Question: What is a late HOA fee in Florida?
Answer: Florida Statutes 720 addresses late fees as well as our Governing Documents.
Garden Patio Villa’s Governing Documents also states late fees are applied after 10 days of a grace period.
The HOA fee is due on the first of the month. If payment comes in on the second, it’s still late! The grace period allows the late HOA fees to be submitted without penalty. The last day of the grace period is not the “real” deadline. People tend to think it is, but the first of the month is the real due date. Our HOA fees are due: January 1, April 1, July 1, October 1.
What was the original purpose of this “grace period”? Many people mail a check to their Homeowners Association. It started to get tricky with people submitting it at the last minute and not arriving with a postmark by the first of the month. The Association wanted the payment to arrive on time so they added this “grace period” for a few late letters to arrive.
Our late HOA fees and late assessment payments do have rules to follow. Per Florida Statutes 720 and our Governing Documents:
(a) If the declaration or bylaws so provide, the association may also charge an administrative late fee not to exceed the greater of $25 or 5 percent of the amount of each installment that is paid past the due date.
(b) Any payment received by an association and accepted shall be applied first to any interest accrued, then to any administrative late fee, then to any costs and reasonable attorney fees incurred in collection, and then to the delinquent assessment
Today, many Members use Zelle for automatic payment of their HOA fees. This allows the payment to arrive instantly. Thank you to all Members who pay their HOA fees on the first of each quarter! We appreciate when you pay on time!