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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
common expense liens; foreclosure; amount
Purpose
Increases, from $1,200 or more to $2,000 or more, the amount over which an owner in a planned community association (HOA) must be delinquent for an HOA to foreclose a common expense lien.
Background
An HOA applies a common expense lien to a property for any assessment levied against that property from the time the assessment becomes due. The HOA 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 HOA'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 an HOA and reasonable attorney fees and costs that are incurred with
respect to the HOA, if the attorney fees and costs are awarded by a court.
Member expenses are not enforceable as common expense liens (A.R.S.
§§ 33-1802
and 33-1807).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Increases, from $1,200 or more to $2,000 or more, the delinquent assessment amount that allows an HOA to foreclose a common expense lien.
2. Makes technical changes.
3. Becomes effective on the general effective date.
Prepared by Senate Research
February 17, 2025
AN/SDR/slp