Assessment Collection Policy

In addition to the formal document drafted by KSN that is subject to a vote at the Special Meeting, the Board also created an "Exhibit B" version that contains the same information but is organized in a more homeowner-friendly format.
PDF VERSION

1. PURPOSE AND AUTHORITY

(opens in new taThis Comprehensive Assessment Collection Policy (“Policy”) establishes the procedures of the Fox Lake Hills Property Owners Association (“Association”) for the collection of annual assessments, special assessments, and other amounts properly owed to the Association.

• Purpose: To provide a clear, consistent, and transparent process for collecting assessments and any fees and costs incurred by the Association in an attempt to collect assessments and other charges.
• Governing Documents: This Policy is intended to implement and supplement the Fox Lake Hills Owners Association Bylaws. [Second Amended and Restated Consolidated Declaration, Constitution and Bylaws for the Fox Lake Hills Property Owners Association (Recorded 9/14/2025 with the Lake County IL Recorder's Office). Available in full HERE.]
  • This Policy shall supersede and replace any prior rules, regulations, policies, or related practices of the Association concerning the collection of assessments and other charges.
• Board Authority & Advisement: The Board may take appropriate collection action consistent with the Association’s governing documents and applicable law. The Board may seek advisement from the management company and/or legal counsel when appropriate.
• Effective Date: This Policy shall be effective as of the date set forth in the Resolution adopting this Policy and shall apply to all assessments and other charges due and owing as of and after the effective date.
  • Charges that accrued under a prior policy or practice before the effective date shall remain valid and collectible at the rate in effect when they accrued, and the procedural provisions of this Policy shall govern the collection of all balances, whether accruing before or after the effective date.

2. ASSESSMENT OBLIGATIONS

Members must pay all assessments and other amounts properly imposed by the Association.

• Annual Assessment: The annual assessment shall be established in accordance with the Bylaws and the annual budget adopted by the Board. The Bylaws provide for an annual assessment of up to ten and 00/100 dollars ($10.00) per improved lot and five and 00/100 dollars ($5.00) per unimproved lot plus any additional assessments or insurance voted on at the annual meeting. [In accordance with FLHPOA Bylaws 4.14 and 8.01.]
• Payments: Payments shall be made to the Association, its managing agent, or such other payment address or payment processor as the Board may designate from time to time, or via an online payment platform, or submitted via automated withdrawal from a checking or savings account. [In accordance with FLHPOA Bylaw 7.04.]
  • Payment shall be deemed received upon actual receipt by the Association, its managing agent, or its authorized payment processor.

The following dates shall apply to assessments, the collection thereof, and the imposition of late charges:

• Assessments are due on the first (1st) day of January each year.
• Assessments are delinquent if not paid in full on or before the fifteenth (15th) day of March each year.
• A reminder notice may be issued to a Unit Owner on or after the sixteenth (16th) day of March by email and/or U.S. Mail.
• Delinquent accounts may be referred to the Association’s legal counsel for collection or legal action no earlier than sixty (60) days after the original due date of any unpaid assessment or charge, as further provided herein.

3. GRACE PERIOD AND DELINQUENCY

• Grace Period: The Association provides a grace period through March fifteenth (15th). No late fee will be assessed during the grace period. [In accordance with FLHPOA Bylaw 8.04a.]
• Delinquency Date: Any assessment balance remaining unpaid after the fifteenth (15th) day of March is delinquent as of the sixteenth (16th) day of March.

4. FAILED PAYMENTS AND NSF CHARGES

• Insufficient Funds: A failed payment resulting from insufficient funds in the Unit Owner’s bank account shall not constitute a processing delay, and the standard late charge and collection timeline described herein shall apply in such event. Any temporary payment credit will be revoked.
• NSF Fee: A returned check, rejected electronic payment, ACH reversal, or other payment returned by the Association’s bank shall result in a minimum charge of twenty-five and 00/100 dollars ($25.00) to the Unit Owner’s account, or a charge in the amount of the actual expenses incurred by the Association as a result of such returned item, whichever is greater.

5. LATE CHARGES

• Communication: If there is an unpaid balance on a Unit Owner’s account on or after the sixteenth (16th) day of March, the Association may (but shall not be required to) issue notice to the Unit Owner, by email and/or by U.S. Mail, advising the Owner of the balance due to the Association. [In accordance with FLHPOA Bylaw 8.04a.]
• Amount: A charge (“Late Charge”) of fifty and 00/100 dollars ($50.00) shall be added to the Unit Owner’s account on or after March 16th. 
  • Only one Late Charge shall be imposed per delinquent installment or charge.
  • The Late Charge shall not itself be subject to an additional Late Charge.
  • The Late Charge is not a penalty but rather reflects the value of administrative services incurred in processing late or unpaid assessments and other charges.
  • The Late Charge is imposed in accordance with the authority set forth in Section 18.4(l) of the Illinois Condominium Property Act.
• Board Discretion: In the sole discretion of the Board, the Board shall have the authority to credit back any Late Charges added to a Unit Owner’s account. Any such credit shall not constitute a waiver of the Association’s right to impose Late Charges for future delinquencies or a waiver of any rights of the Association with respect to any ongoing collection matter.

6. INTEREST

• Amount: Any unpaid balance of any annual assessment, special assessment, or other charge of the Association may bear interest at the rate of nine percent (9%) per annum on the unpaid balance until such time as the annual assessment, special assessment, or other charge is paid in full. [In accordance with FLHPOA Bylaw 8.04a.]
  • Interest shall not itself be subject to interest.
  • Interest shall be added to and deemed a part of the Unit Owner's common expenses.

