Associations must disclose their policies and practices in enforcing lien rights and other legal remedies for collecting delinquent assessments. Their policy must be annually delivered to the members not less than 30 days nor more than 90 days immediately preceding the beginning of the association's fiscal year. Civil Code §1365(e); §1365.1(a).

Necessary Elements. The policy must include the association's policy for payment plans, imposing late charges and interest, the owner's right to dispute the delinquency, their right to internal dispute resolution and their right to request alternative dispute resolution. Civil Code §1367.1.

Legal Challenge. The collection policy must be up to date with current laws and the association must carefully follow its policy. In the event an owner challenges collection efforts, the courts will look at the collection policy and whether the association followed its policy.

Legal Review. Associations should have legal counsel review their collections policies to make sure they are consistent with the associations CC&Rs and with the Davis-Stirling Act. Boards should also ask about recording "Request for Notice" forms.

Failure to Adopt Policy. Failure by an association to adopt and publish a collection policy will have adverse consequences when it comes to collections.