To carry out their duties to the membership, boards must establish a collection policy and then properly implement that policy.

Negative Impact. Uncollected assessments are an asset belonging to the membership. Failure by the board to collect that asset puts a burden on paying members who must make up the difference in the association's budget. Uncollected assessments can result in higher dues, special assessments and reduced services. Leaving delinquent assessments uncollected too long can result in bad debt. High delinquency rates and poor collection efforts can also negatively impact the association's ability to obtain bank loans. Lenders look at an association's delinquency history to gauge its ability to repay a loan.

Protect Membership's Interest. To protect its membership against increased assessments, reduced services, and to preserve the association's ability to borrow, boards must record liens on delinquent owners and initiate collection actions.

Compromise and Waiver. Boards have the power to establish payment plans, waive fees, and compromise delinquent assessments owed by members to the association. However, boards need to have good basis for such actions and they need to be in the best interests of the association.