Our Clients Ask Us- Delinquent Members

Q: We have a member who is delinquent in their association maintenance fees. The Board feels bad for this owner and their situation. We want to make a hardship exception for this individual. Can we make a hardship exception for this individual to delay payments or to waive late fees?

A: YES. The Association can make a hardship exception for a member that is experiencing financial difficulty for any number of reasons if they so choose. However, doing so can cause many issues, and the reasons for doing so must be clearly documented. As harsh as it may sound in a situation where the unit owner truly does have a valid reason for the non-payment, you may be creating a precedent for other unit owners to exploit. Payment plans are usually a better option than making an exception for a unit owner. In addition, the Board must be careful in making exceptions to waive late fees and setting up payment plans because, in doing so, delaying collection can cause cash-flow problems for the association.

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