Unpaid assessments are one of the most common problems faced by Florida associations. When some owners do not pay, the rest of the community carries the cost through higher assessments, delayed projects, or special assessments. High delinquency can also make lenders more cautious about units in a community, particularly in condominiums.
The board has a duty to collect what is owed, and Florida law gives it several tools. Each one comes with specific notice requirements that must be followed exactly.
This article is general information and is not legal advice. The association's attorney should be consulted.
Adopt a Written Collection Policy
Delinquencies are handled most fairly when every account is treated the same way. A written collection policy should be adopted by the board that sets the due date, when late fees and interest are charged, when an account is turned over to the attorney, and who may approve a payment plan. Owners should be told about the policy in advance, so that the steps are expected and not seen as personal.
Acting early matters. A small balance is far easier for an owner to pay than a large one, and every month of delay adds to the shortfall.
Send the Required Notices
Florida law sets out several notices that must be sent before certain collection steps are taken.
- Notice of late assessment. Under section 720.3085(3) for homeowners associations and section 718.121(5) for condominiums, attorney fees related to a past due assessment may not be charged until a written notice of late assessment is sent by first-class mail. The notice must state the amount owed and give the owner 30 days to pay without attorney fees.
- Notice of intent to record a claim of lien. A homeowners association may not record a lien until a written demand is sent giving the owner 45 days to pay, as required by section 720.3085(4). A condominium lien may not be filed until 45 days after a notice of intent to file a lien is delivered, under section 718.121.
- Notice of intent to foreclose. In a homeowners association, a foreclosure action may not be filed until 45 days after notice of intent to foreclose is given. In a condominium, a foreclosure judgment may not be entered until at least 45 days after written notice of intent to foreclose is given.
The forms and mailing methods required by the statutes are specific, so these notices are normally prepared by the association's attorney or manager using the statutory language.
Suspend Use Rights and Voting Rights
When an owner is more than 90 days delinquent in paying a fee, fine, or other monetary obligation, the association may suspend the right to use common areas and facilities, such as the pool, fitness room, or clubhouse, until the amount is paid in full. Access to the home, utility services, and parking may not be cut off.
Voting rights may also be suspended for obligations more than 90 days delinquent. In a condominium, the amount must also exceed $1,000, proof of the obligation must be provided 30 days before the suspension takes effect, and owners must be told at least 90 days before an election that their voting rights may be suspended. These rules are found in sections 720.305 and 718.303.
Collect Rent From a Tenant
When a rented home or unit belongs to a delinquent owner, the association may demand that the tenant pay future rent directly to the association until the owner's obligations are paid in full. The demand must be made in writing using the form set out in section 720.3085(8) for homeowners associations or section 718.116(11) for condominiums. A tenant who pays the association under the statute is protected from a claim by the landlord for that rent. This option is often faster than a lawsuit.
Offer a Payment Plan
An owner who is facing a hardship and wants to catch up may be offered a written payment plan. The plan should state the amounts and due dates, require current assessments to be paid as they come due, and say what happens if a payment is missed. Payment plans should be offered consistently, following the collection policy.
Work With the Association's Attorney
An attorney experienced in community association collections should be chosen before delinquencies grow. The attorney can prepare statutory notices, record liens, and advise whether foreclosure or a money judgment is appropriate. Under section 718.116, a condominium association may recover its reasonable attorney fees in a lien foreclosure or money judgment action, and similar fee provisions apply to homeowners associations under section 720.3085. More on how a manager supports this work can be found in
setting expectations for your HOA management company.
Help With Collections
Assessment billing, delinquency tracking, and coordination with association attorneys are handled for the communities managed by Condominium Associates. To talk about your association's collection process,
contact us or
request a proposal.
