Summary
Late assessment payments trigger an escalating collection process. Late fees and finance charges are forgiven if the full assessment is paid by March 31. After 90 days, a $25 documentation fee and 18% annual finance charge apply. Balances of $1,000 or more trigger a formal demand letter; non-response may lead to legal action. All legal fees are charged back to the owner.
Collection Timeline
| Trigger | Action |
|---|---|
| 30 days late | Assessment bill mailed with copy of Declaration Sections 7.02–7.03 and collection policy |
| By March 31 | All late fees and finance charges forgiven if assessment paid in full |
| 90 days late | $25 documentation service fee + 18% per annum finance charge (calculated monthly from 31st day of original billing) |
| Balance reaches $1,000+ | 30-day demand letter sent by Management |
| No response to demand letter | HOA may pursue legal action to recover balance including attorney’s fees |
Applicable Rules
| Rule | Source | Section |
|---|---|---|
| 30-day late notice with Declaration policy reference | R&Rs 2013/2021 | 10 |
| Late fees/finance charges forgiven if paid in full by March 31 | R&Rs 2013/2021 | 10 |
| $25 documentation fee after 90 days | R&Rs 2013/2021 | 10 |
| 18% per annum finance charge after 90 days | R&Rs 2013/2021 | 10 |
| $1,000 balance triggers 30-day demand letter | R&Rs 2013/2021 | 10 |
| Legal action possible after unanswered demand letter | R&Rs 2013/2021 | 10 |
| All legal fees charged to unit owner | R&Rs 2013/2021 | 10 |
| Assessments are a lien on each Lot from the date due | Declaration 2004 | 7.01 |
| Assessment is personal obligation of owner at time of assessment | Declaration 2004 | 7.01 |
| HOA collection authority (special assessment and legal action) | Declaration 2004 | 7.02 |
| 18% per annum interest from day 30 of delinquency (calculated monthly) | Declaration 2004 | 7.03 |
Declaration Foundation
The R&Rs’ collection timeline is a procedural layer on top of the Declaration’s authority:
- Section 7.01 — Establishes the lien and personal obligation
- Section 7.02 — Authorizes HOA to pursue legal action (requires 75% Voting Member vote, with exceptions)
- Section 7.03 — Sets the 18% annual interest rate, calculated monthly from the 30th day of delinquency
The R&Rs’ “90-day” threshold for the 18% finance charge is a practical policy milestone; the Declaration’s underlying interest obligation begins at day 30. The R&Rs’ March 31 forgiveness window is a Board policy that waives accrued charges — it does not eliminate the Declaration’s lien rights during that window.
See assessment-structure for the broader Declaration framework on assessment types and vote thresholds.
History
| Date | Event |
|---|---|
| 2018-07-10 | Delinquency summary (arrears report) as of July 10, 2018: total outstanding $10,025.99 across approximately 20 accounts. One unit in active mortgage foreclosure (case 18CH285). Prior minutes (minutes-2018-04-12) had noted 38 delinquent accounts as of early 2018 — by July the count had reduced. Homeowner details redacted per Hard Rule 11. Source: board-packet-2018-07-17 |
| 2018-10-04 | Delinquency snapshot (KSN collection status report) as of October 4, 2018: total arrears $10,005.49. Two active mortgage foreclosure cases: 18CH908 and 18CH964 — neither matches the July 2018 case 18CH285, suggesting either three separate foreclosure matters in 2018 or that 18CH285 resolved and two new cases commenced. This is the earliest confirmed KSN collection status report in the ingested record. Homeowner details redacted per Hard Rule 11. Source: board-packet-2018-10-11 |
| 2019-09-30 | AR Aging (KSN report dated 9/30/2019): total outstanding $8,775.45 across 15 accounts. One active eviction proceeding: filed 9/16/2019, balance $3,891.50, court date 10/9/2019. One prior case resolved at property sale closing on 8/16/2019. Homeowner details redacted per Hard Rule 11. Source: board-packet-2019-10-10 |
| 2020-04-30 | AR Aging: total outstanding $13,227.62 across 27 accounts — an increase from $8,775 in September 2019. Two accounts “With Attorney KSN”: (1) one active eviction case, balance now $5,074.18 (up from $3,891.50 at eviction filing in September 2019); (2) one prior-owner foreclosure case, balance $1,010.06. Standard delinquent account balance: Annual Assessment $320 + Late Fee $25 = $345. KSN continued to bill for the active eviction case ($79.50 in April 2020). Homeowner details redacted per Hard Rule 11. Source: board-packet-2020-05-14 |
