Condo Media - May 2023 - 43

Especially when dealing with debt collection, it is best
to consult an attorney experienced in Rhode Island
community association law to assist in this process.
This method of assessment collection
should be used on a case-by-case basis;
for example, it may be preferable in
situations where there is no mortgage
on a unit. The association should send
notice of the intent to exercise its rights
under Section 3.15(g)(1) to the unit
owner, giving the unit owner a date
upon which the association will move
forward with a demand to the tenants.
If payment is not received by the
unit owner, the notice to the tenant
should contain the specific statutory
reference noted above and make a formal
demand for the rent. Details of the
unit owner's arrearage should not be
shared with the tenant. If an association
allows rentals, it is also prudent to
have a rule in place that requires unit
owners to keep copies of the current
lease on file for the unit.
ATTORNEY FEES AND COSTS
Especially when dealing with debt collection,
it is best to consult an attorney
experienced in Rhode Island community
association law to assist in this process.
The attorney will be able to confirm that
this method is appropriate in the circumstances
and be able to give a legal opinion
regarding any superior lienholders.
There is more good news - the
association's attorney fees incurred
in recovering the delinquent assessments
via this method are recoverable
pursuant to Section 3.16(i) of the Act,
which states:
" ...(i) The association may take action
for failure of a unit owner to pay any
assessment or other charges pursuant
to this section. The delinquent unit
owner shall be obligated to pay all
expenses of the executive board,
including reasonable attorney's
fees, incurred in the collection of the
delinquent assessment or other charges
by legal proceedings or otherwise, such
attorney's fees and other charges also
being a lien on the unit. The delinquent
unit owner shall also be obligated to
pay any amounts paid by the executive
board for taxes or on account of
superior liens or otherwise to protect
its lien, which expenses and amounts,
together with accrued interest, shall
be deemed to constitute part of the
delinquent assessment and shall be
collectible as such. "
This underutilized and little-known
provision of the Act could help an association
recover much needed funds
in a shorter period of time than via the
foreclosure process.
n MARY-JOY HOWES, ESQ.
IS A PARTNER WITH
LOMBARDI LAW GROUP.
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Solutions.
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companies to work for you with individualized service, awardwinning
technology and smart financial solutions.
cit.com/cab
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Erin Kremser, VP, Regional Account Executive
860.459.4713
| Erin.Kremser@cit.com
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May 2023 CONDOMEDIA 43

Condo Media - May 2023

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