I have been asked to clarify item 5 H of the April 30, 2014 Minutes entitled, “Late fees on common charges.” The Minutes provide the following:
Mr. Tupko made a Motion to restate the Association’s Policy that imposes a $25 late fee per month for common charge payments that are late. The Motion was seconded by Ms. Webster. There was discussion about the existing Rule and that it has not been adequately enforced. The Motion passed unanimously.
I am writing this clarification because those Minutes might be interpreted to imply that the $25 late fee is not being levied or that we are lax about the enforcement of the Rule; I know that both are not true and I am sorry if this caused any confusion. The Minutes might have reflected that the question was asked if they are adequately enforced; no one alleged that they are not.
Priscilla WIlliams, CPA, Connecticut Businesses Services explained:
Since we have worked with the Association, we have ALWAYS charged a late fee to a Unit Owner who did not make his or her payment by the end of the grace period which is the 15th of the month…if legal action is taken, the late fees are included in the collection amounts. Furthermore, the monthly financials that are sent to the Board show late fee income and late fee amounts on the Accounts Receivable Report.
After the new Board was in place, I met with Treasurer Jane Gregory and President Jim Tupko and discussed that perhaps the $25 per month was not enough and that the Board should consider adding additional fees for people who are consistently two plus months’ behind in common charges.
Again, I apologize for any confusion.
Although late fees have always been charged, it would be nice to have coupon books sent to all homeowners again – maybe this is why people are getting payments in late now because they’re use to having them for the past 20+ years. I know I would prefer having a coupon book vs. not.