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ASSESSMENT COLLECTION
POLICY
Thousand Oaks Property Owners Association, Inc., is a community (the "Community") created by and subject to that certain __Declaration
recorded under County Clerk File No. _99052262, 2000-028457, 2002-
014602, and 2006-021357, Official Public Records of _Montgomery County, Texas, as amended (the “Covenant"). The operation of the Com
munity is vested in Thousand Oaks Property Owners Association, Inc., (the “Association”), acting through its board of directors (the “Board”). The Association is empowered to enforce the covenants, conditions and restrictions of the Covenant, the Bylaws and rules of the Association (col lectively, the "Restrictions"), including the obligation of Owners to pay Assessments pursuant to the terms and provisions of the Covenant.
This document is being recorded as a COURTESY ONLY by Roberts Markel Weinberg Butler Hailey PC, without review and without liability, expressed or implied.
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The Board hereby adopts this Assessment Collection Policy to establish equitable policies and procedures for the collection of Assessments levied pursuant to the Restrictions. Terms used in this policy, but not defined, shall have the meaning subscribed to such term in the Restrictions.
Section 1. DELINQUENCIES, LATE CHARGES & INTEREST
1-A. Due Date. An Owner.will timely and fully pay Regular Assessments and Special Assessments. Regular Assessments are assessed annually and are due and payable on the first calendar day of the month at the beginning of the fiscal year, or in such other manner as the Board may designate in its sole and absolute discretion.
1-B. elinquent. - Any Assessment that is not fully paid when due is delinquent. When the account of an a Owe becomes delinquent, it remains delinquent untii paid in full — induding collection costs, interest and late fees.
1-C. Late Fees & Interest. If the Association does not receive full payment of a Regular Assessment by 5:00 p.m. of the due date established by the Board, the Association may levy a late fee per month and/or interest at the highest rate allowed by applicable usury laws then in effect on the amount of the Assessment from the due date therefore (or if there is no such highest rate, then at the rate of 1 and 1/2% per month) until paid in full.
1-D. ~ Liability for Collecti . The defaulting Owner is liable to the Association for the cost of title reports, credit reports, certified mail, long distance calis,-court costs, filing fees, and other reasonable costs and attorney’s fees incurred by the Association in collecting the delinquency.
1-E. Insufficient Funds. The Association may levy a charge of $25 for any check returned to the Association marked "not sufficient funds" or the equivalent.
1-F. Waiver. Properly levied collection costs, late fees, and interest may only be waived by a majority of the Board.
Section 2. INSTALLMENTS & ACCELERATION
If an Assessment, other than a Regular Assessment, is payable in installments, and if an Owner defaults in the payment of any installment, the Association may declare the entire Assessment in default and accelerate the due date on all remaining installments of the Assessment. An Assessment, other than a Regular Assessment, payable in installments may be accelerated only after the Association gives the Owner at least fifteen (15) days prior notice of the default and the Association's intent to accelerate the unpaid balance if the default is not timely cured. Following acceleration of the indebtedness, the Association has no duty to reinstate the installment program upon partial payment by the Owner.
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3-A.
3B.
3-C.
3-D.
3-E.
3-F.
Section 3. PAYMENTS.
Application of Payments. After the Association notifies the Owner of a delinquency and the Owner's liability for late fees or interest, and collection costs, any payment received by the Association shall be applied in the following order, starting with the oldest charge in each category, until that category is fully paid, regardless of the amount of payment, notations on checks, and the date the obligations arose:
(1) Delinquent assessments (4) Other attorney’s fees
(2) Current assessments _ (5) Fines
(3) Attorney fees and costs associated (6) Any other amount with delinquent assessments
Payment Plans, The Association shall offer a payment plan to a delinquent Owner with a minimum term of at least three (3) months and a maximum term of eighteen (18) months from the date the payment plan is requested for which the Owner may be charged reasonable administrative costs and interest. The Association will determine the actual term of each payment plan offered to an Owner, An Owner is not entitled to a payment plan if the Owner has defaulted on a previous payment plan in the last two (2) years. If an Owner is in default at the time the Owner submits a payment, the Association is not required to follow the application of payments schedule set forth in Paragraph 3-A. .
Form of Payment. The Association may require that payment of delinquent Assessments be made only in the form of check, cashier's check, or money order.
