A HOMEOWNER was left fuming after being slapped with a hefty HOA fine for a late payment despite swearing they sent the check on time.
But just when they thought they were being unfairly penalized, a little-known rule was uncovered that turned the situation on its head.
The homeowner asked Ryan Poliakoff, a lawyer specializing in condominium and planned development law, for help.
Homeowner C.G. initiated the letter to Poliakoff by pointing out that their condominium’s HOA fees should be paid by the first of the month and are considered late if paid after the 15th.
The distressed homeowner explained that they had sent the check through the post office after the first but before the 15th to ensure that the postmark indicated a date prior to the 15th.
But when the HOA didn’t receive the check until the 22nd, C.G. was hit with a late fee.
Frustrated and convinced the rules had been followed, the homeowner asked the HOA for a waiver on the late fee.
When that was denied, C.G. took their frustrations to Poliakoff.
While Poliakoff couldn’t confirm the specifics of C.G.’s HOA rules, he was able to provide some more general insight.
The lawyer reiterated that if a payment isn’t received on its due date – which was the 1st in C.G.’s case – it’s considered late.
He also clarified the time period between the 1st and 15th for C.G.
“The fifteenth is not a due date, but instead is a grace period during which interest and late fees are not charged,” Poliakoff wrote.
The grace period, C.G. learned, was not an extension for procrastinators.
Instead, it was simply a cushion to avoid penalties for those who managed to get their payments in before the 15th.
Despite the check being postmarked and dated the 15th, the association received the payment on the 22nd and appears to have imposed a late fee on C.G.
“It’s your responsibility to make your payment in time, and that means ensuring that the association receives it by the 15th,” Poliakoff wrote.
“Now, if the association had received it by that date but simply did not process or deposit it, I think you’d have a good argument that you were within the grace period — but if they did not receive it until the 22nd, you’re probably late, and there’s no way to avoid that late fee,” he continued.
“Next time, make sure you send it earlier.”
What is an HOA?
One in five Americans live in an area with a Homeowners’ Association – or HOA. But what exactly is it that they do?
- An HOA is a homeowner’s association – an organization that aims to maintain a clean and cohesive place to live for its residents.
- Entire neighborhoods, subdivisions, condominiums, family homes, or townhouses within “a planned development” will often make up an HOA.
- They also act as a governing body for tenants, who run and fund the HOA through monthly fees.
- Their principal aims are to keep the community functioning and visually appealing and to maintain property values.
- They primarily focus on common areas of a neighborhood, such as roads, parks, and pools – but may also stipulate what residents can do with their properties, such as yards and driveways.
- Often these restrictions enforce uniformity on properties, for example, ensuring most houses look the same and all driveways are clear of weeds.
- An HOA rulebook of covenants, conditions, and restrictions (CC&R) is distributed to all residents, and an elected volunteer board of directors enforces these regulations.
- Breaking these rules can result in penalties such as fines and even litigation – as most HOAs are incorporated and subject to state law.
- HOAs are often the subject of controversy, with some members feeling that the rules are too punitive and restricting, or that the leadership has too much power.
- But others like that HOAs give communities the power of self-governance, and can ensure a degree of harmony between residents.
In another bizarre HOA rule, a resident of Palm Beach, Florida was shocked to learn that his neighborhood’s CCTV recorded his private conversation at a pool.
The resident’s HOA sent him surveillance footage after he was caught on camera jumping over a pool fence due to a stuck gate.
But the footage also recorded the resident’s private chat with a friend.
Florida law prohibits recording oral communications without consent, but the term “oral communication” is narrowly defined.
It only applies to conversations where the speaker reasonably expects privacy.
Poliakoff said: “These laws are intended to address wiretapping or placing of clandestine cameras in offices or homes — not public security cameras.”
So unfortunately, the resident was fighting a losing battle against his HOA.
