I would further recommend that the board provide information at meetings on the number of delinquent accounts — not by name or address — and the collection procedure status. For example: “We have two accounts 30 days delinquent and letters have been sent. We have one account that has a lien filed and one account in foreclosure with the attorney.”
The board should establish a collection policy that has been approved by the association’s attorney. That policy would specify how owners can obtain information about delinquent accounts.
If an owner wants an answer, he or she should write to the board of directors and ask the question. The board would, if required, contact its attorneys for a legal answer. An owner acting on his own can do the same, but would be responsible for any legal cost.
While we have money in the reserves, I am not sure what it would cover. Our operational expenses far exceed the budgeted amount, and we will be in the red by the end of the year. The board approved a special assessment to make the shortage as small as possible. The fees were increased 10 percent this year along with the special assessment. What are our options for the future?
The monthly amount must be first paid into the reserve account and cannot be withdrawn except to meet reserve expenses. Budgets stand on their own, and if projected expenses cause an increase in the fee schedule, such increases will be made. The board of directors is required to establish an adequate expense budget and a proper reserve budget (if required).
Under HOA statutes, there is no limit on how much maintenance fees can be increased. In fact, the statutes endorse any increase necessary to meet expenses.