On the Shoulders of Giants: Direct Debit of HOA/Condo Assessments - Can it be done; should it be done; how is it done?

[I belong to various mailing lists, where other lawyers from different specialties gather to discuss issues and how they handle them in their practices.  I have made a habit of copying the particularly useful suggestions, comments, and forms that are submitted in these lists into my personal collection of forms and commentary that constitutes my electronic law library.  Now that I have started blogging, I am going to pass along items that I believe may be helpful to clients and other practitioners in these areas.  I don't claim any originality in these postings - they are basically a compilation of the good ideas of others - using my language and editing.  I am therefore standing on the "Shoulders of Giants" when I do so.]

I have had landlords who have negotiated into their leases the concept of having direct debit from the tenant's account for monthly rent.  Creditors love this idea - the money comes on time, without float, without excuses.  Most of us are over the fear of some horrible Big Brother type assault on our finances when it is done by computer rather than by check.  We (most of us) are comfortable with online banking.  We pay some of our bills and utilities this way.  So why not extend the idea to HOA and Condominium assessments? 

Can a Board require this, to the exclusion of any other payment method?  Probably not right now.  There are people who don't have computers, don't have the software, don't bank online, or don't have the confidence in electronic payments.  They will always need to have an alternative available for them.  However, in light of the convenience and time saving of the electronic debit, could a board offer a discount to those who would agree to electronic debit payments?  Yes, I think so.  Just as sending out paper bills, with stamps, which someone must create, stuff, lick, and post, is labor intensive, so is opening the envelope, stamping the check, doing the math, putting them together with a deposit slip, and making the deposit to the bank.   With a pre-authorized monthly or quarterly debit, the transaction happens while we are going about our other business.  It saves effort, and so should result in some savings that justifies giving a discount.  Who can complain?  If you have been to a public meeting, in these situations everyone can and often does complain.  However, if they have the same right as everyone else to pay electronically, like cash or credit at the pump, then your objectors should be few, particularly if you can show actual savings to the Association. 

Must the Board undertake this change by the more laborious amendment of the bylaws, or can this be done by adoption of a rule?  Most list mates seem to think that it can be done by rule adopted by the Board.  Your mileage may vary - depending upon your state, your association's articles or bylaws.  Always check your state law, and then your governing documents, to make sure there is nothing that can trip you up.  And if you want to propose doing this, do your homework, quantify the savings, check with your bank on any other fees, so that when you present the idea, you have fully considered the pros and cons.  If you have already done the math and double checked it, it should sell itself.