How to get homeowners to pay their dues

The Summit's HOA has a huge problem with uncollectible dues. It has continued to get worse and there is no evidence that the Board is addressing seriously.

On monthly financial statements is this line: "Collection activity is being conducted in accordance with Association policy." That's boiler-plate that is just plugged in month after month.

On August 10, 2023 I published these numbers:
         Line 1200  A/Rs                            
6/30/2023     $432,483.29
6/30/2022     $380,067.12
6/30/2021     $350,934.33
6/30/2020     $457,924.06
6/30/2019     $459,707.06
6/30/2018     $561,714.00

It doesn't take a rocket scientist to know that things are going in the wrong direction.

What is Vernell Butler, Treasurer, doing about this?
What is CAMS doing about this?

What happened between 6/30/2020 and 6/30/2021? Was a huge amount collected or did the HOA write off $107,000 of bad debt?

Something is wrong with Collection Activity or with the Association Policy. Or both!

How many houses are in foreclosure?

Here's how you fix the problem. You foreclose on the deadbeats. The HOA is a non-profit corporation, but it is not a charity.

At least one board member is worried about the HOA's going into the real estate business. Not to worry.

If the owner isn't paying, foreclose and see the house get sold. The HOA won't get anything, because the owner is broke and the mortgage and debts exceed the value of the house. Let the bank sell it.

When someone buys the house, the new buyer will start paying dues.

Report to the Membership that 5-10-20-30 houses were sold. Guess what? Some of the remaining deadbeats will start paying. If not, foreclose on more.

Notice how the Treasurer never reports how many houses are in foreclosure. Or what the collection activity is really accomplishing. 

Maybe it's time for a real Treasurer.

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