Partial and Conditioned Payment. The Association may refuse to accept partial payment (i.e., less than the full amount due and payable) and payments to which the payer attaches conditions or directions contrary to the Board’s policy for applying payments. The Association’s endorsement and deposit of a payment does not constitute acceptance. Instead, acceptance by the Association occurs when the Association posts the payment to the Owner's account. If the Association does not accept the payment at that time, it will promptly refund the payment to the payer. A payment that is not refunded to the payer within thirty (30) days after being deposited by the Association may be deemed accepted as to payment, but not as to words of limitation or instruction accompanying the payment. The acceptance by the Association of partial payment of delinquent Assessments does not waive the Association’s right to pursue or to continue pursuing its remedies for payment in full of all outstanding obligations.
Notice of Payment. If the Association receives full payment of the delinquency after recording a notice of lien, the Association will cause a release of notice of lien to be publicly recorded, a copy of which will be sent to the Owner. The Association may require the Owner to prepay the cost of preparing and recording the release.
Correction of Credit Report. If the Association receives full payment of the delinquency after
‘reporting the defaulting Owner to a credit reporting service, the Association will report receipt of ‘payment to the credit reporting service.
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4-A.
5-A.
5-B.
5-F,
5-H.
Section 4. LIABILITY FOR COLLECTION COSTS Collection Costs. The defaulting Owner may be liable to the Association for the cost of title reports, credit reports, certified mail, long distance calls, filing fees, and other reasonable costs and attorney’s fees incurred in the collection of the delinquency.
Section5. COLLECTION PROCEDURES
” Delegation of Collection Procedures. From time to time, the Association may delegate some
or all of the collection procedures, as the Board in its sole discretion deems appropriate, to the Association's managing agent, an attorney, ora debt collector. .
Delinquency Notices. If the Association has not received full payment of an Assessment by the ~ due date, the Association may send written notice of nonpayment to the defaulting Owner, by hand delivery, first lass mail, and/or by certified mail, stating the amount delinquent. The Association’s delinquency-related correspondence may state that if full payment is not timely received, the Association may pursue any or all of the Association's remedies, at the sole cost and expense of the defaulting Owner.
Verification of Owner Information. The Association may obtain a title report to determine the names of the Owners and the identity of other lien-holders, including the mortgage company.
Notification of Mortgage Lender. The Association may notify the mortgage lender of the default obligations.
Notification of Credit Bureau. The Association may report the defaulting Owner to one or
more credit reporting services.
Collection by Attorney. If the Owner's account remains delinquent, the manager of the Association or the Board of the Association shall refer the delinquent account to the Association's attorney for collection. In the event an account is referred to the Association's attorney, the Owner will be liable to the Association for its legal fees and expenses.
Notice of Lien. The Management Company may cause a notice of the Association’s Assessment lien against the Owner's home to be publicly recorded. In that event, a copy of the notice will be sent to the defaulting Owner, and may also be sent to the Owner's mortgagee.
Cancellation of Debt. If the Board deems the debt to be uncollectible, the Board may elect to cancel the debt on the books of the Association, in which case the Association may report the full amount of the forgiven indebtedness to the Internal Revenue Service as income to the defaulting Owner.
Suspension of Use of Certain Facilities or Services. The Board may suspend the use of the Common Area amenities by an Owner, or his tenant, whose account with the Association is delinquent for at least thirty (30) days.
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6-A.
6-B.
6c.
6D.
6-E.
Section 6. . GENERAL PROVISIONS
Independent Judgment. Notwithstanding the contents of this detailed policy, the officers, directors, manager, and attorney of the Association may exercise their independent, collective, and respective judgment in applying this policy.
Other Rights. This policy is in addition to and does not detract from the rights of the Association to collect Assessments under the Association's Restrictions and the laws of the State of Texas. : :
Limitations of Interest. The Association, and its officers, directors, managers, and attorneys, intend to conform strictly to the applicable usury laws of the State of Texas. Notwithstanding anything to the contrary in the Restrictions or any other document or agreement executed _ or made in connection with this policy, the Association will not in any event be entitled to receive or collect, as interest, a sum greater than the maximum amount permitted by applicable law. If from any circumstances whatsoever, the Association ever receives, collects, or applies as interest a sum in excess of the maximum rate permitted by law, the excess amount will be applied to the reduction of unpaid Special Assessments and Regular Assessments, or reimbursed to the Owner if those Assessments are paid in full.
