Heritage Village Master Community Association (HVMCA)
A Private Community in the High Desert
Timely payment of regular and special assessments is of critical importance to the Heritage Village Master Community Association. Members’ failure to pay monthly assessments when due creates a cash-flow problem for the Association and causes those owners who make timely payment of their assessments to bear a disproportionate share of the community’s financial obligations. Therefore, the Board of Directors has enacted the following policies and procedures concerning collection of delinquent assessment accounts:
1. All regular assessments shall be due and payable, in advance, in equal monthly installments, on the first day of each month. Special assessments shall be due and payable on the due date specified by the Board in the notice imposing the assessment. In no event shall a special assessment be due and payable earlier than 30 days after the special assessment is duly imposed.
2. Regular and special assessments shall be delinquent if not paid within 15 days after they become due.
3. If any installment payment of a regular assessment, or payment of a special assessment, is not made within 15 days after it has become due, a late payment charge of $10.00 shall be imposed, and the Association shall be entitled to recover any reasonable collection costs, including attorney fees, that the Association then incurs in its efforts to collect the delinquent sums.
4. If an assessment payment is delinquent for more than 15 days, interest shall be imposed on all sums due, including the delinquent assessment, collection costs, and late charges, at an annual percentage rate of 10%.
5. If a special assessment is payable in installments and an installment payment of that special assessment is delinquent for more than 30 days, all installments will be accelerated and the entire unpaid balance of the special assessment shall become immediately due and payable. The remaining balance shall be subject to a late charge and interest as provided above.
6. If an assessment payment is delinquent for more than 45 days, the Association will cause a letter to be mailed to the delinquent owner. That letter will give a breakdown of the amounts due and will enclose this Collections Policy.
7. If an assessment payment is delinquent for more than 60 days, the Association will authorize a Trustee (Collection Agency) to cause to be recorded in the Kern County Recorder’s Office a Notice of Delinquent Assessment (pursuant to Civil Code Section 1367) concerning all sums that are then delinquent, including the delinquent assessment, late charges, costs, and reasonable attorney fees. Recording this notice creates a lien, which is subject to foreclosure, against the delinquent owner’s property.
8. Once the matter has been transferred to a Trustee (Collection Agency), they will be authorized to commence a non-judicial foreclosure action to enforce the lien. This procedure, also used by banks and savings and loans to collect on unpaid mortgages, takes approximately 111 days from inception to the foreclosure sale. You could lose ownership of your property if a foreclosure action is completed. You will be responsible for significant additional costs and fees if a foreclosure action is commenced against your property. Once the matter has been turned over to the Trustee (Collection Agency) you will receive notification from them as to the amount due the Association.
9. If an assessment payment is delinquent more than 60 days, the Association may also cause an action at law to be brought against the owner who is personally obligated to pay the delinquent assessment or may cause a judicial foreclosure proceeding to initiate to foreclose its lien against the owner’s lot/unit.
10. Any owner who is unable to pay assessments will be entitled to make a written request for a payment plan to be considered by the Board of Directors. The Board will consider payment plan requests on a case-by-case basis and is under no obligation to grant payment plan requests.
11. If an owner disputes any late charge or other charge levied by the Association, the owner is obligated to pay the amount in question despite such ongoing dispute and will be entitled to a refund or credit if the dispute is resolved in the owner’s favor.
12. If a lawsuit or foreclosure procedure is initiated by the Association to recover delinquent assessments, or if the Association is forced to defend an action brought by an owner to contest assessments and/or related charges, the Association is entitled, by its CC&Rs and by law (Civil Code Section 1366c), to recover from the homeowner not only the amount in default, plus late charges, but also reasonable costs of collection, including title company charges and attorney fees.