Collection Policy
Effective August 1, 2008
1. AMOUNTS PAYABLE TO THE ASSOCIATION. These amounts shall be deemed to include, but are not limited to, regular assessments, special assessments, rules and regulations enforcement fees/fines, repairs to the common elements that are an owner’s responsibility, legal fees and other costs associated with collection of funds on behalf of the Association.
With respect to fine, these shall be imposed in cases where an owner is in violation of the Association’s governing legal documents, and fails to timely resolve or otherwise cure the violation. Once a fine is imposed, the Association’s Property Manager will include unpaid fines on monthly statements of account sent to the Owner until all assessments, fines, and fees are paid or the matter is turned over to the Association’s attorneys.
2. NOTICE. The Board shall mail a notice of each Owner’s annual assessment, along with a copy of the Association’s annual budget, at least 30 days prior to the beginning of the fiscal year for which it is effective.
3. PAYMENT SCHEDULE. Unless otherwise provided by the Board, the annual assessment is payable in equal monthly installments in advance on the first day of each month. Monthly assessment payments not received by the 5th of the month are delinquent. The Board shall establish the due dates for Special and Specific Assessments as they arise. Fines shall be due from any Owner against whom they are imposed immediately upon the Owner’s notification of the fine.
4. PAYMENT PLANS. The Association may consider requests for payment plans to avoid late fees if, prior to the assessment due date, a plan is requested in writing and delivered to the Association’s Property Manager at 75 Fifth Street, NW, Suite 1350, Atlanta, GA 30308.
In order for a payment plan to be considered, extenuating circumstances and any evidence thereof must be presented in writing with the payment plan request. No payment plan may extend beyond the fiscal year in which the plan is requested.
5. LATE CHARGES, NSF & INTEREST CHARGES. Payments are considered delinquent if not received on or before the due date by the Association’s Property Manager (or the lockbox set up by the Property Manager. All other assessments are considered past due (delinquent) if payment is not received within five (5) days of the indicated due date. A late charge of $10.00, or a charge equal to ten percent (10%) of the amount past due, whichever is greater, shall be charged for all past due assessments if the payment has not been received within five (5) days following the due date. Late fees will only be waived if written evidence of delivery failure is presented, in writing, within thirty (30) days of the delinquent date. Late fees will not be waived after said thirty (30) day period or for any other reason.
Owners will be liable for any NSF (non-sufficient funds) charges the Association incurs due to the owner’s check returned by the Association’s financial institution. Interest in the amount of ten (10%) per annum will accrue from the due date against all delinquent amounts.
6. ORDER OF CREDITING PAYMENTS. Payments received shall be first applied to costs and attorneys’ fees, then to interest, then to late charges, then to delinquent assessments, and then to current assessments.
7. PROCESS FOR DELINQUENCY NOTIFICATION.
(a) First Notice: First Notice of Past Due Charges including detail of assessments, late charges, applicable NSF charges, and any other charges that apply will be sent to an owner whose balance is more than ten (10) days past due. This notice will also provide that if the delinquent owner fails to pay all past due amounts within ten (10) days of the notice, then pursuant to the governing documents the owner will lose the option of paying the annual assessment in monthly installments and the remaining installments of the annual assessment will become immediately due and payable. This notice will be sent by the managing agent for the Association.
(b) Second/Final Notice: Second Notice of Past Due Charges including detail of assessments, late charges, NSF charges, interest and other charges that apply will be sent to an owner whose balance is more than thirty (30) days past due. This notice will further advise the delinquent owner of the Association’s intent to send the account to legal counsel for collection if not paid in full within thirty (30) days of the date of such notice. This notice will be sent by the managing agent for the Association.
8. ACCOUNTS IN COLLECTION/ATTORNEYS’ FEES. If an account is delinquent for sixty (60) or more days, the account will be referred to the Association’s attorney for collection. If a delinquent account is referred to an attorney for collection, the owner shall be charged the Association’s reasonable attorneys’ fees actually incurred and all related costs. Once an account is turned over to the Association’s attorney, the attorney will send collection letters, file lien notices, make collection phone calls, negotiate payments, and pursue other appropriate collection actions, including the filing of a lawsuit, if necessary and the filing of bank and/or wage garnishments once a final judgment has been obtained. In any such collection action, the Association’s attorney will seek to collect all past due assessments, including utility charges, late fees, and/or fines, as well as all costs of collection, including attorney fees, court fees, and interest on the indebtedness. The Association’s attorneys will be required to obtain Board approval for the negotiation of any payment terms proposed by a delinquent owner. Negotiations are handled on a case-by-case basis but generally follow the following guidelines:
● The Association places the highest priority on collecting assessments, (including any special assessments and utility charges paid for as a common expense), and any late fees. Late fees are considered a hard cost that the Association collects from all Owners.
● Next in priority are any out-of-pocket costs actually incurred by the Association. This includes all legal costs or other fees that have already been paid to those servicing the Association’s accounts. Out-of-pocket costs are considered a hard cost that the Association collects from all Owners.
● Last in priority are soft costs such as fines and interest. Fines can be waived at the discretion of the Board if the Owner cures the violation for which the fine is imposed. Fines are less likely to be waived in cases where the owner is a repeat offender.
9. AUTOMATIC STATUTORY LIEN. Under the Georgia Condominium Act, any delinquent amount owed to the Association is a binding personal obligation and an automatic statutory lien against the delinquent owner’s unit. This means that a lien exists by law and that the Association shall not be required to file a paper lien in the county land records; however, the Association may, in the Board’s discretion, record a notice of such lien in the county lien records. The lien will encompass all delinquent amounts (including accelerated assessments), late fees, interest, applicable NSF charges, and all costs of collections including any reasonable attorneys’ fees actually incurred.
10. JUDICIAL FORECLOSURE. Pursuant to the Georgia Condominium Act, the Association may foreclose any lien it has against a delinquent owner by filing for a judicial foreclosure. This option will be exercised by the Board when all traditional collection efforts outlined above are to no avail or when the Board determines such action to be in the best interest of the Association.
11. SUSPENSION OF RIGHT TO VOTE AND RIGHT TO USE COMMON ELEMENTS AND SERVICES.
(a) Right to Vote: The voting rights of any owner who is shown on the books of the Association to be thirty (30) days delinquent in any amounts due to the Association shall be suspended upon ten (10) days’ written notice.
(b) Right to Use Common Elements and Services: In the event any assessment is delinquent thirty (30) days or more, the Association shall suspend the Owner’s right to use the common elements, including, but not limited to, the Association’s recreational amenities, parking spaces, storage spaces and other building facilities, upon 10-days’ written notice. The suspension of a delinquent owner’s use privileges will not deny such owner access to or from the unit.
Further, in the event any assessment is delinquent for thirty (30) days or more, the Association shall have the right to suspend any utility or service paid for as a common expense, upon at least 10-days written notice to the delinquent owner, provided, however, that the Association will only suspend common utility services after obtaining a final judgment in its favor in excess of Seven Hundred and Fifty Dollars ($750.00) or more from a Court of competent jurisdiction, in accordance with the Association’s governing legal documents and the Georgia Condominium Act.