A significant portion of the budget is allocated for roads improvements, repairs, and maintenance as well as shoulder and ditch line work. The remainder of the budget is basically fixed expenses the Association incurs. The annual budget is planned on the expectation of collecting homeowners’ dues from all property owners in a timely manner. Late payments cost the Association additional expenses and can cause delays in scheduled work in the community.
Due to the coronavirus emergency and canceling of this year’s Annual Meeting, the amount of the FFHA budget for 2020-21 remained temporarily unchanged from the 2019-20 amount previously approved by the membership. The Board held a virtual Annual Meeting on September 14th and property owners recently approved an additional increase of $508 for the year.
The Board is sensitive to hikes in the assessment but costs continue to go up on road-related materials and labor, which make up the approximately 82% of FFHA costs.
• Restrictive Covenants – Article 10: Assessments
• Regulations – Setting Annual Assessment Amount
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The assessment amount due on June 1, 2020 was $742. An additional amount of $484.50 will be invoiced in the near future following approval by property owners of the revised budget on September 14th.
Assessments Questions & Answers
Most frequent questions and answers about Assessments
The late fee (5%) helps to cover the additional cost for the accountant to pursue payment of late assessments.
The Association will not put a lien on your property for the late fee; however, the late fee will remain on your account until paid. If a query is made to see if your account is clear, the answer will be “No”.
The collection suit is the Association’s final option to collect delinquent assessments.
A property lien protects the Association; a lien gives public notice to potential buyers and other interested parties that there is a debt owed on the property.
The Covenants allow for such a situation. See Restrictive Covenants, Article 10.
Assessments Policy Collection Steps
• Assessments are due by June 1st each year.
• As of July 1st, there is an extra 5% late fee.
• As of August 1st, the Association’s attorney places a lien on the property on which the annual assessment has not been paid. The attorney’s fee for this action is added to the amount owed. Also, the Association will add on two months interest.
• As of September 1st, the Association is required to turn the account over to the Association attorney for collection. He will initiate legal action to collect the unpaid amount, which will now include the cost of collection and additional interest. The property owner gets another 30 days to pay.
• After the 30 days, the attorney will file suit for collection. Following a loss in court, the North Carolina Planned Community Act requires the property owner pay everything, the original assessments, interest, reasonable attorney’s fees, late fee and all costs of collection. While the expense can vary widely at this stage, the total debt at this point can be several times the original assessment.