DELINQUENT ASSESSMENT COLLECTION POLICY

Prompt payment of assessments by all owners is critical to the financial health of the Association and to the enhancement of the property values of our homes. Your Board of Directors takes very seriously its obligation under the Declaration of Covenants, Conditions and Restrictions (CC&Rs) and the California Civil Code to enforce the members’ obligation to pay assessments. The policies and practices outlined shall remain in effect until such time as they may be changed, modified, or amended by a duly adopted resolution of the Board of Directors. Therefore, pursuant to the CC&Rs and Civil Code Section 1367.1(a), the following are the Association’s assessment practices and policies:

  1. Assessments, late charges, fines, interest, collection costs including any Attorneys’ fees, are the personal obligation of the owner of the property at the time the assessment or other sums are levied (Civil Code Section 1367 (a), Civil Code Section 1367.1 (a).
  2. Regular monthly assessments are due and payable on the first (1st) day of each month.  It is the owner of records, responsibility to pay each assessment in full each month without receipt of a statement.  All other assessments are due and payable on the date specified by the Board on the Notice of Assessment, which date will not be less than thirty (30) days after the date of notice of the special assessment.
  3. Any payments made shall be first applied to assessments owed, and only after the assessments are paid in full, shall such payments be applied to late charges, fines, interest and collection expenses, including attorneys’ fees, unless the owner and the Association enter into an agreement providing for payments to be applied in a different manner.
  4. Assessments not received within fifteen (15) days of the stated due date are delinquent and shall be subject to a late charge of Ten Dollars ($10.00) for each month of delinquent assessment per unit.
  5. Twelve (12%) percent per annum will be assessed against any outstanding balance, including delinquent assessments, late charges, fines, interest, collection costs, including any Attorneys’ fees.  Such interest charges shall accrue thirty (30) days after the assessment becomes due and shall continue to be assessed each month until the account is brought current.
  6. If a special assessment is payable in installments and an installment payment of that special assessment is delinquent for more than thirty (30) days, all installments will be accelerated and the entire unpaid balance of the special assessment shall be subject to a late charge and interest as provided above.
  7. A first notice of past due assessment letter (“Past Due Letter”) will be prepared and mailed once an assessment becomes delinquent.  A twenty-five ($25.00) dollar charge for the late letter will be made against the delinquent member’s account.
  8. If an assessment is not received within fifteen (15) days after the assessment due date, it becomes delinquent.  The Association or its designee, in the event the account is turned over to a collection agent, will send a pre-lien letter to the owner as required by Civil Code Section 1367 (a) for liens that may record before January 1, 2003, by certified and first class mail, to the owner’s mailing address of record advising of delinquent status of the account and impending collections action.  The owner will be charged a fee for the pre-lien letter.
  9. If an owner fails to pay the amounts set forth in the pre-lien letter within thirty (30) days of the date of that letter, the Association will authorize Association Lien Services to record a lien for the amount of any delinquent assessments, late charges, fines, interest and/or costs of collection including attorneys’ fees against the owner’s property.  The owner will be charged for the fees and costs of preparing and recording the lien.  Thirty (30) days following recordation of the lien, the lien may be enforced in any manner permitted by law, including without limitation judicial or non-judicial foreclosure (Civil Code Section 1367 (e); Civil Code Section 1367.1 (g).
  10. If an owner, within thirty (30) days from the date of recordation of the lien, pays to the association, under protest, all amounts required by Civil Code Section 1366.3 (the amount of assessments, late charges, fines, interest and all fees, costs to date of preparing and filing the lien, including attorneys’ fees, not to exceed the statutory allowance).  The owner may request resolution of the assessment dispute by Alternative Dispute resolution as outlined in Civil Code Section 1354, by civil action, or by other procedures available through the Association.
  11. An owner is entitled to inspect the Associations accounting books and records to verify the amounts owed pursuant to Corporations Code Section 8333.
  12. In the event it is determined that the owner has paid the assessments on time, the owner will not be liable to pay the charges, interest, fines and costs of collection associated with collection of those assessments.
  13. Any owner who is unable to pay assessments will be entitled to make a written request for a payment plan to be considered by the Board of Directors. An owner may also request to meet with the Board in Executive session to discuss a payment plan.  The Board will consider payment plan requests on a case-by-case basis and is under no obligation to grant payment plan requests.
  14. Nothing herein limits or otherwise effect the Association’s right to proceed in any lawful manner to collect any delinquent sums owed to the Association.
  15. Prior to the release of any lien, or dismissal of any lien action, all assessments, late charges, fines, interest, and costs of collection, including attorneys’ fees, must be paid in full to the Association.
  16. All charges listed herein are subject to change upon thirty (30) days; prior written notice.
  17. The mailing address for overnight payment of assessments is: CMHOA, P.O. Box 20965, Bakersfield, CA  93390-0965
  18. Returned check fee is thirty ($30.00) dollars, plus any bank fees charged to Association checking account.

