March 22, 2017
NOTICE OF CHANGE IN POLICY
Dear neighbors and property owners,
The Board of Directors has reluctantly concluded that it must begin enforcing a long-ignored clause in our property restrictions. With respect to owner’s dues, Paragraph 10.D(2) states:
“If any such charge shall not be paid when due, it shall bear interest from the date of delinquency at the rate of two percent (2%) per month. The monthly charge shall, if unpaid within 30 days of its due date, become a lien…”
The Board has given instructions to the Property Manager to implement the clause as follows.
Effective July 1, 2017:
- Dues are annual, and are charged to your account, due and payable, on January 1. (Dues are currently $720/year, subject to change.)
- Current practice will be modified. As is now allowed, dues may be paid annually, semi-annually, quarterly, or monthly. However:
- The grace period for all payment schedules is changed from 2 months to 15 days.
- Therefore, annual payment must be made no later than January 15;
- Semiannual payments must be made no later than January 15 and July 15;
- Quarterly payments must be made no later than January 15, April 15, July 15, and October 15.
- Monthly payments must be made no later than the 15th of each month.
- The grace period for all payment schedules is changed from 2 months to 15 days.
- Since a grace period is allowed, no further allowance will be made, and you will be charged the late penalty if payment is not received timely. (Timely means actually received in-hand by the Property Manager or deposited directly in the QHPOA account by the dates noted above. If payment is mailed, you must mail it early enough to be received in time.)
- The 2% per month penalty is to be charged on the entire outstanding principal amount from the date when it became due, not from the end of the grace period, and a new month’s penalty is charged on the first day of each month.
- Examples:
- Dues of $720 are charged to your account on Jan.1. No payment is received until April 6. You will be charged a penalty of $57.60, which is 2% x 4 months late x $720 principal amount.
- Dues of $720 are charged to your account on Jan.1. You pay $360 timely for the first semiannual payment, reducing your balance to $360, which is due July 1 and payable by July 15. The second payment is not received until December 1. You will be charged a penalty of $43.20, which is 2% x 6 months late x $360 principal amount.
- Interest will not be charged on outstanding penalties.
- Payments will be applied first to penalties, then to outstanding dues.
- It is not the intention or desire of the Board to cause undue hardship. It will consider waiver of penalties for good cause at the request of the property owner.
- A lien may be filed any time after dues are 30 days late, however, liens will be filed only by explicit instruction of the Board, typically when it becomes clear that collection of outstanding dues and penalties is unlikely and/or problematic. A $100 filing fee will be added to your account.
The Property Manager will send out reminders for annual, semiannual and quarterly payments, but it is nonetheless your responsibility to make timely payments. He does not have authority to ignore late payments or waive penalties, so please don’t put him in the awkward position of having to say no.
If you have any questions, please feel free to contact me by phone or email.
Sincerely,
R. David Roberts
Chairman of the Board
Quail Hollow Property Owners Association
Quail Hollow Property Owners Association 