LAKEVILLE COMMUNITY ASSOCIATION, INC.
BILLING POLICY AND PAYMENT PLAN GUIDELINES
I. BILLING POLICY
1.
ASSESSMENT PERIOD
The Board of Directors ("Board") has the duty of establishing and adopting an
annual budget, in advance, for each fiscal year of the Association covering
the estimated costs of operation of the Association during eachcalendar year.
2.
NOTICE
The Board shall fix the amount of the assessment against each lot for the
following year pursuant to the Declaration and the annual budget each fiscal
year. A written notice, or electronic notice allowable pursuant to
Chapter 209 of the Texas Property Code, of the assessment may be sent to
every ovmer subject to the assessment. Failure to receive notice will not
negate an owner`s responsibility or provide an entitlement to reduction or
removal of assessments, interest, fines, or costs of collecting past due
balances, if such notice was sent via regular mail to the most recent address
of the owner according to Association records or sent by electronic means to
the device or email address in the Association records when an owner has
opted to receive notices by electronic means in accordance with Chapter 209
of the Texas Property Code. Each owner shall have the obligation to notify
the Association in writing of any change in address or change of electronic
delivery which shall become effective five days after written notice has been
received by the Association. Notices will be deemed delivered to the owner
upon depositing the notice with the us. Postal Service, or by delivery
through a delivery service to the owner or owner`s address, or by sending the
notice by electronic means as designated by the owner in the Association`s
records.
3.
DUE DATE
All assessments are due and payable the first calendar day of the billing
period, or in such a manner determined by the Board in its sole and absolute
discretion. If any amount due the Association Is not paid on the date when
due, then such amounts shall be considered past due. When the account becomes
past due, it remains as such until such time as it is paid in full, including
assessments, lines, interest, late fees, and costs associated with
collecting past due amounts.
4.
INTEREST
If the assessment is not paid by the due date, the assessment may be a
interest from the due date at the rate set forth in the Declaration until the
assessment is paid in full.
5.
LATE FEES
if the assessment is not paid by the due date, the Association may levy a
late charge pursuant to the amount, if any, provided for in the Declaration
until paid in full.
6.
COSTS FOR COLLECTING PAST DUE AMOUNTS
Per the Declaration, the owner is responsible for paying the Association any
costs of collecting past due amounts. Costs the Association may incur or be
responsible for and then add to the owner`s account may include, but are not
limited to: administrative oversight, hand delivery notification, certified
mail, title searches, amounts related to staff servicing past due accounts,
ownership mailing address verification, document preparation, amounts related
to making staii’availabie for communication with past due owners, file review
costs, filing fees, and other costs.
in addition, pursuant to Texas Property Code, the Association may incur or he
resp0nsible for third party costs that: an owner is then responsible for
paying which may include, but are not limited to: attorney’s fees and costs,
court costs, filing fees, and other costs.
7.
PAST DUE NOTIFICATION
In the event an amount remains unpaid after the due date, past due notices
may be sent from the Association to the owner[s) each month the amount
remains past due. The Association may send written notice on or about
every thirty (30) days until such time the account is paid in full.
The Association may choose to cause work to be done in an effort to properly
bill the owners and to fulfill the Board`s duty to bill and collect all
assessments. The Association may state in past due correspondence to the
owner the nature ofnny additional work to he done on the owner’s account and
the corresponding cost to the Association that will be billed by the
Association to the owner`s account if the owner fails to pay in full by the
due date.
Past due notices will contain a statement that the entire remaining unpaid
balance is due and that the owner is entitled to a payment plan. in the event
the owner chooses to enter a payment plan, in addition to interest, a
monthly charge may he added to the owner`s balance for administrative costs
related to the payment plan and such additional administrative costs may
continue until the entire balance is paid in full.
8.
FINAL NOTICE PRIOR TO REFERRAL TO A THIRD PARTY
In the event on amount due remains unpaid for a period ofmore than one
hundred and twenty (120) days beyond the due date set forth on the initial
notice of amounts due to the Association, orin the eventan owner
(lees not fulfill the terms of a payment plan agreement, the Board may vote
in a meeting to send a Final Notice to the owner.
The Final Notice will be sent via certified mail pursuant to Section 209.0064
of the Texas Property Code and will set forth the following information:
amounts due, including all past due assessments, interest, late fees, costs
and any other amounts outstanding; a period of at least thirty (3 0) days for
the owner to pay the amounts due; the availability oi‘a payment plan if the
owner is entitled to a payment plan as described in Section ll of this
document; notice of the owner`s past due amounts being referred from the
Association`s handling to a third party collection agent or attorney if the
amount remains unpaid after the referenced thirty (3 0) day period; and
notice that any attorney`s fees and costs will be charged to the owner`s
account.
9.
REFERRAL TO A THIRD PARTY - ESCALATED BILLING STATUS
Past due accounts referred to the Association`s attorney for legal action may, per the Declaration of the Association, be charged interest, late fees, costs to the Association related to the administrative monitoring of an
owner`s account, and costs of the third party attorney`s office. The costs
for maintaining and monitoring accounts in an escalated billing status may
include, but are not limited to: correspondence to and from the attorney,
regular updates from the attorney to the Board, coordination with the Board
related to the owner`s file. processing invoices and partial payments, notary
services, periodic review ofthe iile, providing updated monthly statements to
the attorney`s office; producing documents, and when requested, information
requests such as, confirmation of occupancy of property, identification of
vehicles, etc.
