HOA rules by state
HOA late fee and interest limits by state
A missed HOA payment picks up two charges: a late fee and interest. Some states cap both, some cap one, and some leave both to the CC&Rs. Here is where your state lands, with the statute behind each and a link to the full guide.
Late fee caps and interest limits by state
Each row links to that state's full guide. Scroll the table sideways on a phone.
| State | What the law does | Late fee cap | Statute | Full guide |
|---|---|---|---|---|
| California | Interest up to 12 percent a year, starting 30 days after the assessment is due; reasonable collection costs and attorney fees can be added. | The greater of $10 or 10 percent of the delinquent assessment. | Civil Code section 5650 | California details → |
| North Carolina | Interest is capped at 18 percent a year, and both caps hold whatever the CC&Rs say. | The greater of $20 a month or 10 percent of the unpaid installment. | North Carolina General Statutes section 47F-3-102(11) and section 47C-3-102(11) | North Carolina details → |
| Virginia | No late fee until a payment is more than 60 days past due; interest follows the governing documents. | 5 percent of the unpaid amount, the Code 58.1-3915 penalty rate. | Virginia Code section 55.1-1824 | Virginia details → |
| Florida | Interest is 18 percent a year if the documents set no rate, an HOA cannot compound it, and every payment goes to interest first. | The greater of $25 or 5 percent of the late installment, and only if the declaration or bylaws allow a late fee. | Florida Statutes section 720.3085(3) and section 718.116(3) | Florida details → |
| Arizona | In a planned community a payment is late only after 15 days and an overdue notice; condos need the notice too. No statute sets the interest rate for planned communities. | Planned communities: the greater of $15 or 10 percent. Condos: no statutory cap. | Arizona Revised Statutes section 33-1803 and section 33-1242 | Arizona details → |
| Colorado | Interest is capped at 8 percent a year, daily late fees are banned, and the association must try to set up a payment plan of at least 18 months. | No dollar cap; the amount must be written into the collection policy. | Colorado Revised Statutes section 38-33.3-209.5 (8) and section 38-33.3-316.3 | Colorado details → |
| Washington | For 15 days after the delinquency notice only one small late fee is allowed; after that, late charges must be reasonable and interest stays under the RCW 19.52.020 maximum. | During the 15 days after the notice, $50 or 5 percent, whichever is less; after that, "reasonable". | Washington Revised Code 64.90.485 | Washington details → |
| Nevada | Interest is set by statute at Nevada prime plus 2 percent once an assessment is 60 days past due, and a fee schedule and repayment plan offer must come before collection. | No statutory cap. | Nevada Revised Statutes section 116.3115(3) and section 116.3102(1)(k) | Nevada details → |
| Texas | No statutory cap on late fees or interest; payments go to assessments first, and an HOA of more than 14 lots must offer a payment plan of at least three months. | None in the statute; the declaration sets it. | Texas Property Code section 209.0063 and section 82.102(a)(12) | Texas details → |
| Illinois | No statutory cap; a late charge re-added every month on the same unpaid assessment was struck down in court, and from 2027 a written collection policy is required before suing. | None in the statute. | 765 ILCS 605/18.4(l) and P.A. 104-734 (collection policy, effective January 1, 2027) | Illinois details → |
Each state's rule is sourced to that state's statute on the linked page. Statutes change; confirm the current text before relying on it.
How the late fee caps work
Most caps use a greater-of formula, so the dollar figure protects small associations and the percentage scales with the bill. On a $300 monthly assessment, 10 percent is $30, so California's cap is $30 that month and North Carolina's is $30 too. Florida's 5 percent of $300 is $15, which is less than $25, so Florida's cap is $25. Virginia's 5 percent works out to $15, and only once the payment is more than 60 days late.
Washington works differently. For the first 15 days after the association mails a delinquency notice, it can add only the mailing cost, an administrative fee of up to $10, and one late fee of no more than $50 or 5 percent, whichever is less. After that window the statute asks only that late charges be reasonable.
Interest is a separate limit
The late fee is a one-time charge for missing a payment. Interest is what the unpaid balance costs you over time, and most states treat it on its own. Colorado caps it at 8 percent a year on assessments, fines and fees. California caps it at 12 percent and North Carolina at 18 percent. Nevada does not let the association pick a rate: an assessment 60 or more days past due bears interest at the prime rate at the state's largest bank plus 2 percent, reset every January 1 and July 1. Florida applies 18 percent when the declaration and bylaws name no rate, and a Florida HOA cannot charge compound interest.
