Dues and Assessments

The “Dues and Assessments” category contains articles of information that pertains to topics relating to a homeowner association’s dues and assessments policies and procedures.

AK Bk Ct Says Homeowner Can’t Discharge Debts for HOA Dues After Filing of Bk

AK Bk Ct Says Homeowner Can't Discharge Debts for HOA Dues After Filing of Bk This case involved the issue of whether homeowners’ association fees and assessments that accrued after a homeowner had filed a Chapter 13 bankruptcy were dischargeable. The homeowner had purchased a property in a development governed ...
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Appellate Court Says HOA Debt Collection Letters Must Satisfy “The Least Sophisticated Debtor” Test

Appellate Court Says HOA Debt Collection Letters Must Satisfy “The Least Sophisticated Debtor” Test Ninth Circuit U.S. Court of Appeals opinion (January 13, 2017). This case involved a dispute between a homeowner (“Homeowner”) and the attorneys for her homeowners’ association (“Association”), who were attempting to collect unpaid dues that were ...
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Bankruptcy Court Removes Valueless HOA Assessment Lien that Was Not Properly Perfected

US Bankruptcy Court - Eastern District of Virginia (June 10, 2014). Bankruptcy debtor (homeowner) filed action in bankruptcy court to determine the validity, priority or extent of liens asserted by her HOA against her property. In the action, the homeowner/debtor sought the release of the HOA's judgment and assessment liens ...
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Bankruptcy Court Says Ongoing HOA Assessments are Dischargeable

US Bankruptcy Court decision (September 25, 2014): In this case, the owners of a condominium located within a common interest community stopped paying their mortgage and homeowners assessments and abandoned their property. They subsequently filed a Chapter 13 bankruptcy in which they proposed a plan that provided for transferring title ...
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CA Court Prevents Foreclosure & Enforces HOA Member’s Right to Payment Plan to Cure Delinquency

California Appellate Court (January 13, 2014) ruled that the legislative intent behind Civil Code 1367.1 allows for partial payments to pay down delinquent assessments, and limits the remedy of foreclosure to only a last resort. Accordingly, the Association’s refusal of the partial payments by the owners did not justify a ...
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CA Court Says No to Foreclosure by HOA, Yes to Payment Plan by Member

/ Dues and Assessments
CA Court Says No to Foreclosure by HOA, Yes to Payment Plan by Member An HOA member (“Owner” ) failed to pay applicable homeowner’s association fees. A year and a half later, the association notified Owner that he was $3,864.96 delinquent and recorded a lien against Owner’s property. Prior to ...
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Complying With Debt Collection Laws When Collecting HOA Assessments

/ Dues and Assessments
Complying With Debt Collection Laws When Collecting HOA Assessments A vital function of the operations of a homeowners association is getting their owner-members to pay assessments on a regular and timely basis. The timely and consistent collection of assessments by associations managed by volunteer boards is impacted by state and ...
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Court Says Owner Must Pay Maintenance Fees But Has Claim for Damages against Homeowners Association

/ Dues and Assessments
Court Says Owner Must Pay Maintenance Fees But Has Claim for Damages against Homeowners Association This case involved a dispute between a homeowners association (“Association”) and an individual condominium owner /member of Association (“Owner”) over Owner’s refusal to pay monthly assessments because of a dispute over the lack of maintenance ...
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Ct Says HOA That Did Not Record Lien Cannot Be Classified as a Secured Creditor in Bankruptcy

US District Appellate Court decision (November 21, 2014). In this case, a homeowner in a common interest development filed a Chapter 13 bankruptcy. The homeowners association filed a claim as a "secured creditor" in the bankruptcy proceedings for unpaid dues. The homeowner / debtor in the bankruptcy objected to the ...
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Ct. Rules HOA Failure to Maintain Does Not Justify Homeowner’s Nonpayment of Dues

Ct. Rules HOA Failure to Maintain Does Not Justify Homeowner’s Nonpayment of Dues This case involved a dispute between a homeowners’ association (“Association”) and husband and wife homeowners (“Homeowners”) over the nonpayment of association dues by Homeowners. The action was precipitated by Homeowners’ failure to pay the dues owed to ...
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Ct. Rules Homeowner “Waiver” of Order of Application of Funds Paid per Payment Plan is Void

Ct. Rules Homeowner “Waiver” of Order of Application of Funds Paid per Payment Plan is Void In this case, a homeowner that was delinquent in the payment of homeowners’ dues, contested the actions of the association’s attorney / collection agent relative to enforcing the outstanding debts. Initially, when the matter ...
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Dist. Ct. Rules HOA Action to Collect Fine is Not Violation of Fed & State Debt Collection Laws

Dist. Ct. Rules HOA Action to Collect Fine is Not Violation of Fed & State Debt Collection Laws An HOA imposed fines against the owners of a separate interest in the homeowners association for their violation of the HOA’s governing documents that prohibit the renting of the subject property. The ...
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Don’t Allow Your HOA to Ignore Financial Needs and Operate Without Proper Reserves

/ Dues and Assessments, Finances
Don’t Allow Your HOA to Ignore Financial Needs and Operate Without Proper Reserves Studies show that there are a growing number of homeowners associations that ignore reserve funding requirements and as a result, fail to maintain the required level of reserve funds to properly maintain, repair, and replace common areas ...
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Fed Ct. Says Consumer Protection Laws Extend to Communications to a Debtor’s Attorney

Fed Ct. Says Consumer Protection Laws Extend to Communications to a Debtor's Attorney This case involved a dispute over the interpretation of two sections of the Federal Fair Debt Collection Practices Act (“FDCPA”). The sections in question pertained to a requirement that a debt collector provide notice to a consumer ...
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FL Ct Says Lender Was Assignee by Operation of Law & Has Limited Liability for Unpaid Assessments

Florida District Appellate Court decision (December 5, 2014). This case involved claims by a foreclosing mortgage lender that it was entitled to limited liability under Florida's safe harbor statutes for a homeowners association's past unpaid assessments against the condominium that the lender had foreclosed on. The lower court found the ...
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