Late Fees Rise to $40

Rash of late payments raise concerns

Late payments trigger late-fee increase.

A rash of late payments for HOA dues and insurance assessments triggered the HOA Board to increase late fees from $25 to $40 as an incentive to pay on time.

At one point, about 40 residents were behind in HOA payments and about $14,000 were reported in late payments. Because of work by the HOA bookkeeper that number dropped to 12 at a recent count and late payments to about $5,000. The higher number of past-due accounts also resulted in the Board asking for a bookkeeper's report on accounts that are two months past due. The report will help the Board respond to these financial situations and may help resolve the late status.

In rare cases, homeowners might find themselves several months past due. The HOA regulations allow late fees to be charged, and the HOA also may place liens on properties for past due amounts. For worst-case scenarios, state laws allow HOA foreclosures on properties.

HOA dues payments have a grace period, but dues that are a month past due raise attention.

HOA dues and assessments help maintain the community. The monthly dues pay for upkeep, maintenance, repairs, pool upkeep, maintenance team staff, and other operational support.

Currently, Los Lagos Vistas has only one assessment, and that's for the annual insurance premium. Because the premium has increased dramatically in the past two years, the HOA assessment doesn't pay for the entire premium, which requires using money from other funds to pay for the community's property and liability insurance. The deficit causes other problems because it dilutes the HOA's ability to respond to emergencies and large scale projects, such as carport repairs and water system leaks.