7. DELINQUENCY NOTICE AND PAYMENT PLANS

• Communication: Before legal escalation, the Board will issue a formal Written Notice of Delinquency. Unit Owners have a 30-day window to pay or request a payment plan.
• Payment Plans: In the event a Unit Owner requests a payment plan on an unpaid balance, the Board may, in its discretion, permit a payment plan so long as:
  • the repayment period is no longer than six (6) consecutive months;
  • the plan provides for payment of all unpaid charges and amounts due by the Unit Owner;
  • the plan is in writing, prepared by or with the assistance of counsel, setting forth the exact payment terms, dates, and consequences of a default under the payment plan;
  • and the plan is subject to Board review if the Unit Owner has previously been in collections.
• Foreclosure: If the Unit Owner is in mortgage foreclosure, approval of any payment plan shall be contingent upon the status of the mortgage foreclosure action pending against the Unit Owner.
• Conditions: As a condition of any approved payment plan, the Unit Owner must remain current on all assessments and charges during the repayment period unless otherwise approved by the Board.
  • Late Charges and legal escalation are suspended while the Owner complies with the plan.
  • Nothing in this Section requires the Board to offer or approve a payment plan.

8. LEGAL REFERRAL

• Escalation: No earlier than sixty (60) days after the original due date of any unpaid assessment or charge, and if the Written Notice of Delinquency does not result in payment or a payment plan, the Board may refer the matter to an attorney to initiate collection proceedings. [In accordance with FLHPOA Bylaw 8.04a.]
• Board Decision: In an Executive Session, the Board will determine whether to initiate collection and/or legal proceedings to collect all sums due and owing to the Association. 
  • In making this determination, the Board will consider the nature and amount of the delinquent balance in relation to the anticipated costs of legal collection.
  • The Board's objective is to avoid collection actions where the anticipated costs of collection would equal or exceed the amount reasonably expected to be recovered, while preserving the Association's right to pursue delinquent assessments and other remedies when appropriate.
  • The Board may seek advisement from management company or legal counsel.
  • Each delinquency record and the decision whether to escalate is shared with legal counsel.
  • This financial consideration does not waive, forgive, or otherwise extinguish the Owner's obligation to pay the delinquent assessments and other amounts legally due.
• Legal Proceedings: If the Board decides to initiate collection and/or legal proceedings to collect all sums due and owing to the Association, legal proceedings may include, without limitation:
  • issuance of a demand letter,
  • filing of a lien against the Unit,
  • pursuit of an eviction action pursuant to Article IX of the Code of Civil Procedure,
  • filing a breach of contract action,
  • and/or foreclosure of the Association’s lien pursuant to Section 9 of the Illinois Condominium Property Act.
• Process: Once an account is turned over to counsel for collections or other legal action, to ensure compliance with applicable rules and statutes and keep the process moving expeditiously:
  • all collection-related communications with the Unit Owner/debtor should be with counsel.
  • any online or automatic payment mechanism may be disabled.
• Costs: All attorney’s fees and costs charged to the Association in connection with the collection of a delinquent account shall be the obligation of the delinquent Unit Owner and shall be charged to the Unit Owner’s account as an additional component of the Unit Owner’s proportionate share of the common expenses or as may be set forth in a court order.

9. LIENS

• Process: Once an account is turned over to counsel for collections, legal proceedings may include recording a formal Notice of Lien with the Lake County Recorder. [In accordance with FLHPOA Bylaw 8.04a–b.]
  • The Association’s lien for unpaid common expenses and other charges arises under Section 9(g) of the Illinois Condominium Property Act, and Article VIII, Section 8.01 of the Declaration, and the Association reserves all rights, remedies, and priorities afforded by Section 9(g) of the Illinois Condominium Property Act, the Declaration, and applicable law with respect to such lien.
• Mortgage Priority: The lien for assessments shall be subordinate to the Mortgagee’s mortgage on the Unit which was Recorded prior to the date that any such assessments became due. [In accordance with FLHPOA Bylaw 8.04d.]
• Release Requirements: Liens will be released upon full payment of amounts due, interest, fees, charges and any other costs expended or to be expended and any attorney's fees expended or to be expended for filing lien or enforcing the collection thereof. [In accordance with FLHPOA Bylaw 8.04c.]
• Costs: A legal preparation fee at a cost of not less than thirty and 00/100 dollars ($30), plus actual Lake County recording fees and attorney fees, shall be billed to the Unit Owner's account. Any release fees incurred after payment is made shall be billed to the Unit Owner’s account. [In accordance with FLHPOA Bylaw 8.04b.]

10. OTHER LEGAL REMEDIES

• Escalation: For repeat delinquencies or where other collection remedies are unsuccessful, the Board may pursue any additional remedies available under applicable law and the Association's governing documents, including possession or eviction proceedings where legally authorized. [In accordance with FLHPOA Bylaw 4.21.]
• Process: The Board will follow the advisement and procedures set forth by the management company and legal counsel.
• Costs: All expenses of the Association in connection with any such actions or proceedings, including court costs, attorneys' fees, and all other expenses of the eviction shall be billed to the Unit Owner.

11. APPLICATION OF PAYMENTS

• Order of Payments: All payments received will be applied to the payment of the oldest outstanding charges in the following priority before being applied to any current charges, regardless of any restrictive endorsement or if such payment has been designated to be applied to a specified obligation: (1) collection charges, including but not limited to attorney’s fees and court costs, (2) Late Charges, if any, (3) fines, (4) other charges, (5) special assessments, (6) prior annual assessments.