October 2021
During the pandemic some communities find more owners unable to pay condo fees on time.
It may be tempting to consider granting these individuals additional time to pay their common fees. Community Associations Institute (CAI) has come out against this practice. Their statement can be viewed at https://hoaresources.caionline.org/covid-19s-financial-impact-on-hoa-assessments .
Allowing extra time for delinquent homeowners to pay their condo fees is not a best practice. Unit owners falling behind on paying common fees and assessments is damaging to the financial affairs of the corporation and unfair to other owners. It is more important that the corporation pursue delinquent homeowners than allow late payments to become an acceptable practice.
A condominium corporation does not have the option of delaying payments to employees or contractors. Payment for utilities, supplies and anything else purchased by the corporation must be made on time. The corporation relies on owners to pay their condo fees on time to ensure a stable cash flow. Allowing some owners to not pay fees on time sets a bad precedent that others are likely to follow. Too many owners failing to pay their fees on time can create be a shortage of funds. Should the corporation fail to collect condo fees in arrears, this increases the amount all other owners must pay to maintain the corporation.
Best practice is to require all owners to pay their condo fees when required and to initiate collection actions on those failing to do so.
