C.C. from New Haven County writes:
Dear Mister Condo,
My Condo Association just sent notification that they are planning to increase late fees on HOA fees to $30 (25 to the association and 5 to the management company). They also plan to assess18% interest rate.
Can I apply both a late fee and an interest rate? Is that legal?
Mister Condo replies:
C.C., as long as the Board followed the rules for changing the assessment schedule and the interest on late fees, I don’t see why they can’t have both late fees and interest on late fees. The bottom line is that timely payment of common fees and assessments is critical to the association’s ability to pay its bills on behalf of all owners. Late fees and interest penalties are really the only tool available to the Board to encourage all unit owners to make their payments on time. Best of all, late fees and interest penalties are easy to avoid. Just make sure every unit owner pays their fees and assessments on time, which is exactly what they agreed to do when they purchased into the association. All the best!