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
*  Accounting
*  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.

Elina B. Gilbert
2 responses to “Come Again? What Needs to Be In Our Collection Policies?
  1. Responsible associations would already have been doing these things. Herein lies the problem: We all end up being legislatively controlled because some boards are not responsible, not transparent and do not operate in a respectful and equitable fashion. Where are their managers while all this is going on? I know ours is often asleep or texting, and never says a word at the meetings. And there is nothing in the upcoming manager-licensing legislation that requires them to behave any differently.
  2. Very good comments! I am a property manager and work hard to ensure that homeowners are aware of their responsibility of paying assessments on time and often give owners plenty of warning letters and opprotunity to enter into a plan and rarely does the owner put in a written request. When I do get a request and time goes by without a payment as agreed upon it then goes to legal. Regarding licensing of managers, what will be will be, those who take pride in what they do will manage and perform as they know they should and lead the Board of Directors soundly into business decisions. The laws will continue to increase because that is how things have become and I am not quite sure there is enough involvement of owners, in a positive sense, such as volunteering time. Joe, sorry you have had a bad experience. I believe there are many good managers out there, licensing or not however there will always be bad ones.
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