forward to the Association president. The president, in turn, will forward the request to the attorney who will take the necessary action to file a lien with the County.
Since the Association has already forwarded three (3) letters to the member with no response or success, the attorney will not forward any more “Warning Letters” but will immediately initiate the lien process.
This action taken on behalf of any member will be reported to the Board of Directors at the next official meeting.
Paragraph 3: This paragraph will be eliminated completely.
The Board reaffirmed that homeowners more than thirty (30) days delinquent in their dues will be charged the maximum legal interest rate in accordance with Article VII, Section 7.07, of the Declaration of Covenants, Conditions and Restrictions. It has been determined that 18% annum (1.5% per month) on the unpaid balance would be considered the maximum legal rate of interest. In accordance with the above, interest will be charged from the due date if the assessment is not paid by the 30th day.
When a member is one (1) month delinquent (owes current month), the treasurer shall send a “Demand Letter”, by certified mail/return receipt requested, citing the amount now due, including interest and postage costs and containing the statement that payment must be made within ten (10) days to avoid legal action.
If payment is not received within ten (10) days, the treasurer will complete a form titled “Request for Lien” and forward to the attorney, who will take the necessary action to file a lien with the county.
This action taken on behalf of any member will be reported to the Board of Directors at the next official meeting.
A motion was made by the treasurer that a $15 late fee be charged to a member’s account when the account is 30 days past due for each quarter. The motion was seconded and carried unanimously.
The Board reaffirmed those homeowners more than thirty (30) days delinquent in their dues will be charged a late fee of $15.00.
When a member is one quarter delinquent (owes current quarter), the treasurer shall send a statement citing the amount now due, including a late fee of $15.00.
If a member does not pay their dues by the end of the net quarter, a statement will be sent to the member indicating the money owed for the late quarter ($60), and the current quarter ($45), allowing them ten (10) days to comply. If dues are not paid after ten (10) days, the treasurer will complete a form titled “Request for Lien” and forward it to the association attorney, who will take the necessary action needed to file a lien with the county.
This action, taken on behalf of any member, will be reported to the Board of Directors at the next official meeting.
Motion to amend “Delinquent Assessments and Liens” policy of 11/29/01 to read:
A late fee of $25 per quarter is to be assessed to member’s delinquent in their payment of dues.
Motion to amend policy statement of 5/27/03 to add a beginning date for the $25 delinquent fee for each quarter, to be October 1, 2003, i.e. if a member is late 30 days in the first quarter, the late fee is $25… if a member is late 30 days into the second quarter, the fee is $50 for the first quarter, plus $25 for the second quarter, for a total of $75, etc.
Commencing October 2006, semi-annual payment dates will be in October and April. Members who are more than thirty (30) days delinquent in payment of their dues will be charged a Late Fee of $50.00. Late Fees will be charged as follows:
If a member is 30 days late after a collection due date, a Late Fee of $50.00 will be charged.
If a member remains delinquent, Late Fees of $50.00 will be charged for each collection period that a member has missed payment. For example, $50.00 will be charged for the first missed payment, and, if a member remains past due and is late on the next collection due date, a $50.00 Late Fee will be charged for the current missed payment AND an additional Late Fee of $50.00 will be charged on the previous missed payment still outstanding. In this case, where two payment periods have been missed, the total Late Fees at this point would amount to $150.00.
Pursuant to revised August 2007 Florida State Statutes, Chapter 720.3085, assessments and installments on assessments that are not paid when due will bear interest from the due date until paid. Interest will accrue at a rate of 18% per year.
The Association may also charge an administrative late fee in the amount of $35.00 on each installment that is paid past the due date.
The Association will continue to grant a 30-day grace period for each installment.
With respect to Interest and Late Fees charged by Fairway Springs Homeowners Association to delinquent accounts, Late Fees will not be charged to delinquent accounts.
Although State Statutes do allow, they state that late fees are only allowable if provided for in our community CC&R’s.
Interest at a rate of 18% will be charged on past due assessments from the date the payment was due until the date paid.
Accounts which are 90 days past due will be promptly processed for Lien Claim action.
This supersedes any previous policy statement regarding financial penalties on past due assessments.
Dues Statements will be mailed to each member in October of each year. Dues reminder notices will be published in the monthly newsletter in October, November, and December.
Accounts which are 90 days past due will be promptly processed for Lien Claim action. A 45-day written notice of demand for payment to the delinquent homeowner will be provided. This notice must be sent via Regular Mail and Certified Mail, Return Receipt Requested. This notice must include a detailed listing of amounts outstanding, accrued interest, and cost of certified mail postage. It must also include notification that member privileges are suspended until payment is received.
