Question:
I belong to a HOA of 10 properties and self-managed that has an ongoing account for past due fees that exceeds 7 years and a balance of over $6,000. The HOA President does not want to implement fines and doesn’t want to start legal collections on the account. As a HOA member, I’ve encouraged him that he has a fiduciary responsibility to issue fines and start legal collections as an incentive to get the homeowner to pay and get the funds collected on behalf of the HOA but he feels sorry for the homeowner. I guess he feels sorrier for the homeowner than he does for the HOA which has to pay the cash to cover the expenses for delinquent homeowner(s). I then asked if either of the two Board of Directors owe any past due amounts, and he won’t tell me. I live in Oregon. Can the President withhold that information from HOA members because it seems like a serious conflict of interest if one or both Board Members, owe an outstanding balance since they are the ones with the authority to charge fines and implement legal collections. Also seems like he is breaking his fiduciary responsibility by not actively collecting on past due amounts. He said that he only files liens with accounts greater than 4 months past due. Please respond. Thank you.
– Bill
Answer:
Hi Bill,
It is customary (and sometimes even mandatory) for the HOA board to withhold information concerning delinquent accounts. Because such a topic involves private information, boards keep them confidential. That being said, your HOA board does have a fiduciary duty to the association to collect delinquent dues and enforce its collection policies. If your board is not following the association’s policies and procedures, you might consider removing the board member/s and replacing them with ones who will enforce the rules. Beyond that, you may want to consult a lawyer.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