| 2021-06-30 | AR Aging snapshot: total outstanding $13,228.10, comprising Legal Chargeback 2020 $3,738.32; Delinquent Fee 2020 $575.00; Delinquent Fee 2021 $300.00; Delinquent Interest 2021 $530.73; Owner Assessment 2020 $4,243.79; Owner Assessment 2021 $3,840.26; PrePaid ($2,423.46). The persistent 2020 legal chargebacks ($3,738.32) reflect ongoing KSN collection activity from the prior year. Homeowner details redacted per Hard Rule 11. Source: board-packet-2021-07-15 |
| 2022-03-31 | AR Aging snapshot: gross AR $22,750.59; net AR (after prepaid credits) $19,173.71. Breakdown: Legal Chargeback 2020 $3,691.32; Owner Assessment 2020 $4,243.79; Owner Assessment 2021 $2,240.14; Owner Assessment 2022 $9,834.04; Delinquent Fees (2020–2022) $1,349.02; Delinquent Interest (2021–2022) $1,392.28; PrePaid ($3,576.88). Persistent 2020 legal chargebacks ($3,691.32) reflect ongoing KSN collection activity. Homeowner details redacted per Hard Rule 11. Source: board-packet-2022-04-14 |
| 2022-06-30 | AR Aging snapshot: gross AR $16,580.41; net AR (after prepaid credits) $13,003.53. Breakdown: Legal Chargeback 2020 $3,691.32; Delinquent Fees 2020 $549.02, 2021 $175.00, 2022 $275.00; Delinquent Interest 2021 $1,334.66, 2022 $164.46; Owner Assessment 2020 $4,243.79; Owner Assessment 2021 $2,240.14; Owner Assessment 2022 $3,907.02; PrePaid ($3,576.88). Three accounts in “Legal Collections” with KSN (combined balance ~$9,981); remaining accounts at “Final Notice” or “Statement” status. Gross AR declined from $22,751 (March) to $16,580 (June) — likely due to partial payments and prepaid credit settlements. Homeowner details redacted per Hard Rule 11. Source: board-packet-2022-07-21, board-packet-2022-11-21, board-packet-2023-01-19 |
| 2022-10-31 | AR Aging snapshot: gross AR $16,075.17; net AR (after prepaid credits) $10,998.29. Statement Fee appears as a distinct AR category for the first time in this aging (prior periods showed only Owner Assessment, Delinquent Fee, Delinquent Interest, and Legal Chargeback). Fine category also appears for the first time. Homeowner details redacted per Hard Rule 11. Source: board-packet-2022-11-21, board-packet-2023-01-19 |
| 2022-12-31 | AR Aging year-end snapshot: gross AR $9,062.14; Bad Debt Allowance ($4,000.00); net per books ~$5,062. Significant decline from October ($16,075 gross) reflects year-end write-off decisions and the $4,000 bad debt reserve. Category breakdown: Owner Assessment 2020 $2,082.06; Owner Assessment 2021 $1,280.08; Owner Assessment 2022 $1,969.74; Legal Chargeback 2020 $1,003.87; Statement Fees 2022–2023 $850.02; Delinquent Interest 2021–2022 $1,007.15; Delinquent Fees 2020–2022 $479.22; Fine 2022 $400.00; Collection Fee credit ($10.00). Prepaid Assessments (liability): $27,436.28. Homeowner details redacted per Hard Rule 11. Source: board-packet-2023-01-19 |
| 2023-03-31 | AR Aging snapshot: gross AR $22,307.22 (bad debt allowance $4,000; net ~$18,307). Jump from $9,062 at year-end 2022 reflects Q1 billings going out plus accumulated delinquent balances. Homeowner details redacted per Hard Rule 11. Source: board-packet-2023-05-11 |
| 2023-09-30 | AR Aging snapshot: gross AR $18,503.06 (bad debt allowance $4,000; net ~$14,503). Homeowner details redacted per Hard Rule 11. Source: board-packet-2023-10-26 |
| 2023-12-31 | AR Aging year-end snapshot: gross AR $17,139.04 (bad debt allowance $4,000; net ~$13,139). 370 Post Oak Circle account still shows “Previous Owner Jp Morgan” — May 2023 settlement not yet fully resolved on books as of year-end. Homeowner details redacted per Hard Rule 11. Source: board-packet-2024-01-18, board-packet-2024-04-11, board-packet-2024-07-11 |
| 2024-03-31 | AR Aging snapshot: gross AR $26,759.21 (bad debt allowance $4,000; net ~$22,759). Significant jump from year-end 2023 ($17,139) reflects Q1 2024 assessments billed and accumulated delinquencies. AR summary by category shows Owner Assessment 2024 at $7,734.02 — confirming 2024 assessment = $350.00/unit. KSN still appearing as collection status label on several accounts. 370 Post Oak Circle (former JP Morgan account) reduced to $278.75 — partial resolution ongoing. Homeowner details redacted per Hard Rule 11. Source: board-packet-2024-04-11 |
