7.22. Resolution 2012-11: Procedures Relative to Assessment Collection of Routine and Special Assessments as well as Delinquent Payments

WHEREAS, GlenRiddle Community Association, Inc. (hereinafter the “Association”) is a duly constituted Association in accordance with Maryland law and the Association’s Declaration and By-Laws which were recorded among the Land Records of Worcester County, Maryland in Liber at Folio, et seq, and,

WHEREAS, Article 5, Section 5.1 of the Declaration creates an assessment obligation for the Owners of Living Units within the Association, which is a continuing lien on the Living Unit and a personal obligation of the Owner; and,

WHEREAS, Article 5, Section 5.1 and Article 6, Section 6.1 of the Declaration grants the Board of Directors (the “Board”) the authority to enforce payment of assessments by means of, inter alia, foreclosing the lien against any Living Unit for which assessments are not paid or bringing an action at law against the Owner personally obligated to pay the same together with interests, costs, and reasonable attorney’s fees; and,

WHEREAS, Article 6, Section 6.3 of the Declaration provides that upon default in the payment of any one or more monthly installments, the Board of Directors may accelerate the entire unpaid balance for the remainder of the fiscal year; and,

WHEREAS, there is a need to establish orderly procedures for the billing and collection of said assessments; and,

WHEREAS, the Board of Directors desires to establish these procedures in conformity with the Declaration, the By-Laws, the Maryland Homeowners Association Act, the Maryland Contract Lien Act, and as otherwise provided by law.

NOW, THEREFORE, BE IT RESOLVED THAT the Board of Directors, on behalf of GlenRiddle Community Association, Inc., duly adopts the following assessment and collection procedures:

1. ASSESSMENTS: Each Owner’s annual assessment is due on the first day of January; however, for the convenience of Owners, the annual assessment may be paid in equal monthly installments, unless otherwise permitted by the Board of Directors. Notices, documents, and all correspondence relating to assessments shall be mailed to the address which appears on the books of the Association. It is each Owner’s responsibility to inform the Association’s managing agent of any address change.

2. DELINQUENCY: If an Owner chooses to pay the annual assessment by means of the monthly installment payment plan, an Owner’s account is delinquent if the installment is not received by the Association’s managing agent on the installment due date, which is the first day of each month.

3. LATE FEES AND INTEREST: A delinquent account that is not paid within fifteen (15) days after the installment due date will be assessed a late fee charge of fifteen dollars ($15.00) or one-tenth of the total amount of any delinquent assessment or installment, whichever is greater. A late fee may be charged on the quarterly assessment each quarter that the account remains delinquent. A delinquent account shall bear interest on the unpaid balance from the due date, until paid, at the rate of six percent (6%) per annum. In addition, a $25.00 returned check charge and any related bank charges will be assessed against the account of the Lot Owner responsible for payment if the payment is returned.

4. LATE NOTICES: If full payment of an assessment is not received by the Association’s managing agent within thirty (30) days after the due date, the managing agent will send a delinquency notice to the Lot Owner by first class mail requesting immediate payment, advising the Lot Owner of the late fee and advising the Lot Owner that interest has begun to accrue on the unpaid balance at the rate of six percent (6%) per annum. The late notice shall also inform the Lot Owner that if payment is not received within thirty (30) days of the date of the letter, the Lot Owner’s assessment will be accelerated through the fiscal year and the account will be forwarded to the Association’s attorney for collection.

5. NOTICE OF INTENT TO CREATE LIEN AND ATTORNEY’S FEES: If an account is forwarded to the Association’s attorney for collection, a Notice of Intent to Create a Lien will be forwarded to the delinquent Owner by means of first-class, restricted delivery certified mail, return receipt requested to the Owner’s address on the Association’s books or by personal delivery or as set forth in the Maryland Contract Lien Act. The Notice of Intent to Create a Lien will inform the delinquent Owner of the amount of the outstanding balance, including all past due assessments, interest, costs of collection, and reasonable attorney’s fees. The Notice of Intent to Create a Lien will conform with the
requirements of the Maryland Contract Lien Act and all other applicable laws.

6. LEGAL ACTION: Once a delinquent Owner has been served with the Notice of Intent to Create a Lien, the delinquent Owner must, within thirty (30) days of service of the lien warning letter, either forward payment in full or file a complaint in the Circuit Court for Worcester County to determine whether probable cause exists for the Association to file a lien against the delinquent Owner’s property. If the delinquent Owner does not forward full payment or file a complaint, the Association will file a lien against the delinquent Owner’s property after the thirty (30) day period has expired. Once a lien has been filed, the Association’s attorney will proceed with further legal action, including but not limited to, foreclosing on the Owner’s property, and/or filing a lawsuit against the Owner in order to collect the past due amounts owed the Association.

7. PAYMENTS CREDITED: Payments received from an Owner will be credited to the outstanding balance in the following order:

a. Court costs, attorney’s fees, and other costs of collection

b. Fines, late fees, or accrued interest, as applicable.

c. Special assessments.

d. Annual assessments.

8. PARTIAL PAYMENTS: In the event an Owner attempts to make a payment of less than all monies due and owing the Association after collection proceedings have commenced, the Association’s attorney will send a letter by first-class mail to the Owner advising the Owner that his or her account remains delinquent as to all remaining monies owed to the Association. The Association’s retention of the partial payment does not constitute a waiver of the Board’s authority to foreclose on the Owner’s property or take action against the Owner to collect the outstanding balance.