Notice of Payment Plans. The association shall provide the owners the standards for payment plans, if any exist. (Civ. Code § 5730(a); Civ. Code § 5665(a).) Payment plans may incorporate any assessments that accrue during the payment plan period.
Request to Meet. Whether or not an association has written standards for payment plans, owners may submit a written request to meet with the board to discuss a payment plan for delinquent assessments. The board "shall" meet with owners in executive session. The meeting must occur within 45 days of the postmark of the request, if the request is mailed within 15 days of the date of the postmark of the notice, unless there is no regularly scheduled board meeting within that period, in which case the board may designate a committee of one or more members to meet with the owner. (Civ. Code § 5665(b).)
Liens Not Affected. Payment plans do not impede an association's ability to record a lien to secure payment of delinquent assessments. Additional late fees shall not accrue during the payment plan period if the owner is in compliance with the terms of the payment plan. In the event of a default on any payment plan, the association may resume its efforts to collect the delinquent assessments from the time prior to entering into the payment plan.
Approval is Discretionary. Boards are not required to grant payment plans, only to consider them. Boards may approve a payment plans for some but not others. For example, it may grant a payment plan for an owner with a temporary hardship but decline a payment plan for an owner who does not have a hardship.
Timeshares. Payment plan requirements do not apply to timeshares. (Civ. Code § 5730.)
ASSISTANCE: Associations needing legal assistance can contact us. To stay current with issues affecting community associations, subscribe to the Davis-Stirling Newsletter.