To: HOA Members of EDM 16-A March 27, 2010
The Surveillance Committee has been reviewing the operation of our HOA.
Particular emphasis has been placed on how we can save money, maintain a high quality experience and protect property values. Based on our 2010 Operating Budget for Condos, Homes & Lots and Common Area we require $34,000 per month to pay our monthly expenses. These expenses include payroll, utility bills, insurance, security, landscaping and VAT. And since these expenses occur monthly, we need to receive your HOA dues on a regular basis.
Currently, we have 29 members that prepaid their 2010 dues and another 37 members who are making monthly payments. Unfortunately, we also have 24 members who have not submitted any payments nor have they made any arrangements to make their payments. Consequently we have a problem. Our lack of cash flow is affecting our ability to operate and we are not able to take advantage of opportunities such as paying our insurance bill annually instead of quarterly. We would save $2500 if we paid annually but we lack the cash because some home owners have elected to not pay.
At the present time, we have several HOA members who have not paid their dues for 2009 and one who has not paid for 2008 and 2009. The amount of theoutstanding dues is $49,040 plus late fees and penalty charges. In accordance with our By-laws, our Administrator, with our encouragement, has provided the names of these delinquent owners to an attorney to begin the collection process. This process may take up to 6 months but in the end we will foreclose on their property.
Also in accordance with our By-laws, delinquent owners and their renters will be denied access to our common areas, such as the pool. And late fees and penalty charges will be assessed to all late payers. In the past this provision was seldom enforced but we have instructed our Administrator to enforce these provisions retroactively.
At the Jan 13, 2010 Surveillance Committee meeting it was decided to post the names of delinquent owners on the bulletin boards at 16-A and on the website, This will become effective April 1, 2010 for all owners more than 120 days delinquent. Effective May 1, 2010, all accounts which are more than 90 days in arrears will be reported to the applicable credit bureaus. All accounts that are more than 180 days in arrearswill be forwarded to our attorney for initiating the collection process, in accordance with Mexican law.
We believe Estrella del Mar and 16-A are unique and special places. We also believe every owner would like to retain these qualities. We ask for your support in our ongoing collection endeavors.
16-A Surveillance Committee