When delinquent, homeowners will sometimes pay the delinquent assessment but refuse to pay late charges. If they received fines for rules violations, they may refuse to pay those as well. When that occurs, are associations allowed to charge late fees and interest on unpaid late fees and unpaid fines? No, they cannot.
The Davis-Stirling Act provides for a late fee of 10% or ten dollars, whichever is greater (unless the CC&Rs specify a
lesser amount), against delinquent assessments
. (Civ. Code §5650
) That means late charges cannot be charged against unpaid late charges or unpaid fines.
: Associations needing legal assistance can contact us
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