ARREARS POLICY:

The co-operative provides housing for its members at cost.  It is the responsibility of each member to pay his/her housing charges as well as any other amounts owing to the co-operative promptly as they become due.

 

A.   Proper Payments of Housing Charges:

 

1.   Housing charges are payable monthly and are due in the Co-op office by the 25th of the preceding month.  Cheques shall be dated no later than the first of the month.  Cheques will be deposited to Rainbow Co-op account on the morning of the first banking day of the month.

 

2.   Housing charge payments must, be made by cheque, money order or bank draft.  The Co-op is not set up to handle cash.

 

3.   If housing charge payments are to be made by cheque, members are encouraged to supply post dated cheques (dated no later than the first of the month) in advance.

 

4.   If post-dated cheque is not received on the 25th of the month a notice may be placed in the member’s unit mailbox between midnight of the 25th of the month and the first day of the new month.

 

5.   If the member chooses to pay by certified cheque, money order, or bank draft on the first of the month, the member is required to notify the arrears committee.  Certified cheques, money orders, or bank drafts are due in the Co-op office by midnight on the first of each month.

 

6.   Any member paying their housing charge on the first of the month or later must do so with a certified cheque, money order, or bank draft.

 

7.   Failure to comply with “Proper Payment of Housing Charges” causes the member to be in arrears and the member will be subject to fines for arrears.

 

B.   Fines for Late Payment:

 

1.   Unless prior arrangements have been made with the Committee, if payment is not received by midnight on the first of the month, the member is considered in arrears and a $25.00 fine will be levied.  At the discretion of the Arrears Committee the fine may be waived.

 

C.   Arrears:

 

1.   Arrears are any amounts owed to the co-op that have not been received by the date they are due.

            N.B.      Unpaid fines will be considered to be arrears if not paid by the end of the month levied and will be handled in the same manner as other arrears.

 

      2.   Arrears have to be paid by money order, certified cheque or bank draft.  Any member attempting to pay arrears by other methods will be considered to remain in arrears.  Fines and penalties will be

charged as required.

 

D.  Obligations of Members in Arrears:

 

            1.         Obligation to contact the Arrears Committee:

 

                        a)         Any member who either:

·         knows beforehand they will be in arrears, or

·         discovers that they are presently in arrears will be required to contact the committee immediately to explain the reason for arrears and to demonstrate that he/she has done all in his/her power to pay the arrears as soon as possible.  Personal contact must be followed by a written explanation within 24 hours and delivered to the Co-op office.

                       

                        b)         The Committee may decide to waive the late payment fine where the above conditions are met and the explanation is acceptable to the committee.

 

                        c)         If a member in arrears does not contact the committee immediately, the case will be referred to the Board of Directors with a possible recommendation for termination of membership.

 

2.  Arrangements for Late Payment When in Arrears:

a)                   The member in arrears will be required to provide a written, dated, and signed proposed arrangement for late payment stating how and when the member intends to pay the arrears (specific amounts and dates of payment must be included).  The proposal for late payment will then be considered and voted on by the arrears committee when it meets.  The arrears committee may accept, reject, or request changes in the proposed arrangement.

b)                   Payments under this arrangement will have to be made by certified cheque, money order, or bank draft.

 

                        c)         Any failure to live up to the approved proposal will cause a referral of the case to the Board with a possible recommendation for termination of membership.

E.  Standing Arrangement for Late Payment of Housing Charge:              

            1.         A standing arrangement is any arrangement requested by the member and approved by the Arrears Committee allowing a member to pay housing charges after the first of each month on a regular basis.

 

            2.         The obligations of members requesting a standing arrangement are as listed in part F of this policy.

 

            3.         Any failure to live up to this arrangement will cause the member in question to be in arrears.  The member will then be fined and the arrangement will be terminated.

 

            4.         There will be a $10.00 administrative fee charged when an arrangement for late payment is approved by committee vote. At the discretion of the arrears committee this fee may be waived.

 

            5.         At the discretion of the Arrears Committee, standing arrangements are subject to periodic reviews and may be terminated by the Arrears Committee.  The Arrears Committee will provide reasonable notice to the member.

F.  NSF Cheques:

            1.         If a member’s cheque to the Co-op is, returned by the bank or credit union, the member shall be required to pay a $15.00 NSF service charge to the Co-op.

 

            2.         In cases of returned/NSF cheques, the member shall be treated as though s/he is in arrears and a $25.00 fine will be levied.  At the discretion of the arrears committee the fine may be waived.

 

            3.         Returned/NSF cheques must be, replaced by a certified cheque, money order, or bank draft.

 

            4.         A certified cheque, money order, or bank draft shall be required for all regular payments, if a member’s cheque is returned/NSF more than once in a year. Failure to comply will cause the member to be in arrears.

 

G.  Recommendation for Termination of Membership Leading to Eviction:

 

            1.         In cases where:

 

·         a standing arrangement has been violated 3 times in a year, or

·         a member has been in arrears 3 times in a year,

 

the arrears committee must consider, by formal motion and vote, recommending to the Board of Directors the termination of the member’s membership.

 

2.         Other reasons for a recommendation of termination may include, but are not limited to, the following:

·         a member’s failure to contact the arrears committee immediately if in arrears,

·         a member’s failure to live up to an arrangement for arrears payment, or                  

·         non-payment of arrears.

 

            3.         The arrears committee will send a letter to the unit stating their intention to recommend the termination of membership to the Board.

 

            4.         The Board of Directors will be responsible for having the notice terminating the membership and vacating the unit issued.

 

            5.         Any appeals have to be directed to the Board and/or the Registrar of Co-operatives, as prescribed by Rainbow’s bylaws and the Co-op act.

H.  Bad Debts:

            1.         Bad debts are the arrears of members who move out still owing money to the Co-op.  The Board of Directors will make a recommendation to the General Membership regarding collection of the debt, the use of a collection agency, small claims court, etc.

 

            2.         At the end of the fiscal year, any debt older than six months will be written off but remain collectible by the Co-op.

I.  Non-Payment of Housing Charge Upon Resignation From Co-op:

1.   If members do not pay their last month’s housing charge on time, a penalty of $50.00 will be levied by the Arrears Committee.