| 2024-06-30 | AR Aging snapshot: gross AR $21,217.06 (down from $26,759 in Q1 — improvement); bad debt allowance unchanged at $4,000; net AR ~$17,217. Total AR per aging report: $21,051.16 (minor rounding difference from balance sheet). Write-offs approved at July 2024 meeting: three previous-owner balances written off — $76.25 (sold home, balance carried forward); $278.75 (the long-tracked “370 Post Oak Circle” prior-owner balance); $1,010.06 (prior-owner legal/fee balance). Total write-offs: $1,365.06. Hearing confirmed for [address redacted] — homeowner requested review of statement fees/interest charges; hearing held 7/11/2024 immediately following board meeting. Homeowner details redacted per Hard Rule 11. Source: board-packet-2024-07-11 |
| 2024-09-30 (Q3) | AR Aging snapshot: gross AR $19,715.44 (bad debt allowance $4,000; net ~$15,715). AR summary total from aging report: $19,765.44 (minor rounding difference from balance sheet). Cost Share Receivable $9,070.16 remains unchanged — commercial parties still not paying after at least 4 consecutive quarters at this level. Mohammed Younus account: $0.00 balance (consistent with July 2024 board decision to waive charges). Homeowner details redacted per Hard Rule 11. Source: board-packet-2024-10-24 |
| 2024-12-31 (year-end) | AR Aging year-end snapshot: gross AR $20,962.14 (bad debt allowance $4,000; net ~$16,962). Cost Share Receivable $9,070.16 unchanged — 5th consecutive quarter. Aging summary: Over-90 positive balance $20,408.89; Current net ($32,924.72 prepaid credits). Key status changes: [Address redacted] (Jenny Pietanza) escalated from “Statement” to “Foreclosure” — CS&R filed 30-day demand letter December 2024 ($258.85 legal charge; last payment $345.02 on 03/29/2021; 2022-2024 assessments unpaid). Five homeowners with balances above $500: [address redacted] Ricely $3,153.51; [address redacted] Bakhshi $3,153.36; [address redacted] Kazmi $2,702.76; [address redacted] Ghatalah $2,497.51 (last payment Jan 2022); [address redacted] Pietanza $2,070.35 (Foreclosure). Mohammed Younus confirmed at $0.00 — reclassification entries visible in AR but net balance zero; waiver effective. Homeowner details redacted per Hard Rule 11. Source: board-packet-2025-01-16, board-packet-2025-04-24 |
| 2025-02-28 (Feb interim) | AR Aging snapshot: gross AR $28,310.57. Key changes from Dec 2024: Bakhshi paid $3,764.86 on 2/7/2025; $50 CS&R fee remains on account. Cost Share Receivable reclassified — 2023 cost share invoices processed ($5,299.00 balance replaces prior $9,070.16 receivable; 2024 cost share billed separately in AR). Ricely balance $3,840.60; Pietanza balance $2,298.07 (CS&R demand active); Kazmi balance $2,702.76; Ghatalah balance $2,705.13. Homeowner details redacted per Hard Rule 11. Source: board-packet-2025-04-24 |
| 2025-03-31 (Q1) | AR Aging snapshot: gross AR $25,414.50 (down from $28,311 in February). Ricely paid in full 3/27/2025 — balance cleared; CS&R case closed. Pietanza mortgage foreclosure dismissed 3/7/2025; HOA assessment collection suit filed 3/26/2025 — court date 4/17/2025 (homeowner no-show, continued to 5/1/2025). CS&R demand sent to Farooqui 3/10/2025; awaiting board direction to file suit. Remaining major balances: Kazmi $2,702.76; Ghatalah $2,705.13. 2024 cost share $14,369.16 outstanding across 3 commercial parties. Homeowner details redacted per Hard Rule 11. Source: board-packet-2025-04-24 |
| 2025-04-17 (Apr interim) | AR Aging snapshot: gross AR $37,125.97 (includes $14,369.16 in 2024 cost share billings). Excluding cost share, owner AR ~$22,757. Ghatalah: CS&R demand sent 4/16/2025; deadline 5/24/2025. Kazmi: settlement agreement sent to owner’s attorney 4/17/2025 — terms not disclosed. Pietanza assessment suit active (next court date 5/1/2025). Farooqui: CS&R awaiting board direction. Homeowner details redacted per Hard Rule 11. Source: board-packet-2025-04-24 |
| 2021-07-15 | Board approved policy to drop any late fees of $25 or less. New homeowner packets mailed with updated policies. Source: minutes-2021-07-15 |
