The new "Collections Policy" adds $60 in 'admin fees'

06/02/2025 07:41 PM - Comment(s) - By Medley Members

Our Treasurer recently stated that only about 1% of homeowners were behind on HOA fees -- so why is this new policy so harsh?

On March 11, the board approved the new "Uniform Policy for The Payment and Collection of Assessments." which was just emailed to us on May 30. As summarized below, homeowners can now accrue $85 in fees in less than a month on their monthly HOA fees.

This new boilerplate "uniform policy" includes contradictory clauses such as "unless...required by the governing documents" and also "as provided by the governing documents, " and "in the manner of Florida Statues" --

No need for this boilerplate doublespeak, our Declaration clarifies this already...

Our Declaration Paragraph 17.18 (see footnote) has always had a reasonable $25 late fee, after a 10 day grace period, for the entire month along with interest [18% simple interest per FL Statute 720.3085]. Our Declaration clearly states "The late fee shall compensate the Association for administrative costs, loss of use of money, and accounting expenses" --so then why would our board allow Castle to tack on another $60? Aren't we paying for their billing services ALREADY?

Let's review the new Collections Policy

and let's consider this policy's impact for any resident who has an illness, is hospitalized, or is traveling.

2nd day of month = late

It's unclear whether we still have the 10 day grace period but we've heard from residents that even 10 days is not enough mailing time to get credited. Nor are we permitted to use our bank's online bill pay to "push" ACH online payments to them. Castle Group's proposed solution to avoiding the new escalating late/admin fees is for residents to authorize them to "pull" payments from our bank accounts. But do homeowners want to authorize access to our bank accounts when their autopay policy is not even posted? Castle's autopay webpage at www.castlegroup.com/autopay-info is empty. (It literally only says "placeholder text." )

At Day 10, any late homeowner is named a "Delinquent Owner" triggering a Castle $30 admin fee.

The new policy states "...THE ASSOCIATION MAY SEND A DELINQUENT OWNER TO THE ATTORNEY AT ANY TIME WITHOUT SENDING LATE OR DEFAULT LETTERS." What?! Not required to send the letters to homeowners? (Also, the term "MAY" is concerning because the HOA and CAMs must apply policies uniformly without favor.)

After that -- still in the same month -- Day 26 triggers another Castle $30 admin fee for a "Default Letter" (which may not be even sent).
Then add on possible Legal Fees

Once the attorney is notified, homeowners could begin accruing further legal fees "including, but not limited to, the cost and legal fees ...in connection with the preparation of Notice of Intent to Lien". Remember, since the management company can send notice to the attorney "at any time", it's conceivably possible for them to begin preparing legal documents on their own schedule. What protections do residents have from an accelerated, escalating set of legal fees?

The Bottom Line

Previously, one month's late fee was capped at $25. Now it totals $85, potentially more -- and consider that $85 is equivalent to 40% of the a single family home's monthly HOA assessment fee. Plus, legal fees might possibly begin accruing at any time.

Lastly, the collections Policy itself does not appear to be executed correctly since Certificate of Corporate Secretary section is not complete.

Disclaimer -this is not legal advice - it's a caution to pay attention! Please read their Collections policy for yourself and attend the monthly HOA meetings. (Next one is Tues. June 10.) Feel free to use our comment box below for feedback or to notify us of any corrections.

FOOTNOTE -- Our Declaration -17.18 Non-Payment of Assessments.
If any Assessment is not paid within ten (10) days (or such other period of time established by the Board) after the due date, a late fee of Twenty-Five and no/100 Dollars ($25.00) per month (or such greater amount established by the Board), together with interest in an amount equal to the maximum rate allowable by law [currently simple 18% by FL statute] (or such lesser rate established by the Board), per annum, beginning from the due date until paid in full, may be levied. The late fee shall compensate the Association for administrative costs, loss of use of money, and accounting expenses. The Association may, at any time thereafter, bring an action at law against the record title owner personally obligated to pay the same, and/or foreclose the lien against the Lot, or both. The Association shall not be required to bring such an action if it believes that the best interests of the Association would not be served by doing so. There shall be added to the Assessment all costs expended in preserving the priority of the lien and all costs and expenses of collection, including attorneys' fees and paraprofessional fees, at all levels of proceedings, including appeals, collection and bankruptcy. No Owner may waive or otherwise escape liability for Assessments provided for herein by non-use of, or the waiver of the right to use the Common Areas or by abandonment of a Lot or Home. All payments on accounts shall be first applied to Club Dues (unless collected by the Club Owner directly from the Owner), the to the Master Association's assessments (unless collected by the Master Association directly from the Owner), then to fines levied in accordance with the terms of this Declaration, then to interest accrued by the Association, then to any administrative late fee, then to costs and attorneys' fees, and then to the delinquent Assessment payment first due. The allocation of payment described in the previous sentence shall apply notwithstanding any restrictive endorsement, designation, or instruction placed on or accompanying a payment. 1 7.19 Exemption. Notwithstanding anything to the contrary herein, the District and Club Owner.