Collection Policy - A Must Have for Associations
Colorado Statute mandates the adoption of Responsible Governance Policy with respect to the collection of unpaid assessments. Setting aside that fact that it is required by law, a collection policy is important because it helps homeowners in the association understand the consequences of nonpayment of their assessments. Declarations can be lengthy and sometimes confusing documents for owners to read. However, collection policies should be written in language that is easy to understand. A collection policy promotes openness between the board of directors and the homeowners and makes the intentions of the association clear with respect to collection of unpaid assessments. It also aids in facilitating equal treatment of all delinquent owners. Click here to view a sample collection policy.