HOAs, Condominium Associations, Cooperatives, and other community associations are regularly adjusting how they do business based on new laws and updates to existing statutes that supersede their own governing documents. Lately, a barrage of new legislation has taken direct aim at how community associations handle the collection of delinquent fees from home and unit owners who have fallen behind on their fees and assessments. Failure to follow these laws can put an association, its management company, and even its attorney in danger of being sued.
Axela Technologies has long been the leader in providing indemnification for HOAs, condominium associations, cooperatives and community association management firms by offering fully compliant third-party debt and delinquency collection services. We pride ourselves on keeping our business practices compliant with your state collection laws and are vigilant on newly passed legislation.
California’s Davis-Stirling Act, for example, outlines the “do’s and don’ts” for associations seeking to collect the fees that are owed to them from delinquent homeowners. Appropriately, each year the legislature has amended, revised and added numerous provisions of the Act. Requiring associations to be aware of the latest requirements in order for the association to proceed with collection of delinquent assessments.
Now Florida has revised their own laws for collecting delinquent assessments, adding additional protections for homeowners that all condominium associations, HOAs, and association management firms must adhere to on top of all their existing workload.
New Florida Laws
Among the most important changes in Florida law is Senate Bill 56: Community Association Assessment Notices (“SB 56”). The waiting period before notices can be sent to delinquent home or unit owners has been extended. HOAs already had to wait 45 days before notices that a lien was being sought against the debtor’s property could be sent. Additionally, a similar waiting period is needed for the post-lien notice of intent to foreclose.
Put simply, the new notice requirements will establish a 120-day period of collection efforts that associations must incur before proceeding with a foreclosure action. There will now be a mandatory 30-day courtesy notice of late assessment, a 45-day notice of intent to record a claim of lien, and a 45-day notice of intent to foreclose on that claim of lien. These changes take effect on July 1, 2021.
The Attorneys’ Function
The largest portion of the remaining legislative changes refer specifically to the work performed by attorneys on behalf of the associations they represent. While attorneys are sometimes needed for filing liens and enforcing the security interests of the associations they represent, it is almost always a far better decision to engage with a third-party debt collection service to properly service both the association and the delinquent home or unit owner prior to getting an attorney involved. Axela complies with all state laws in every state that it services and fully indemnifies the association and assures full compliance with state and federal law as well as the individual association’s own governing documents.
Is your HOA, condominium association, cooperative, or association management firm struggling to keep up with the latest legislation and indemnification while simply trying to collect the money it is owed from delinquent home or unit owners? Even the simplest collection task can come under legal scrutiny. With our “no cost or risk to the association” assurance, engaging Axela Technologies for your delinquency collection needs may be one of the easiest business decisions you’ll make in this litigious environment. Get in touch today and let us show you how we can collect your money without putting your association or association management business at risk of violating the law.