Where no statute caps the late fee
In Texas, Illinois, Nevada and Colorado, the late fee is whatever the governing documents or collection policy say. That does not leave you with nothing. Texas makes a property owners' association apply your payments to assessments before fees and fines, and one with more than 14 lots has to offer a payment plan of at least three months. Colorado bans daily late fees and requires a good-faith effort at a payment plan of at least 18 months. Nevada requires a fee schedule and a proposed repayment plan before collection starts. In Illinois, an appellate court struck down a $25 late charge that was added again every month the same assessment stayed unpaid.
What to check before you buy
Read these together in the disclosure package:
- The seller's account statement, for any late fees or interest already charged.
- The collection policy, for the late fee amount, the interest rate, and the order payments are applied.
- Any late fee that repeats every month on the same unpaid assessment.
- Whether the rate or fee in the documents is above your state's cap.
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Order a brief for your packetHOA late fees and interest: common questions
Is there a limit on how much an HOA can charge for a late payment?
In most of the states HOA Notes covers, yes. California, North Carolina, Florida, Virginia and Arizona's planned communities cap the late fee, and Washington limits it in the 15 days after a delinquency notice. Texas, Illinois, Nevada and Colorado set no dollar cap, so the governing documents decide.
What is the most interest an HOA can charge on unpaid dues?
It depends on the state: 8 percent a year in Colorado, 12 percent in California, 18 percent in North Carolina, and prime plus 2 percent in Nevada. Florida uses 18 percent when the documents name no rate. Texas and Illinois set no statutory rate.
Can an HOA charge a late fee every month on the same missed payment?
It depends on the state. North Carolina writes its cap per month, so a monthly charge inside the cap is allowed. In Illinois, which has no cap, an appellate court held that adding the same $25 charge every month a payment stayed unpaid was an unenforceable penalty. Colorado bans daily late fees outright.
Do I inherit the seller's late fees if I buy?
The seller's unpaid balance, including late fees and interest, is normally paid off at closing from the association's payoff or resale statement. Check that statement before you close so nothing is left on the account.
Sources, verified 2026-10-06
Each state's rule in the table is taken from that state's statute and verified against the primary source on that state's page; the list below gives one primary source per state. Late fee rules and interest rates change, and Nevada's rate resets twice a year, so confirm the current figure before relying on it.
Researched and reviewed by the HOA Notes Editorial Team, which verifies each state's rule against the primary statutory source before it appears in the table above.
- California Civil Code section 5650 (delinquent assessments; late charges and interest), California Legislative Information. Verified 2026-05-31. leginfo.legislature.ca.gov
- North Carolina General Statutes section 47F-3-115 (assessments; interest), North Carolina General Assembly. Verified 2026-06-03. ncleg.gov
- Code of Virginia section 55.1-1824 (assessments; late fees), Virginia General Assembly. Verified 2026-06-03. law.lis.virginia.gov
- Florida Statutes section 720.3085 (payment for assessments; lien claims), Florida Legislature. Verified 2026-10-06. leg.state.fl.us
- Arizona Revised Statutes section 33-1803 (assessment limitation; late charges), Arizona State Legislature. Verified 2026-10-06. azleg.gov
- Colorado Revised Statutes Title 38, sections 38-33.3-209.5, 315 and 316.3 (official 2024 printout), Colorado General Assembly, Office of Legislative Legal Services. Verified 2026-10-06. leg.colorado.gov
- Washington Revised Code 64.90.485 (liens; notice of delinquency; late charges; interest), Washington State Legislature. Verified 2026-10-06. app.leg.wa.gov
- Nevada Revised Statutes section 116.3115 (assessments; interest on past due assessments), Nevada Legislature. Verified 2026-10-06. leg.state.nv.us
- Texas Property Code chapter 209 (sections 209.0062, 209.0063, 209.0064, 209.004), Texas Legislature. Verified 2026-10-06. statutes.capitol.texas.gov
- 765 ILCS 605/18.4 (powers and duties of board of managers), Illinois General Assembly. Verified 2026-10-06. ilga.gov
About this page
Last reviewed 2026-10-06. This page is a general buyer guide and a description of the HOA Notes service. HOA Notes is not a law firm and this is not legal advice. State statutes change and have exceptions; each citation was verified against the primary source on the date shown. Consult a real estate attorney in the relevant state before relying on any limit described here.