Ventura Homeowners' Association

Revised Resolution for Assessment Collection Procedures

RESOLUTION # 00-09-05

VENTURA HOMEOWNERS' ASSOCIATION

Subject: Assessment Collection Procedures

WHEREAS, the Board of Directors of Ventura Maintenance (Homeowners) Association Inc., is empowered to govern the affairs of the Homeowners Association pursuant to Article IV of the Bylaws.

WHEREAS, there is a need to pass a resolution regarding specific assessment collection procedures.

WHEREAS, it is the intent that this rule shall be applicable to all homeowners, shall remain in effect until otherwise rescinded, modified or amended by a majority of the Board of Directors.

NOW, THEREFORE, BE IT RESOLVED THAT the following resolution has been adopted by the Association pursuant to the State of Texas Law, at a regular meeting of the Board of Directors:

RECITALS

(a) The Association is charged with certain responsibilities regarding the care, maintenance, and service of certain portions of the Ventura Maintenance Association of San Antonio, TX.

(b) The Association must have the financial ability to discharge its responsibilities.

(c) The Board of Directors is required to pursue collection of assessments and other charges from delinquent owners.

(d) The Board of Directors of the Association desires to adopt a uniform and systematic procedure to collect assessments and other charges of the Association.

NOW, THEREFORE, BE IT RESOLVED that the ASSOCIATION does hereby adopt the following procedures and policies for the collection of assessments and other charges of the Association:

1. Due Dates. The annual assessment as determined by the Association and as allowed for in the Declaration, Articles of Incorporation, and Bylaws shall be due and payable by making one (1) full payment due by Jan 15, or two (2) equal payments due by Jan 15 and Feb 15, or three (3) equal payments due by Jan 15, Feb 15, and Mar 15 respectively. Payment must be made by check or money order payable to Ventura Maintenance Association, Inc. or VMA. Assessments or other charges not paid to the Association by the 15th day of the month in which they are due shall be considered past due and delinquent.

2. Invoices. The Association shall invoice an owner to pay assessment or other charges of the Association. The Association will provide an owner with an invoice for annual assessments, (to include past due amounts if applicable), the invoice should be mailed or sent to the owner between the 15th of Nov and 15th of Dec, of the preceding year. Nonreceipt of an invoice shall in no way relieve the owner of the obligation to pay the amount due by the due date.

3. Late Fee and Interest Charges. An annual assessment shall be past due and delinquent if not paid by the due dates indicated in paragraph 1. A late fee of twenty five dollars ($25.00) shall be charged on March 16 for all accounts not paid in full by March 15. Late payment fee includes interest which the Association is entitled to charge in addition to unpaid assessments. Any assessment charge assessed and not paid when due shall bear interest from the date due until paid at the rate of ten (10%) percent per annum.

The finance charge shall be the personal obligation of the owner(s) of the unit for which such assessment or installment is unpaid. All finance charges shall be due and payable immediately, without notice, in the manner provided by the Declaration (and as set forth above) for payment of assessments.

4. Payment Plan. If a property owner is unable to make payment in full by March 15, but is prepared to pay annual assessments through an additional monthly payment plan, this can be arranged during regular office hours at the Association's main office. A post-billing payment plan will include the amount of unpaid assessments, plus other unpaid fees or charges, together with late charges and a ten dollar ($10.00) administrative fee.

5. Return Check Charges. In addition to any and all charges imposed under the Declaration, Articles of Incorporation and Bylaws, the Rules and Regulations of the Association, or this Resolution, a twenty five dollar ($25.00) administrative fee or other amount deemed appropriate by the Board of Directors shall be assessed against an Owner in the event any check or other instrument attributable to or payable for the benefit of such Owner is not honored by the bank or is returned by the bank for any reason whatsoever, including but not limited to insufficient funds. This returned check charge shall be a "common expense" for each owner who tenders payment by check or other instrument that is not honored by the bank upon which it is drawn. Such return check charge shall be due and payable immediately, upon demand. Notwithstanding this provision, the Association shall be entitled to all additional remedies as may be provided by applicable law. Returned check charges shall be the obligation of the owner(s) of the unit for which payment was tendered to the Association. If two or more of a unit owner's checks are returned unpaid by the bank within any year, the association may require that all of the unit owner's future payments, for a period of one year, be made by certified check or money order.

6. Attorney's Fees on Delinquent Accounts. As an additional expense permitted under the Declaration, Articles, and Bylaws, the Association is entitled to recover its reasonable attorney's fees and collection costs incurred in the collection of assessments or other charges due the Association from a delinquent owner. The reasonable attorney's fees incurred by the Association shall be due and payable immediately when incurred, upon demand.

