Master Association Revises Collection Policy
by Terri Wiebold
The Master Association Board of Directors adopted a revised dues collection policy at its monthly Board of Directors meeting in September. Annual dues notices for the Master Association will be mailed to homeowners in December and, in accordance with the new policy, dues will now be payable on January 1, 2009.
This change, according to the board of directors, is to sync up payments with the Association’s fiscal year and to ensure the timely transfer of funds to the Parks Authority.
As stated in the new policy, assessments or other charges not paid to the Association by February 1 each year shall be considered past due and delinquent, and shall bear interest at a rate of eighteen percent (18%). To allow for a smoother transition for homeowners, the Master Association Board of Directors has granted a 15-day grace period for 2009, making dues delinquent if not received by February 15, 2009.
“In the past, there was no real motivation for home
owners to pay their bills prior to June or July,” said Garry Schaefer, one of the Master Association’s Client Preferences management company representatives. “This Board of Directors, by virtue of Declaration, decided to exercise its right to legally collect this interest,” Schaefer continued.
The policy also states that the Association shall be entitled to impose a late charge of not less than fifty dollars ($50) on each past due and delinquent installment, as well recover any collection costs incurred by the Association including, but not limited to, legal costs.
According to former Master Association Treasurer Anna Mallinson, the $50 late fee has always been charged, but the collection of interest is new to the policy. “We had no idea that we could legally charge interest on these delinquent accounts,” said Mallinson. “We are not trying to make the situation more difficult for everyone; it’s just one more thing to encourage them [homeowners] to write the check.”
The Master Association’s collection philosophy states that all owners are obligated by the Master Declaration of Covenants, Conditions, Restrictions, and Easements, Castle Pines North (“Declaration”) to pay all dues and assessments in a timely manner. Failure to do so jeopardizes the Association’s ability to pay its bills, and failure of owners to pay assessments in a timely manner is also unfair to its other owners who do. Accordingly, the Association, acting through the Board of Directors, must take steps to ensure timely payment of assessments.
The new policy also addresses procedures for checks returned by the bank unpaid, the timeline for sending notice of delinquency letters, referrals of delinquent accounts to attorneys and/or collections agencies, filing of notices of lien against a delinquent property, and ultimately the judicial foreclosure of a property.
In addition to the revised Collection Policy, the Master Association Board of Directors recently adopted a new Email Alert Usage Policy and revised its Board of Director Conflict of Interest Policy.
To view the new policies, go to www.cpnhoa.org under the “Neighborhood HOAs” tab and go to CPN Master Association. Please direct any questions about the policy to Client Preferences management company representative, Vickie Hunt at 303-991-2773 or email Contact by email .