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Can HOAs withhold privileges over unpaid fees?

On Behalf of | Nov 6, 2024 | Real Estate Law

Keeping a community thriving depends largely on the regular collection of HOA fees. Yet, many HOAs struggle with residents who fall behind on their payments, affecting essential services and causing frustration among those who do pay on time. Is it legal for HOAs to restrict certain privileges to motivate timely fee payments?

It depends on the HOA bylaws

The Connecticut Common Interest Ownership Act (CCIOA) allows HOAs to charge fees to unit owners. This must align with the association’s bylaws and the law. Whether an HOA can withhold privileges if a resident fails to pay their dues depends on the specific situation and the language of its governing documents.

HOAs can legally withhold privileges due to non-payment if their bylaws explicitly allow it. Without this clause, they may lack the authority to do so.

It is crucial to note that HOAs cannot deny essential services like water, electricity or access to one’s home. Courts may view such actions as illegal and may result in legal consequences for the association.

Taking legal action against delinquencies

If clearly outlined in the bylaws as consequences of non-payment, an HOA generally can:

  • Suspend voting rights for delinquent homeowners
  • Restrict access to common areas and amenities
  • Impose late fees and interest on unpaid balances
  • Place a lien on the resident’s property due to unpaid assessments

HOAs must follow a specific process before taking action. It typically includes sending written notice to the homeowner, offering an opportunity to attend a hearing and giving them time to fix the issue. The HOA can only impose penalties after completing these steps.

When addressing collection issues, it is crucial to obtain the advice of an experienced Connecticut attorney. An attorney can help HOAs understand their rights, follow the correct procedures and protect themselves from potential legal disputes.