EVERGREEN MEADOWS HOMEOWNERS ASSOCIATION REGARDING POLICY AND PROCEDURES FOR COLLECTION OF UNPAID ASSESSMENTS
SUBJECT:
Adoption of a policy and procedure regarding the collection of unpaid assessments.
PURPOSE:
To provide notice of the Association’s adoption of a uniform and systematic procedure to collect assessments and other charges of the Association.
AUTHORITY:
The Declaration, Articles of Incorporation, and Bylaws of the Association and Colorado law.
EFFECTIVE DATE:
_____________________________________
RESOLUTION:
The Association hereby adopts the following policy: The Association hereby gives notice of its adoption of the following policies and procedures for the collection of assessments and other charges of the Association: 1. Due Dates. Installments of the annual assessment as determined by the Association and as allowed for in the Declaration shall be due and payable on the April 1 day of each year. Assessments or other charges not paid in full to the Association within one day of the due date shall be considered past due and delinquent. Assessments or other charges not paid in full to the Association within 30 days will result in a suspension of membership privileges. 2. Receipt Date. The Association shall post payments on the day that the payment is received in the Association’s office. 3. Late Charges on Delinquent Installments. If an Owner fails to pay assessments for any assessment year, their membership shall be deemed suspended and the Owner may only reinstate their membership upon paying an amount equal to 2X their current annual assessment to reinstate their membership. 4. Return Check Charges. The Association may charge a return check fee, not to exceed $20.00, shall be assessed against
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an Owner in the event any check or other instrument attributable to or payable for the benefit of such Owner is not honored by the bank or is returned by the bank for any reason whatsoever, including but not limited to insufficient funds 5.
Collection Process.
(a) If a membership interest remains unpaid, the Association shall send notice at 30 days and need not send any additional reminders. (b) In addition to the steps outlined above, the Association may elect to suspend the voting rights of any Owner whose account is past due at the time of such voting. 6. Collection Procedures/Time Frames. The following time frames shall be followed for use in the collection of annually installments of the annual assessment and other charges.
Due Date (date payment due) Past Due Date (date payment is late if not received on or before that date) Reminder Notice
April 1 day of the month due One day after due date
Any time after 30 days after due date
7. Communication with Owners. All communication with a delinquent Owner shall be handled through the Association’s attorney once a matter has been referred to the attorney. No member of the Board of Directors shall discuss the collection of the account directly with an Owner after it has been turned over to the Association’s attorney unless the attorney is present or has consented to the contact. 8. Communication by Owners. Owners may communicate with the Association in any manner they choose including email, text, fax, phone, or in writing, when available. However, in doing so, the Owner acknowledges that the Association and/or its agents may communicate via the same method unless otherwise advised.
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9. Defenses. Failure of the Association to comply with any provision in this Policy shall not be deemed a defense to payment of assessment fees or other charges, late charges, return check charges, attorney fees and/or costs as described and imposed by this Policy. 10. Definitions. Unless otherwise defined in this Resolution, initially capitalized or terms defined in the Declaration shall have the same meaning herein. 11. Supplement to Law. The provisions of this Resolution shall be in addition to and in supplement of the terms and provisions of the Declaration and the law of the State of Colorado governing the Project. 12. Deviations. The Board may deviate from the procedures set forth in this Resolution if in its sole discretion such deviation is reasonable under the circumstances. 13. Amendment. This Policy may be amended from time to time by the Board of Directors. IN WITNESS, the undersigned certifies that this Resolution was adopted by the Board of Directors of the Association on ______________________________, 20_______.
Evergreen Meadows Homeowners' Association, a Colorado nonprofit corporation
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