# Virginia HOA Late Fees: The 5% Cap (2026) > Under Code of Virginia 55.1-1824, a Virginia HOA late fee cannot exceed the penalty set in Code of Virginia 58.1-3915, which is 5% of the unpaid amount, and it can only be charged once an assessment or installment has gone unpaid for more than 60 days after the due date. On a $300 assessment that means a late fee of no more than $15, and not until the payment is two months past due. A flat $25 monthly late fee, or a late fee applied the day after the due date, runs past the statute. The association can still charge interest at the rate its governing documents allow, since the 5% cap applies to the late fee itself, not to separately authorized interest. _Source: https://hoanotes.com/hoa/virginia/late-fees/ | Last reviewed 2026-06-03_ ## What the cap actually is Two limits work together. The late fee is capped at 5% of the unpaid assessment, and it cannot be charged until the payment is more than 60 days late. So a board cannot pile on a fee the moment a check is a day late, and it cannot charge a flat monthly penalty that runs past 5% of what is owed. Interest is a separate line. The 5% cap is on the late fee or penalty, not on interest the governing documents may authorize, so an owner can still owe interest on a long-unpaid balance. A late fee that compounds every month beyond the 5% limit, though, is not enforceable. ## What to check in the disclosure packet Read these before you make an offer: - The late fee written into the CC&Rs or the fee schedule, and whether it tops 5% of an assessment. - Whether the late fee is triggered before the 60-day mark. - Any separate interest rate the documents authorize on unpaid balances. - The seller's ledger for late fees already added to the account. ## Why this matters to your offer Late fees are small until a balance sits unpaid, then they feed the lien. A fee schedule that ignores the 5% cap or the 60-day window is also a quick read on whether the board keeps its documents current with state law. An HOA Notes brief checks the late fee against the 5% cap and the 60-day rule, separates it from any authorized interest, and cites the page behind each finding. ## What the statute says **Virginia Code section 55.1-1824** (Late fee cap). Late fees on delinquent assessments are capped at 5% of the unpaid amount per Virginia Code section 58.1-3915; this cap applies to any assessment or installment unpaid for 60 days after the due date; the association may not charge a flat dollar late fee that exceeds 5% of the unpaid assessment, nor impose recurring monthly late fees that compound beyond this limit. The association may charge interest on delinquent assessments at rates authorized by the governing documents (the 5% cap applies to the penalty or late fee, not separately authorized interest); the declaration may contain different provisions if expressly authorized. ## Virginia HOA late fees: common questions ### How much can a Virginia HOA charge as a late fee? No more than 5% of the unpaid assessment, the penalty set by Code of Virginia 58.1-3915, and only after the payment is more than 60 days late. ### When can the late fee start? Only after an assessment or installment has been unpaid for more than 60 days past the due date. A late fee charged on day one is not allowed. ### Can the HOA also charge interest? Yes, at the rate the governing documents authorize. The 5% cap applies to the late fee or penalty, not to separately authorized interest. ## Sources (verified 2026-06-03) 1. Code of Virginia section 55.1-1824 (assessments; late fees), Virginia General Assembly. Verified 2026-06-03. https://law.lis.virginia.gov/vacode/title55.1/chapter18/section55.1-1824/ 2. Code of Virginia section 55.1-1824 (2023), Justia. Verified 2026-06-03. https://law.justia.com/codes/virginia/title-55-1/chapter-18/section-55-1-1824/ 3. Virginia community association collections guide, Axela Technologies. Verified 2026-06-03. https://www.axela-tech.com/local/virginia-hoa-collections/ HOA Notes is not a law firm and this is not legal advice.