COLLECTIONS OVERVIEW
In order to successfully operate a planned community, payment of certain expenses associated with the operation, maintenance, and control of the association are required. The Board creates a budget for these expenses, including proper reserve funding, and thereafter assesses the owners. The obligation of the owners to make payment of these assessments and the liability for non-payment is found in the association’s governing documents.
If too many owners fail to make payment of their common charges and assessments, the association may be unable to pay its bills and keep the community running in the fashion and at the level the owners expect. Whenever an owner fails to make payment, all other owners must pay that delinquent owner’s share. As a result, Boards have little choice but to move forward against delinquent owners. Failure to do so can be seen as a Board not satisfying its fiduciary obligation and affirmative duty to the community. Continue reading “A Board’s Map To Successful Collection Of Common Charges And Assessments In Condominiums And Homeowners Associations”
