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We own a town home in Newark, DE since Sept 2013. In Jan 2016 the board chose a new HOA company. Back on Feb 27th we received our March bill and for the first time we saw on it a balance forward that is equal to one month dues. When we called we've been told that this balance forward came from our previous company and per them there is a month were we didn't pay our dues. We called and emailed multiple times since then asking which month and year we exactly didn't pay and we'll provide a copy of the check for that time showing that the previous management company had cashed it. The only feedback was 'we'll reach to the previous company to determine from when this charge carried over' and this been going for about 10 days. Two questions:
1) Can the current management company bill me the amount without actually knowing from were it came?!
2) Can we consider that our dispute was accepted and final since the management company isn't acknowledging our communications and they can't proof from were the charge came or what happens next?
BTW, we went through our bank statements and confirmed that we sent a check for every month since we purchased the house and that the previous company cashed it.
We own a town home in Newark, DE since Sept 2013. In Jan 2016 the board chose a new HOA company. Back on Feb 27th we received our March bill and for the first time we saw on it a balance forward that is equal to one month dues. When we called we've been told that this balance forward came from our previous company and per them there is a month were we didn't pay our dues. We called and emailed multiple times since then asking which month and year we exactly didn't pay and we'll provide a copy of the check for that time showing that the previous management company had cashed it. The only feedback was 'we'll reach to the previous company to determine from when this charge carried over' and this been going for about 10 days. Two questions:
1) Can the current management company bill me the amount without actually knowing from were it came?!
2) Can we consider that our dispute was accepted and final since the management company isn't acknowledging our communications and they can't proof from were the charge came or what happens next?
BTW, we went through our bank statements and confirmed that we sent a check for every month since we purchased the house and that the previous company cashed it.
Thanks!
1) Yes. They are billing you on behalf of your HOA they aren't billing you for themselves.
2) This is between you and the treasurer technically. 10 days is nothing when trying to get more information from a previous management company give them some time. The new management company is busy with the transition, it takes a few months to get everything sorted out. It seems like your treasurer wasn't making sure there was proper record keeping in the first place which just makes the situation worse. Be patient, pay your regular dues and it will get sorted out.
I agree with the above and I suggest that you be proactive, make copies of all supporting documents, and just go ahead and send it all to the accounting department.
We own a town home in Newark, DE since Sept 2013. In Jan 2016 the board chose a new HOA company. Back on Feb 27th we received our March bill and for the first time we saw on it a balance forward that is equal to one month dues. When we called we've been told that this balance forward came from our previous company and per them there is a month were we didn't pay our dues. We called and emailed multiple times since then asking which month and year we exactly didn't pay and we'll provide a copy of the check for that time showing that the previous management company had cashed it. The only feedback was 'we'll reach to the previous company to determine from when this charge carried over' and this been going for about 10 days. Two questions:
1) Can the current management company bill me the amount without actually knowing from were it came?!
2) Can we consider that our dispute was accepted and final since the management company isn't acknowledging our communications and they can't proof from were the charge came or what happens next?
BTW, we went through our bank statements and confirmed that we sent a check for every month since we purchased the house and that the previous company cashed it.
Thanks!
Misapplying payments is a common tactic. Often it is done to pyramid up "late fees". The management company contracts to collect a "late fee" for every month you are allegedly in arrears - and frequently works to create such a situation on paper. Another reason balance forwards show up is to try to avoid the statute of limitations.
Although other posters have claimed the management company is doing this on behalf of the HOA, if you had a copy of the management contract you might wonder whether the HOA is working for the management company.
Sure it could just be a mistake - but watch and see if "late fees" start cropping up...
Location: Stuck on the East Coast, hoping to head West
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This is a huge red flag, OP. We had a change in property management companies (they work on behalf of our HOA). The new company sent several of us a bill. We had no idea what the bill was for. First, the new company said we missed an assessment. When we proved we'd paid all assessments, they claimed it was a fine for maintenance we failed to do. This was news to us. We'd never received a maintenance notice.
I contacted a board member and he personally handled it for me and I got a written notice that I wasn't subject to any fines and my assessments were paid in full and I was in good standing. This took me weeks of calling, documenting, never letting up.
My neighbor wasn't so lucky. Long story, but she sent in her assessment which was applied to the made-up fine and late charges. She eventually went to court over the matter and ended up selling her house. My county doesn't have any rules about priority of payments. So the money she sent in went to late charges and bogus fines and her assessments were marked "unpaid" and they then referred her to an attorney and placed a lien on her house.
The way our bylaws are written, the HOA Board hires a property management company. Any fines or late fees the property management company collects goes to the property management company---not the HOA itself. Some of our Board members weren't even aware of this.
I wonder if you locate enough other neighbors and other hoas administered by the same mgt company if you can bring a suit...or at least get media notoriety.
Wow - we don't start assessing late fees until 30 days into the second quarter of nonpayment. So, January to March 31 is the first quarter. We would start assessing a $25 late fee if payment not received by April 30. Yee-haw, sounds like we need to get on the cash cow.
(Heavily laced sarcasm for the HOA haters - our HOA suspended late fees and fines for over 8 years, when the recession hit).
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