As discussed in our last blogpost, the near future will likely bring many cases of homeowners unable to pay their assessments in a timely manner. As such, many boards may be looking at a moratorium on the collection of delinquent assessments, as a way to help homeowners catch up.
In an effort to assist those who are considering a moratorium, we have drafted a sample Moratorium Resolution here for your use. Please note that this is a SAMPLE resolution only. It may need revising to fit your particular association’s authority and/or your board’s decision on what specific collection remedies will be included in the moratorium.
Also, keep in mind that whatever action you take with respect to assessments today, in reaction to the virus, may have a severe impact on the association’s financial state several months from now. Boards need to make a reasoned decision and look not only at today’s financial circumstances in light of COVID-19, but tomorrow’s financial health. If you are considering waiving late fees/interest, or extending payment plans or the period of delinquency before sending over to collections, or any other type of moratorium, be sure to consult with your association’s counsel first.
Stay tuned for more COVID-19 blogs to help you navigate the new virus world! And, in an effort to make it easier for you to find COVID-related resources, we have installed a temporary COVID-19 Resources area on our website for easier navigation.
Should you have any questions on the above or the attached SAMPLE document, please contact any of the Altitude Community Law attorneys at 303.432.9999.
I listened to the HOA Leader and understood our BOM could not postpone dues (assessment) payments unless given that authority in our declarations. Are you saying we CAN postpone payment of assessments, or are you saying we can write a resolution to not assess LATE FEES for late payments?
Hi Cindi,
The authority to issue any kind of moratorium, waive late fees/interests, or to alter your collection practices in any way is driven by your governing documents, state law, and applicable governmental mandates. You should speak with your association’s counsel directly to review your options. And, if you are able to pursue some form of moratorium, then we recommend the board adopt a resolution to establish the parameters of such moratorium, and to memorialize its business decision in light of COVID-19. Again, the sample one we provided is a sample only, and will need to be revised according to your association’s authority and needs.