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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
AMENDED
homeowners' associations; foreclosure process
Purpose
Increases the amount over which a unit owner in a condominium unit owner association (COA) must be delinquent to $10,000 and the period of delinquency to 18 months for a COA to foreclose a common expense lien. Specifies that for any COA or planned community association (HOA) special assessment with an initial value of $10,000 or more, only the 18 month delinquency threshold applies.
Background
A COA or HOA applies a common expense lien to a property for any assessment levied against that property from the time the assessment becomes due. A COA's or 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 in the amounts prescribed by statute. Laws 2025, Chapter 71 increased the amount over which an owner in an HOA must be delinquent to $10,000 and the period of delinquency to 18 months, whichever occurs first, for an HOA to foreclose on a common expense lien. A COA may foreclose a common expense lien if the unit owner has been and remains delinquent in the payment of assessments, for a period of one year or in the amount of $1,200 or more, whichever occurs first, as determined on the date the action is filed.
A COA board and an HOA board must exercise reasonable efforts to communicate with the unit owner or 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. For a delinquent account for unpaid common expense liens, the COA or HOA must provide a written notice to the unit owner or member at the individual's address as provided to the association. Common expense lien means the lien for assessments, authorized charges for late payment of assessments, reasonable collection fees and costs incurred or applied by a COA or HOA and reasonable attorney fees and costs that are incurred with respect to the COA or HOA, if the attorney fees and costs are awarded by a court (A.R.S. §§ 33-1202; 33-1256; 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 $10,000 or more, the amount over which a unit owner in a COA must be delinquent for a COA to foreclose a common expense lien.
2. Increases, from one year to 18 months, the period of delinquency for a payment of an assessment or a portion of an assessment for which a unit owner must be delinquent for a COA to foreclose a common expense lien.
3. Specifies that for any COA or HOA special assessment with an initial value of $10,000 or more, only the 18 month delinquency threshold applies.
4. Makes technical and conforming changes.
5. Becomes effective on the general effective date.
Amendment Adopted by Committee
1. Restores the statutory requirements for a COA and HOA statement of accounts.
2. Restores the statutory definitions for common expense lien, common expenses, unit owner expenses and member expenses.
Senate Action
GOV 2/18/26 DPA 6-0-1
Prepared by Senate Research
February 19, 2026
AN/KP/ci