Collection of Assessments Policy

Policy Resolution NO.  1-2013

Policy and Procedures

Concerning the Collection of Assessments

Purpose

The Board of Directors has determined that it is in the best interest of the Association to adopt a formal collection policy.  The collection policy is not intended to penalize Owners who become delinquent in paying their Association assessments but rather to encourage timely payments to ensure funds are available to provide for the needs of the Association.  To this end these Procedures are needed to establish an orderly process for the billing and collection of assessments.

Authority

This Policy is established pursuant to the authority provided by the Four Seasons Recreation Association Declaration of Covenants, Conditions and Restrictions and the Four Seasons Recreation Association By-Laws.

The Board hereby adopts the following Procedures Concerning the Collection of Assessments:

ROUTINE COLLECTION PROCEDURES 

The Annual Assessment for each fiscal year will be established at least thirty (30) days in advance of the next annual assessment period.  Written notification will be mailed to Owners thirty (30) days in advance of each annual assessment period.

  • The Annual Assessment will be due on October 1 each year.  The Board has chosen to permit the payment of the annual assessment in quarterly installments, each quarterly installment to be an amount equal to one-quarter of the Annual Assessment; payment Due Dates for each quarterly installment will be October 1st, January 1st, April 1st and July 1st.  Payment of each quarterly installment will be considered late if not paid by November 1, February 1, May 1 and August 1 each year.  Owners will be sent a quarterly courtesy reminder fifteen (15) days prior to the start of each quarter.
  • Installment payments of any special or additional assessments will be due and payable on the date or dates specified in the notice of such special or additional assessment, delivered or mailed to the Owners.
  • Payment Address.  Unless otherwise indicated in the billing statement, all payments are to be mailed or hand-delivered to the Association office: Four Seasons Recreation Association 1201 Herndon Parkway, Herndon, VA  20170

All documents, correspondence and notices relating to regular or special or additional assessments or other charges will be mailed to the address which appears on the books of the Association or to such other address as is designated in writing by the applicable Owner.  Notice of any special or additional assessment shall be sent to each Owner by first class mail.  Each non-resident Owner shall furnish the Board with an address where the Owner promptly and regularly receives mail. It is the responsibility of the Owner to promptly notify the Association office of any change in mailing address.

Non-receipt of invoices shall in no way relieve an Owner of the obligation to pay the amount of any assessment by the applicable Due Date.  

REMEDIES FOR NON-PAYMENT OF ASSESSMENTS

  • If an Owner fails to pay any Annual Assessment, or installment thereof, within thirty (30) days of an applicable Due Date, the remaining balance of the Annual Assessment is automatically payable and delinquent to the same extent as the missed installment payment. 
  • A “Late Notice” will be sent to any Owner who has not paid any assessment in full by the close of business thirty (30) days after the applicable Due Date. 
  • The delinquent annual assessment balance may bear interest from the date of delinquency at the rate of six (6) percent per annum, until full payment of the annual assessment balance is received by the Association.  The Date of Delinquency for each quarterly Annual Assessment installment period is November 1, February 1, May 1 and August 1. 
  • If the account is not paid in full within one hundred eighty (180) days after the Due Date, the Association will send a “Notice of Intent to Record a Lien” to the Owner at the address listed on the books of the Association.  The notice will be sent via Certified Mail, Return Receipt Requested.  A copy of the notice will be sent via 1st Class mail.  
  • If the account is not paid in full within fourteen days (14) days after the date of the Association “Notice of Intent to Record a Lien”, the account will be referred to legal counsel for legal action to collect the delinquent assessments.
  • Counsel will send a “Notice of Intent to Record a Lien” to the Owner at the address listed on the books of the Association.  The Notice will be sent at least ten (10) days before the actual filing date of the lien. 
  • If an Owner fails to pay the account current within the time frame stated in the “Notice of Intent to Record a Lien” counsel will file a lien on the property. 
  • The annual and special assessment, together with interest, cost of collection, including reasonable attorney’s fee shall be a charge on the land, and shall be a continuing lien upon the property against which each such assessment is made, as stated in the Declaration and By-Laws. 
  • If an Owner’s check is not honored by the bank and is returned to the Association unpaid, the amount charged by the Association bank for the returned check charge will be assessed against the Owner, and will be in addition to any applicable interest. 
  • If  the Owner does not pay the account in full after the Memorandum of Lien is recorded, the Board of Directors may vote to authorize legal counsel to take additional  legal action which may include filing a lawsuit against the Owner personally or foreclosing on the lien. 
  • The association will suspend the voting rights and rights to use the recreational facilities by a member for any period during which any assessment against his lot remains unpaid.  
  • If the Association receives from any Owner, in any accounting year, two or more returned checks for payments of Owner’s assessments or other payments, the Board may require all future payments to be made by certified check or money order. 
  • The Board of Directors may postpone legal action and/or grant a waiver of interest, attorney fees and/or other costs of collection and/or allow specific delinquency payment plans for Owners experiencing financial hardship.  Owners wishing to request this consideration must do so in writing or in person to a meeting of the Board of Directors.  The Board of Directors will consider these requests on a case-by-case basis upon review of the circumstances. 
  • Once the account has been referred to legal counsel for collection, payments received towards the account will be credited in the following order of priority: 
    • Returned check charges.
    • Interest accrued.
    • Charges for attorneys’ fees and costs as awarded by a court.
    • Any assessment due for the lot, including any special assessments, applied in chronological order with the oldest date first. 
  • This Policy supersedes all previously adopted Resolutions or Procedures governing the collection of Owner accounts.  The effective date of this resolution is October 1, 2013.