The proposed bill would significantly update current statutes related to the foreclosure process for condominium unit owner associations (COAs) and homeowners associations (HOAs). It would increase the delinquency threshold for a COA to foreclose a common expense lien from $1,200 to $10,000 and extend the period of delinquency from one year to 18 months. The bill would also remove the previous thresholds of $1,200 or more and one year, replacing them with the new amounts and timeframes. Additionally, it would make technical and conforming changes to ensure consistency within the statutes, thereby providing clearer guidelines for COAs and HOAs in managing delinquent accounts. Moreover, the bill proposes updates to the definitions and requirements surrounding assessments and common expenses. It redefines "assessment" to clarify that it pertains to the association's charges for common expenses based on each unit owner's liability, and expands "common expenses" to include administrative and operational costs. The bill mandates associations to maintain accurate records of accounts, distinguishes between common expense liens and other charges, and requires good faith efforts to resolve contested charges. It also modifies the conditions for foreclosing a common expense lien, establishing that unit owner charges are not enforceable as common expense liens without a court ruling, and stipulates that failure to comply with notice requirements before collection actions renders subsequent costs uncollectible. Overall, these changes aim to enhance clarity, accountability, and fairness in the management of condominium and planned community associations.

Statutes affected:
Introduced Version: 33-1202, 33-1256, 33-1802, 33-1807, 33-1241, 33-1246, 33-1217, 33-1255, 33-1243, 33-1212, 6-801, 33-741, 33-1242, 33-1801