CONDOMINIUM COLLECTION MORATORIUM FOUND UNCONSTITUTIONAL

Published on: May 13, 2020

The Attorney General Regulation instituted on March 24, 2020 that imposed a 90 day moratorium on debt collections has been declared unconstitutional by the District Court sitting in Massachusetts and Associations may now proceed in the ordinary course to recover unpaid common expenses.  As a result of this decision,  there are no longer restrictions banning threats of legal action in communications with Owners.  Associations and their managing agents may now inform Owners that if their account is not resolved  it will be turned over to counsel for legal action. Additionally, an Association is no longer precluded from filing a legal action or enforcing its lien.  The prompt payment of common expenses is vital to the continued operation of Associations and this case validates the important  rights of creditors to be able to continue operations.  We are pleased that the Federal Court has reached this decision validating Association rights and we still encourage our Association clients when possible to work with Owners during this unprecedented time to resolve unpaid common expenses.

We thank MEEB’s Richard Brooks and Matt Gaines who worked with the Attorney General’s office to provide an exemption for condominiums and homeowner associations and MEEB’s Ed Allcock, as President of CAI New England Chapter, who also communicated with the Attorney General’s office relative to the legality of this Order.

For a copy of the Decision [click here].