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 assessments to be "debts" according to this definition: A debt...
As board members, it is difficult to follow all the rules and requirements set forth in the governing documents and State law when it comes to imposing fines and scheduling hearings. So when a request comes in from a homeowner requesting a hearing, the task seems insurmountable. However, if you break up the hearing process into a few small pieces, it becomes a task you can accomplish.
What can Directors say when there is a Claim or Lawsuit?
Many Directors have questions about what they can say and who they can speak to about a claim or actual lawsuit. They understand there is a fine line between preserving the confidentiality that such actions require while maintaining the “open book” nature of associations and do not want to inadvertently cross it. While not all inclusive, what follows is a guide of who the Directors can speak to and what they can say.