SB1008 - 472R - House Bill Summary

House of Representatives

SB 1008

condominiums; planned communities; foreclosure limitation

Sponsor: Senator Waring

DP	Committee on Judiciary
DP	Committee on Federal Mandates and Property Rights
DP	Caucus and COW
X	As Transmitted to Governor

SB 1008 restricts when a condominium or planned community homeowners’ association (HOA) can foreclose on a unit.

History

Arizona Revised Statutes (A.R.S.) §§33-1256 and 33-1807 allow for condominium and planned community HOAs to foreclose on a unit. Once an assessment becomes due, the association places a lien on the unit. The lien for assessments, charges for late payment of the assessments, reasonable attorney fees and costs incurred with respect to those assessments may be foreclosed in the same manner as a mortgage on real estate. A lien for unpaid assessments becomes void if no proceedings to enforce the lien have begun within three years after the full amount of the assessment is due. Any payments that a member of the association makes on their account are applied to the following fees in order:

- Unpaid assessments.

- Unpaid charges for late payment of those assessments.

- Reasonable collection fees.

- Unpaid attorney fees.

- Costs incurred with respect to those assessments.

Provisions

· Stipulates that a condominium or planned community HOAs with a lien on a unit can only foreclose on the property if the owner has been delinquent in the payments of the assessments secured by the lien for a period of one year or in the amount of $1,200 or more, whichever occurs first.

- Excludes reasonable collection fees, reasonable attorney fees, charges for late payment, and costs incurred with respect to those assessments.

· Makes technical changes.

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Forty-seventh Legislature