ARIZONA HOUSE OF REPRESENTATIVES Fifty-seventh Legislature First Regular Session
	Senate: GOV DPA 5-2-0-0 | 3^rd Read 24-5-1-0 House: COM DPA 8-2-0-0

---

SB 1494: common expense liens; foreclosure; amount

Sponsor: Senator Mesnard, LD 13

Caucus & COW

Overview

Increases the time-period and the monetary threshold relating to home foreclosure for assessment delinquency.

History

A planned community association (Association) applies a common expense lien to a property for any assessment levied against that property from the time the assessment becomes due. The Association board of directors must exercise reasonable efforts to communicate with the member, provide outlined written notice to the member at least 30 days before authorizing collection and offer a reasonable payment plan before filing a foreclosure action. A common expense lien is extinguished six years after the full amount of the assessment becomes due unless proceedings to enforce the common expense lien are instituted. The Association's common expense lien may be foreclosed in the same manner as a mortgage on real estate if the owner has been and remains delinquent in the payment of assessments for a period of one year or in the amount of $1,200, whichever occurs first, as determined on the date the action is filed (A.R.S. § 33-1807).

Common expense lien means the lien for assessments, authorized charges for late payment of assessments, reasonable collection fees and costs incurred or applied by the Association and reasonable attorney fees and costs that are incurred with respect to those assessments, if the attorney fees and costs are awarded by a court. Member expenses means fees, charges, late charges and monetary penalties or interest and are not enforceable as common expense liens (A.R.S. §§ 33-1802 and 33-1807).

Provisions

1. Increases, from one year to two years, the period of time in which a person must be delinquent in the payment of assessments allowing an Association to foreclose a common expense lien. (Sec.1)

2. Increases, from $1,200 or more to $10,000 or more, the amount in which a person must be delinquent in the payment of assessments allowing an Association to foreclose a common expense lien. (Sec. 1)

3. Makes technical changes. (Sec. 1)

Amendments

Committee on Commerce

1. Specifies that the homeowner who has been and remains delinquent in the payment of any assessments or portion of the assessment for the specified period of time or monetary amount may be foreclosed by the association.

2.

3.

4. ---------- DOCUMENT FOOTER ---------

5.                   SB 1494

6. Initials PB           Page 0 Caucus & COW

7.

8. ---------- DOCUMENT FOOTER ---------