Does an HOA have to offer a payment plan for past-due dues?
By OurHOA · General information · Revised
A right to request or discuss installments is different from a right to your proposed terms. Check the applicable rules, request deadlines, and written agreement.
Find the rule that applies to your association
Review the collection policy, governing documents, applicable state law, and any notice you received. Identify whether the association must offer a plan, consider a request, meet with you, or follow minimum terms. Those are different obligations. Do not assume that requesting a plan suspends fees, prevents a lien, or guarantees acceptance of your proposal.
A California example with specific deadlines
For covered owners and debts, California section 5665 permits a written request to discuss a payment plan and requires providing existing plan standards. When the request is mailed within 15 days of the pre-lien notice’s postmark, the meeting is due within 45 days of the request’s postmark; the statute allows a designated committee if no regular board meeting falls within that period. It bars additional late fees while the owner complies with the plan, but preserves lien-recording authority and permits collection to resume after default. Check the statute’s scope and your actual notice rather than assuming these deadlines apply nationally.
Propose amounts you can sustain
State what you can pay toward the overdue balance, the dates, and how you will handle new assessments. Ask for a current itemized balance and the plan standards before calculating a proposal. Keep sensitive hardship information limited to what is needed and use a verified recipient. If a deadline is approaching, follow the required request method and preserve delivery evidence.
Read the agreement before relying on it
Confirm the starting balance, installment schedule, new assessments, interest, fees, allocation of payments, and consequences of a missed payment. Ask whether collection activity continues and what happens to any existing lien. Distinguish an accepted agreement from an unanswered proposal or an informal suggestion. Do not assume the person discussing terms has authority to approve them.
Keep checking the account during the plan
Save the agreement, payment confirmations, and updated statements. Raise discrepancies promptly and request written confirmation of any change to the schedule. If you cannot make an installment, contact the authorized recipient before its due date and ask what options exist. A plan can address timing without resolving a dispute over the original debt; obtain advice before accepting admissions, waivers, or other terms you do not understand.
Sources
These guides are general education for HOA boards and residents, not legal, tax, or financial advice. Rules vary by state and by your community's governing documents - check with a professional for your situation.