Use Tough Acceleration Policy to Keep Members Current
The financial health of an association depends in large part on monthly payments from members. Those payments are integral because they pay for the services and amenities the members expect and are entitled to. Unfortunately, whether it’s because of financial difficulties or a dispute, sometimes you’ll encounter a member who doesn’t make his monthly payment of assessments.
While it seems like just one member failing to contribute is a minor issue, in reality, he harms the entire community. If you’re wondering what you can do to cut assessment delinquencies, try setting a late fee policy. But consider using an additional strategy: Set an “acceleration” policy, under which if a member hasn’t paid his assessment—typically for at least 30 days—the association may have the right to declare that all of that fiscal year’s monthly assessments are due immediately.
Although some may consider this a tough measure, it’s likely to motivate members to pay. And it will have the effect of reducing the number of times the association’s attorneys have to get involved.
For a strategy you can use to implement an acceleration policy at your community, including language you can add to your governing documents, see “Reduce Assessment Delinquencies with ‘Acceleration’ Policy,” available to subscribers here.