POLICIES & PROCEDURES

The Board of Directors has established the following policies and practices, regarding the payment and collection of delinquent and special assessments, late fees, violation fines, clerical fees, storage and facility rental fees, reasonable attorney‘s fees and collection costs.

POLICIES

ASSESSMENTS – Assessments subject to this policy include regular monthly assessments and any levied special assessments or lien able monetary penalties.

COLLECTION FEES AND COSTS –  The costs of collection of delinquent assessments, late fees, violation fines and reasonable attorney fees and costs, are included in the amount of any lien recorded against the property and any collection recovery actions by the Association.

DELINQUENCY – The term delinquency shall include any delinquent unpaid regular or special assessments, late charges, violation fines, storage and facility rental fees, clerical fees, and interest and costs of collection incurred.

PARTIAL PAYMENTS –  If a partial payment is received which is less than the entire unpaid balance owed on the owner’s account, including collection charges, the Association may elect to accept the partial payment.  If the partial payment is accepted, it shall not act as a waiver of the Association’s right to require payment of all sums specified in Civil Code1366.3 prior to the Association’s obligation to inform the owner that he/she may resolve any dispute pursuant to Civil Code 1354, civil action, or any other procedure available through the Association.

PAYMENTS –  Payments received after a delinquent account is assigned to the Association’s attorney for collection shall be forwarded by the Association directly to the Attorney.  If the partial payment is accepted, it shall be credited first to outstanding principal balances on the member’s account pursuant to California Civil Code 1367 (a), and the remaining unpaid balance shall be subject to this policy.

PAYMENT PLAN –  Upon proper request by the delinquent owner, short payment plans may be approved at the sole discretion of the Board of Directors based upon circumstances of each delinquent account.  However, the Association is not a financial institution and does not intend to act as a financial institution on the long term financing of an owner’s delinquency.

PERSONAL LIABILITY –   All assessments, late charges, violation fines, clerical fees, storage and facility rental fees, interest and costs of collection, including attorney fees, are the personal obligation of the owner of the property at the time of the assessment or other sums are levied according to Civil Code Section 1367 (a).

RETURNED CHECK CHARGES –   A charge of thirty ($30.00) dollars, in addition to any bank charges that the association may incur, will be added to the account of any owner whose check has been returned by their financial institution.

STATEMENTS – Will not be sent on a monthly basis.

WAIVER OF CHARGES –  If an owner’s account becomes delinquent and the Association is required to incur certain charges due to the member’s delinquency, the Association’s policy is to not waive the delinquent owner’s payment of these charges. 

PROCEDURES

DUE DATE – Regular monthly assessments are due on the first (1st) day of each month. All other assessments are due on the date levied, late charges, violation fines, storage and facility rental fees, clerical fees, attorney fees and costs, and costs of collection, are due upon date incurred.

FIFTEEN (15) DAYS PAST DUE – Assessments not postmarked by the fifteenth (15th) day of the month or the fifteenth (15th) day after their stated due date, will be imposed a late fee of ten ($10.00) dollars for each month of delinquent assessment per unit. The delinquent owner is notified by regular mail of such delinquency and assessed late charge.

THIRTY (30) DAYS PAST DUE – A past due assessment letter is mailed to Homeowner. There is a clerical fee of twenty-five ($25.00) dollars for this service

FORTY-FIVE (45) DAYS PAST DUE – The owner’s account ledger is mailed to Association Lien Service (ALS) for collection of past due amounts. The ten ($10.00 ) dollars per month assessed to delinquent accounts on the sixteenth (16th) day of each month will be assessed as with any other fines and fees.

SIXTY (60) DAYS PAST DUE – The delinquent account is assigned to the Association Lien Service’s (ALS) attorney to proceed in having of delinquent assessment lien prepared and recorded against the owner’s property, on behalf of the Association. The delinquent owner’s account shall be charged for the fees and costs associated with the preparation and recording of the Assessment Lien. A copy of the Notice of Delinquent Assessment Lien shall be mailed to the delinquent owner by certified and first class mail.

NINETY (90) DAYS PAST DUE – Collection upon the Notice of Delinquent Assessment Lien shall be initiated by the Association’s attorney. In lieu of the foreclosure action against the property, the Board may elect to proceed with a judicial suit for the collection of the delinquencies. All fees and costs associated with the foreclosure or judicial suit for collection shall be charged to the delinquent owner’s account.

Country Meadows Homeowner’s Association will NOT accept payments on an account once Association Lien Service has initiated collection proceedings.