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Southpointe Square H.O.A.Lien Policy and ProcedurePurposeThe purpose of this policy and procedure is to explain, guide, and assist the members of the home owner’s association and association H. O. A. board on how the lien process is applied to members with overdue annual dues issues. Master Deed ArticlesThe master deed filed with the state of Michigan and the Monroe County Register of Deeds has wording that allows the board of directors to establish late fees, charge interest, and file liens against members property who are delinquent in paying their annual dues on time. Article XXVIII “Assessment Procedures” Sections 1,2, 3, and 4 on page 18 explains the duties on the board to collect and process annual dues. BylawsPer the Bylaws and other H.O. A. board actions the board shall mail out annual dues invoices thirty (30) days prior to the due date to all association property owners of record via first class U.S. mail. The board will review any non- payment by owners and these parties will be mailed a second and final invoice with a lien warning within fifteen (15) days after the due date.EnforcementThe costs of enforcing the annual dues collection may result in some cases of a lien being filed against the property of any association member who has not paid their dues on time per Article XXXIII, on page 21 of the master deed. Additional costs associated with the lien process will be the responsibility of the property owner who is late in their annual dues payment.Lien ProcedureBoard Actions - The H.O.A. board of directors shall set dates for the annual dues to be paid per information in the master deed. The amount of the annual dues shall be determined by the board based on the annual total costs to maintain the required areas of the subdivision and all other required expenses per the master deed and bylaws.Late Dues - Any annual dues not received or received after a board determined date shall be considered as late. Second Letter - Any owner late in paying their annual dues by the due date will receive a second invoice letter and a warning of lien. After fifteen (15) days of the second letter mailing the board may start the legal process of placing a lien on the property of the late or nonpaid member’s property if the dues amount and late fee have not been received. Lien Cost ComponentsThe costs associated with the filing and removal shall be paid by the property owner of the lien. The association and or board will not incur any expenses. The components cost of the lien are as follows as of November 15, 2018 and may be subject to change:Filing and Removal administration fees - $ 250.00Attorney filing and removal fee - $ 500.00Value of Annual Dues not paid - $ 50.00 * Value of Late Fees - $ 50.00 *Value of all interest incurred @ 15% simple interest *Lien NotificationThe lien will be filed with the county at the boards direction. The property owner that has the lien placed against their property shall receive a letter from the board’s attorney stated that a lien exists on their property.To remove a lien all outstanding expenses must be paid to the H.O.A. treasurer. The board will then direct their attorney to file to have the lien removed. After the lien is removed the property owner will receive written notice that the lien has be removed from the board.Lien Appeal If any property owner feels that they were incorrectly found to be late in their annual dues they may request an appeal before the H.O.A. board. They must request this appeal within thirty (30) days of any notice that they late in payment of their annual dues to date.Lien Removal To remove a lien, the property owner must request a dollar amount from the Home Owners Association treasurer. After the amount is paid, the Home Owners Association secretary will notify the attorney to proceed with removing the liened property. When the removal process is completed the property owner will receive via US mail their copy of the release.Lien Recovery - Foreclosure In Article IV, Section 7 of the H.O.A. bylaws, it states that the board may take legal actions to recover any unpaid dues, late fees, and interest. The board may elect to file for property foreclosure for all unpaid monies at a time not less than ten (10) years past first date of nonpayment. The property owner will incur all expenses of this action. * these values may increase for multiple years. Rev. 11/30/2018 04/05/2018 Rev: April 12, 2018RE: H.O.A. Lien Policy & ProcedureHello Member,This letter is intended to explain the board’s reasoning for the written lien policy and procedures. While just a very few members do not pay their annual dues, it is the responsibility of the board to be fair to all members. This means for all that do pay their dues on time the others who do not must be penalized for not. Each year just a few either forget or decide not to pay their annual dues. Some are only two or three years in the rears while two or three have not paid their dues for over five (5) years. It is the responsibility of all who live in the subdivision to fund the expenses equally.To that end the board has developed this written policy and procedures. They were approved by motion at the last board meeting. It was also decided due to the computer software we use annual dues for any year in advance will not be accepted.Should any member have any questions or comments please contact any board member. These policy and procedures will be posted on the subdivisions web site.Respectfully,Kathy Toeppe, H. O. A. Presidentcc: file Web site ................
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