7. Application for Payments Made to the Association. Payments received from an owner will be credited in the following order of priority:

1. Charges for legal fees, court costs, and other costs of collection.

2. All late charges or interest accrued, as applicable.

3. All other charges incurred by the Association as a result of any violation by an owner, his/her family, employees, agents or licensees, of the Declaration, Articles of Incorporation, Bylaws, Rules and Regulations, or Resolutions.

4. The yearly assessment for a unit, including any special assessment due, as applicable; payments shall be applied toward the oldest month(s) then owed.

8. Collection Letters.

(a) After an annual assessment or other charge due the Association becomes thirty (30) days past due, the Association may cause, but shall not be required to send, a "late notice" to be sent to the unit owner who is delinquent in payment.

(b) If payment in full is not received within 30 days, the Association may, but shall not be required to send a ‘Notice of Intention to Refer Account to the attorney" to the unit owner. The Association may simultaneously send a copy of the notice to the mortgagee of the unit.

9. Use of Certified Mail/Regular Mail. In the event the Association shall cause a collection or demand letter or notices to be sent to a delinquent owner by regular mail, the Association may also cause, but shall not be required to send, an additional copy of that letter or notice by certified mail.

10. Liens.

(a)The Association may file a Notice of Lien against the property of any delinquent owner in accordance with the terms and provisions of the Declaration, Articles of Incorporation, and Bylaws. A copy of the recorded Notice of Lien shall be mailed to the Owner and may be sent to the Mortgage lender with a request that the lender send a letter to the delinquent owner advising the owner of the lender's option to accelerate the mortgage debt, if applicable.

(b) As an additional expense permitted under the Declaration, Articles of Incorporation, and Bylaws, the Association shall be entitled to recover it's reasonable fees and costs incurred in the collection of such lien. The reasonable lien fees incurred by the Association shall be due and payable immediately when incurred, upon demand.

11. Referral of Delinquent Accounts to Attorneys. The Association may, but shall not be required to refer delinquent accounts to its attorneys for collection. Upon referral to the attorneys, the attorneys shall take all appropriate action to collect the accounts referred.

12. Referral of Delinquent Accounts to Collection Agencies. The Association may, but shall not be required to refer delinquent accounts to one or more collection agencies for collection. Upon referral to a collection agency, the agency shall take all appropriate action to collect the accounts referred.

13. Collection Procedures and Time Frame. The following time frame shall be used in the collection of the annual assessment and other charges.


Due date Full Payment - Jan 15
(date payment is due)
Two Payments - Jan 15 and Feb 15
Three Payments - Jan 15, Feb 15, and Mar 15

Past due date, "Reminder Notice" 16th day of Mar
(date payment is late, late fee)

Finance charge imposed (Interest) 1st day of Apr

"Late Notice" mailed imposing 30 days after the due date (Apr 15) interest, etc.

"Notice of Intention to file lien 45 days after the due date (May 1) and to Refer Account to Attorney"

File Liens 60 days after the due date (May 15)

Account referred to attorney 75 days after the due date (Jun 1) for legal action

Attorney sends demand letter 75 to 90 days after the due date for payment Jun 1 - Jun 15)

Owner fails to respond to the 120 days after the due date (Aug 1) attorney, a lawsuit is considered, and if appropriate, is commenced

The attorney is to consult with the association at all times to determine if payment has been arranged or which collection procedures are appropriate.

14. The association may grant a waiver of any provision herein upon petition in writing by an owner showing a personal hardship. Such relief granted an owner shall be appropriately documented in the files with the name of the person or persons representing the Association granting the relief and the conditions of the relief. In addition, the Association is hereby authorized to extend the time for the filing of lawsuits and liens, or to otherwise modify the procedures contained herein, as the Association shall determine appropriate under the circumstances.

15. Notification to Owners. The Association shall cause all owners to be notified of the Resolution and the late charges, returned check charge, lien charge, and attorney's fees to be imposed after the effective date of those provisions of this Resolution. All other policies and procedures set forth in the Resolution shall be effective immediately.

16. Suspension of Members Rights. The association will suspend a member's voting right and rights to the use of the common area and any recreational facilities for a period of time during which any assessment or other fees against such member's lot remains unpaid. Proper notice will be given to the delinquent owner.

17. Ongoing Evaluation. Nothing in this Resolution shall require the Association to take specific actions other than to notify homeowners of the adoption of these policies and procedures. The Association has the option and right to continue to evaluate each delinquency on a case by case basis.

Motion was made, seconded, and approved by the majority vote during the VHA Board Meeting dated September 21, 2000 (see minutes).

This Resolution supersedes Resolution # 98-02-05 dated February 19, 1998.