Notices, Unless the Restrictions, applicable law, or this policy provide otherwise, any notice or other written communication given to an.Owner pursuant to this policy will be deemed delivered to the Owner upon depositing same with the U.S. Postal Service, addressed to the Owner at the most recent address shown on the Association’s records, or on personal delivery to the Owner. If the Association's records show that an Owner's property is owned by two (2) or more persons, notice to one co-Owner is deemed notice to all co-Owners. Similarly, notice to one resident is deemed notice to all residents. Written communications to the Association, pursuant to this policy, will be deemed given on actual receipt by the Association's president, secretary, managing agent, or attorney.
Amendment of Policy. This policy may be amended from time to time by the Board.
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RTIFICATION
“, Ue m Hh bsae-_, being the President of hast OAs Homeowner's Association, hereby certify that the foregoing Policy was adopted by at least a majority of the Association Board of Directors on the 4 day of
Lig 20"
a. Tae Mark Kaba
ACKNOWLEDGEMENT
STATE OF TEXAS . §
COUNTY OF §
BEFORE ME, the undersigned authority, on this day, personally appeared the person Joe Mack R abinsan whose name is subscribed to the foregoing instrument and acknowledged to me that they executed the same as the act of the Association for the purpose and consideration therein expressed and in the capacity therein stated.
Given under my hand and seal of office this alIS* day of Pas 20__
ily, SALLY BETH FREDRICK Ott, Fred prch O Gg?
Notary Public, State of Texas
= Comm. Expires 11-07-2021 . Notary 1D 131343474 Notary Public, State of Texas
ale Op ES Cie
After Recording Return to: Principal Management Group 11000 Corporate Centre Drive, Suite 150
Houston, TX 77041
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Principal Management Group Collection Policy Guidelines
The following packet includes the Principal Management Group standard collection policy. We are working toward standardizing collections in order to create a more professional and proficient collections department. This will ensure the homeowners and board members are provided the best possible customer service experience we can provide for your association.
Included in the packet, you will find practices and procedures PMG Houston will use in order to collect delinquent assessments as well as the charges for each step. The packet also includes and defines delinquencies and late charges, payment information, and general provisions provided for your association. The following steps will start in February of each year:
1. 209 Certified & Standard Letter 2. Title Search letter
3. Credit Bureau Letter
4, Lien Letter
After all steps have been completed, if the homeowner remains delinquent, the account may be tumed over to the association’s attorney for collection. Once an account is at attorney status, the homeowner must work with the attorney's office in order to bring their account current. Standardizing the collection process and defining the stipulations and procedures will benefit the association by collecting outstanding balances in a more timely manner therefore creating more revenue for your association.
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Collection Charges
The Board of directors of each Association has an obligation to collect all Association assessments to pay for the maintenance and replacement of-common area property and other association expenses. The
’ Association is entitled to recover assessments, reasonable collection costs, reasonable attorney's fees, late fees and interest when assessments are not paid on time. The following collection policy has been adopted by the Board of Directors.
‘Asa courtesy, the Association sends annual billing statements to owners. Owners are responsible for timely payment of all charges when due. Payment of the regular assessment due date is on January 1+. Annual assessments must be paid in full on or before January 31*.
209 Letter- First Notice . Certified Letter Charge $8.93 Title Search : $65.00 plus tax = $70.36
Credit Bureau , $60.00 plus tax = $64.95
Lien Process $144.00/Account plus tax ~§155.88 Attorney Turn Over Fee : $25.00
_ Additional services are provided as may become available at the prevailing rate or as mandated by law. All fees listed are subject to reasonable change, from time-to-time, without prior notice. However, Agent may provide a courtesy notification via regular mail, facsimile or e-mail to the Board President or the Liaison.
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Doc #: 2019006234 Pages 11
E-FILED FOR RECORD
01/28/2019 08:13AM
Mab Inbl!
COUNTY CLERK
MONTGOMERY COUNTY, TEXAS
STATE OF TEXAS,
COUNTY OF MONTGOMERY
| hereby certify that this instrument was e-filed in the file number sequence on the date and time stamped herein
by me and was duly e-RECORDED in the Official Public Records of Montgomery County, Texas.
$c) Mab abl
County Clerk Mantgomery County, Texas