Does your homeowners association have a written collection policy?  What duties does the property manager and/or Board have under the policy?  Learn what role the property manager and/or the Board of Directors should have in the assessment collection process.

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The law does NOT require a Board to extend additional time to owners to pay assessments just because of the COVID 19 pandemic.  While such policies may show a concern for members of a community, probably without realizing it, those policies may also have significant adverse effects on the Association, especially in 2020.  What

First, I want to thank Julie Howard and her firm NowackHoward in Atlanta, Georgia for much of this Blog (adjusted for Wisconsin Law and my commentary).  She is the former president of the College of Community Association Lawyers (“CCAL”), an excellent association attorney, and has been kind enough to allow Husch Blackwell to use much of their article.

The law does NOT require a Board to extend additional time to owners to pay assessments just because of the COVID 19 pandemic.  While such policies may show a concern for members of a community, probably without realizing it, those policies may also have significant adverse effects on the Association, especially in 2020.

With this background, Associations should first look to see which of their expenses are variable (those that can be cut or reduced because of the pandemic).  Secondly, the Board must ask can the Association really afford to extend the payment of assessments for some or all of its owners?  Associations faced this same challenge during the last financial crisis.  In an editorial published on February 5, 2008 in The Atlanta Constitution, George Nowack (another former president of the CCAL) explained that because many Associations had allowed members to not pay and suspended collection actions, the balances on unpaid accounts reached levels that members gave up trying to pay.  The lesson learned from that past is that a Board is not doing any member a favor if it allows an Association’s accounts receivable to go unaddressed.  That advice is equally true today.
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