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The Orchards @ Anderson Heights Homeowners' Blog

The Official blog of The Orchards @ Anderson Heights – made by homeowners, for homeowners

Here’s what one HOA is doing about deliquent accounts…

A community in West Palm Beach, FL is implementing a transponder in every homeowners’ vehicle.

Now, the community is trying something new. Liens are only marginally working, so the HOA board has invested in new security software and a car transponder system that will cut conveniences, like entry into the community — until they pay up.

Apparently they can revoke conveniences remotely when homeowners are late paying their assessments.  A community association attorney said,

Terracina’s plan is smart, but they must let homeowners in. They have right to go into their own homes and they have a right to park there and you can’t stop that, rightfully so. But you don’t have to give them total convenience.”

You can read the full article here

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5 Responses to “Here’s what one HOA is doing about deliquent accounts…”

  1. chris says:

    I think the HOA in the article is much, much larger than ours… they said something about a guest lane. Also – this is yet another potential solution that costs money to implement.

    I wonder if paying $21.00 every two weeks would be easier for some homeowners… ?

    chris

  2. Mark says:

    That might be interesting to offer…I do the same for my car payment.

    I’d also like to see a yearly feature. To keep it simple, my idea would be that during January of each year, an owner can opt to pay either the entire year up front or continue with monthly payments. If the owner elects to pay the year in advance, the amount will be 11 times the monthly rate as of January first of that year. So, if the dues amount for 2010 is $42/month on January 1, 2010, an owner would pay 11 * $42 = $462. If the dues amount changes within 2010 within the allowed 20% rate, a paid-in-advance owner would be protected from that rate change for that year.

    If the dues are increased by more than 20% as allowed by our Bylaws (with a vote of consent from owners), it makes sense that the paid-in-advance owners would make up the difference during the first month of the new rate.

    For example, if the rate during 2010 was raised, by consent of owners, to $75 per month as of July 1, 2010, that is an increase of $33/month. Paid-in-advance accounts would be billed that $33 * 6 = $198. In the case of such a drastic increase, however, owners could elect to pay it monthy or in lump sum. The reason for this method is that if something came up that the community agrees we need to increase dues by so much, then all members of the community should be contributing to the HOA account.

    Comments?

  3. chris says:

    That’s a really good idea Mark!

    I found this article today – they too cut off access to pools, etc and gave the homeowners an option to pay down their delinquent balance over a period of 24 months!! Check it out: ARTICLE

  4. Julia says:

    I love the idea of a reduced rate for paying in advance. We pay in advance every year. That way, we don’t have to worry about yet another bill each month. (especially one that’s not very user friendly to pay!)

    I think it’d be nice not to receive statements on this each month as well as that has administrative costs associated with it that aren’t necessary, which would help justify the reduced rate.

  5. LYNN says:

    I don’t get statements, I pay from a coupon book.

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