A Practical Guide to Handling Delinquent Assessments and Payment Plan Requests
When an owner falls behind on assessments, the issue affects everyone. This guide explains the steps an association can take to handle requests for alternative payment plans in a more organized and consistent manner. It covers the process from reviewing applicable law and governing documents, to adopting guidelines, itemizing delinquent amounts, notifying the owner, meeting in executive session, evaluating the request, and documenting the arrangement. It also includes practical forms such as resolutions, notices, worksheets, and a payment plan agreement.
What’s Included
- Guidance on reviewing applicable state statutes and governing documents before adopting a payment plan process
- Guidance on adopting guidelines for handling requests for alternative payment schedules
- Guidance on itemizing delinquent regular assessments, special assessments, fines, interest, late charges, and collection costs
- Guidance on notifying the owner of the delinquency and the possibility of discussing a payment arrangement
- Guidance on scheduling and conducting an executive session meeting with the owner
- Guidance on evaluating whether a payment plan should be approved
- Guidance on documenting the board’s decision
- Guidance on preparing a worksheet to establish the payment schedule
- Guidance on preparing the payment plan agreement itself
The guide also includes these practical forms:
- Guidelines to Establish Alternative Payment Schedule
- Directors’ Resolution re Adoption of Guidelines to Establish Alternative Payment Schedule
- Itemization of Delinquent Amounts Owed by Owner
- Notice of Delinquent Assessments
- Request to Meet With Board in Executive Session to Discuss an Alternative Payment Plan
- Notice of Meeting with Board of Directors re Request for Alternative Payment Plan
- Directors’ Resolution to Authorize Agreement for Alternative Payment Plan
- Notice of Directors’ Decision Following Meeting
- Worksheet to Establish Alternative Payment Schedule
- Payment Plan Agreement
Why It’s Worth It
This guide gives you more than general information.
It gives you a practical framework for addressing a common and sensitive HOA problem, together with forms that can help organize the process from beginning to end. Instead of trying to piece together scattered information online, this guide brings the steps and documents together in one place so the issue can be handled more efficiently and with less guesswork.
For associations, that can mean a more consistent process, better documentation, and fewer avoidable mistakes.
For homeowners, it can mean a clearer understanding of what options may exist and how requests for alternative payment plans may be addressed.
The guide also makes clear that forms should be reviewed and modified as needed for applicable state law and the association’s governing documents, which is an important safeguard for real-world use.
