Estrella Collection Policy
RESOLUTION OF
ESTRELLA JOINT COMMITTEE, INC.
FOR ESTRELLA MOUNTAIN RANCH
WHEREAS the Board of Directors is charged with the responsibility for levying and collecting all assessments for the Joint Committee Expenses from the Joint CoMmittee Entities or Owners of the Units in a fair and uniform manner, pursuant to Article JJ, Section 2.4(c) of the By-Laws of Estrella Joint Committee, Inc. for Estrella Mountain Ranch (“Bylaws”); and
WHEREAS the Covenant to Share Costs of Estrella Joint Committee for Est rella Mountain Ranch (“Covenant”) and Bylaws directs this responsibility to the Board of Directors for such collect ion; and
WHEREAS the Joint Committee has contracted with a professional management company to provide management service and supervision over certain contract services to the Joint Committee; and
WHEREAS each Owner shall be jointly and severally obligated with the Association Entities for paying the required assessments to the Joint Committee;
NOW, THEREFORE, be it resolved that the Board of Directors has elected to authorize its managing agent to carry out the following policies, reserving t o itself the Right to modify or intervene in certain cases, as the Board may see fit.
POLICY GOVERNING DELINQUENT ACCOUNTS OF UNIT OWNERS WHO ARE NOT SUBJECT TO AN ASSOCIATION ENTITY;
I. LATE NOTICE: An y Owner who fails to pay any assessment or installment thereof wit hin 30 days after t he date it becomes due will be sent a late notice and the Owner’s accou nt will be charged a $15 administrat ive late fee.
2. LATE LETTER: No sooner than 30 days after the due date, the Joint Committee will send a Letter to the Owner with the amount of the del inquent assessment owed to the Joint Committee. The initial Late Letter will be sent via first class mail. All fees associated with this letter will be charged to the Owner’s account in the amount of
$23.50 or the amount stipulated in Exhibit A of the Management Contract.
3. PRE-LIEN DEM AND LETTER: No sooner than 45 days beyond the due date, the Joint Committee will send a Demand Letter (referred to as the Demand Lien Letter) to the Owner making formal demand for immediate payment of all outstanding amounts. The Demand Lien Letter will be sent via regular and certified mail , return receipt requested. All fees associated with this letter will be charged to the Owner’s account. The account will be charged $55 or the amount stipulated in Exhibit A of
the Management Contract.
4. NOTICE OF LIEN: Approximately seventy-five (75) days after the due date, if the Owner fails to pay in full the entire amount covered by a Demand Lien Letter by the date stipulated, the Board will cause to be prepared and recorded with the Maricopa County Recorder a written Notice and Claim of Lien accelerating the u n paid indebtedness for the enti re year (A.R.S. § 1807). Management will make an attempt to contact the owner of record by phone or email according to the management
database, prior to recording the Notice and Claim of Lien. The account will be charged $ 1 10 or the amount stipulated i n Exhibit A of the Management Contract.
5. COURT ACTION DEMAND LETTER: A copy of the recorded Notice and Claim of Lien will be sent to the Owner together with an additional demand for payment in full of all amounts outstanding within fifteen (15) days of the date of the transmittal to the Owner of the Not ice and Claim of Lien and informing the Owner that if payment is not received within fifteen (15) days, legal action will be filed against him or her in a court of competent jurisdict ion. The letter and Not ice and Claim of Lien will be sent both regular and certified mail. All fees associated with the preparation and filing will be charged to the Owner’s account at a rate of $75 or the amount stipulated in Exhibit A of the Management Contract.
6. At this point, the Board of Directors should be advised of any pending t rustee sale
that the Joint Committee may have been notified of so that prudent dec isions can be made about further legal collections. The Board may opt to halt further collection
activity at the lien stage if in fact there is a pending trustee sale. This will be reviewed on a case by case basis to insure proper allocation of Joint Committee funds as it pertains to collecting assessment and collection related fees.
7. LEGAL PREP: One hundred (100) days after the assessment due date, a Court Action may be filed in the appropriate Justice Court. All fees associated with preparation and filing of the Court Action will be charged to the Owner’s account including but not limited to a process service fee and additional court and attorney costs. The account will be charged $45 and forwarded to the attorney.
8. Further collection efforts to secure Joint Committee assessments on those accounts which have not responded to prior efforts at the conclusion of 120 days will be by legal counsel, at the direction of the Board of Di rectors. Specific options may include personal money judgment, foreclosure Judicial or non-judicial) and referral to a collection agency.
POLICY GOVERNING DELINQUENT ACCOUNTS OF UNIT OWNERS WHO ARE SUBJECT TO AN ASSOCIATION ENTITY:
I. LATE NOTICE: Any Association Entity that fails to pay any assessments or
installments thereof, within 30 days after the date they become due will be sent a late notice, and the Association Entity will be charged a late charge of $ 15
for each unpaid assessment (one-time charge per assessment due).
2. LATE LETTER: No sooner than 30 days after the due date, the Joint Committee will send a Letter to the Association Entity with the amount of the delinquent assessment owed to the Joint Committee. The initial Late Letter will be sent via first class mail. All fees associated with this letter will be charged to the Association Entity in the amount of $23.50.
3. DEMAND LETTER: No sooner than 45 days beyond the due date, the Joint Committee will send a Demand Letter (referred to as the Demand Letter) to the Association Entity making formal demand for immediate payment of all
outstanding amounts. The Demand Letter will be sent via regular and certified mail, return receipt requested. All fees associated with this letter will be charged to the Association Entity’s account. The amount will be charged $55.
4. COURT ACTION DEM AND LETTER: If amounts are still owed to the Joint Committee 30 days after the DEMAND LETTER was sent, a follow-up demand letter will be sent to the Association Entity, informing the Association that if payment is not received within fifteen (15) days, the matter will be turned over to the Joint Committee’s legal counsel. The letter will be sent both regular and certified mail. All fees associated with the preparation and filing will be charged to the Association Entity’s account at a rate of $75.
5. LEGAL PREP: One hundred (100) days after the assessment due date, a Court Action may be filed in the appropriate Justice Court. All fees associated with preparation and filing of the Court Action will be charged to the Owner’s account including but not limited to a process service fee and additional court and attorney costs. The account will be charged $45 and forwarded to the attorney.
6. Further collection efforts to secure Joint Committee assessments on those accounts which have not responded to prior efforts at the conclusion of 120 days will be by legal counsel, at the direction of the Board of Directors. Specific options may include personal money judgment, and referral to a collection agency.
7. In addition to the Joint Committee’s collection rights and remedies against the Association Entity, the Joint Committee may pursue each delinquent Owner for the amounts owed by that Owner. If the Joint Committee chooses to pursue collection efforts against any delinquent Owner, it may exercise any of the collection remedies set forth above under Policy Governing Delinquent Accounts of Unit Owners who are not subject to an Association Entity.
This is to certify that the foregoing resolution was adopted by the Board of Directors by unanimous consent, effective as of until such date as it may be modified, rescinded or revoked.