Collection Policies: A Great Tool for Boards

As we begin a new year, it is a good time for boards to review their collection procedures. A community association’s ability to collect unpaid assessment from unit owners will generally be outlined in its recorded declaration. However, most declarations only discuss the board’s authority to collect common expenses, including delinquent assessment. Therefore, it is incumbent on the board to decide what steps it will follow when collecting delinquent assessments. A collection policy is a good roadmap not only for the Board but also for its managing agent and attorney. It also helps owners understand what will happen if they are delinquent on the payment of assessment by establishing expectations. click here