April board focus: Late fee and delinquency policy
Our focus this month for our volunteer boards is clarifying the HOA’s policy on late assessment payments.
No one wants to impose fines on neighbors, and MicroHOA is not eager to do so. However it is important for the health of the HOA to have a clear, effective, and enforceable policy for delinquent assessment payments. By setting a clear policy, the board will be prepared if this situation occurs.
This topic is particularly important for our small communities. “Late payments can cause cash flow problems for communities with a tight budget,” says Pamela Babcock, author of “Insert Payment Here”, in this month’s Common Ground magazine from the Community Associations Institute. Since small HOAs have fewer members and fewer sources for revenue to pay community expenses, this is an even more critical component of a healthy HOA.
Read more about collection policies in this article from CAI:
Board members will see an email with a summary of current policy, with an audit of areas that need clarification. We will provide guidance to set a policy that works for the community.