| 2021-11-11 | Board raised fee-waiver threshold to $50 or less (supersedes July 2021 $25 threshold). Management company instructed to drop any outstanding fees at or below this amount. Source: minutes-2021-11-11 |
| 2022-07-21 | Board formally adopted delinquent account policy: 18% annual interest imposed on past-due balances plus $25 late fee per month. Monthly statements to be mailed to all delinquent accounts. Board stated this aligns with Declaration §7.03. Source: minutes-2022-07-21 |
| 2023-05-11 | Executive session: homeowner at [address redacted] disputed delinquent balance. Background (from board packet): property purchased from JP Morgan (bank-owned foreclosure) on 12/20/2019; assessment statements had been mailed to JP Morgan’s Columbus, OH address and returned to sender. Account was never transferred to new owner’s name. New owner willing to pay base assessments for 2020–2023 (~$1,323 in base assessments). Board agreed to settle for $1,400 payable within 10 days; homeowner advised to consult closing attorney about the bank’s failure to disclose HOA obligation. Source: board-packet-2023-05-11, minutes-2023-05-11 |
| 2024-01-18 | Treasurer flagged inconsistencies in how delinquent interest fees are being applied. Management directed to review ledger. Confirmed: $25 statement fee per month should be applied. Source: minutes-2024-01-18 |
| 2024-04-11 | Board approved sending certified mail (with signature receipt) to all delinquent accounts over $1,000 in arrears ($100 budget). Board also discussed that waiting until home sale is often the best collection option, as legal action may not recoup cost. Management directed to send explanatory letters (not formal demand letters) and simplify statements. Source: minutes-2024-04-11 |
| 2024-07-11 | Executive session: homeowner requested fee/interest waiver — Board agreed to drop additional charges. Board also approved write-offs of most outstanding fees resulting from prior-owner or prior-management carry-overs (all approved except one pending investigation). Source: minutes-2024-07-11 |
| 2025-01-16 | Executive session with CSR attorney (Savannah Theil): unit in foreclosure — attorney recommends no action pending more info. Discussion of Illinois Eviction Act for non-foreclosure delinquents. Board approved pursuing order to vacate for the three highest delinquent properties — significant enforcement escalation. Source: minutes-2025-01-16 |
| 2025-04-24 | Executive session: AR (Accounts Receivable) subcommittee formed — Mike Coker and Mark Hanley — to streamline attorney communication and delinquent decision-making. MC presented a proposed collections process; attorney to review before formal adoption. Source: board-packet-2025-04-24 |
| 2025-07-17 | One delinquent account proceeding to eviction. Late fee waived for homeowner who was overseas when bill arrived and paid upon return. Source: minutes-2025-07-17 |
| 2026-01-14 | One delinquent homeowner paid in full following collection activities. MC requested attorney’s collection status report and confirmation that collections are reflected in the HOA financials. Source: minutes-2026-01-14 |
| 2025 (full year) | Year-end financials confirm the legal enforcement approach is self-financing: $13,836.05 in owner legal fees (7100-03) was exactly offset by $13,836.05 in Legal Chargeback income (6140-00), netting to $0 cost to the HOA. Bad debt expense was $913.80. Late interest collected: $1,019.57. Mailing/printing costs of $7,904.16 (vs. $3,000 budget) reflect the certified mail campaign and eviction notices. Source: year-end-report-2025 |
| 2026-03-31 (Q1) | May 2026 board packet AR summary (as of March 31, 2026) shows: 2 cases fully resolved (1 paid in full, 1 foreclosure dismissed); 1 account with a signed settlement agreement in place; 1 active mortgage foreclosure with a redemption date of August 7, 2026. Source: board-packet-2026-05-07 |
Open Questions
- The July 2022 formalization adds a $25/month flat late fee on top of the 18% annual interest. This is distinct from the earlier “$25 documentation service fee after 90 days” in the R&Rs. Whether this supersedes or supplements the R&R Section 10 timeline is not stated.