The bill HB2663 amends the lien statutes for homeowners' associations, particularly concerning assessment liens for condominiums and planned community associations. It establishes that associations have a lien on a unit for any common expense assessment, which can include reasonable charges for late payments, collection costs, and attorney fees. The bill clarifies that the lien is effective from the due date of the first installment and specifies that these liens are not subject to the homestead exemption. Additionally, it introduces stricter conditions for foreclosure, requiring a unit owner to be delinquent for at least one year or owe $1,200 or more, and mandates that associations must make reasonable efforts to communicate and negotiate payment plans before proceeding with foreclosure.

Moreover, the bill changes the timeframe for associations to provide statements of unpaid assessment liens from 10 days to 10 calendar days and establishes a priority for applying payments received on a unit owner's account. It also clarifies that fees, charges, and penalties unrelated to common expense assessments cannot be enforced as liens without a civil judgment. The bill aims to enhance the clarity and enforceability of lien rights while providing additional protections for unit owners, ensuring that associations follow due process before initiating foreclosure actions.

Statutes affected:
Introduced Version: 33-1256, 33-1807, 33-1242