CANOGA COUNTRY HILLS HOMEOWNERS ASSOCIATION
ASSESSMENT DELINQUENCY / COLLECTION POLICY
Timely payment of regular assessments is of critical importance to the Association. Members’ failure to pay monthly assessments when due 1) creates a cash-flow problem for the Association and 2) causes those owners who make timely payment of their assessments to pay a disproportionate share of the communities’ financial obligations. Therefore, the Board of Directors has enacted the following policies and procedures concerning collection of delinquent assessment accounts, which incorporate the provisions of the California Civil Code Sec. 1350-1378, AB2289 (effective 1/03), SB137 (effective 1/06), and the Association’s CC&Rs.
1) All regular assessments shall be due and payable, in advance, in equal monthly installments, on the first day of each month.
2) Special assessments shall be due and payable on the due date specified by the Board in the notice imposing the assessment, or in the ballot presenting the special assessment to the members for approval but in no event earlier than 30 days after the special assessment is duly imposed.
3) Regular assessments shall be delinquent if not paid within 15 days after they become due; to wit, unpaid by the 15th day of the month.
4) Special assessments shall be delinquent if not paid within 15 days after they become due.
5) If an installment payment of a regular assessment, or payment of a special assessment, is not made within fifteen days after it has become due, a late payment charge of $10.00 or ten percent (10%) shall be imposed, whichever is greater, and the Association shall be entitled to recover any reasonable collection costs, including paralegal or attorney fees, that the Association incurs in its efforts to collect the delinquent sums.
6) If an assessment is unpaid for more than 30 days after it is due, interest shall be imposed on all sums due, including the delinquent assessment, reasonable costs of collections, and late charges, at an annual percentage rate of twelve percent (12%).
7) If an assessment is unpaid for more than seventy-five (75) days after it is due, the Association may refer the matter to its attorney or trustee for collection and, will cause to be recorded in the Los Angeles County Recorder’s Office a Lien on the property concerning all sums that are then delinquent, including the delinquent assessment, late charges, $160.00 lien charge, costs, interest and reasonable attorney fees. Recording of a Lien is subject to foreclosure against the delinquent owner’s property. Prior to the recordation of the Lien, a Pre-Lien Notification must be sent giving the owner thirty (30) days in which to pay the arrearage or request a payment plan in writing or dispute the amount due in writing to the Board of Directors. (Prior to the Prelien Notification, a 7-Day Demand letter may be sent to the unit owner requesting the balance on the account be paid in full).
8) If an assessment is unpaid for more than one hundred six (106) days after it is due, the Association may cause an action at law to be brought against the owner(s) who is personally obligated to pay the delinquent assessment, or if over three hundred sixty-five (365) days have elapsed or $1800.00 in delinquent assessments is due, the association may cause a judicial or non-judicial foreclosure proceeding to be initiated to foreclose its lien against the owner’s unit. If a unit is sold for delinquent assessments, the foreclosed owner may have a right of redemption within ninety (90) days after the sale.
9) If a lawsuit or foreclosure procedure is initiated by the Association to recover assessments, the Association is entitled by law [Civil Code section 1367.4(b)(1)(B)] and by the declaration of the Covenants, Conditions and Restrictions of the Association, to recover not only the amount in default, plus late charges and interest, but also reasonable costs of collection, including title company charges and attorney fees. If the property is foreclosed upon and a Trustee’s Sale is initiated, the foreclosed owner may have a right of redemption, within ninety (90) days of the sale, to pay all of the assessments owed, including, but not limited to, Attorney’s fees, Trustee Sale fees, collection fees, late fees, recording fees, and interest.
10) Payments received on delinquent assessments will be applied to the owners account by the balance forward payment method, i.e. in reverse order so that the oldest arrearages are retired first. However, payments shall first be applied to the assessments owed and only after the assessments are paid in full shall the payments be applied to the fees and costs of collection attorney s fees late charges or interest.
11) Any homeowner who is unable to pay assessments is entitled to make a written request for a payment plan to be considered by the Board of Directors
12) PAYMENT: Payment on a delinquent account via regular mail or overnight mail should be made payable to the association and mailed directly to Canoga Country Hills HOA, c/o Karen L. Katzbeck, CPA, 60620 Telluride Drive, Suite 201, Bend, Oregon 97702-8101. Correspondence sent to the bank is not guaranteed to be forwarded to Canoga Country Hills HOA or Karen L. Katzbeck, CPA.
CHRONOLOGY CHART
Day 1
Assessment due
Day 15
Assessment becomes delinquent (If account is delinquent, a late charge in addition to other costs and attorney fees may be added.)
Day 30
Interest shall begin to accrue at the rate of twelve percent (12%) per annum.
Day 31
7-Day Demand Letter ($10.00 letter charge)
Day 76
Notice to owner - lien to be recorded within thirty (30) days. ($47.00 initiation charge - Pre-lien Letter)
Monitoring of a payment plan ($50.00)
Day 96
Lien sent for recordation ($160.00 lien charge + costs)
Day 97
Initiation of small claims demand. ($47.00 demand charge)
Day 107
Small Claims action may be filed (Attorney hourly rate + costs)
Day 356
Initiation of foreclosure demand ($47.00 demand charge)
366 days or $1,800.00, whichever comes first
Lawsuit or foreclosure procedure (Attorney rate + costs)
Approved By:
Canoga Country Hills Homeowners Association Board of Directors
Effective Date:
May 1, 2008
