Our collection process for HOAs is strict, consistent, and uniform.
If full payment of the assessment is not received by the bank by the 20th of the month, we send the delinquent owner a Courtesy Notice, in which we notify the owner of his or her delinquency, request payment, and state the consequences of nonpayment.
If the Courtesy Notice is disregarded, we send the owner a Demand Notice, in which we give the owner 15 days to pay the debt or a lien may be recorded against the owner’s unit. A collection charge is then added to the owner’s account. Business judgment rule.
If the Demand Notice is also disregarded, a 30-day Pre-Lien Notice is sent to the owner, as required by law. If the debt is not paid in full within 30 days from the Pre-Lien Notice, a lien is usually recorded against the owner’s unit (that decision is made by the board of directors).
For Apartments and Single-Family Homes, we follow the guidelines of the Civil Code appropriate sections. After the grace period set by the landlord, we serve a 3-day notice on the tenant, requesting full payment of the rent. If no payment is received as demanded, we immediately start the eviction process. We may alter this method, within the boundaries of the law, at the landlord’s request.
All HOA’s must follow the due process of the law.