Homeowner Association Assessments (HOA Dues) are used to keep your association running. Just like the money you pay to keep your electricity on, if the association doesn’t receive your assessments then all the funds budgeted won’t be available to keep the association running.
What do your assessments cover? Your annual, monthly or quarterly HOA payment will cover expenses for your association such as: Insurance, Landscaping, Maintenance, Management and much more depending on your association. In some association it may cover roads, roofs, sprinklers, pools, etc.
How do I know where my association money is going? Each month your association financial documents will be uploaded to your association website and are available for all homeowners to review.
What happens if I don’t pay my HOA assessments? The State of Colorado requires that your association has a collection policy which outlines the steps your association will take to collect HOA dues. This collection policy can also be located on your associations website.
Homeowners who do not make their payment on time can be charged late fees
After continued non-payment the association can place a lien on your home
After continued non-payment accounts are turned over to an attorney
Did you know…. Just like your mortgage, you can be foreclosed on due to non-payment of HOA assessments
Did you know…. If your home is rented: The courts can appoint a receiver who can intercept your monthly rent from your tenant and redirect it to the association to pay your past due assessments.
The true cost of unpaid assessments: If assessments go unpaid then the associations may have to raise assessments or neglect maintenance. Both can have a negative effect on your neighborhood and home values. Not paying your assessments will do nothing but hurt your association and neighbors.
What should I do if I fall behind in my assessments? It is always better to contact the management company to discuss your options as soon as you know that there is an issue. Don’t wait until it gets worse.