A listing of members who have been put on notice of pending lien action will be provided to FSHOA officers, and Clubhouse Director. The Clubhouse Director will activate suspension of delinquent member keycards. The Treasurer will coordinate release of suspensions with the Clubhouse Director when payments are received.
If payment is not received within the 45-day notice period, statements will be forwarded to the Attorney instructing to place liens on the delinquent properties. Any payments received after the lien has been placed must be forwarded directly to the Attorney. Attorney’s fees related to the placement of the lien will be paid by FSHOA but are billable to the delinquent member and included in the lien claim placed by the attorney.
Once a Lien has been filed, Statements and Invoices should not be sent to the member. Any checks or correspondence received on an account for which a Lien has been filed should be forwarded directly to the Attorney for appropriate coordination.
If Lien settlement does not occur within 45 days of filing the lien, information is provided to the Board promptly, and the Board must review the account to determine whether or not foreclosure action is to be initiated.
Foreclosure determinations are made on a case-by-case basis. Potential equity positions and lender actions need to be evaluated in making the case for foreclosure. Because a lender foreclosure or negative equity position may result in title being taken by the lender, which may preclude the Association from receiving all past due amounts, attorney fees, and court costs, the Board of Directors must take the economic impact on association funds into consideration for each foreclosure decision. Foreclosure may not be an appropriate action in every case.
Once foreclosure action is taken, all correspondence, including billing statements or invoices, between the Association and the Member must be referred directly to the Attorney. Any checks received must be forwarded directly to the Attorney for appropriate coordination. Any requests (estoppels) from closing agents on these properties must also be forwarded to the Attorney for appropriate handling.
Interest, at the highest allowable percentage rate, as stated in the most current Florida State Statutes, per annum (18% at time of this revision) will be charged to delinquent accounts that are 90 days or more past due. Interest will accrue from the date the payment was due. The accountant will calculate interest accruals monthly for posting.
The following edits to the implementation statement dated 06/11/09 will be activated on this date.
Paragraph 2: Accounts which are 30 days past due will be promptly processed for Lien Claim action.
Paragraph 9: Interest, at the highest allowable percentage rate, as stated in the most current Florida State Statutes, per annum (18% at time of this revision) will be charged to delinquent accounts that are 30 days or more past due.
Dues Statements will be mailed to each member in October of each year. Dues reminder notices will be published in the monthly newsletter in September and October.
Fines on Delinquent Assessments: To align our practices with Florida State Statute 720.305, (2):
If a member is delinquent for more than 90 days in paying any monetary obligation due the FSHOA, the FSHOA may levy a fine of $100 per violation against the member, tenant, guest, or invitee, for each day of continuing violation, for up to 10 days. A single written notice must be mailed or hand-delivered to that member, informing of FSHOA’s intent to levy such fine. Fines may not exceed $1000 total per occurrence in aggregate ($100 x 10 consecutive days). Any legal fees and costs accrued to enforce collection of this fine may be added to exceed a total of greater than $1000.
Tenant Collections: To adopt the practices as stated in the Florida State Statute 720.3085 (8):
If the parcel is occupied by a tenant and the parcel owner is delinquent for more than 90 days in paying any monetary obligation due FSHOA, the association may demand that the tenant pay to the association all future monetary obligations related to that parcel.
The demand is continuing in nature, and upon written demand, until the association releases the tenant or the tenant discontinues tenancy in that parcel.
A tenant who acts in good faith in response to a written demand from FSHOA is immune from any claim from the parcel owner.
(a) If the tenant prepaid rent to the parcel owner before receiving the written demand from the association and provides written evidence to FSHOA of that payment, within 14 days after receiving the demand, the tenant shall receive credit for the prepaid rent for the applicable period and must make any subsequent rental payments to FSHOA to be credited against the monetary obligations of the parcel owner to the association. The association shall provide the tenant with written receipts for any payments made. The association shall mail written notice to the parcel owner stating the demand that the tenant pay monetary obligations to the association.
(b) The tenant is not liable for increases in the amount of the monetary obligations due unless the tenant was notified in writing by FSHOA of the increase at least 10 days before the date on which the rent is due. The tenant shall be given a credit against rents due to the parcel owner in the amount of assessments paid to the association (tenant subtracts payments made to FSHOA, from monetary obligations due to parcel owner, throughout this process).