HOA Payment Plan Agreement

PAYMENT PLAN AGREEMENT

[ASSOCIATION NAME]

PARTIES

This Payment Plan Agreement ("Agreement") is entered into as of [DATE] by and between:

Association:
[ASSOCIATION NAME]
[ADDRESS]
[CITY, STATE ZIP]
("Association")

Owner(s):
[OWNER NAME(S)]
[PROPERTY ADDRESS]
[CITY, STATE ZIP]
("Owner")

Property Address: [PROPERTY ADDRESS]
Lot/Unit Number: [LOT/UNIT NUMBER]
Account Number: [ACCOUNT NUMBER]

RECITALS

A. Owner is the record owner of the property located at [PROPERTY ADDRESS] (the "Property"), which is subject to the Declaration of Covenants, Conditions and Restrictions of [ASSOCIATION NAME].

B. Owner is obligated to pay assessments, fines, and other charges to the Association pursuant to the Declaration and applicable law.

C. Owner's account with the Association is currently delinquent in the amount of $[TOTAL AMOUNT] as of [DATE].

D. Owner has requested a payment plan to pay the delinquent balance, and the Association has agreed to offer a payment plan subject to the terms and conditions set forth herein.

E. Owner understands that entering into this Agreement does not relieve Owner of any obligations under the Declaration or applicable law.

AGREEMENT

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. ACKNOWLEDGMENT OF DEBT

1.1 Amount Owed

Owner acknowledges and agrees that the following amounts are due and owing to the Association as of [DATE]:

1.2 Continuing Obligations

Owner acknowledges that:

(a) Regular assessments of $[AMOUNT] per [MONTH/QUARTER] will continue to become due during the term of this Agreement;

(b) Interest will continue to accrue on the unpaid balance at the rate of [X]% per annum;

(c) Owner remains responsible for all amounts, whether or not specifically listed above;

(d) This Agreement does not constitute a release or waiver of any amounts owed.

2. PAYMENT TERMS

2.1 Down Payment

Owner shall pay a down payment of $[AMOUNT] upon execution of this Agreement.

☐ Down payment received: $__________ Date: __________

2.2 Installment Payments

Following the down payment, Owner shall pay the remaining balance of $[AMOUNT] in [NUMBER] equal monthly installments of $[AMOUNT] each, according to the following schedule:

2.3 Current Assessments

IN ADDITION to the installment payments above, Owner shall pay all current and future regular assessments of $[AMOUNT] per [MONTH/QUARTER] when due. Failure to pay current assessments is a default under this Agreement.

2.4 Payment Application

Payments received will be applied in the following order:

1. Current assessments
2. Payment plan installments (oldest first)
3. Interest
4. Late charges
5. Fines
6. Collection costs and attorney's fees
7. Other charges

3. INTEREST

3.1 Interest Rate

Interest shall accrue on the unpaid delinquent balance at the rate of [X]% per annum.

3.2 Interest Calculation

Interest is calculated [MONTHLY/DAILY] on the outstanding balance.

3.3 Interest Waiver/Reduction (Optional)

☐ Interest Waiver: If Owner makes all payments on time and in full, the Association agrees to waive $[AMOUNT] of accrued interest upon final payment.

☐ Reduced Interest: Interest rate is reduced to [X]% for the duration of this Agreement, provided no default occurs.

☐ No Interest Adjustment: Interest continues to accrue at the standard rate.

4. PAYMENT METHOD

4.1 Automatic Payment (Required/Recommended)

☐ Required: Owner agrees to enroll in automatic bank draft (ACH) for all payments under this Agreement. Owner shall complete the attached ACH Authorization Form.

☐ Recommended: Owner is strongly encouraged to enroll in automatic payment. Failure to enroll in ACH may result in denial of this payment plan.

4.2 Manual Payment

If automatic payment is not required or available:

Make payments payable to: [ASSOCIATION NAME]

Mail to:
[PAYMENT ADDRESS]
[CITY, STATE ZIP]

Include: Account Number [ACCOUNT NUMBER] and "Payment Plan" on all payments.

4.3 Payment Timing

Payments must be received (not postmarked) by the due date. Owner is responsible for ensuring timely delivery.

5. LIEN STATUS

5.1 Existing Lien

☐ A lien has been recorded against the Property at [RECORDING REFERENCE].
☐ No lien has been recorded.

5.2 Lien During Payment Plan

☐ Option A - Lien Remains: The recorded lien shall remain in place during the term of this Agreement. Upon satisfaction of all amounts due under this Agreement and payment of any release fees, the Association will record a release of lien.

☐ Option B - Lien Held: The Association agrees not to record a lien so long as Owner is not in default under this Agreement. If Owner defaults, the Association may immediately record a lien without further notice.

☐ Option C - Lien Released: Upon execution of this Agreement and receipt of the down payment, the Association will record a release of the existing lien. If Owner defaults, the Association may record a new lien without further notice.

5.3 Lien Release

Upon satisfaction of all amounts due under this Agreement, including any amounts accruing during the payment plan term, the Association will record a release of any lien within [THIRTY (30)] days. Owner shall pay a lien release fee of $[AMOUNT].

