The January 1, 2014, deadline for HB 1276 (the HOA Debt Collection Bill) compliance is almost upon us, and some associations have decided to update their collection policies without the assistance of attorneys. Below is a list of the minimum information that must be contained in associations’ collection policies as of January 1, 2014.
- Date when assessment must be paid and when such assessment is past due/delinquent;
- Late fees and interest the association is entitled to impose;
- Return check charges;
- Circumstances under which the delinquent owner is entitled to a payment plan and the minimum terms of the plan;
- A letter will be sent to the delinquent owner prior to turning the account over to an attorney or collection agency that provides as follows:
* Total due
* Whether an opportunity exists to enter into payment plan
* Instructions for who to contact to enter into payment plan
* Name and contact information for the person who can provide the owner with a copy of a ledger
* Failure to enter into play or cure the delinquency within 30 days may result in legal action or account getting turned over
to collection agency
- Method by which payments are applied on a delinquent account;
- Legal remedies available to the association.
For more information concerning the necessary updates, or to request an update to your community’s collection policy, please contact one of our attorneys at 303.432.9999.