At Dunlap Gardiner LLP we represent a number of what are commonly referred to as Homeowners Associations. Sometimes these associations are in fact common law Homeowners Associations and in some cases they are actually statutory Property Owners Associations. For the ease of this article I will refer to them both generically as homeowners associations as this article is general and nature and will not touch upon the difference between the two types of associations.
Each of these entities are designed with one overall purpose in mind: maintaining property values. Of course, in today's climate you might say: "What property has value?" Well, that is probably a fair question. But in addition to the traditional idea of maintaining property values for the purpose of resale, a properly maintained homeowners association will also improve the quality of life for members of the association. This is done through the maintenance of common areas, pools, playgrounds, or other amenities that might be common to a particular association. Moreover, a sense of common scheme or uniformity can also add to the "feel" of a subdivision and a good homeowners association well help make this happen.
Of course, in order to pay for maintenance of the development the association will need to collect dues and fees from its members. Most members of communities willingly pay their dues and fees. Unfortunately, when people within a development do not pay their dues as required, this can impact the neighborhood as a whole and will also harm those homeowners who pay their fair share. This happens because an association's maintenance budget is typically determined assuming that most homeowners will pay their share of fees and dues. When a portion of homeowners fail to pay their fair share, services and amenities simply cannot be paid for.
Additionally, when homeowners do not pay as agreed associations are often forced to pursue legal action against homeowners to recover funds owed to the association. Actions taken against homeowners could include placing a lien on the property and/or seeking to recover the money owed through the Court system. Usually, these actions will only be taken after the homeowner has been given numerous opportunities to discuss a payment plan or arrangement with the association.
At our office we usually attempt to come to some sort of payment arrangement with homeowners who have not paid their dues prior to resorting to legal action. While we are not always able to come to an agreement with delinquent homeowners, it certainly never hurts to give it a try. In the end, the ultimate goal is to ensure the association is able to have the funds necessary to maintain the value of the community. If you are in a situation where you are behind in paying your dues, we strongly urge you to contact your association or the attorney working with you association. While it will not always be possible to come to a solution that makes everyone completely happy, it never hurts to try.
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