Residential Estate Industry Journal | Page 43

delays for the association may also result. The financial viability of any community association ultimately depends on its ability to collect levies to meet continuing operational expenses and long term provisions. Community association governing documents will include language to the effect that each owner, by acceptance of title deed conditions, or by contractual obligations incurred via the land sale agreement, is deemed to covenant and agree to pay to the association the monthly levies set by the association. This obligation to pay levies is vital to the community association’s viability and integrity, and boards of directors have a fiduciary obligation to ensure the timely collection of levies. Boards use these levies to maintain common areas, buildings and amenities, to support the overall administration of the association and to provide community services to owners. The overall health and welfare of the association is wholly dependent on timely collection of owners’ levies. Where levy delinquencies are high in a community, the association suffers, as do all of its paying members. Other owners are forced to pick up the financial shortfall and bear the burden, both in time and resources, in attempting to collect from delinquent owners. Further, communities that experience high delinquencies are typically barely able to meet monthly operational expenditure, and are unable to maintain healthy reserves for capital improvements, replacement and upgrades of association assets. Community associations must be able to collect promptly and efficiently from delinquent owners in order to fully meet their financial obligations. The goal of debt collection policies and practices is to avoid expensive and lengthy litigation and collection delays, and to minimise the burden on remaining owners. The policy RCC supports effective, fair and reasonable collection methods for levies, special levies and penalties. RCC supports reasonable procedures to accommodate home owners experiencing temporary financial difficulties. RCC opposes government limitations on the efforts of associations to collect all revenues due by their members. RCC supports laws that strengthen such collection methods, provided collection methods are undertaken in a fair and reasonable manner, giving the affecte