Assessment Arrears Collection Policy

Arrears Assessment Collection Policy

The MLC Arrears Assessment Collection Policy outlines the Cooperative’s policy in collecting delinquent assessments:

1)  Coordinator’s Actions for Collecting Arrears Assessments                                                                                                                                                                                                    

       A.  Repayment Agreements

1. The Coordinator is tasked with collecting arrears assessments.  The Coordinator or a delegee shall obtain written repayment agreements  from members who will owe nine months of assessments or more by October 1, and also by that date shall annually review the repayment agreements currently in effect.

2.  Each written repayment agreement shall specify the terms of payment to be honored. Failure to enter into, or to abide by, the repayment agreement renders the member subject to the consequences outlined in section 2-B below.

3.  Increases in assessments may trigger a review and possible change in the terms of payment.

      B. Land Transfer and Assessment Collection (See also MLC Land Transfer Policy)

1.  The Coordinator is further tasked with collecting any assessments owed by a member selling property in the MLC.  Payment must be made at the time of closing or as otherwise specified in the Land Transfer Policy.

2.  The Cooperative will only assign its right of first refusal to members whose assessments are current and will require any member wishing to purchase property within the Cooperative to pay all assessments owed prior to contracting to purchase additional property.

2)  Consequences for Members in Arrears

           A. Penalties on Arrears Assessment

1.  Members owing the amount of six months or more in arrears assessments will be charged the maximum legal interest pursuant to Section 55.03, Florida Statutes on their delinquent accounts, with interest compounded quarterly, or a lower rate as determined annually by Town Council.

2.  The Bookkeeper shall annually review the maximum legal interest rate under Section 55.03, Fla. Stat. and inform the Council and Coordinator of any change in the rate or the applicable law affecting this policy.

        B. Reporting Delinquencies to a Credit Bureau & Legal Action 

1.  If a member does not honor a payment agreement, the Coordinator, according to the terms specified in the agreement and after written notification to the delinquent member, may report the delinquency to a credit bureau or take other legal action as approved by Council.  The costs relating to any such actions shall be borne by the delinquent member.

2.  The Council and Coordinator shall act in a timely manner to rescind a credit bureau report or other legal action when the debt that triggered such actions has been paid or other satisfactory resolution has occurred.

            C. Liens MLC will place liens on the property of members owing $500 or more in delinquent assessments.  The Council and Coordinator shall act in a timely manner to remove a lien once payment is made.

D. Suspension from Voting   Members with liens on their property will be suspended from the MLC voting list unless they are participating in a payment plan.  The Coordinator will notify affected members that they will be suspended until they begin participating in a payment plan. The Coordinator will notify the Elections Committee whenever a member will be removed from, or replaced on, the Voters’ List.

           E. Ineligibility to rent or sponsor rental of the Community Center

Except in the case of memorial events, only members in good standing may rent or sponsor rental of the community center.  A member is not in good standing if the member has a history of noncompliance with the guidelines for previous Community Center rentals or if the member is in arrears with assessments, as listed in the most recent bookkeeper report, and is not participating in and in compliance with a repayment agreement.

Amended 4/25/24.