Delinquent association dues – can you turn off the cable?
It’s not fair, is it? Your homeowner’s association is holding a stack of overdue association dues notices, yet there your residents are, still watching their cable and using their phones. You as an association want to make a statement – send a clear message to your residents that you’re on to them and that until their dues are paid, life is not all rosy. So you decide to shut off cable service or phone service to your past-due residents. A good idea, right?
Wrong. See, most states do not allow for associations to restrict or deny its residents any amenities as a means to force payment. Oh, you want to, but oh no, you can’t. It’s about protection for the consumer, not the association. Your homeowner’s association is limited to taking only the corrective action it has set forth in writing as a means of collection.
Practically speaking, most utility providers can’t fulfill such requests anyway. Cable companies and telephone service providers are bound by their own set of policies, and they have a direct relationship with your delinquent residents. As long as the residents pay their cable and phone bills, there’s no way you’re going to convince the companies to shut off services even if it were possible.
As much as associations dislike it, they do have to consider collection procedures. First, clearly state your homeowner association’s policies: when payments are due; when late charges are added; when residents will be sent a notice of lien; at what time a lien is registered against the owner’s unit; and how long before the delinquencies add up to a foreclosure situation. Also, boards must state their final approval of all foreclosure settlements or else they risk forfeiting the right to hold out for the full amount due.
Work with your homeowner’s association insurance broker to develop a clear collection and enforcement policy. Just make sure you understand that denying a delinquent homeowner access to common grounds and amenities is not just a bad idea – it’s prohibited.
Flickr photo credit: Leo Reynolds
cable companies are also offering broadband internet these days and the cost is cheap too -**
You’re welcome DeAnne!
Thanks Melissa! Great idea with positive reinforcement vs. negative consequences.
Depends on the governing documents. In Colorado I’m not aware of anything that prohibits HOAs from turning off cable – however, regardless of whether the law and/or the governing documents allow you to turn off cable or other utilities, I would not shut off water or trash or any other utility, if it could lead to a health hazard.
I’ve notice that denying use to rec facilities is often a nice incentive for getting people to cure their delinquencies. Especially around pool season!