When is my payment of my Association fee actually due?
Every association fee is due in full on the 1st of the fiscal year, in full. Surprised? Don't be. Unless you spend time reading your Governing Documents, State Law, or are a Community Management Professional, there's a good chance you would never know this "Fun Fact" about Community Association Management.
What is the first day of the fiscal year for the Association?
For almost 80% of Community Associations, the first of the fiscal year is January 1st, because their fiscal year is the same as a calendar year. For the other 20% of Community Associations, their fiscal year may vary. Sometimes it starts in April, July, or another time of the year.
What do you mean that my entire year of Association fees is due on the first day of the fiscal year??!!??
The Governing Documents of the Association provide the Board of Directors the right to break up payments over the course of the fiscal year. The Board decides (unless specified in their Governing Documents), how these payments will be broken up for residents: monthly, quarterly, semi-annually, or annually.
Who determines due dates and late fees for the members (Homeowners) of the Association?
The Board of Directors sets the due date and late fees, unless specifically specified in the Governing Documents. If these items (due date and late fees) are specified in the Governing Documents, then the Board is obligated to follow what is stated in the Governing Documents.
Who sets the late fee policy and the collections policy for the members (Homeowners) of the Association?
The Board of Directors sets all policies of the Association, including Rules and Regulations, Policies, and Procedures – except those that are already stated in the Governing Documents. The Declaration (sometimes called the CC&R or Master Deed) and the Bylaws (which can also be called the Code of Regulations) cannot be changed by the Board of Directors. These documents provide the Board with the power and authority to exist and make decisions – but the Board cannot make changes to them. Amendments or changes to the Declaration (or CC&R or Master Deed) and Bylaws (or Code of Regulations) must be performed by a community vote. The requirements for this community vote can be found in the document that the Board and/or Community wishes to change. For example the Bylaws will state what percentage of the Homeowners is needed to amend or change the Bylaws.
Who can change the Declaration or the Bylaws?
For a change to take effect, the Declaration (or CC&R’s or Master Deed) needs to be re-recorded in the County Court house. This document is a part of the running deed. It also needs to be re-distributed to all Homeowners in accordance with delivery notification as stated in the Governing Documents.
Bylaw (or Code of Regulations) amendments or changes are often not recorded, but still need to be distributed to all Homeowners according to the notice distribution as listed in the Governing Documents.
Unilateral changes to the Declaration (or CC&R’s or Master Deed) and Bylaws (or Code of Regulations) cannot be made by the Board of Directors alone. However, the Board can change, adopt, approve and issue new Rules and Regulations. Any change or new rule, however, still needs to be distributed to all Homeowners on Record prior to the Rule going into effect. This distribution should occur in as many ways as possible, but must follow the notification procedures as listed in the Governing Documents.
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