Collection of Monthly Housing Charges

WHEREAS, Stratford Townhouses Consumer Housing Cooperative (hereinafter referred to as the “Cooperative”) is a Michigan non-profit corporation; and

WHEREAS, the Cooperative depends on the timely payment by each resident-member of the monthly housing charges (including late charges, service charges, surcharges, etc.) in order to make its mortgage, vendor, and reserve payments in a timely manner; and

WHEREAS, a budget that is approved and implemented from time to time by the Board of Directors of the Cooperative does not make allowance for unusual amounts of non-payments or late payment by the Cooperative’s members; and

WHEREAS, the Cooperative does pay for the services of its staff and its attorney; and

WHEREAS, non-payment of housing charges by members not only decreases the effective income of the Cooperative, but increases the actual expenses as well;

THEREFORE, IT IS HEREBY RESOLVED:

1. That the Agent of the Cooperative is instructed to rigidly enforce the collection of housing charges and other charges from the Cooperative’s members in a timely fashion as detailed in each member’s Occupancy Agreement with the Cooperative (that is, on or before the first (1^st) day of each month); and

2. That legal action shall be commenced by the Agent against any member who has not paid any monetary obligation to the Cooperative not later than the tenth (10^th) of the month or the closest business day after the tenth (10^th) of each month by the issuance of a seven day notice to quit; and

3. That the Agent shall use its best discretion in the pursuit of small amounts of money less than Fifty Dollars ($50.00) without legal action by the methods of correspondence, telephone calls, etc.; and

4. That all seven day notices to quit that shall expire prior to the payment in full of any aount noted thereon shall be sent to the Cooperative’s attorney for prompt filing with the Courts of the state of Michigan, unless there has been some prior action of the Board of Directors to establish a payment plan or other arrangements with the member; and

5. That any member of the Cooperative whose habits of payment of the monthly hosuing charges or other charges are so uncontrolled that it becomes necessary to file that memer with the attorney for court action more than two (2) times in any twelve (12) month period shall have their membership in the Cooperative terminated, and that member shall be evicted by appropriate action of a court of competent jurisdiction, irrespective of any payments made or to be made to the Cooperative; and

6. That the Cooperative Board of Directors does recognize that extraordinary circumstances for delayed payment of housing charges or other charges may occur and will consider any requests from members for exception to the above policy and procedure when requested prior to the stage at which any action shall be filed with the courts if such a request shall be presented in writing to the board of directors by delivery of same to the on-site office or to the Secretary of the Board of Directors.

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