Payment Plan Policy

FOREST COVE PROPERTY OWNERS ASSOCIATION, INC.
PAYMENT PLAN POLICY

STATE OF TEXAS
KNOW ALL PERSONS BY THESE PRESENTS:
COUNTY OF HARRIS

WHEREAS, the FOREST COVE PROPERTY OWNERS ASSOCIATION, INC. (“Association’ ) is charged with administering and enforcing those certain covenants, conditions and restrictions contained in the recorded Declarations for the various sections of the community (referred to collectively as “Declarations”); and

WHEREAS, chapter 209 of the Texas Property Code was amended effective January 1, 2012, to add Section 209.0062 (“Section 209.0062”) thereto regarding alternative payment schedules for assessments (“Payment Plans”); and

WHEREAS, the Board of Directors of the Association (“Board”) desires to establish a policy for Payment Plans consistent with Section 209.0062 and to provide clear and definitive guidance to owners.

NOW, THEREFORE, the Board has duly adopted the following Payment Plan Policy.

1. Subject to Section 13 below, owners are entitled to make partial payments for delinquent amounts owed to the Association under a Payment Plan in compliance with this Policy.

2. Late fees, penalties and delinquent collection related fees will be not be added to the owner’s account while the Payment Plan is active. The Association may impose a fee for administering a Payment Plan. Such fee, if any, will be listed on the Payment Plan form and may change from time to time. Interest will continue to accrue during a Payment Plan as allowed under the Declaration. The Association can provide an estimate of the amount of interest that will accrue under any proposed plan.

3. All Payment Plans must be in writing on the form provided by the Association and signed by the owner.

4. The Payment Plan becomes effective and is designated as “active” upon:

a. receipt of a fully completed and signed Payment Plan form; and

b. receipt of the first payment under the plan; and

c. acceptance by the Association as compliant with this Policy.

5. A Payment Plan duration will consist of six (6) equal monthly payments unless alternative payment plan terms are approved by the Association.

6. Except if the owner is in default under a Payment Plan with the Association at the time the Association receives a payment from an owner, the payment will be applied to the owner’s debt in the following order of priority:

a. Any delinquent assessment;
b. Any current assessment;
c. Any attorney’s fees or third party collection costs incurred by the Association solely with assessments or any other charge that could provide the basis for foreclosure;
d. Any attorney’s fees incurred by the Association that are not subject to c. above;
e. Any fines assessed by the Association;
f. Any other amount owed to the Association.

7. On a case by case basis and upon request of the owner, the Board may approve more than one Payment Plan to be executed in sequence to assist the owner in paying the amount owed. The individual Payment Plans may not exceed eighteen (18) months.

8. A Payment Plan must include sequential monthly payments. The total of all proposed payments must equal the current balance plus Payment Plan administrative fees, if any, plus the estimated accrued interest.

9. If an owner requests a Payment Plan that will extend into the next assessment cycle, the owner will be required to pay future assessments by the due date in addition to the payments specified in the Payment Plan.

10. If an owner defaults on the terms of the Payment Plan, the Payment Plan will be voided. The Association will provide written notice to the owner that the Payment Plan has been voided. It is considered a default of the Payment Plan, if the owner:

a. fails to return a signed Payment Plan form with the initial payment; or

b. misses a payment due in a calendar month; or

c. makes a payment for less than the agreed upon amount; or

d. fails to pay a future assessment by the due date in a Payment Plan which spans additional assessment cycles.

In the absolute discretion of the Association, the Association may waive default under item b, c or d above if the owner makes up the missed or short payment on the immediate next calendar month payment. The Association may, but has no obligation to, provide a courtesy notice to the owner of the missed or short payment.

11. On a case by case basis, the Association may agree, but has no obligation, to reinstate a voided Payment Plan once during the original duration of the Payment Plan if all missed payments are made up at the time the owner submits a written request for reinstatement.

12. If a Payment Plan is voided, the full amount due by the owner shall immediately become due. The Association will resume the process for collecting amounts owed using all remedies available under the Declarations and the law.

13. The Association has no obligation to accept a Payment Plan from any owner who has defaulted on the terms of a Payment Plan within the last two (2) years.

This Policy is effective upon recordation in the Public Records of Harris County, and supersedes any policy regarding alternative payment schedules which may have previously been in effect. Except as affected by Section 209.0062 and/or by this Policy, all other provisions contained in the Declarations or any other dedicatory instruments of the Association shall remain in full force and effect.

Approved and adopted by the Board on this ______ day of ____________________, 2017.

 

WILLIAM KURT HILARIDES
PRESIDENT
FOREST COVE PROPERTY OWNERS ASSOCIATION, INC.

 

STATE OF TEXAS

COUNTY OF HARRIS

Before me, the undersigned authority, on this day personally appeared WILLIAM KURT HILARIDES, PRESIDENT of FOREST COVE PROPERTY OWNERS ASSOCIATION, INC., a Texas corporation, known to me to be the person and officer whose name is subscribed to the foregoing instrument and acknowledged to me that he/she had executed the same as the act of said corporation for the purpose and consideration therein expressed, and in the capacity therein stated.

Given under my hand and seal of office this ______ day of ____________________, 2017.

 

___________________________________
Notary Public, State of Texas