If you are like myself and take pride in the community association industry, it is hard not to get annoyed when you see false information being spread about various association issues. It seems that a recurring theme on social media lately is the allegation that homeowners in common interest communities do not have due process rights.
While I could teach a lengthy seminar on the due process protections available, here are a few responses to myths that due process rights are not present:
Myth #1: ‘An association can lien a homeowner anytime that they want without providing them with notice.’
FACT: Most associations are required to provide first-time delinquent homeowners with an opportunity to enter into a payment plan prior to recording a lien against their unit. The payment plan must be for a period of at least six months and can also require repayment of additional assessments that come due while the plan is in effect. So long as a homeowner responds to this notice and enters into a payment plan, a lien cannot be lawfully recorded against their unit. Further, the collection policy for an association may require that additional notices be sent before a lien is recorded or a lawsuit filed against a delinquent owner.
Myth #2: ‘An association can foreclose against a delinquent owner at any time without having a discussion about the issue.’
FACT: A board of directors must approve a foreclosure by vote or resolution of the board of directors.
Myth #3: ‘An association impose a fine against an owner without providing them with an opportunity to contest it.’
FACT: A fine can only be assessed after offering a homeowner notice of the proposed fine and an opportunity for a hearing.
Myth #4: ‘Homeowners have no say over whether a proposed association budget can be approved’.
FACT: A majority of the homeowners, or greater percentage specified in the Declaration, can veto a proposed association budget. Homeowners must also be permitted a voice to comment on the proposed budget. Further, as I previously blogged on April 11 and May 17, 2018, this veto power has now been extended to all non-exempt communities, including those formed pre-CCIOA. https://dupontlawco.com/house-bill-18-1342-budget-veto-provisions-applicable-to-pre-ccioa-communities
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