It is the overall objective of Board of Directors to protect the investment and pleasant living environment of all homeowners. This is accomplished through maintenance and enhancement of the aesthetics and capital assets of their respective Community Associations. Arguably the largest factor in this objective is to carefully monitor the collection of maintenance fees from each unit. Owners who fail to pay, or pay late upset the delicate balance of the Association’s budget. This only causes the rest of the residents to suffer in the long run.
It is important that Associations have an attorney to pursue any delinquent accounts. They are able to implement a number of collections methods. But when demand letters just don’t cut it, commonly preferred methods are rent levy, wage garnishment, and bank levy. These procedures are particularly useful when an account has reached a status of extreme delinquency. Here’s how they work;
Rent Levy
First and foremost a Judgement needs to be entered by the legal counsel against the unit owner for failure to pay their dues. Now if that owner happens to be renting, it is possible to levy the rental income to collect on the Judgement. The Association’s management company would provide the attorney with the tenant information so that they can file an Execution. Once filed, a Judge reviews and signs the Execution, and a Court Officer will levy the rent to satisfy the Judgement and any other court costs. The tenant is then served and mandated to may their rent to the Court Officer instead of their landlord. Those levied funds will be sent to the Association once a Motion to turn funds over is entered. This procedure continues until the amount due is satisfied.
Wage Garnishment
After the Judgement is entered, counsel will move forward with an employment search for the owner in collections. If the employer is found, they file a notice of Application for Wage Garnishment, Order, and Certification and Execution against earnings. Upon a Judge signing the order, the matter is assigned to a Court Officer who serves the owners employer with a copy. The employer is mandated to garnish the individual’s wages and pay that sum to the officer, whom turns it over to the Association accordingly.
Bank Levy
In the case of a bank levy, a bank account search will be done which tells the attorney what bank (if any) the owner has an account with and their current balance. If funds are sufficient enough, an execution is filed for review and signature by a Judge. Again, the matter is assigned to a Court Officer who levy’s the account in an amount up to the judgment amount and including court fees. The officer will next serve the owner’s bank with a copy of the Execution, and their bank will freeze the account in the amount due that is set forth. The rest is history.
Which of these have you found most useful in your Association? Let us know in the comments!