Can a Home-Owner Association's Manager place a lien on property?

Question

Scenario: HOA Property Management in Las Vegas, NV vs me over unpaid monthly dues.

I wasn't aware that my HOA had changed its Payment P.O. Box a few months ago and hence, my automated monthly payments began being rejected albeit most have been received.

I've been out-of-state for the past few months and hence, finally got a note from a law firm stating that I was delinquent.

I contacted my HOA and they claim I owe them pass due + penalty fee + admin fee + collection fee.

I told them that I want credit on all payments received within the past six months as noted via my bank's statement (as proof of payment) and I'll pay the difference plus the late fee. I refuse to pay the huge collection fee, being that I've been paying monthly in good standing; that the problem was a technical one syncing the bank with the HOA.

I had left a few voice messages and have sent a few e-mails but I haven't received a response since our initial encounter.

So I'm left with no acknowledgement that the collection agency is to be cancelled plus the collection charge void. Nor have I receive a response from my request to pay the difference due.

Question: can the HOA still slap a lien against my property and if so, is it possible for my HOA to force the sale of my property to recover cost?

My wife is freaking out on this.

Meanwhile, I intend to file a Better Business Bureau complaint against my HOA. And if necessary, file a small-claims court suit.

The aggregate requested (dues + fees) cost is about $1000.00:

Assessments             $570.69
Late Fees                $60.00
Interest                  $5.71
Admin Fees               $35.00
Collection Charges      $331.53

Total:                 $1002.93

Answer 1

According to Nolo, which is usually a good source of legal information, yes, an HOA generally does have the power to place a lien on your property if you do not pay your HOA dues, and to foreclose the lien (force sale) if it is still not paid.

They have a specific page for Nevada explaining procedures and restrictions. You'll also have to read your covenant (CC&R) to see exactly what you agreed to when you bought the property, but Nolo seems to suggest that whatever's in there is likely to be enforceable. In particular, the covenant may state that the HOA's lien can include penalties and collection costs, and the law seems to allow that. There's a note on the Nolo Nevada page that an HOA may not foreclose a lien based only on a fine or penalty, so it's not clear what would happen if you paid only the outstanding dues but not the other charges.

Personally, it seems to me excessive to sue over $400. Being on bad terms with your HOA seems likely to cause trouble down the road. Also, if it were me, I'd want to consult a lawyer to get a sense of the chances of winning. The fact that you were out of state and may have missed communications from the HOA or bank seems like it may weaken your case; they might argue that you had a responsibility to check your bank statements and have your mail forwarded. If you lose in court, you might be liable for the court costs in addition to what you currently owe.

Answer 2

Can HOAs put liens on property? In general, yes. The process depends on the specific covenants, but what would be the point of an HOA that can't compel homeowner action by forcing payment for violations of the covenant? Everyone would stop mowing their lawns and tell the HOA to pound sand.

So you're negotiating over the collection fee and possibly some of the lesser charges. They've proposed about $400. You would prefer $0, but it's up to you how much time and money you would put in to attempt to bring the settled number and amount you pay out of pocket down. I'm not a lawyer; I'm not your lawyer, but as a random person on the internet asked to pay $400 I disagree with:

1) Stop the telephone calls. From now on, all communication is USPS Certified Mail. "Return Receipt" is a $5 way to get a dated signature of an individual you can hold over them later to show lack of timeliness on their part, to drive them to accept a proposed lower amount.

2) make the collection agency on notice they're going to have to work for this. Send a copy of bank statements with a "dispute and prove" FDCPA letter.

3) go over HOA documents in detail: are the amounts or rates of fees and interest charged in a written schedule in them, and do these match the charges? Are they all mentioned? Or are any appearing for the first time in this bill? Is the mailing address for the monthly fees printed in the documents (or an incorporated document like "Rules and Regulations")? Did the HOA follow the exact process to change the address? Do documents state how changes are distributed and was this followed? Anything that did not go down as agreed in the covenant is noted and removed from the counter proposal to settle.

4) did the bank deduct the monthly fees along the way (like create bank checks and move money to escrow)? If so, where's the cash?; and overall it seems like a bad deal for you. Are they willing to pay some of the small fees so you don't take your business to a bank that won't accidentally dig you into a mess like this again?

Answer 3

You need to read the governing documents. Generally, yes, HOAs create these kinds of rights. However they are usually tempered. For example, there is often a requirement of notice and an opportunity to be heard or some such thing.