At the June 13th, 2013 Board meeting, owners were asked for their suggestions on how they would like the Board to collect delinquent accounts after all amicable appeals had failed. There were no easy answers. The Board was unable to find a lawyer who would work on a contingency basis, so Small Claims Court was initially considered the best option. As court is very time-consuming, we continued to explore other possibilities.
We are happy to announce that we may have found an ideal solution... a collection agency that works on a contingency basis! And has ONYX software that enables 24/7/365 online monitoring and online payments.
Association Dues Assurance Corporation (ADAC) was specifically created to handle Condominium and Homeowners' Association delinquent dues collections. ADAC adds attorney fees directly to the delinquent balance as permitted by statute on top of what is owed to the Association. In this way the Association will receive 100% of what is due, and any collection fees would be paid by the owners directly to ADAC.
In the past, under the CPAs and Valley Isle Management, lawyers' fees were promptly paid by the HOA and then the fees were added to the delinquent owner accounts. These fees increased Accounts Receivable (a current asset) exactly offsetting the money paid out, thereby giving the false impression that the HOA had $15,000 more than it actually had. The process traded cash money for an IOU that would never be paid. The lawyers loved it because they got paid even when we didn't.
The big difference with ADAC is that they collect their fees directly from the delinquent owner rather than from the HOA. The legal fees would not go through our books. ADAC works on contingency, meaning they do not get paid unless they successfully collect the delinquent amounts. As you know, the HOA makes allowances for owners in financial difficulty and would use ADAC only as a last resort when an owner has ignored multiple requests for payment.
Even though we have no delinquent accounts at the moment, ADAC would act as a great deterrent, or motivator for other owners to pay on time in future. We were hoping all owners would cooperate, considering all the work we are doing for their benefit, but alas... it is nice to have a last ditch option that puts the costs where they belong.
ADAC is always available to the Board for a Skype or telephone conference call upon request.
- 6 Reasons to Use Association Dues Assurance Corporation (ADAC)
- 9 Ways ADAC Can Make the HOA More Effective
- What ADAC Offers
- The ONYX Software Competitive Advantage
- Reference Letter: Kramer Triad Management
- Reference Letter: Rainier View Court HOA
- Reference Letter: Mister Management
- Impressive Resume of Attorney John M Rickel
- ADAC Contract for Hawaii & Power of Attorney