Debt Collection by the HOA - Failing

As of the end of the first ten months of 2024 (10/31/2024), the monthly financial statement reported

Line 1200 - Accounts Receivable $447,445.77

Line 1300 - Allowance for Uncollectible Accounts ($299,267.13)

That $447,445.77 is owed by homeowners (Members) who are not paying their dues. If you are paying your dues, YOU are carrying the HOA for them.

Between the March 2024 and April 2024 Board Meetings, the HOA wrote off $118,917.27 ($498,657.27 - $379,739.45) in Accounts Receivable (Line 1200). It also wrote off  $98,111.97 ($397,279.10 - $299,167.13) in Allowance for Uncollectible Accounts (Line 1300).

Note that Accounts Receivable have increased $67,706.32 in six months.

Absolutely nothing was disclosed about that write-off at the April 2, 2024 Board Meeting or in the Minutes of that meeting. Why did the Board write these off and not inform the Members? Danny Trapp was President at the time, and Linda Potter was the Treasurer.

Until April 2023 the monthly financial statements showed the "Age" of monies past-due (ex., 30 days, 60 days, 90 days, more than 90 days). The May 2023 Financial Statement discontinued that aging and replaced it with a useless chart. That was during the time that Justin Martin was President and Vernell Butler was Treasurer. There was no discussion at the Board level about that change.

Every month, just like clockwork, this boiler-plate statement appears in the monthly financial statement: "Collection activity is currently being conducted in accordance with Association policy."

My opinion? There is something drastically wrong with either the "Collection activity" or the "Association policy" - or both.

Why aren't delinquent accounts being collected?

One past member of the Board said, "We aren't in the business of putting people out of their homes."

The HOA is a South Carolina non-profit corporation, but it is not a charity. If a homeowner is going through a temporary financial hardship, the HOA will work with him, but he must contact the HOA and set up a payment plan. 

The Board has an obligation Ito all Members to collect money owed to the HOA. Why isn't it doing so?

Under Section IV, A, 6, CAMS "shall assist the Board and its legal counsel in the collection of general and special assessments as they become due and payable." CAMS' obligations include sending notices to delinquent members and/or instituting proceedings for collection. CAMS charges extra for these services, according to Exhibit B in the two-year contract entered into on 10/6/23.

Shouldn't balances owed to the HOA be going down, instead of up?

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