POM III Policy Letter F-3
June 1, 2008
Policy:
The Association will implement a procedure for establishing a late payment fee schedule for monthly assessments.
Procedure:
The Condominium By-laws, Article V, Section 7, authorize the Board of Directors of the Association to institute penalties and proceedings for handling delinquent monthly Association assessments. In accordance with this provision, the Board of Directors has instituted the following policy to become effective January 1, 2006.
Assessments for units and garages are due by the tenth of the month for which they are accessed. For example; January's monthly assessment is due by January 10. If received on January 11, it is delinquent.
If a monthly assessment is received late (after the 10 of the month), a "late" penalty fee of $25.00 will be assessed for each subsequent 30 days the monthly remains in arrears. Late penalty fees will be applied to each individual delinquent monthly assessment if more than one month is in arrears and will continue until the delinquent monthly assessment and all late penalties are paid in full.
Payments received will be applied first to outstanding penalties, second to monthly assessments.
See attachment 1 for an example of a typical assessment schedule.
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Attachment 1: Penalty Assessment Example:
The following schedule shows the results if the monthly assessment is delinquent for January, February and March, and the total assessments and late penalties are paid before April 10, along with the April monthly assessment.
JAN |
FEB |
MAR |
APR |
TOTAL |
||
January |
Monthly Assessment |
$260 |
$260 |
|||
- Late fee |
January, first month |
$25 |
$25 |
|||
February |
Monthly Assessment |
$260 |
$260 |
|||
- Late fee |
January, second month |
$50 |
$50 |
|||
February, first month |
$25 |
$25 |
||||
March |
Monthly Assessment |
$260 |
$260 |
|||
- Late fee |
January, third month |
$50 |
$50 |
|||
February, second month |
$50 |
$50 |
||||
March, first month |
$25 |
$25 |
||||
April |
Monthly Assessment |
$260 |
$260 |
|||
1,265 |
||||||
Total due and payable by April 10 |
Total due and payable by April 10
If monthly assessments and late penalty fees remain unpaid, the Association has the authority to enforce collection in accordance with the Condominium By-laws, Article V, Section 7.