6. DEFAULT

6.1 Events of Default

The following shall constitute a default under this Agreement:

(a) Failure to pay any installment within [TEN (10)] days of the due date;

(b) Failure to pay current assessments within [TEN (10)] days of the due date;

(c) Failure to pay the down payment;

(d) Dishonored payment (returned check, failed ACH);

(e) Filing of bankruptcy by Owner;

(f) Sale or transfer of the Property without paying the balance in full;

(g) Material misrepresentation in obtaining this Agreement;

(h) Breach of any other term of this Agreement.

6.2 Consequences of Default

Upon default:

(a) Acceleration: The entire unpaid balance, including all delinquent amounts, accrued interest, and charges, shall immediately become due and payable without further notice.

(b) Lien: The Association may immediately record a lien (if not already recorded) or proceed with foreclosure of an existing lien.

(c) Termination of Benefits: Any interest waivers, fee reductions, or other benefits granted under this Agreement shall be void, and the full amount of all waived or reduced charges shall be reinstated.

(d) Collection Action: The Association may pursue all available collection remedies, including legal action, without further opportunity for a payment plan.

(e) Costs: Owner shall be responsible for all additional collection costs, attorney's fees, and expenses incurred as a result of the default.

6.3 No Cure Period

Owner acknowledges that the Association is not required to provide an additional cure period for default under this Agreement, as this Agreement itself is an accommodation to allow Owner to cure the original delinquency.

6.4 Notice of Default

The Association shall provide written notice of default to Owner at the address on file. Such notice shall be effective upon mailing.

7. REPRESENTATIONS AND WARRANTIES

Owner represents and warrants that:

(a) Owner is the legal owner of the Property or is authorized to enter into this Agreement on behalf of the owner(s);

(b) All information provided to obtain this Agreement is true and accurate;

(c) Owner has not filed for bankruptcy and does not intend to file for bankruptcy;

(d) Owner has the financial ability to make all payments required under this Agreement;

(e) Owner understands that this Agreement does not modify the Declaration or any other Governing Documents;

(f) Owner has had the opportunity to consult with legal counsel regarding this Agreement.

8. GENERAL PROVISIONS

8.1 Entire Agreement

This Agreement constitutes the entire agreement between the parties regarding the subject matter hereof and supersedes all prior negotiations, representations, or agreements.

8.2 Amendments

This Agreement may not be amended except in writing signed by both parties.

8.3 No Waiver

The Association's acceptance of this Agreement does not waive any rights under the Declaration or applicable law. Failure to enforce any provision shall not constitute a waiver.

8.4 Assignment

Owner may not assign this Agreement. The Association may assign its rights under this Agreement.

8.5 Governing Law

This Agreement shall be governed by the laws of the State of [STATE].

8.6 Successors

This Agreement shall be binding upon the parties and their heirs, successors, and assigns.

8.7 Severability

If any provision is held invalid, the remaining provisions shall remain in full force.

8.8 Notices

All notices shall be in writing and sent to the addresses listed above, or such other address as a party may designate in writing.

8.9 Time of the Essence

Time is of the essence with respect to all payment obligations under this Agreement.

8.10 Confidentiality

The terms of this Agreement are confidential and shall not be disclosed to third parties except as required by law or to enforce this Agreement.

9. OWNER ACKNOWLEDGMENTS

By signing below, Owner acknowledges and agrees that:

☐ I have read and understand this entire Agreement.

☐ I acknowledge that I owe the Association the amounts stated above.

☐ I understand that this is my opportunity to bring my account current and avoid further collection action.

☐ I understand that if I default, the Association may accelerate the balance and pursue all legal remedies.

☐ I understand that I must pay both the payment plan installments AND current assessments as they become due.

☐ I have had the opportunity to consult with legal counsel before signing this Agreement.

☐ I voluntarily enter into this Agreement.

☐ I authorize the Association to record a lien against my property if I default on this Agreement.

10. SIGNATURES

OWNER(S):

______________________________
[OWNER NAME]
Date: ______________

______________________________
[CO-OWNER NAME]
Date: ______________

ASSOCIATION:

[ASSOCIATION NAME]

By: ______________________________
Name: [NAME]
Title: [TITLE]
Date: ______________

ACH AUTHORIZATION (IF REQUIRED)

I authorize [ASSOCIATION NAME] to initiate automatic debit entries from my bank account for payments due under this Payment Plan Agreement.

Bank Name: ______________________________

Routing Number: ______________________________

Account Number: ______________________________

Account Type: ☐ Checking ☐ Savings

Name(s) on Account: ______________________________

I understand that this authorization will remain in effect until I notify the Association in writing to cancel it, allowing reasonable time to process the cancellation. I agree to notify the Association of any changes to my account information.

Signature: ______________________________

Date: ______________

☐ Voided check or bank letter attached

PAYMENT TRACKING (FOR ASSOCIATION USE)

Current Assessments:
| Period | Due Date | Date Received | Amount | Status |
|--------|----------|---------------|--------|--------|
| [PERIOD] | [DATE] | __________ | $__________ | ☐ Paid ☐ Late ☐ Unpaid |
| [PERIOD] | [DATE] | __________ | $__________ | ☐ Paid ☐ Late ☐ Unpaid |

Default Occurred: ☐ Yes ☐ No Date: __________ Reason: __________

Plan Completed: ☐ Yes ☐ No Date: __________

Lien Released: ☐ Yes ☐ No Date: __________ Recording: __________

End of Document