Since assessments are fees for maintenance and use of utilities and not consumer debt, many association board members wonder if their communities are subject to the Fair Debt Collection Practices Act (FDCPA). Some may be surprised to learn most state and federal courts consider assessment to be “debts” according to this definition:
DO’S AND DON’TS: HOW TO STAY OFF THE EVENING NEWS
A quick internet search quickly reveals that foreclosures pursued against homeowners living in planned communities have received significant negative press. Stores of abuse by dictatorial boards of directors against honest, hardworking property owners...
Q. I am on the board of a condo association, and we will be having our annual meeting and board elections soon.
We have a husband and wife who own several units. Both are on the...
Q: We are researching how much leverage is afforded to our HOA board before starting lien and foreclosure proceedings on a condo unit that is in arrears on payment of HOA assessments. Does N.C. law allow an HOA to shut off the water to a unit that is past due on payment of association assessments, and when the owner has not responded to an offer of partial payment?
Condominiums offer a range of privileges and services to the unit owners, such as access to swimming pools and fitness centers, use of parking lots and garages, and the provision of utilities such as water. Those privileges are paid for by the assessments levied by the HOA against unit owners.