HOA Payment Plans for the Payment of Delinquent Assessments

When confronted with homeowner delinquencies in the payment of association dues and assessments, homeowners’ associations will frequently enter into a payment plan with the delinquent homeowner. A payment plan is an agreement between the association and the homeowner whereby the owner promises to make specified payments to the association to settle the owner’s outstanding debt. The goal of the payment plan is to get the association paid the outstanding sums that are rightfully owed by an owner in the shortest amount of time and with the least amount of additional expense to the association.

To achieve a successful payment plan, the parties must reach an agreement as to: (i) the total delinquent amount that is owed; (ii) the amount that the owner must pay in periodic payments (usually monthly); and (iii) the number of payments to be made under the plan.