Appropriate Steps to take when Collecting Assessments from Delinquent Condominium and HOA Homeowners (MI)

If you are a Board Member of a condominium or homeowners’ association, you may encounter residents who do not pay their monthly or annual assessments on time. Although an association’s governing documents, along with Michigan law, outline the procedure for collecting assessments, they do not always include the timing or strategies involved. A collection policy is the foundation of a successful assessment collection program in order to maintain necessary cash flows, reduce financial loss from owner defaults on assessment payments, and maintain adequate reserves. In this article, I will explain the importance of a Board adopting a written policy for collecting assessments and making it part of the Association’s governing documents.   Read the article……………………………………