Question:
Our Coop’s bank has just mandated ACH payments for all HOA payments in our Park. Apparently, there are a few owners who sometimes or repeatedly are not making their HOA payments in a timely fashion. I’ve noticed that you folks express some caution in instituting ACH for HOA payments. Can you elaborate?
– Paul
Answer:
Hi Paul,
Some state laws and governing documents may have prohibitions regarding the HOA requiring ACH or electronic payments. Moreover, ACH payments may come with a security risk as the homeowners may need to provide their bank details to the HOA. There’s also a risk of cybercrime that can lead to fraud. Apart from these, ACH payments may come with transaction fees that either the homeowners or HOA need to cover. The board should also never use personal accounts to collect owner dues as this could lead to theft. However, HOAs may consider it as an option if the homeowners are willing and the HOA can circumvent these risks.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
