Many homeowners associations have difficulty getting their members to pay assessments on a regular and timely basis. These problems can be attributable to the failure of the association's board to establish clearly stated collections policies and inconsistent enforcement of the collection policies. If a collections policy is put in place correctly, the homeowners association has several powerful tools to ensure the members promptly pay their assessments.

Like many other areas of the law, different circumstances call for different measures when collecting delinquent assessments. The association may file a lien on the property or initiate foreclosure proceedings. It may also file a lawsuit in either the Superior Court or in Small Claims Court to recover the delinquent assessments. Sometimes the best solution, however, is non-legal. Associations can engage in Alternative Dispute Resolution or Internal Dispute Resolution in order to provide a payment plan for the payment of the delinquent assessments. These alternative methods may, at times, be just as effective, while providing significant savings in costs to the association. Finally, some associations prefer to avoid the trouble associated with collecting the delinquent assessments and simply assign the debt to a collection agency.

These procedures may be complicated and it is vital to ensure the letter of the law is followed explicitly. Moreover, even the initial decision as to which course of action is the best for the association can be a difficult determination. Our firm has the experience to help an association set up the proper collections procedures and will also initiate these proceedings against individual homeowners. Silldorf & Levine, LLP stands ready to help your association collect the assessments that it is owed.