Late Payment and Collections Policy Edit page

Current: Late Payment and Collections Policy

This is currently outlined in the 2008 Amended Madera CC&Rs.

Proposed: Late Payment and Collections Policy

This policy restates the requirements and expectations of Article IV, Section 4.04(a) of the Amended Declaration of the MHA. While the underlying obligations are established by the CC&Rs, certain enforcement actions and remedies are exercised at the discretion of the MHA Board as permitted by the CC&Rs.

a. Quarterly assessments (dues) and Special assessments are due on the date they are assessed, as specified in each billing notice.

b. Homeowners have 30 calendar days from the assessment date to pay the full balance. If the balance is not paid in full within 30 days, the account is considered in default. A late fee of $25 will be assessed, and interest will begin to accrue on the unpaid balance at a rate of 10% per annum.

c. Interest is calculated on the outstanding balance only and begins on the 31st day after the assessment date. Interest does not compound and is calculated based on the simple interest formula.

d. If a balance remains unpaid after 6-months, the MHA will:

1. Charge reasonable collection costs, legal fees, and administrative expenses.
2. File a Notice of Lien on the property.
3. Pursue further enforcement actions, including judicial foreclosure if necessary.

e. Homeowners experiencing financial hardship may request a written payment plan before the 6-month deadline. The MHA Board has discretion to:

1. Approve or deny the request.
2. Delay lien filings or enforcement while the homeowner is in compliance with the plan.

Proposed Changes Summary

• New policy summarizes MHA Members’ responsibilities as outlined in the 2008 Amended Madera CC&Rs.
• Sections (d) and (e) clarify when further action, including lien assessment, will be taken and the discretion available to the MHA Board, ensuring uniform application of the policy.