My question involves real estate located in the State of: California
Hello all. I am one of five board members at an association and all of us termed out a while back ago. We had a really bad management company who was delinquent in filing our taxes and therefore, California suspended our corporate status from 2012 to July 2014. When we changed the management company we were advised of suspension and the new company porceeded with the revival. In 2013, we adopted a collection policy that mirrors the Civil Code as to the amount of late fees and interest on delinquent accounts.
Fast forward to 2019, the wife of an owner who also is a board member and is delinquent on his due in 2017 is asking us to do the following:
1- Waive all interest and late fees since the collection policy was adopted during the time period in which the corporate status was suspended.
2- Refund all dues to the entire community during the time period in which the corporate status was suspended to him and all owners of record during the time the corporate status was suspended.
The first item is to some extent unfair because some community members incurred and paid interest and late fees on their delinquent accounts but now we are being told that the collection policy should not have been enforced to begin with. The second item is an accounting mess. Many in the community sold their houses and moved to other regions/states.
We are beginning to see correspondence from his attorney and we think he is going to take us to court. How likely is he to prevail in items 1 and 2?
Hello all. I am one of five board members at an association and all of us termed out a while back ago. We had a really bad management company who was delinquent in filing our taxes and therefore, California suspended our corporate status from 2012 to July 2014. When we changed the management company we were advised of suspension and the new company porceeded with the revival. In 2013, we adopted a collection policy that mirrors the Civil Code as to the amount of late fees and interest on delinquent accounts.
Fast forward to 2019, the wife of an owner who also is a board member and is delinquent on his due in 2017 is asking us to do the following:
1- Waive all interest and late fees since the collection policy was adopted during the time period in which the corporate status was suspended.
2- Refund all dues to the entire community during the time period in which the corporate status was suspended to him and all owners of record during the time the corporate status was suspended.
The first item is to some extent unfair because some community members incurred and paid interest and late fees on their delinquent accounts but now we are being told that the collection policy should not have been enforced to begin with. The second item is an accounting mess. Many in the community sold their houses and moved to other regions/states.
We are beginning to see correspondence from his attorney and we think he is going to take us to court. How likely is he to prevail in items 1 and 2?
Homeowners Associations: Very Very Messy Situation
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