Assessment Collection Policy

The Board of Directors has adopted this policy for the collection of delinquent assessments, both regular and special, as provided for in California Civil Code Sections 1365, 1366 and 1367. At The Sea Ranch there are over 2,290 properties, many owned by nonresident Members. Prompt payment of assessments by every Member is critical to the Association’s ability to provide necessary services, and prompt collection of assessments is among the Board’s most important fiduciary responsibilities. This Collection Policy is intended to insure the timely payment of assessments for the benefit of all Members of the Association.

Policy:

1.   Monthly assessments are due on the ₁st day of the month and are delinquent if not received by the last day of the month. Special and Special Individual Assessments are due on the date(s) specified upon imposition and each installment thereof shall be delinquent if not received by the Association within thirty (30) days after it is due. A late charge of ten dollars ($30.00) shall be due on any such delinquent assessment.

2.  All payments received by the Association, regardless of the amount paid, will be applied to the oldest assessment balances first until such time as all assessment balances are paid and then to late charges, interest and costs of collection.

3.  THIRTY (30) DAYS PAST DUE: Accounts that are thirty (30) days past due shall be sent a courtesy statement and interest shall be due on all such amounts, once due and unpaid for thirty (30) days, at the rate of seven percent (7%) per annum.

4.   SIXTY (60) DAYS PAST DUE: If any portion of any such assessment, late charge, interest or cost of collection remains unpaid sixty (60) days after the original due date thereof, a “Letter of Intent” to file a Notice of Delinquent Assessment (“Lien”) will be prepared and sent to the record owner(s). Please be advised that the Association has the right to collect all reasonable costs of collection.

5.   NINETY (90) DAYS PAST DUE; LIEN; COLLECTION AGENT: If payment of the entire balance due is not received within the ninety (90) days, the Association may without further advance notice turn the account over to an attorney, a foreclosure service or other collection service provider (“Collection Agent”), or may handle the collection itself. A lien will be prepared and recorded as to the delinquent property and the owner(s) thereof.

If the delinquent account is turned over to a Collection Agent, the Member shall be notified by first-class mail and all further communications and/or payments must be made directly to that Collection Agent. Delays and additional charges may be incurred if payments are directed elsewhere. This requirement will continue until the entire balance due has been received by the Collection Agent.

Also after an account is delinquent for ninety (90) days, the Member’s name, Unit, Block and Lot number will be published in the Bulletin.

6.   As a general rule, after a lien is recorded, the Association may utilize non-judicial foreclosure (per CC~1367) as its primary collection method. However, the Association may, in its sole discretion, proceed to take any and all enforcement remedies including, without limitation, non-judicial foreclosure of such Lien, judicial foreclosure, or suit for money damages, all at the expense of the property owner(s). Moreover, Members and former Members remain personally liable for delinquent assessments and deficiency balances that accrue during their ownership of the property, and the Association may proceed against those individuals by any method legally available.

7.   The Association shall charge a “returned check charge” of twenty dollars ($20.00) for all checks or Electronic Fund Deposits returned as “non-negotiable”, “insufficient funds” or any other reason.

8.   If Members have a question or concern about their account, the Association will do its best to answer the question or resolve the concern. However if members dispute the account balance or offer a payment plan to pay delinquent assessments, they must do so in writing.

If the account has been turned over to a Collection Agent, the Member must communicate with that Collection Agent. If the account has not been turned over to a Collection Agent, any written communication may be addressed to TSRA Finance Department, P.O. Box 16, 975 Annapolis Rd, The Sea Ranch, CA 95497-0016.

9.   All above-referenced notices will be mailed to the record owner(s) at the last mailing address provided to the Association by such owner(s).

10.  The mailing address for overnight payment of assessments is the same as that for routine assessment payments unless otherwise noted.

11.  The Board of Directors of the Association may revise this policy, either generally or on a case-by-case basis, if it finds good cause to do so.

Last Updated: 01/28/08