Collecting assessments is the life blood of community associations. The Board of Directors has a fiduciary duty to collect assessments from owners. If the board of directors fails to fulfill its fiduciary responsibility to ensure that assessments are received from all owners in a timely manner, it will, in many instances, be unable to carry out its other responsibilities in the administration of the association and the preservation, maintenance, and enhancement of the value of the properties. Where assessment collection problems are widespread in an association, the board may be forced to delay or curtail needed maintenance or repair, causing property values to drop.

Adopting a policy which provides a systematic, disciplined approach to collecting delinquencies forms the foundation of a successful program for avoiding financial loss to the association as a result of owner delinquencies. The board of directors can adopt a collection policy without special owner approval based upon the authority granted to it by statute and the association's governing documents. This article will explore the elements of a workable collection policy and the issues which a board and the association's attorney should consider in framing and implementing a collection policy.

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