Montclair HOA Collection Policy

Posted by rfay

Payments required under the association's governing documents are due on the first day of the month on each calendar quarter (January 1, April 1, July 1, and October 1). If a member does not pay in full any expense due to the association within 30 days after its due date, the payment will be deemed delinquent. All payments must be sent to Montclair Subdivision HOA, PO Box 812, Palisade, CO 81526.

If the association does not receive payment for any expense due by the date required, the delinquent member shall pay damages to reimburse the association for the overhead involved in collecting the payment as follows:
A $30 late fee and Interest at 10% annual percentage rate from the original date due until the date the payment is received.
In addition to late fees, for each check from a member that a bank returns for any reason, the member must pay a $30 returned check charge. 
The association may also refer the member's account to an attorney or collection agency for appropriate action. All fees incurred by an attorney or collection agency to recover the delinquent amounts will be assessed to the member.
Before the Association turns over a delinquent account to an attorney or collection agency, the Association will send the delinquent owner a written notice specifying:
  •  The total amount of the arrearage, with an accounting of how the total arrearage was determined;
  •  Whether the opportunity to enter into a payment plan exists and instructions for contacting the Association to enter into the payment plan
  •  The name and contact information for the individual the owner may contact to request a copy of the owner’s ledger to verify the amount of the debt; and
  • That action is required to cure the delinquency and failure to do so within 30 days may  result in the account being turned over to a collection agency, a lawsuit being filed against the owner, the filing and foreclosure of a lien against the owner’s property and other remedies available under Colorado law. 

Payment Plan

The Association will provide a delinquent owner with a one time opportunity to enter into a payment plan, lasting six months, to bring their delinquent account current. The delinquent owner must make the scheduled payment as required by the payment plan and remain current in the payment of current assessments. If the delinquent owners fails to make either the installment payment or the current assessment payment, the Association may immediately proceed with collections. This one-time opportunity to enter into a payment plan does not extend to owners who do not occupy the property and took title as a result of a default on a mortgage (i.e. public trustee foreclosure) or foreclosure of the Association’s lien.