Understanding the Scope of Collection Costs, Late Charges, and Interest an HOA Can Collect on Delinquent Assessments

The extent of a homeowners association’s (“Association” ) right to recover collection costs, attorney fees, late charges, and interest on assessments that have not been timely paid by homeowners (“Owners” ) is set forth in the applicable statutory laws of the state in which the Association is domiciled. A typical statutory provision would provide that when a regular or special assessment remains unpaid for more than 15 days after its due date, the association may recover the association may recover the reasonable costs of collection, including attorney fees, and may impose a late charge that does not exceed 10% of all HOA delinquent assessments or $10, whichever is greater.