The Benefits of a Consistent Collections Strategy
A proactive strategy for collecting assessment dues is vital to the financial health of any community association. And for this particular 600+ single-family home community, the number of outstanding payments had reached a critical level. In spring of 2014, a new board was elected and community oversight passed from declarant to homeowner control. Although the declarant board had left the association with a generous cash reserve, it had not consistently executed an effective dues collection process. In fact, the delinquent balance for assessments had reached $145,000, or 60 percent of total annual dues revenue, which presented a serious cash-flow concern for the new board.