HOA Assessment Collection Policy
FinanceFormal written policy outlining how the HOA collects assessments, handles delinquencies, and pursues liens.
A written collection policy is a governance best practice and a legal requirement in several states. It establishes consistent procedures for assessment billing, late fees, notice timelines, and the escalation path from delinquency to lien to legal action. Having a published, board-adopted collection policy protects the association legally, ensures equal treatment of all homeowners, and reduces the risk of a successful legal challenge to a lien or lawsuit.
- Assessment due dates and grace period before late fees apply
- Late fee schedule and interest accrual rate
- Delinquency notice sequence and timeline (30-, 60-, 90-day notices)
- Conditions under which a pre-lien or lien notice will be sent
- Homeowner right to request a payment plan or hardship review
- Board authorization to suspend amenity access and pursue legal remedies
Adopt this policy at a board meeting and distribute it to all homeowners. Review and reaffirm the policy annually. In California, Florida, and several other states, you must distribute your collection policy to homeowners annually.
[COMMUNITY NAME] HOMEOWNERS ASSOCIATION ASSESSMENT COLLECTION POLICY Adopted by the Board of Directors on [DATE] 1. ASSESSMENT DUE DATE Regular assessments are due on the [1st / 15th] of each month. A [X]-day grace period applies before late charges are assessed. 2. LATE FEES AND INTEREST A late fee of $[AMOUNT] will be assessed on the [X]th day after the due date. Interest will accrue at [X]% per [month / year] on all unpaid balances. 3. DELINQUENCY NOTICE SCHEDULE 30 Days Past Due: First written delinquency notice sent 60 Days Past Due: Second notice; account referred for pre-lien review 90 Days Past Due: Pre-lien notice sent (as required by [STATE LAW CITATION]) 120+ Days Past Due: Lien recorded; account referred to collection counsel 4. PAYMENT PLANS Homeowners experiencing financial hardship may request a payment plan in writing. The Board will consider payment plan requests on a case-by-case basis. Payment plans do not suspend the accrual of interest or late charges unless specifically waived by the Board. 5. LIEN AND LEGAL REMEDIES The Association reserves the right to record a lien against any property with an outstanding balance of $[THRESHOLD AMOUNT] or more. All costs of collection, including attorney fees and recording fees, will be added to the homeowner's account. 6. AMENITY SUSPENSION Homeowners with accounts more than [X] days past due may have access to community amenities suspended until the account is brought current. 7. HARDSHIP REQUESTS Homeowners experiencing documented financial hardship should contact [TREASURER NAME] at [EMAIL] to discuss available options before their account is referred for legal action. Adopted by: [BOARD PRESIDENT NAME], President [BOARD TREASURER NAME], Treasurer [BOARD SECRETARY NAME], Secretary Date: [DATE]
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Adopt this policy at a board meeting and distribute it to all homeowners. Review and reaffirm the policy annually. In California, Florida, and several other states, you must distribute your collection policy to homeowners annually.
LotWize generates this automatically with your community's actual details
Stop filling in brackets. LotWize knows your homeowners, your CC&Rs, and your violation history — it generates hoa assessment collection policy documents in seconds, pre-addressed and ready to send.
Start 14-Day Free TrialThis template provides general guidance only — not legal advice. HOA rules and document requirements vary by state and by your governing documents. Always consult an HOA attorney before using any document in a legal or enforcement context.