Free calculator · For HOA boards
What does one home behind on dues really cost the rest of us?
A home is 9 months behind on $125 monthly dues, and the board has paid $1,800 in attorney and lien costs. Three of the community’s 120 homes are 60 or more days behind.
That one home costs the community $2,925, or $24.58 for each of the other 119 homes. With three homes like it, the community carries $8,775, and 2.5% of homes are behind, under the 15% line Fannie Mae’s Selling Guide sets for condo projects.
The cost is the dues not paid plus what the community has already paid to collect. The other homes carry it in the meantime.
Late fees and interest are not counted as a cost: they are owed to the community, not paid by it, and may never be collected.
With the count of homes 60 or more days behind, the page states the delinquency rate against the line Fannie Mae’s Selling Guide sets for the condo projects it reviews (B4-2.2-02): no more than 15% of units 60 or more days past due on assessments.
The rest of the community, in the meantime. The budget still has to be met, so the unpaid dues and the costs of collecting them are carried by the homes that pay.
For the condo projects it reviews, Fannie Mae’s Selling Guide allows no more than 15% of units 60 or more days past due on assessments (B4-2.2-02), and lists a project over that line as ineligible (B4-2.1-03). Fannie Mae waives that review for most single-family communities (PUDs), so ask a lender how it applies to yours.
Often, when the governing documents and state law allow the costs to be charged back to the owner. Until they are paid, the community carries them.
Rebel HOA shows every board member who has paid and ages every unpaid balance.