Does anyone have a formalized collection procedure in place when people do not pay their association dues?  I am looking for a procedure that specifies what happens so many days after it is delinquent, what happens so many days after that if payment is still not received, etc.  If so, could you please share this information with me? 

This assumes your association is a statutory association established under Title 23. [An association established under Title 13-B (Nonprofit Corporation) will likely require filing in small claims court which I cannot comment on.]

Set a date when payments are due, approved by members at an annual meeting, then follow 23MRSA3104. If payments are not received according to a time specified then the association can follow the Notice of Claim procedure which hopefully will bear fruit at some point even though it may be in the future but interest has been accumulating. We use the interest rate that our town applies to unpaid property taxes, currently 7.00%.

Our Association is set up as a non-profit, mutual benefit corportation.  In the bylaws it allows for interest and costs associated with late or non-payment. We now have 64 lots and, as you might imagine it is a lot of work to send out bills, then follow up bills when the initial bill is not paid.  Computing interest is a pain as well but each step brings in more payments.  Phone calls help as well.  I inherited an organization which was poorly managed and the upside was I was able to collect thousands in back dues without going to court or filing liens.  Now that we are in a more normal state of operation, the few that have not paid (no one is over 2 years behind) have received a 30 day notice of lien.  You would think that would work for encouraging payment, but it hasn't universally.  After the annual meeting in September, any non-payments will generate liens or statement of non-payment and filed with the registry of deeds.  I don't look forward to that, don't think it is overly difficult but just another thing to do.  

Something to consider as well is to let any Realtor who has listed a property in your association area that their is outstanding dues due to the association and the debt runs with the land.  Tell them how much is owed and it will be very unlikely the seller will not pay up or it will be part of the sale settlement between the new owner and the seller.  Realtors are obligated, I believe to disclose to any prospective buyers things like this. 

good luck!

Gary, Here is the form of a letter I have used prior to the Notice of Claim. Bear in mind Title 23 no longer has the word "LIEN" in it. Full size 81/2 x 11 documents don't easily Copy & Paste into the MARA site but I think you will get the gist of it.

_____________________________ ROAD ASSOCIATION
ROAD COMMISSIONER'S ROAD FEE COLLECTION NOTICE
NOTICE OF CLAIM - 23 M.R.S.A. §3104
To: _______________________ OR Current Owners of the subject property
_______________________ Road
________________, ME ________
I, __________________, Road Commissioner of the _________________ Road Association located in _____________, Maine
in the County of _____________, said fees having been duly and legally committed to me for collection on the ___ day of _____,
20__ hereby give you this notice that fees of $________ remain unpaid.
The fees were assessed to real estate described as follows: Map ___ , Lot ___ at __________________ Road, ________, ME
and was assessed against _________________________, owner(s) or occupant(s) thereof.
A NOTICE OF CLAIM IS HEREBY established on the above-described real estate to secure payment of the road fees.
PAYMENT of said fees, together with interest of $ __.__ (which has been added to and becomes a part of said fees) and the
certified mail, return receipt requested fee of $_.__ for the sum total of $ ____.__ IS HEREBY DEMANDED OF YOU WITHIN

TWENTY DAYS FROM TODAY’S DATE, WHICH IS THE DATE OF SERVICE OR MAILING OF THIS NOTICE.
Dated at __ __________________________ Road, ________, Maine, this ____ day of ____, 20__.

· If the owner or occupant of the real estate to whom the road fee has been billed has died, this demand may be made upon the personal representative of the owner's estate or upon any of the owner's heirs or devisees.
· The __________________Road Association has the policy to apply all payments to the oldest outstanding road fee.

My road associaction is both. It was formed as a Nonprofit Title 13B about three years before the Title 23 law was passed. We now operate as a Statutory Title 23 road association. I feel it gives us more flexibility and the law is more easily followed. The collection procedure under Title 23 can be easily followed although it does take time. I have done most of my collection action during the "winter" off season but under the new Notice of Claim procedure authorized by the latest revision of Title 23 3101 - 3104 I plan to move much faster. I have, so far, stayed away from the Small Claims court option, since I have no need to use it at this time. Only one of 33 properties on my road is delinquent at this time and that property is now owned by a bank who I believe will pay in full when the property sells.