California Associations:
Use this Sample as a Template to Craft Your Collections Policy
California community associations operate under a distinct set of regulations, and your collections policy needs to reflect that. Delinquencies left unchecked can cause major harm to your community, and a uniform collections policy protects your association by establishing the legal standard for the procedures your community will follow in collecting on delinquent fees.
Unlike a general collections policy, this California-specific template is written with the state’s Civil Code in mind, including the thresholds, timelines, and notice requirements that apply to California HOAs and Condo Associations.
Your Collections Policy establishes that the board has the authority to collect, and describes the plan of action (and timetable) for enforcing collections. This is your best front-line defense against discrimination claims from collection procedures.
A uniform collections policy:
- Communicates how delinquencies will be treated (thus encouraging homeowners to pay to avoid penalties)
- Clearly states the timeline for the actions that will be taken, including California-mandated pre-lien notice periods
- Establishes clear guidelines for late fees and interest, aligned with California Civil Code thresholds
- Ensures homeowners are given ample opportunity to request payment plans or dispute resolution before any drastic measures are taken
- Prevents accusations of discrimination by applying a uniform policy to all members
Complete the form to download this sample California Sample Collections Policy to use as a template for your board of directors when crafting your own collections policy.
Are you operating outside of California? Download our general Sample Uniform Collections Policy instead.