Colletion Policy

Kingsgate Ridge Manor Association of Apartment Owners

Collection Policy

 

The Board of Directors of the Kingsgate Ridge Manor Association of Apartment Owners (the “Association”) is responsible for collecting Assessments (as defined in the Horizontal Property Regimes Act, as amended by the Washington Condominium Act) for common expenses and other charges from the owners of units within Kings-gate Ridge Manor, a Condominium (the “Condominium”). Individual Apartment Owners are delinquent in paying their Assessments from time to time. The Board has determined that it is in the best interest of the Association to adopt consistent policies and procedures for the collection of Assessments and any other amounts due the Association.

Resolutions

Resolved by the Board of Directors of the Association that:

  1. Due Date. The Association’s monthly Assessments are due and payable on the first day of each calendar month, as provided in Section 18.5 of the Condominium Declaration. Any regular or routine statements or invoices the Association or its management elects to send from time to time are provided as a courtesy. Neither the Association nor its management is required to send regular or routine monthly statements or invoices. Each Owner is responsible for timely payment of regular monthly assessments amounts, regardless of whether a monthly invoice or statement is sent.
  2. Late Charge. A monthly late charge of $25 is assessed against each Apartment and its Owner with an Assessment account that is not paid in full by the 15th day of each calendar month, which the Association’s management is authorized and directed to charge to and collect from each such Apartment Owner.
  3. Collection Costs. Any delinquent Owner shall be responsible for all costs and expenses incurred by the Association in connection with any delinquency, including, without limitation, all fees or charges imposed by the Association’s property manager or bank for services in connection with the delinquency (including charges for delinquency letters, statement fees for delinquent accounts, nsf fees, utility termination letters and rent intercept letters), costs to sever and restore utilities, recording fees and other costs incurred in connection with the re-cording and/or release of any notice of lien, and all attorney fees and other costs incurred by the Association. All such costs and expenses shall be charged to the delinquent Owner’s account and shall be included as part of the Association’s assessment lien against the delinquent Apartment.
  4. Statements/Notices. The Association’s financial manager shall continue sending delinquent Owners any invoices or statements that are normally sent to Owners unless and until the account is referred to collection counsel or the Association or manager become aware of any bankruptcy proceeding. The Association or its management shall send any Apartment Owner that is delinquent for 45 days or more, written notice about the delinquency and requesting payment of all amounts due within 30 days to avoid action that may include severing utilities (including electricity), requiring any tenant to make rental payments to the Association, recording a notice of lien, initiating a collection law suit, requiring interest on delinquent assessments, requiring a three-month security deposit, and foreclosing the Association lien. The Association or its management company shall send any Unit Owner that is delinquent for 75 days or more, written notice that if the Owner’s Assessment account is not paid in full within 10 days or if other arrangements satisfactory to the Board are not made within 10 days, the Association will take action on the delinquent account.
  5. Owner’s Failure to Pay. If an Owner fails to pay or make other arrangements acceptable to the Board after the notices required above and if the Owner is not subject to a bankruptcy proceeding, then the Association and its financial manager shall proceed as follows:  a) If the Apartment is rented, the financial manager shall send the tenants written demand to pay the rent to the Association in accordance with Section 19.9 of the Condominium Declaration. b) If the Apartment is not rented or if the tenant has failed to remit the rent to the Association as demanded, if the Apartment is believed to be occupied, and if it is practical or feasible to sever or terminate electric service to the delinquent Apartment, the Association shall sever electric service pursuant to Section 19.3 of the Condominium Declaration. This Subsection 5(b) does not apply to Apartments in buildings where it is not economically feasible to terminate electric service..If Subsections 5(a) and 5(b) are not effective or applicable, the account shall be referred to the Association’s attorney for advice and action.In addition, if the Association or its management becomes aware that any Owner is the subject of any bankruptcy proceeding or that a foreclosure action is pending against any Apartment, the account shall be promptly referred to the Association’s attorney for advice and possible action. The notice process ordinarily required by Section 4 does not apply to accounts where the owner has filed for bankruptcy protection or where his or her lender is fore-closing.
  6. Deposit Requirement. Once an account is referred to the Association’s attorney, the Board authorizes the attorney to exercise, on the Board’s behalf, the deposit requirement set forth in Section 19.8 of the Declaration if and to the extent the attorney deems such action advisable, appropriate and/or in the best interest of the Association. The Association’s attorney shall follow any specific directions of the Association’s collection representative with respect to the exercise of deposit requirements.
  7. Attorney Contact/Collection. Once an account is referred to the Association’s attorney, all contact with the delinquent Apartment Owner will be through the attorney.The attorney shall collect all amounts due from the delinquent Apartment Owner on behalf of the Association until the account is brought current.
  8. Collection Representative. The Association’s financial management company is authorized and directed to act on behalf of the Board as its designated representative to oversee the collection of all delinquent assessments and other amounts due the Association, including directing the Association’s attorney or collection agency in connection with any such matter. The financial management company shall consult with the Board prior to authorizing commencement of any legal suit and or acceptance of any payment plan.
  9. Interest. The Board has determined that it is generally impractical to initially charge and collect interest on delinquent Assessments, but that (a) interest at the rate of 12% per annum shall be required on all accounts (from the date of each delinquency) for which the Association institutes any form of legal proceeding to collect delinquent amounts and (b) any monetary judgments against a unit owner for Assessments due the Association shall bear interest from the date of the judgment until paid at the rate of 12% per annum. In addition, the Board, or the Board’s collection representative or attorney may require interest (from the date of each delinquency) on any account more than six months delinquent, whether or not legal proceedings are instituted.
  10. Application of Payments. All payments received by or on behalf of any Unit Owner will be applied against outstanding amounts in the order they became due (i.e., towards the oldest first)
  11. Alternate Attorney Advice. It is impossible to foresee all of the circumstances and fact patterns that may arise with respect to any collection matter. The Board may deviate from any of the provisions set forth in
    this Collection Policy on the advice of its attorney.
  12. Supersedes Prior Policy. This Collection Policy supersedes and replaces the Collection Policy previously adopted by the Board on July 25th, 2013.

Adopted at a meeting of the Board of Directors on September 21, 2017. Policy effective November 1st, 2017.

Kingsgate Ridge Manor Association of

Apartment Owners

 

By Judy Clark

Its President

 

By Garrett Jaynes

Its Treasurer