What restrictions does an HOA have in collecting assessments?

In Delaware, Homeowners Associations (HOAs) are governed by statutes and the specific governing documents that are in place for a specific HOA. Generally, an HOA in Delaware has the right to regulate the use of a property within a subdivision, condominium, or townhome/cityhome community, for the preservation of the community. When it comes to collecting assessments, HOAs in Delaware have restrictions on the amount of money that can be charged and collected. In Delaware, an HOA cannot exceed a 1% assessment fee, and assessments can only be collected if they are due and in accordance with the provisions of the governing documents. Additionally, HOAs must pay interest on late assessments. When collecting assessments, an HOA must also ensure that the assessments are being used for the purpose intended, such as for the upkeep of the community or common areas. An HOA must also ensure that any assessment fees are reasonable and not obstructive. In Delaware, an HOA also has the right to issue fines and other charges as outlined within the governing documents of a specific HOA. The HOA also has the right to place a lien against a property if assessments are not paid. In summary, the restrictions that an HOA has in collecting assessments in Delaware include a 1% assessment fee limit, paying interest on late assessments, ensuring assessments are used for the intended purpose, enforcing the provisions of the governing documents, and placing a lien against a property for non-payment of assessments.

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What restrictions does an HOA have in collecting assessments?

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