D.M. from Hartford County, Connecticut writes:
Dear Mister Condo,
Must an HOA (PUD) pay interest, for monies held, to any homeowner who prepays HOA fees for the entire year?
Mister Condo replies:
D.M., I can honestly say I have never heard of an HOA paying interest to a homeowner for prepaid dues. There is no requirement for a homeowner to prepay so they really shouldn’t be expecting a “return” for prepaying their dues. It is not an investment. If you prepay your taxes or your utility bill you wouldn’t expect interest on the prepayment so I see no reason for interest to be paid on prepaid HOA fees. It is simply a convenience for the homeowner, not an investment. Prepayment of fees is simply offered as a convenience for the homeowner. All the best!