Upon referral of an owner`s account to a third party attorney`s office, the
attorney is authorized to take whatever action is necessary, in consultation
with the Board, including but not limited to: sending demand letters, filing
a lawsuit against the past due owner for a money judgment, instituting a
foreclosure or expedited foreclosure action; and, filing necessary claims,
objections and motions in the bankruptcy court and monitoring the bankruptcy
case in order to protect the Association`s interests.
10.
PAYMENTS RETURNED FOR NON-SUFFICIENT FUNDS
An owner may be charged for costs related to a check that is returned for
non-sufficient funds.
11.
COMMON AREA
If a hearing is not requested within 30 days from the date the past due
notice is mailed to the owner, the owner’s use of recreational facilities and
common preperties may be suspended.
II PAYMENT PLAN GUIDELiNES
The Association hereby establishes an alternative payment schedule by which
an owner may make partial payments to the Association for past due regular or
special assessments or any other amounts owed to the Association without
accruing monetary penalties. Monetary penalties do not include interest or
reasonable costs associated with administering the payment plan. Any late
fees imposed prior to a request for a payment plan may he made partofsuch
payment plan at the discretion of the Board. The payment plan schedule and
policy is as follows:
1. A payment plan term shall be determined at the discretion of the Board, but
shall have a minimum term of not less than 3 months,
2. The Association may use its discretion to determine the maximum term ot‘a
payment plan;
3. The Association may set up, without the need for a case by case vote by
the Board, a payment plan allowing up to 12 consecutive monthly
installments;
4. An owner may submit a request for a payment plan that does not meet the
foregoing guidelines and may provide any information they wish the Board
to consider. The Board may approve or disapprove such payment plan, in
its sole discretion, as long as the minimum term of the payment plan
offered by the Association is not less than 3 months;
5. All payments shall be due by the date specified in the payment plan;
6. Failure by an owner to make a payment by the due date specified in the
payment plan shall be considered a default of the payment plan;
7. The Association is not required to enter into a payment plan with an
owner who failed to honor the terms of a previous payment plan during the two
(2) years following the owner’s default under a previous payment plan;
8. if an owner requests a payment plan that will extend into the next
assessment cycle, the owner may be required to pay future assessments by
the due date of those assessments in addition to the payments specified in
the payment plan;
9. Pursuantto Section 209.0064[b)(3) of the Texas Property Code the
Association is not required to offer a payment plan to an owner after the
thirty [30) day period to pay the past due balance in the final notice has
expired;
10. The Association is not required to allow an owner to enter into a payment
plan more than once in any twelve (12) month period;
11. The Association is not required to allow a payment plan for any amount
that extends more than 18 months fromthe date ofthe owner‘s request for a
payment plan.
III. General Provisions
1.
Independant Judgement
Notwithstanding the contents of this detailed policy, the officers,
directors, and manager of the Association may exercise their independent,
collective, and respective judgment in applying this policy.
2.
Other Rights
This policy is in addition to and is not intended to detract from or limit
the rights ofthe Association to bill assessments under the Association`s
Declaration and the laws ofihe State of Texas.
3.
Application of Payments
A payment received by the Association shall be applied in accordance with
Section 209.0063 oftho Texas Property (lode. The acceptance of a partial
payment on an owoer’s account does not constitute a waiver of the
Association’s right to collect the full outstanding balance due on an
owner‘s account.
4. Replacement and Amendment of Policy
This policy replaces any previously recorded or implemented policy that
addresses the subjects contained herein. The Board of Directors may amend
this policy from time to time.
Schedule of Billing Procedures
| Collection Action* | Late Charge | Administration Fee | Other Fee |
1st Notice: Courtesy Notice
30 Days
Letter generated and mailed to owner
with deadline to pay | Per governing documents | $20 | N/A |
2nd Notice: Notice of intent to hand
deliver 60 Days
Letter generated and mailed to owner
with deadline to pay. | Per governing documents | $20 | N/A |
3rd Notice: Notice of intent to hand
deliver 60 Days
Letter generated and mailed to owner
with deadline to pay. Letter also sent
via courier to hand deliver to resident.
If resident is outside established
delivery areas, FedEx utilized to hand
deliver bill to resident. | Per governing documents | $20 | $90 Hand Delivery charged to
owner`s account |
4th Notice: Notice of Escalatcd
Property Processing 120 days
Letter generated and mailed to owner
Fescwith deadline to pay. PACER search
done looking for all listed ovmers of
the property. All pending
bankruptcies or active litigation
involving owner researched for
financial situation of owner and to
determine if the property is at risk for
foreclosure by another entity superior
to HOA. | Per governing documents
| $20 | $120 Esculated Property
Processing Fee charged to
Owner`s Account |
Board Approval needed to send to
attorney.
209 Notice: 209 compliant notice
generated. Balance forwards, if
necessary, attached to billing
statement Statute of limitations
removal completed prior to sending
notice if applicable. | Per Property Code 209 | $20 | $30 Statutory Notice fee
charged to owner`s
account. |
Sent to attorney
Title search completed to confirm
ownership and mailing address for
property. 209 notice checked for
accuracy. Tracking information and
signature for 209 notice pulled and
provided to attorney. Search for any
existing liens against the property.
Transaction history pulled and
provided to attorney. Legal work
order generated to provide attorney
any pertinent inforation on the
owners file. Correspondence
reviewed for any contact with owner
regarding payments, pending sales
and refinances, or pending payment
plan requests. Account coded to
attorney so that attorney can access
real time information on the CINC
portal. | Per governing documents | $20 | $90 fee to process file to third
party debt collector. Owner is
responsible for all attomeys`
feeslconrt costs paid by and/or
charged to the Association. |
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For Certification, signature, and notary please refer to the PDF Page
