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