7 replies to this topic

[EveTorres]

I am currently in litigation with my HOA for an unpaid special assessment fee for snow removal. They have charged me a late fee for every month that I have not paid the assessment fee. I have went through the letter that they sent me in regards to the fee and the Declaration of Covenants, Conditions and Restrictions/Special Assessments and can't find anything that states they can charge this fee for every month the assessment isn't paid. Of course the Declaration is written in legal wording so it's a little hard to understand. Can you please help?

[FindLaw_AHK]

It is very difficult to comment on without having read your agreements. Is there anything stated regarding fees?

[EveTorres]

Under the heading "Special Assessments it states the Association may levy Special Assessments to cover unbudgeted expenses or expenses in excess of those budgeted. Special Assessments shall be payable in such manner and at such times as determined by the Board and may be payable in installments extending beyonjd the fiscal year in which the Special Assessment is approved.

There is a subsection " Obligation for Assessments". It states each Owner, by accepting a deed or entering into a Recorded contract of sale for any portion of the Property, is deemed to covenant and agree to pay all assessments authorized in the Governing Documents. All assessments, together with interest(computed from its due date at a rate of 10% per annum or such higher rate as the Board may establish, subject to the limitations of Missouri law), late charges as determined by Board resolution, costs, and reasonable attorneys' fees, shall be the personal obligation of each Owner and a lien upon each Unit until paid in full. Upon a transfer of title to a Unit, the grantee shall be jointly and severally liable for any assessments and other charges due at the time of conveyance.

[adjusterjack]

There is a subsection " Obligation for Assessments". It states each Owner, by accepting a deed or entering into a Recorded contract of sale for any portion of the Property, is deemed to covenant and agree to pay all assessments authorized in the Governing Documents. All assessments, together with interest(computed from its due date at a rate of 10% per annum or such higher rate as the Board may establish, subject to the limitations of Missouri law), late charges as determined by Board resolution, costs, and reasonable attorneys' fees, shall be the personal obligation of each Owner and a lien upon each Unit until paid in full. Upon a transfer of title to a Unit, the grantee shall be jointly and severally liable for any assessments and other charges due at the time of conveyance.

That means that the HOA can charge you late fees.

That's written in plain English.

So you owe the assessment and you owe the late fees.

What's there to litigate about?

[adjusterjack]

That means that the HOA can charge you late fees.

That's written in plain English.

So you owe the assessment and you owe the late fees.

If the HOA sued you for the money, you very likely will lose and there'll be a judgment against you for a lot more money than the original assessment that you didn't pay. It'll include the late fees, interest, and the HOA's lawyer fees which could pretty well double the debt as lawyers tend to charge several hundred dollars per hour.

[EveTorres]

I understand all of that, but they are able to charge late fees for every 30 days the assessment is unpaid?

[pg1067]

A couple of points. First, this depends almost entirely on the language of your HOA agreement. You have quoted a few lines of a document that I imagine is several dozen pages in length. Someone would have to review the entire document.

Second, charging interest and late fees may very well be usurious.

I don't know how much $$ is at stake, but you might want to considering getting a lawyer at least to review the document and advise you.

[adjusterjack]

I understand all of that, but they are able to charge late fees for every 30 days the assessment is unpaid?

"..late charges as determined by board resolution..."

Tells me that the HOA can apply the late fee every 30 days if that's what the board decided to do.

By the way, late fees are supposed to be painful as a deterrent to paying late.

Why don't you just pay the assessment?

You aren't likely to win this and the longer you take to pay it, the more it's going to cost you. You might even lose your home over it since the HOA can put a lien on your home for the money and eventually foreclose.