Slides from the second evening of our four-week course offered October 4 through October 25, 2016 for Michigan community association board members, managers and owners. If you missed this one, we will be offering courses again in the spring and fall of each year.

1. The Meisner Law Group, P.C.
www.meisner-law.com
248-644-4433
Introduction to Successful
Community Association Operation
October 11, 2016
Presented by: Brian R. Harris, Esq.
Attorney and Counselor

2. Successfully Collecting Condominium
Assessments in the Community Association
1. Assessments are the life blood of the
Association.
 Collect timely and uniformly to ensure a smooth
cash flow.
The Meisner Law Group, P.C. 2

3. Successfully Collecting Condominium
Assessments in the Community Association
2. Steps that the Board of Directors can take to ensure
a timely collection of assessments
A. Recommended bylaw provisions:
 Late charge, acceleration, collection costs, rent
diversion, recoup advances made.
 Lose voting and other privileges
B. Adopt a written policy.
 Provides step by step process to follow
C. Notice of Delinquency
D. Recording the Lien with the Register of Deeds
E. Final letter
The Meisner Law Group, P.C. 3

4. Successfully Collecting Condominium
Assessments in the Community Association
3. Proceed with Foreclosure and/or Money Damages suit.
Situations where, despite the levy of a late charge and the filing of a
lien, the co-owner remains in default.
A. Determine Unit equity status
B. Determine mortgage priority over Association lien - lien is prior
to everything except the first mortgage of record and tax liens.
C. The association has three (3) alternative remedies to proceed to
collect assessments.
i. Lawsuit against the co-owner, personally, in District Court.
ii. Foreclosure of the association’s lien by advertisement.
 Redemption period – typically 6 months.
iii. Foreclosure of lien by Judicial/Court action.
 Redemption period – typically 6 months.
The Meisner Law Group, P.C. 4

5. Successfully Collecting Condominium
Assessments in the Community Association
4. JUDGMENT COLLECTION:
Aggressively pursue collection with all the appropriate post
judgment remedies.
A. Garnishment and exemptions
B. Seizing Property
C. Creditor's Exam / Bench Warrant
The Meisner Law Group, P.C. 5

6. Establishing an Adequate Reserve Account for
Major Repairs and Replacements
A. Definition and Purpose of the Reserve Fund.
 Major repairs and replacements of Common
Elements
 Minimum 10% of the Annual Budget
 FHA requirements for the Budget
The Meisner Law Group, P.C. 6

7. 7
Q & A
The Meisner Law Group
30200 Telegraph Road, Ste. 467
Bingham Farms, MI 48025
248-644-4433 www.meisner-law.com
The Meisner Law Group, P.C.