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11/22/2024 3:20:05 PM
 
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Section 5: OPA Board Subject: Rakowski Motion CC Fees Msg# 1215688
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Joe:
Yes that provision in the Code remains in effect. Convenience fees may be charged in accordance with that provision. The Board and management, after consultation with my office, believe the simpler and more administratively effective way to cover the cost of providing the electronic payment option to the members (and account for it), is by incorporating the projected aggregate cost into the operating budget, rather than through a per transaction "convenience" fee/charge. I don't have any extensive comment as to your prediction that members' use of credit cards will "explode" if the Motion is approved and the convenience fee goes away (because that is an unknown); but if an increase in CC use is experienced, this would probably create some considerable efficiencies and acceleration in regard to the collection and processing of assessment payments. Taking away the credit card payment option all together, as you suggest, is not tenable in this era, and would likely negatively impact (slow and/or reduce) assessment collections. Folks are free to comment at tomorrow's meeting on this issue. |
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For reference, the above message is a reply to a message where: Bruce, can you comment on whether or not the following part of the HOA Act shown at bottom of this post is still effective and can OPA legally charge some fee for association members who choose to pay their assessment via credit card if such charge complies with the Act section below? As you must be aware, Monica Rakowski has a motion on the agenda for the meeting tomorrow to eliminate the credit card "convenience" fee and add any such charges absorbed by OPA as an operational expense. With the elimination of the convenience fee, the number of people paying via credit card is likely to explode as people can gain CC points without paying a CC fee. If 8000 owners decide to pay via CC then the potential operational expense is around $240,000. That means the budgeted assessment rate would increase by adding an expense of $240,000. Thus OPA is actually collecting the "convenience" fee, and then adding it to the budget/assessment. This makes no sense to me, but perhaps I do not fully understand the issue. Without the ability to collect a convenience fee, OPA should simply not allow assessment payments via credit cards. Essentially, it forces all associations members who pay via check/cash to pay the convenience fees of those who pay via credit card. Rakowski's motion will impact all association members but there has been zero advanced discussion of the issue. At the very least, this should be the topic of a Town Hall meeting before any such motion is made. In my view, the motion should be withdrawn until association members are informed on the issue. "HOA Act Section 11B-114 - Electronic payment fees(a) In this section, "electronic payment" means payment by credit card or debit card.(b) A homeowners association may require a person from whom payment is due to pay a reasonable electronic payment fee if the person elects to pay the homeowners association by means of electronic payment.(c) An electronic payment fee may not exceed the amount of any fee that may be charged to the homeowners association in connection with use of the credit card or debit card.(d) If a homeowners association elects to charge an electronic payment fee under this section, the homeowners association shall specify on or include notice with each bill and other invoices for which electronic payment is authorized that an electronic payment fee will be charged." Md. Code, RP § 11B-114 |
| Calendar |
OPA Board Meeting - Golf Clubhouse
11/23/2024 - 9:00 A.M. 3 days or less away! |
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Special Board Meeting - Board Room
11/25/2024 - 7:00 P.M. 3 days or less away! |
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OPA Board Meeting - Golf Clubhouse
12/21/2024 - 9:00 A.M. |
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OPA Board Meeting - Golf Clubhouse
1/25/2025 - 9: A.M. |
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OPA Board Meeting - Golf Clubhouse
2/22/2025 - 9:00 A.M. |