This bill governs HOA assessments, liens, and how a delinquent owner's payments are applied — the mechanics that determine whether a modest past-due balance can balloon into fees, liens, and foreclosure.
In short: Governs HOA assessments, liens, and how member payments are applied.
Introduced — no action Pro-HOA industry
HB2614 rewrites how HOA assessment debts, liens, and foreclosures work for condominiums (A.R.S. 33-1202, 33-1256) and planned communities (A.R.S. 33-1802, 33-1807). It raises the delinquency thresholds an association must reach before it can foreclose, requires the board to try to work out a payment plan first, and separates ordinary fines and fees from the assessment debt that can support a foreclosure.
For homeowners: This rewrite of the assessment, lien and foreclosure statutes keeps a low delinquency trigger before an association can foreclose and folds collection and attorney fees into the foreclosable lien — so an owner can lose the home over a relatively small balance that grows with the association's legal costs. It also adds a signed-instrument hurdle before an owner can direct how a partial payment is applied. Easier, costlier foreclosure is a core harm to owners, so we read it as pro-industry.
What the bill actually does, point by point — from the Arizona Legislature’s official fact sheet.
- Condominium foreclosure is only allowed once an owner is delinquent for at least one year OR owes $1,200 or more, whichever comes first.
- Planned-community foreclosure is only allowed once a member is delinquent for at least 18 months OR owes $10,000 or more, whichever comes first.
- Before filing a foreclosure action, the board must make reasonable efforts to communicate with the owner and offer a reasonable payment plan.
- 'Unit owner expenses' / 'member expenses' (fees, charges, late charges, and monetary penalties or interest) are defined separately and cannot be foreclosed as part of the common-expense lien; collecting them requires a court judgment.
- Payments are applied in a set order: unpaid assessments first, then late charges and collection fees, then attorney fees.
The A.R.S. sections this bill amends, adds, or repeals — taken from the bill text. Click one to read the current law.
Organizations and industry insiders who registered a position on this bill through the Legislature’s public Request to Speak system — simply where each stood: For, Against, or Neutral. Individual homeowners are not listed. Whether this bill helps or hurts homeowners is our own read, shown by its label above — a group’s position doesn’t set our call. Each row links to that entity’s report card and to the source at azleg.gov.