Collecting Interest On Unpaid Pennsylvania Condominium Assessments
While many Pennsylvania condominiums are quick to take legal action to collect unpaid common assessments, many condominium associations do not realize or do not take advantage of their ability to collect interest on unpaid condominium common assessments. The Pennsylvania Uniform Condominium Act (68 Pa.C.S. § 3101 et seq)(the “Condo Act”) permits associations to charge interest on delinquent balances. Specifically, the Condo Act permits condominium association’s to charge interest on unpaid common assessments up to 15% per year.
The charging of interest for unpaid common assessments has proved to be an excellent tool for associations in order to motivate regularly delinquent owners to bring their accounts current. It is recommended that the association’s board of trustees pass a resolution regarding the levying of interest if the board wishes to impose interest fees for unpaid assessments. The resolution should set forth the amount of the interest to be charged and the time period in which the interest will be calculated and applied to the debtor’s account. The resolution should be published to the membership and hopefully will be an additional incentive for delinquent owners to take action to address their balances.
